Hello Pezz, Today's Report:
I just exchanged a packet of fiat paper HKD for paper gold certificates, at HKD 6404/tael (1.2 oz = 1 tael).
The fiat money was just being lazy and napping in HKD domain, and I am not feeling good about anything tied to the USD and its regime.
I fear that the major regimes are all caught in between different rocks and hard places:
China: between unemployment and inflation
USA: between economic stagflation and asset price deflation
Japan: between currency implosion and trade explosion, on the one hand, and currency reverting to mean and global asset value reset on the other foot
Europe: between ... well, actually europe seems still OK ... growth OK, prices expensive by global standard but trades mostly amongst own group, interest rate low, savings high, no wars to speak of, etc etc ... will suffer as Yen tanks against Euro, and just caught between USA and Russia, and so presumably must make nice with China - complicated
Here is an equation:
China reserves grow at rate of USD 1 million a minute
USA deficits grow at USD 1.5 million every 60 seconds
... let me spend a minute checking the sums ... yep, the numbers are correct ;0)
That works out to be 7 dollars per day every day out of your pocket into some of my neighbors wallet.
Recommendation: buy gold.
Chugs, J |
