Gold and Silver Bullion Are Only “Safe Investments Left” – Stockman
By: GoldCore
GoldSeek.com
Wednesday, 17 January 2018
– Gold is the “ultimate and only real money” – Former Reagan White House Budget Director David Stockman
– Trump tax cuts will lead to a ‘fiscal calamity of biblical proportions’
– China downgrades U.S. over political ‘deficiencies’
– Expect a ‘huge reset in the bond market’ and a ‘massive drop in household wealth’
– ‘People will flee the stock and bond markets in favour of gold and silver
– Time to buy (gold and silver bullion) is ideal
– “Only safe asset left is gold”
‘There is nowhere to go from here’ are the words that ring in your ears after listening to a recent interview on USA Watchdog with former Reagan White House Budget Director David Stockman.
This might seem a depressing perspective to take but what Stockman is referring to is the fiscal and financial crisis that is on its way. The final straw of which is Trump’s massive tax cuts and the huge costs therein. It will contribute to a ‘thundering collision’ in the ‘bond market’ and the impending collapse of the third financial bubble in the last 17 years- arguably the largest bubble in world history.
For investors there is still somewhere to go, believes Stockman, and that is into gold and silver bullion:
‘If you have $10,000 to put in a safe place, put it into gold and silver not in the Wall St. stock and bond market,’ advises Stockman.
“Fiscal calamity of biblical proportions”
These quotes are taken from an interview Stockman gave at the end of December, on the very day the US Senate approved drastic changes to the US tax code.
Whilst Stockman has believed for some time that the gig is up when it comes to the current state of play, he expresses his concerns that the decision to implement major tax cuts will be the icing on the cake.
For bipartisan Stockman, the US government has not earnt the right or created enough value in the economy in order to make such reductions in the tax system. He is not against tax cuts per se, but feels strongly that this government has not done enough to go there and needs to cut costs.
The changes are made worse by the fact that they are ‘front loaded’, with a $280 billion tax cut expected to come to the fore in just nine months time
“…this bill will add $2.5 trillion to the public debt which, and this is a key point, is already going to rise by $10 trillion over the next decade based on the current law and taxes that is still in.”
Previously, Stockman has done a brilliant breakdown of what the US tax changes mean in numerical terms which you can read here. His summary will paint the picture for you:
“…what you have is a sharply downward sloping taper of tax cuts and revenue losses, which makes the bill a classic Keynesian deficit stimulus through the tax code, not a supply side incentive driver; and one so tangled up in the nation’s fiscal strait-jacket that it ends up in political la la land.”
China downgrades U.S. over political ‘deficiencies’
The disaster that is the GOP’s tax plan has not gone unnoticed by those who are just waiting for the US to trip up.
Dagong Global Credit Rating Co., one of China’s largest credit rating agencies, chose to downgrade the United States’s credit rating from A- to BBB+ yesterday, citing increased U.S. reliance on debt. It also chose to award the US sovereign ratings a negative outlook, specifically citing the GOP’s recently-passed tax-reform plan as justification for doing so.
The Rest…HERE
