The IMF published research by Harvard professors, Carmen Reinhart and Kenneth Rogoff, that highlighted that most countries in the Western world will require defaults, higher inflation and a savings tax to save their economies as debt levels reach an astounding 200 year high.
Let's say you owe the world €2 trillion, but you also hold the world's fourth largest hoard of physical gold. Sounds like a no-brainer, right? Use Italy's gold to pay Italy's debt. Trouble is, Rome's gold would be worth only a drop in the bucket. The gold isn't Rome's to sell either.
Gold no longer has a legal role in the world’s monetary system, but because of a collapse of faith in sovereign obligations and a coming complete lack of trust in governments and financial institutions, gold is going to quickly become a core banking asset.
Notable mainstream economists and influential policy makers are calling for more quantitative easing – so many that QE3 is a given. Officially, it will be QE3, but in actuality it will be QE4 because “Operation Twist” is quantitative easing with another name.
Spot dealings opened with a bid-side quoted at $1,667 in gold and at $32.50 in silver. While there is still scope for attempts at taking out overhead resistance near $1,680 and $1,704 in gold (with a possible $1,730 end-target) the going has been anything but smooth.
The non-Chinese rare earth metals sector is not dying, insists Byron King, editor of Outstanding Investments and Energy & Scarcity Investor. However, a rare earth miner's path to success significantly differs from the precious metals game. In this exclusive interview with The Critical Metals Report, King explains how.
The deflationists have been wrong, at least in the US, since 1938. That was the last time there was actual deflation. Our chart of the US True Money Supply dating back to 1959 show that only for fleeting moments is there any hint of that line going south.