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Friday, April 15, 2011

Fantasy


So this blog has talked a lot about Silver lately.

As I have repeated ad nausem, the interest in precious metals is simply an extension of the interest in the housing bubble in Real Estate that has been our primary focus these past two years.

The financial system created a housing bubble, that bubble is in the process of collapsing (although Australia and Canada have delayed the effects to date), the response to the fianancial crisis of 2008 has been Quantative Easing, QE is triggering massive currency induced cost-push inflation, and QE will also trigger a massive increase in interest rates.

QE is also nothing more than a way to continue the ponzi scheme that is government debt... hence the huge increase in Silver/Gold and the reason Silver/Gold has yet to see massive growth in values.

Those have basically been our central themes. The nadir of Real Estate as an investment is over and the next great opportunity is precious metals, especially Silver.

On the real estate front here in the Village of the Edge of the Rainforest, there have been a wave of bearish real estate articles.  We have had the Globe and Mail newspaper come out with "Signs point to a severe housing correction in Canada", the National Post commenting on how - in the midsts of a federal election campaign - "Parties are silent on possible housing bubble", more IMF warnings about "Canada's growing debt burden", Canadian Business Magazine commenting that: "Housing: Real Insanity", and a great story on VREAA about how an afternoon TV news story by Vancouver's most prominent local TV station was promoted as 'a housing bubble' feature during the noon newscast and then quickly changed to a story about 'a steady climb' in the evening news story. That station is infamous in Vancouver as being very pro-R/E.

We're at the height of denial now in Vancouver.

On the interest rate/government debt theme, I'd urge you to check out this excellent commentary on the looming spectre of rising interest rates by Charles Hugh Smith.

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2 comments:

  1. $43! ... er, I mean.. FIRST!!

    ReplyDelete
  2. Nadir doesn't mean what you think it means.

    ReplyDelete