I bought some gold today. Here’s why.

  1. People have an unfounded faith in currencies. Paper money, include the Almighty Dollar, floats on a sea of debt.   I’m worried about the value of paper money. Trend?  Mostly down compared to tangible assets.
  2. We could see a deflationary depression or a currency collapse; the likelihood of either is not predictable, but I’d say it’s at least a 10-20% chance in the major western economies.  I’m hoping for  “stagflation”, but preparing for worse.
  3. Big banks and hedge funds, with help from the Federal Reserve, fix the stock market; it’s driven by fraud, not supply and demand. I’m not buying stocks.
  4. The U.S. Treasury and the Federal Reserve, with help from complicit banks and political leaders,  shuttled toxic mortgages and bad bank debt to U.S. Treasury Bonds and to taxpayers via the bailouts.  They have sacrificed the U.S. taxpayer (middle class), the dollar, and future generations to bail out the global banks. I’m not buying the “new and improved toxic asset” a.k.a T-bills.
  5. The global financial system is unstable.  It’s long on leverage and short on collateral. A Black Swan event could topple all but the most conservative investments.

Gold looks attractive in the current financial environment.

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