Gold When Global Insanity Prevails
The comments below are an edited and abridged synopsis of an article by Michael J. Ballanger
When you think about the symptoms of a collapsing global banking system, look no further than the 65% of all global bonds that are delivering a negative yield.
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After several decades of mercantilist behaviour fully supported by governments across the globe, we have arrived at the tipping point, where government spending not just exceeds, but dwarfs, tax receipts.
Today we face a massive drop in global living standards brought on by the final reconciliation of debt. Citizens who pile on debt always end up in bankruptcy, because cash flow from earnings or dividends and interest falls short of cash outflow.
The public is realizing that the smartest people are rarely politicians and never central bankers; the best communicators are those who can speak to the masses After fifty years of orators like Reagan, Clinton and Obama, public perception is gravitating from slick to blunt with factual accuracy as a mere bonus. This growing disenchantment is rooted in one word—mistrust.
There are wild swings in the markets, and a good example is silver’s recent advance from $14.50 in May to $19.75 on September 4. It took three months for silver to get through $17, but only three more weeks to peak at $19.75. It is the start of a bull market for the metal, one that will change fortunes and lifestyles for all on board.
Conditions are ripe for a hyperinflationary event that will make 1921 Weimar Germany look like a tea party. There is only one sanctuary—precious metals—for savings in a world of monetary madness, and it resides outside of the banking system.