To Bullish Gold PricesJohn Rubino*: "Come November 9 the establishment may hold onto power, in which case the panic will subside and capital will flow back out of precious metals. But that won’t matter long-term for at least two reasons .. First, the financial stability that results from central banks buying up bonds and stocks and guaranteeing the derivatives books of the big banks is illusory. Governments have a tiger by the tail, and as debt continues to soar around the world that tiger will grow more and more frenzied. Eventually it will turn around and eat the idiots who presumed to control it, which is to say a debt-driven crisis of epic proportions becomes more likely with every new multi-billion-dollar bond offering. And when the bust comes, panicked capital will behave the way it did after the financial crisis, pouring into assets like gold that can’t be created in infinite quantities by out-of-control governments. Second, Trump was just a warning shot. He proved that there’s a political market niche for someone willing to point out the fatal flaws and inequities of the current system, and the unprotected class is ready to follow a less flawed version of Trump in massive numbers. So next time around someone more polished will pick up that torch and win by a landslide. Then this week’s political uncertainty will return with a vengeance, once again sending capital pouring into safe havens. However your slice it, the big trends all point towards chaos. And chaos is always and everywhere good for precious metals."
LINK HERE to the essay