Bill Holter’s Commentary
Pushing on a string?
Central Banks Have Let The Genie Out Of The Bottle
May 17, 2020
(Bloomberg Opinion) — The world’s biggest economies have rolled out a plethora of monetary support measures over the past two months. If there’s one central bank that knows how hard bottling them back up will be, it’s Japan, where special operations have become a permanent fixture. Tokyo’s example suggests that policy makers will have an expansive role for years to come, particularly given the depth of the slump from the coronavirus outbreak.
Japan headed into its lockdown hobbled by poor choices, chiefly an ill-timed hike in the consumption tax at the end of 2019. Gross domestic product fell an annualized 3.4% in the first quarter from the prior three months, the government said Monday, following a drop of 7.3% from October to December. The contraction in the second quarter will be about 22%, according to economists surveyed by Bloomberg News, mirroring the scale of declines in the rest of the world.Everyone is reeling from Covid-19. What makes Japan stand out isn’t just the tax fiasco, but the long funk that preceded what’s likely to become the worst global downturn in a century. The Bank of Japan had been buttressing its economy with massive stimulus long before the Federal Reserve, Bank of England and European Central Bank embarked on a course of ultra-low interest rates and quantitative easing in the wake of the Great Recession. It took that trio a long time to withdraw their support; they had barely disembarked before the virus prompted them to dive back in.Given diminishing hopes for a rapid and vigorous bounce, it’s wishful thinking for central bankers to set expectations for a brisk exit from at least some Covid-era measures. Fed Chair Jerome Powell said in a May 13 speech that some programs will be put back in the box once the crisis has passed. He may be waiting a while, if the global financial crisis is any guide. Output is likely to remain well below pre-virus levels until at least the end of 2021.
Bill Holter’s Commentary
And #29 is, you will not survive financially what comes…without gold or silver!
28 Reasons to Buy Physical Gold
November 22, 2017
Throughout human history, gold has constantly emerged as an unparalleled form of savings, investment and wealth preservation. Due to its unique characteristics and features, gold has inherent value and cannot be debased. When holding physical gold, there is no counterparty risk or default risk. Wealth in the form of gold can also be held and stored anonymously.
From its ability to retain its purchasing power over time, to its safe haven status in times of financial turmoil and uncertainty, to gold’s ability to diversify investment risk, there are many and varied reasons to own physical gold in the form of investment grade gold bars and gold coins.
1. Tangible with Inherent Value
Physical gold is real and tangible. It is indestructible, impossible to create artificially, and difficult to counterfeit. Mining physical gold is arduous and costly. Physical gold therefore has inherent value and worth. In contrast, paper money doesn’t have any inherent value.
2. No Counterparty Risk
Physical gold has no counterparty risk. When you hold and own gold bars and gold coins outright, there is no counterparty. In contrast, paper gold (gold futures, gold certificates, gold-backed ETFs) all involve counterparty risk.