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The No 1 Gold Stock for 2019

Destroying Confidence – the Last 40 Years

Commodities / Gold and Silver 2014 Jul 11, 2014 - 05:07 PM GMT

By: DeviantInvestor

Commodities

Chart 1:  Confidence in the US congress per Gallup surveys.  The downward trend is clear.


Chart 2:  Same data for confidence in US congress but plotted on an inverse scale so we see an increasing line.

Chart 3:  Official US consumer price index.  This is the official, but clearly understated, increase in prices since 1973.

Chart 4:  Official US national debt plotted on a log scale so an up-trending straight line indicates an exponential increase – averages more than 9% per year.

Summary:

  • The US government spends more than it collects in revenues, so debt increases.  The money supply increases similarly and consequently consumer prices increase.
  • Wages increase more slowly than taxes and consumer prices.  Throw in several stock market crashes, a housing crash, add in a few million home foreclosures, flaunt price fixing and market manipulations, massive banker bonuses, numerous political scandals, and eventually people lose confidence in the system.  That loss of confidence equates to dissatisfaction with congress and the administration.
  • The process is probably similar in the UK, the EU, and Japan.

What to Expect:

  1. Expect more spending, debt, wars, and price inflation.  The middle class will continue shrinking.
  1. Expect higher food and energy costs, a devalued dollar, and less confidence in governments and paper currencies.
  1. Expect more stock market crashes, corrections, booms, and blow-offs.
  1. Expect more “happy-talk” from politicians and financial TV while most of the US, Europe and Japan suffers through what appears to be an on-going depression.  Crushing deflation, hyperinflation, and currency collapse are possible – perhaps inevitable.
  1. Expect long-term economic safety with gold and silver, perhaps ONLY with gold and silver.

GE Christenson aka Deviant Investor If you would like to be updated on new blog posts, please subscribe to my RSS Feed or e-mail

© 2014 Copyright Deviant Investor - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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