Unavoidable Consequences

Posted | 16/10/2013 / Views | 2061
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Many believe the inextricably linked Debt Ceiling, Shutdown, and QE Tapering events playing out in the US are a final precursor to a major economic meltdown.  The ceiling is somewhat irrelevant – on any level there is unsustainable debt per se (whether ‘endorsed’ by being under an arbitrary ceiling or not) and officially projected to continually grow.  The shutdown is simply a squabble about the acknowledgement they are spending too much (deficits every year since 1969) and ironically means there won’t be data available for an informed decision on tapering which will now inevitably not happen in October either.  And QE itself? Well consider that the last time we saw money printing like this in Germany for WW1 it lead to the biggest hyperinflationary event in modern history.  When Germany stopped their tenfold monetary expansion from 2014 to 2018 170 DM bought an ounce of gold.  In 4 years time it took 87,000,000,000,000 DM to buy an ounce of gold…. The difference this time is it would be a global event not one contained to one country.  Gold and silver get you out of this trap. To quote French President Charles De Gaulle:

“Betting against gold is the same as betting on government – He who bets on governments and government money bets against 6000 years of recorded history”