Goldflation | The Gold Standard #2123

https://www.midasgoldgroup.com/

Host Dave Deno asks guest Ken Russo, VP of the Midas Gold Group, about a new word he has coined in his recent article, "It’s Only a Matter of Time Before We See Goldflation". What does the word “goldflation” mean? Like other words that use the t-i-o-n suffix, it’s a popular way to form nouns denoting “the action of” or “the result of” something. In this case, goldflation will result from the printing of paper currency and the untethered accumulation of debt. Eventually, the spot price of gold will reflect all the unwinding of paper assets like bonds and stocks. Increased demand from investors looking for ways to preserve their wealth will force gold prices much higher than they are currently.

A bubble is the by-product of the rapid escalation of market value. It is the nature of economic bubbles to inflate quickly and then contract, just like a bubble bursts when it gets too big. Asset bubbles occur when the prices rise to levels way beyond historical norms. Historically, examples of asset bubbles include the Dutch Tulip Bubble, the South Sea Bubble, Japan’s Real Estate and Stock Market Bubble, the Dotcom Bubble, and the painful Housing Bubble that popped in 2008. We’re surrounded by more economic bubbles now than ever before in history. You could say the US economy is now one giant bubble, and it’s getting bigger with every passing day.

One Giant Bubble

Many economists have warned that the Housing Bubble that burst in 2008 was just a speed bump compared to what’s headed our way today. The central bank, also known as the Federal Reserve Bank, has lowered rates to the bone and printed currency hand over fist in what has become a massive fiscal policy experiment. It’s an experiment because it has never been done before, not on this scale, and it’s happening during multiple everything asset and credit price bubbles. Eventually, the thing is going to blow up. There’s too much pressure building inside it. All this massive bubble needs is one prick of a pin. Maybe that sharp tiny object will come from rising interest rates. The question is, when will it happen.

A Voice Crying in the Wilderness

The Gold Standard’s mission is to get the word on the US economy and inform listeners of ways they can begin to protect their wealth. Ken expresses popular opinions and ideas on mainstream media because people don’t want to hear them when they are in the throws of spending and buying ecstasy. Still, he’s here to raise the alarm about the impending economic collapse.

The Margin Debt Issue

Margin debt is another term discussed in the program. Margin debt is a loan a brokerage customer takes on by trading on the borrowed part of the initial capital. On the one hand, it can be effective to use leverage to buy more stocks, but on the other, it could be a quick way to dig a financial hole that’s difficult to escape. The market is seeing record borrowing to buy new shares. The latest report from Yardeni Research records $936 billion (up 40% from last year). That means increased risk for the stock market due to the combination of rising margin debt and falling stock prices.

The Valcambi 50 Gram Gold CombiBar

The featured bullion product for this episode is the unique CombiBars from the prestigious Valcambi Suisse Mint in Switzerland. Although Valcambi offers gold CombiBars in different sizes, the one discussed in this program is the 50 Gram Gold CambiBar. The Valcambi 50 Gram Gold CombiBar has individual sections looking much like a fine chocolate bar made of gold. There are fifty 1-gram gold cubes of .9999 fine 24k gold. Each 1-gram cube can separate from the sheet providing excellent divisibility. The Valcambi 50-Gram Gold CombiBar is a gold bullion product designed for a genuine financial crisis used for barter or trade. Valcambi Gold CombiBars are the best-produced multi-functional gold bar globally and benefit from Valcambi’s renowned craftsmanship.
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