css1971

In Search of the Next Reserve Currency

SWRichmond largely has it. The dollar will remain the reserve currency until this guy:

en.wikipedia.org/wiki/...

decides otherwise.

Course. Reserve currency has some unfortunate side effects. When the entire world is buying your currency, it deflates your economy massively. Everything starts to become very expensive, particularly employees. So you have to find some excuse to print trillions. The military is a great way to do that. So the entire world basically finances your military ambitions.

First Comes Deflation, Then Comes Inflation

Pretty much agree, but deflation can run for a while. I suspect gold is going to follow silver and platinum in the short term, so no point holding it now at $700 when I can hold it at $500.

In the meantime Y'all just keep selling silver and platinum for me won't you. I'm looking for $600 in platinum and $4 on silver please.

One more thing though... I use the financial sector as "early warning radar".

The stock market is basically a big sponge for inflation. The banks churn out credit and it gets splurged in the market pushing everything higher... The banks stop lending and the market collapses.

So... Watch bank figures... The more they lend, the more money they make. When their figures falter there is trouble coming, step out into cash.