I urge you to consider my arguments for investing in gold and silver, and the miners that extract it.
I am holding on to my post 2008 forecast for gold reaching $3-5k per ounce by 2017 (and silver reaching $100) because the world’s largest governments continue their plunge into default, and cannot afford to let interest rates normalize if they don’t want to be forced into a rationalization.
It may be arguable at what point it became unfeasible in the US to allow the market to drive interest rates. Admittedly, it would be unusual for the market to determine interest rates without interference from the all-knowing bureaucrat at any time, trained as they are in the art of spinning infinite financial verbiage. Yet, since Volcker’s day, it has also become increasingly less feasible even if they wanted.
It seems so obvious to me that the bureaucracy is not only taking the path of least resistance – cheap money – but that it is also trapped in this policy, i.e. trapped in a lie to the public about the state of the government, and of the malinvested economy. This can only lead the world into another stagflation.
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