Friday, May 20, 2016

The Endgame
[Cliff Note: In case you missed it last week, this essay by Alasdair Macleod is a great explanation of how Keynesian economics has reached its endpoint, how Say's law of producing to consume factors into this end game.]
GoldMoney's Alasdair Macleod highlights how unsound money is at the root of the problems in today's financial system .. explains what is likely to happen as the disconnects & imbalances in the economy (caused by central bank policies) begin to unravel .. "Macro-economists are discovering that the failure of monetary and fiscal planning are becoming a policy cul-de-sac that has generated a legacy of unsustainable debt .. There is evidence that central bank intervention began to irrevocably distort markets from 1981, when Paul Volker raised interest rates to halt the slide in the dollar’s purchasing power. It was at that point the free market relationship between the price level and the cost of borrowing changed." .. points out growing evidence of price inflation & stagnation in the economy "can be expected to materially increase the risk of a global banking and currency meltdown" .. advises owning non-financial assets - in other words, hard assets like gold & commodities.
LINK HERE to the essay

No comments: