Traditionally, during times of uncertainty, investors pull their capital from the equity markets and use the proceeds to purchase treasuries. With the turmoil going on in European debt markets and the havoc the Federal Reserve is creating via its disastrous monetary policies, tomorrow’s flight to safety may be permanently rerouted from government debt to shiny pieces of metal.
Today’s market action suggests that investors are pulling money out of the equity and bond markets in the search of real safety (otherwise known as real money) sending gold to an all time historical high, nominally speaking of course and silver back above $40. Safe, in the traditional sense, is no longer safe thanks to negative real rates of return and the continual erosion of fiat purchasing power. It seems fiat airlines flight 666 is running out of fuel.
Today’s market action suggests that investors are pulling money out of the equity and bond markets in the search of real safety (otherwise known as real money) sending gold to an all time historical high, nominally speaking of course and silver back above $40. Safe, in the traditional sense, is no longer safe thanks to negative real rates of return and the continual erosion of fiat purchasing power. It seems fiat airlines flight 666 is running out of fuel.
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