The Most Misunderstood Threat Of Economic Implosion
Tuesday, December 10, 2013 at 06:52PM
Gold Prices

 | December 11, 2013 |

Readers turning to alternative news sites often try to explain their concerns with others (friends, family, colleagues, business partners). Empirically we know that most people understand that “something is wrong” but they fail to understand the real underlying threats of our economic system. The real risk is inherently related to our monetary system, a topic that is not understood by the majority of people. There are even no classes at university researching the monetary system and monetary history.

Even economists seem to have a hard time understanding and agreeing on how monetary issues and policy impact the economy and markets.

An example of this is found in a compilation of TV appearances by Peter Schiff going back to 2006 and 2007 (between 29m03s and 40m). In it, one of the economic commentators starts laughing when Schiff argues that “the absence of lending standards” will lead to a “tightening of credits” which would be the cause of a collapse in the markets (scroll to 32m in the video). Small detail: this was a couple of months before the start of the worst financial collapse in history.

Another example is in this Q&A between Rick Santelli and Noble prize winner Eugene Fama. The Noble laureate argues that shrinking a central bank’s balance sheet is a “neutral event.”

To read this article in full please click here.

In September 2011 the Gold Bugs index, the HUI stood at 630 as gold prices peaked, since then both have trended lower with the HUI losing about 65% of its value. The bottom has been called a number of times and after such a dramatic decline its difficult not to think that we are there now. However, as we all know the timing of any investment is crucial to its success and that is exactly what we are trying to do here, trying to pick advantageous entry and exit points. If you would like to know which stocks we are buying and selling please join us atStock Trader our premium investment service.

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