Gold: Back to The Past
The comments below are an edited and abridged synopsis of an article by John Ing
Europe is in trouble, the financial markets are in disarray, and there is a new cold war. Fracturing the world’s alliances and echoing the protectionist past of the Great Depression, countries have become insular.
Globalization, which once allowed easier access to food, energy and decades of prosperity, has been replaced by deglobalization, reinforcing inflationary troubles. The largest stock and bond boom in history was fueled by fifteen years of free money, but this was followed by a hangover of entrenched inflation, rising interest rates, and bank collapses. Today, the focus is on the capital wars of a financially strapped US after fighting two fruitless wars, a pandemic, Russia, and a Green Revolution. America’s debt is its Achilles heel, with a debt-to-GDP ratio of 130%. Yet America’s challenges are only beginning.
The problem is that amid the turmoil in its financial markets, the US is locked in a power struggle with China and Russia, with its defense industry dependent on chips and critical minerals mined by others and debt held by foreign powers. To close the gap, the US has gone on a reckless spending spree to bring back industries and technology.
Up for discussion: Too big to fail; let the bailouts begin; money for nothing; the guns-and-butter era has returned; the Sino-US cold war; what are friends for; falling into the Thucydides; everything, everywhere; too big to save; debt default; US dollar collapse; America is in denial; gold, the end of cheap money; and gold stock recommendations.