Wednesday, May 5, 2010

James Turk Uses BIS Report To Warn Og Higher Inflation

Commenting upon a recent BIS report, which highlights the long-term dangers to developed economies from permanent deficits plus aging populations and concludes that there's a risk of higher inflation and debt monetization to reduce the real value of debts, James Turk said that buying physical gold is the most rational response.
The signs are all around us. Iceland, Dubai, Latvia, Greece with Portugal and Spain not far behind, and the UK and even the U.S. and most every other country on the not-too-distant horizon. The sovereign debt crisis – which is actually a latent bank crisis because banks are stuffed full with the worthless paper of over-indebted sovereigns – is a powder keg, and the fuse has already been lit. So what should we do? What can we do?

The answer is simple. Own physical gold instead of someone’s promise. Its time-proven record built up over the centuries clearly illustrates that gold is the ultimate safe haven. Gold is the best way to avoid counterparty risk, which is essential today as the sovereign debt bubble continues to lay bare the stark reality that governments throughout the world are bankrupt, and more to the point, that the bubble has popped. People holding sovereign paper are already heading for the exits. As a result, everyone needs gold now more than ever.

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