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The Masked Tulip

Are We Living In The Last Days Of A Worldwide Crack Up Boom?

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I think it means to buy gold or houses or something but not save cash?

This first stage of the inflationary process may last for many years. While it lasts, the prices of many goods and services are not yet adjusted to the altered money relation. There are still people in the country who have not yet become aware of the fact that they are confronted with a price revolution which will finally result in a considerable rise of all prices, although the extent of this rise will not be the same in the various commodities and services.

These people still believe that prices one day will drop. Waiting for this day, they restrict their purchases and concomitantly increase their cash holdings. As long as such ideas are still held by public opinion, it is not yet too late for the government to abandon its inflationary policy.

But then finally the masses wake up. They become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly. A breakdown occurs. The crack up boom appears. Everybody is anxious to swap his money against ‘real’ goods, no matter whether he needs them or not, no matter how much money he has to pay for them.

http://www.arabianmoney.net/gold-silver/2013/05/07/are-we-living-in-the-last-days-of-a-worldwide-crack-up-boom-asks-bill-bonner/

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I agree, that's why I took all of my money out of the bank and bought a truck with it, anything is better than money in the bank. At least I can say I was an early adopter and it does earn around 10 times more return than the interest I was getting.

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We certainly aren't living in the 'last days' of a crack up boom but there's a very real possibility that such a thing could happen in the not too distant future.

The pump is being primed and should we see a printing-fuelled 'recovery' in the US without the central banks taking prompt action to withdraw the massive amounts of liquidity that they have added to the monetary system (and they won't, IMO) then all bets are off.

The thing to do would be to get into assets and debt early on, then sell enough assets to pay off the debt with the profits (making sure that the rest of your wealth is in tangible assets, preferably ones you can physically possess) before the system collapses.

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  • 239 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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