Why the US economy is a "House of Cards". According to a report in Zerohedge, it took US$10 of debt to create US$1 of GDP growth in Q1 2016.
How on earth is US$1 going to repay US$10 of debt? The debt will continue to grow and eventually implode crushing assets of all classes save for the one asset type which has lasted 5,000 years: Gold and silver.
Because of this the US is suppressing the price of gold and silver through the actions of the bullion banks in the COMEX.
Currently, only China is promoting her citizens to own gold, which could put a floor on the price of gold and silver.
The other asset which is both disruptive and outside the control of governments is Bitcoin. Though risks remain, is another asset class of its own. I own a small position in Bitcoin, but more as another leverage against the western governments' war on cash. The war on cash is happening in EU where depositors are creditors in a banking crisis, withdrawal of the 500 Euro note, limitations on daily cash withdrawal, and promotion of a cashless society and in the US, former Treasury Secretary, Larry Summers is suggesting the withdrawal of the US$100 bill.
This chart from Zerohedge shows it all:
No comments:
Post a Comment