Bonds look like a bubble in search of a pin. What if global bonds are
revalued lower to account for the following?
- Probability of repayment in a currency that will
maintain its purchasing power for the lifetime of the bond.
- Probability of responsible fiscal management by the
governments of the bond issuing countries.
- Probability of repayment without rolling over those bonds
by creating EVEN MORE UNPAYABLE
- Actual positive yield.
From Alasdair MacLeod: The
Eurozone is the greatest danger.
“Money that is invested in bonds and deposited in banks may already
be on the way to money-heaven, without complacent investors and depositors
realizing it.”
From Jim Rickards
Strategic Intelligence (subscription service)
“The biggest problem confronting the global monetary elite is
sovereign debt. There’s too much of it, it’s growing fast and it cannot
possibly be paid off in real terms. A default larger than any in history with
trillions of dollars in losses for investors is coming, sooner rather than
later.”
- What if the dollar Reserve Currency Status and the
petro-dollar are very near their end? What if trillions of no longer
needed dollars return from outside the US and push US consumer prices
higher?
- What if the US stock market corrects by over 50% as it
did after the 2000 and 2007 highs?
- What if Fort Knox (officially contains about 4,176
metric tons of gold) is essentially empty of gold? What if the
vaults in China, both public and private, are filled with far more than
10,000 tons of gold? What if the US government is overstating how much
gold the US has vaulted while China is claiming far less gold than they
truly possess? Both governments have good reasons to lie.
- What if many defined benefit retirement programs for
government and union employees will be insolvent unless they can
consistently earn about 8% (unlikely) on their stock and bond
portfolios?
From Michael
Cembalest of JP Morgan regarding public pension plans:
“When debt reaches a certain level, the can kicking is over and
difficult decisions need to be made” … “states would need to raise
substantial funds from increased tax revenues, cuts in non-retirement spending
or increases in public sector worker contributions.”
- What if the choice of US President hardly matters to the
economy? Demographics, banker control over the economy, spending by the
military, interest payments, and spending for entitlements will continue
regardless.
- What if paper and digital currencies are revalued down,
compared to gold and silver, much closer to their intrinsic value?
From Jim Rickards
Strategic Intelligence (subscription service)
“The three new ways to get inflation are ‘helicopter money,’
special drawing rights and raising the price of gold… You can see them coming
a mile away if you understand elite jargon and the elite message system…”
From Martin Armstrong: The
Death of the Euro
“The fiscal mismanagement of government perpetually borrowing money
they have no intention to pay back threatens a complete collapse of the world
financial system.”
- What if world peace is not a goal but a roadblock to be
avoided? Based on the past 100 years of history, world peace looks like
a fabricated distraction rather than an objective. What if governments, bankers,
and military contractors aggressively pursue continual wars, regardless
of the cost in lives, public sentiment, and expenditures?
What if we exit the “reality distortion field” created by central banker
obfuscation, political disinformation, television programming, and media
distractions? What if we ignored the latest Kardashian scandal, transgender
bathroom controversy, and red carpet fashions, and instead we examined the
reality behind each of the above questions?
OTHER IMPORTANT QUESTIONS:
- In 10 years, will paper and digital assets have
increased in purchasing power by more than ounces of physical gold and
silver given today’s depressed gold and silver prices and elevated stock
and bond prices?
- If we lived outside the “reality distortion field”
would we adjust how much physical gold and silver we own versus the
quantity of digital currency that supposedly exists in our digital
accounts?
Now back to scheduled programming… Pay attention, take your drugs, and
follow instructions as dictated by the financial elite and your government.
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GE Christenson is the owner and writer for the
popular and contrarian investment site Deviant Investor and the author of the book, “Gold
Value and Gold Prices 1971 - 2021.” He is a retired accountant and business
manager with 30 years of experience studying markets, investing, and
trading. He writes about investing, gold, silver, the economy, and central
banking. His articles are published on Deviant Investor as well as other
popular sites.
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The author is not affiliated with, endorsed or sponsored by Sprott Money
Ltd. The views and opinions expressed in this material are those of the
author or guest speaker, are subject to change and may not necessarily
reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the
accuracy, completeness, timeliness and reliability of the information or any
results from its use.
