Given the massive erosion in our monetary and fiscal state, we must consider the possibility that price inflation might not just be coming, but could kick in suddenly and rise rapidly.
The Dow and S&P have crashed. Real estate has frozen up. The bond market is a bloodbath. But gold and silver prices are soaring. Welcome to the wealth transfer.
As we move into the second half of 2020, gold is increasingly likely to serve as an effective and necessary hedge, particularly in light of the Fed’s dovish stance, ongoing geopolitical conflicts, and the risks associated with the recession, stock market volatility, and US election.
COVID-19 continues to be the major headwind affecting all markets. Volatility remains extreme as news headlines regarding “flattening the curve” and potential treatments in the works for mitigating the effects of the virus shift markets up, only to be sent lower again when officials and medical professionals take to the airwaves and walk back previous comments.
In 1906, Alfred Henry Lewis stated, “There are only nine meals between mankind and anarchy.”
Since then, his observation has been echoed by people as disparate as Robert Heinlein and Leon Trotsky.
Here we have an image from 2008. It records a Zimbabwean, making a visual comment on the fact that, in a matter of months, his country experienced government–driven hyperinflation that left him broke.
By Jeff Thomas, Feature Writer for Doug Casey’s International Man and Strategic Wealth Preservation History has an extraordinary tendency to repeat itself time and again. The same mistakes that rulers make in one era are repeated in subsequent eras. Political leaders have a nagging habit to want to grow governments to unmanageable proportions, invading other…