Freetruth

Despite Economic Headwinds, Gold Will Outperform

It will take two to three years to write down all the bad real estate loans on the books. The deflation that has occurred is the result of the pyramid scheme that is fractional reserve banking stalling. It must expand to keep from contracting and it reached its limits (people are tapped out). Thus the velocity of money has gone negative which has more than offset the creation of new reserves. When the accounting tricks have done their magic and new loans start flushing the system the herd will think happy days are here again. It will be time to hold on to your hat as the tsunami of expanding credit money leads to hyperinflation.

Historical study of empirical evidence void of proper theoretical context is worse than worthless as it leads people to make the same mistakes over and over. Perhaps one day in the far future Austrian Economics will get its due and we can stop the folly of central banking and central planning folly. Until that day comes holding on to some gold as insurance is a good idea.