As For Those Fears Of Another Global Economic Collapse…

Wednesday, July 5, 2017
By Paul Martin

KingWorldNews.com
July 04, 2017

As for those fears of another global economic collapse as the United States celebrates its July 4th Independence holiday, here is the harsh reality…

A New Monetary System Is Coming
July 4 (King World News) – Stephen Leeb: “Six months ago it seemed unlikely the world was headed for any sort of repeat of the 2008 financial crisis. But a few recent developments have me worried that the odds of such an odious rerun have risen. The aftermath, once again, would be a massive bull market in gold. And this time around it would be amplified, because the Chinese will be ready to move in with a new monetary system that has gold as a key component…

Before I explain why 2008 is looming more ominously in my thoughts, I want to make it clear I’m not saying the Chinese will implement a gold-centered monetary system only in the event of a full-blown financial crisis. That would be a sufficient but not a necessary condition. China has been planning for a new monetary system in any case: a financial catastrophe or even China’s sense of an impending catastrophe simply would make events move faster. Which is to say that even if my fears of a new financial crisis turn out to be overblown, it in no way weakens the case for a forthcoming bull market in gold.

As For Those Fears Of Another Global Collapse…
As for those fears: one thing that has gotten my attention has been the newly hawkish tone of central bankers. Janet Yellen seems considerably less grandmotherly, lately, as she warns about bubbly markets. What’s striking is that she’s doing so even as many measures of inflation remain below the Fed’s target of a (ridiculously) low 2 percent. And you can make similar comments about central bankers in many other countries. Yes, like the redoubtable John Williams, I believe that inflation is drastically understated. But that’s not the point. What matters is that the Fed’s measure of inflation is very low – and would jump, as it did in the middle of the preceding decade, if oil and food started to surge.

The Rest…HERE

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