If you didn't get a chance to check out yesterdays post, The Debt Days of Summer, please take a moment to read it. In many ways today's post rounds out Thurday's post on local real estate, Friday's post on Silver, and yesterday's on Sovereign Debt.
There are three central themes on this blog: Sovereign Debt, Real Estate, Silver (and Gold).
Sovereign Debt will force interest rates up as the cost of borrowing money becomes critical. High interest rates will crash the local Real Estate bubble, and the mad dash to print more money to rescue the economy/salvage Sovereign debt will drive the value of Silver and Gold parabolic.
It's important to understand, it is our belief that a return to a Gold Standard is not the solution to the world's woes (more on that another time). However, we do believe there will be a mad dash into Silver and Gold, thus pushing those precious metals exponentially higher.
The central banks of the world are loading up on Gold.
(And this is why many blogs written by economists or other financial planners/experts eschew Gold and Silver. Everything they have been taught, everything they know about finance, is wrapped up in their "faith" that the central bankers can "fix" things.)
Do you think they are doing this because Gold/Silver are in a bubble and vastly overvalued?
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