Tuesday, November 1, 2016

We are all DOOMED

It’s basically gloom, boom and we’re all doomed. The question is: when? I believe the central banks in this world have embarked on an experiment whose consequences will be very bad eventually.

It will end either by the government defaulting or by massive money printing, and by doing that, you essentially lower the purchasing power of paper money. There will be a default regardless either through money printing or a straight default. 

It’s only a question of time, but default will also occur in various other ways. Pensioners or Social Security recipients would either get their incomes cut massively, or they will get their income in money that isn’t worth anything. In other words, today they can buy a basket of goods with their pension, but in the future they may only be able to buy a loaf of bread, if anything.

What should the average investor do

My advice would be diversification and I don’t believe you can trust paper money anymore. It has to function to be a store of value. The purchasing power of money has gone down a lot. By “a lot” I really mean by a lot.