Thursday, August 28, 2014

Deflationary Collapse is Unavoidable


Non-stop bullshit and diversions aside, events of the past several years have greatly simplified the monetary event sequence...

Multiple debt ceiling increases. Multiple fiscal cliff political charades. $4 trillion in debt monetization. A totally ignored debt downgrade. 0% interest rates for five years straight. A forty percent increase in global debt levels. None of those events have reduced the underlying deflationary forces that are imported constantly from the Third World. Nor have they sated the appetite for safe haven Treasuries. I am sure that day will come, but not yet. During the extreme deflationary phase, owning the safest of short-term debt instruments (U.S. or otherwise) and/or physical cash, will be the safest ("temporary") havens. And then, at some point, gold.


Printing Currency: The Nuclear Option
Speaking of which, just this past week, the concept of printing currency and distributing it to the masses resurfaced in an article from the "Foreign Affairs" magazine, no less. If the comfort-seekers are talking about it now, just wait until the riots begin. And of course Wall Street will be long gone by that time. 
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