Why We Must Keep More Gold and Silver as Safety, Security And Insurance
Albert Edwards joins RBS in warning of a new crash, saying oil price plunge and deflation from emerging markets will overwhelm central banks, tip the markets and collapse the eurozone. Albert remarks -
1. The west was about to be hit by a wave of deflation from emerging market economies and that central banks were unaware of the disaster about to hit them. His comments came as analysts at Royal Bank of Scotland urged investors to “sell everything” ahead of an imminent stock market crash.
2. “Developments in the global economy will push the US back into recession,” “The financial crisis will reawaken. It will be every bit as bad as in 2008-09 and it will turn very ugly indeed.”
3. Economy was in far worse shape than the country’s central bank, the US Federal Reserve, realized. “We have seen massive credit expansion in the US. This is not for real economic activity; it is borrowing to finance share buybacks.”
4. While it is commonly believed that any token can be used as money, this refers only to the medium of exchange, i.e., currency. Currency is precisely a “money substitute”, which is a convenience, but is not, strictly speaking, money. Land deeds, for example, can circulate as a currency but they are not the land itself. Creating more currency units in a vacuum, in this case un-backed “land deeds” with no land attached, does not create more land or any other form of wealth in the objective world even if it increases the number of transactions and the size of the economy measured in “land deeds”.
5.Fiat Currency: Using the Past to See into the Future. The history of fiat money, has been one of failure. In fact, EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well.
GOLD BECOMES THE BIGGEST WINNER OF 2016 -