Sunday, November 22, 2009

GEAB predict that 2010 will be interesting

Global systemic crisis – States faced with three brutal options in 2010: inflation, high taxation or default

"In 2010, as protectionism and the economic and social depression will gain momentum, a large number of States will be compelled to choose between three brutal options: inflation, high taxation or defaulting on their debt. A growing number of countries (USA, United Kingdom, Euroland , Japan, China ,…) have used all their budgetary and monetary cartridges in the 2008/2009 financial crisis and are now left with no other alternative. Nevertheless, out of ideological reflex or in an attempt to avoid by any means having to make such painful choices, they will try to launch new stimulus plans (under different names) even though it is now clear that the huge public effort made in the past months to boost the economy is having no impact on the private sector."

Posted by quiet guy @ 06:54 PM (1425 views)
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12 thoughts on “GEAB predict that 2010 will be interesting

  • Zut alors!

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  • general congreve says:

    Inflation – Undermines currency. Buy gold to maintain purchasing power of savings.
    High taxation – Feeds through into weaker consumer demand and therefore weaker economy, leading to weaker currency. Buy gold to maintain purchasing power of savings.
    Default – Total currency collapse – Buy gold to maintain purchasing power of savings.

    Everyone buying gold to maintain purchasing power of savings = Massive surge in investment demand, leading to massive price surge due to demand/supply constraints, thereby generating leveraged returns for the gold investor.

    So, what to do with that hefty Sterling deposit you’ve been saving for a house?

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  • 2. general congreve said… Buy gold

    What do you do with your other 23 hours 59 minutes of the day?

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  • general congreve says:

    Sex, PS3, Beer. Not always in that order though.

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  • general congreve says:

    Devo – Actually not sure if you’re question @3 was directed at me (as in my response @4) or you meant you needed pointers on what to do with your time if you followed my advice. If it was the latter, you could also try filling the time by banging on and on about how sh1t everything is on HPC. Which of course is true – so buy gold.

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  • Right. Let’s see if we can play nice.

    @general congreve

    You’ve posted a gold ramping comment on my economics posting! (you shameless scallywag 🙂 )

    @devo

    Let’s face it. Your first comment was even worse.

    Now let’s try to change the mood with a little comedy (hat tipped to Karl Denninger’s Market Ticker blog):
    http://www.youtube.com/watch?v=8ZXEShSIFks

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  • 6. quiet guy said… right. Let’s see if we can play nice

    i know where you’re coming from quiet guy

    so did john lennon

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  • general congreve says:

    @6 – It’s true that I’m a total gold bug, but only since January this year, when I took a good look at the situation we all face and decided gold seemed like the best bet to invest money in for the long term. But as for ramping, I don’t know if you could really call it that on here. Obviously I have a vested interest in the gold price going up, but I’m under no illusions. If every single HPCer went out to buy gold on my recommendation tomorrow it wouldn’t make a ot of difference to the price and my own investment. The only reason I state the case for gold is out of my philanthropic nature. Anyone who has a deposit saved who is waiting for the right time to buy faces a far more complicated situation than simply waiting for prices to crash, as NuLabs monetary policies threaten to undermine the value of their hard earned savings in favour of bailing out all those over-indebted idiots who should have been turfed out of their houses months ago.

    Hence my advice to protect you wealth with gold while you wait for the HPC.

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  • general congreve says:

    @8 – Typo. Should say a JOT of difference to the price.

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  • Gotta agree with general Congreve, i would put around 25% of my cash into Gold and Silver, for all the reasons stated in 8, which pretty well sums up my own feelings..

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  • mark wadsworth says:

    Notwithstanding I am no expert in these matters, there is a limited amount of gold in the world, so if everybody were to try and convert their cash into gold, the price would go up thousands of per cent, then it would crash again and the people who stayed in cash will be laughing.

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  • then it would crash again and the people who stayed in cash will be laughing.

    But not for long as their wealth is soon wiped out with hyperinflation.

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