Friday, September 6, 2019
By Paul Martin

This is a critical update from one of the best financial commentators I know, a good friend of ours, Mr. Tom Beck, who runs and we’re excited to share this one with you!

People have a mistaken notion that the debt creation of the past decade is THE problem. It is not, COMPARED with what’s coming next. In other words, the issuance of bonds alone isn’t the challenge the world will be facing, but how these currency units get spent into circulation is!

Money velocity has been stagnant for the past decade; people are simply not spending like before. But, here are a couple of ways this is changing:

1.Real Estate: more people rent these days, so there have been fewer homes built than ever before (also due to the crisis). Banks have not been lending to millennials and that’s about to change, for one. Secondly, family formation in the past decade has been flat, so in this decade (2020-2029) millennials, who are hitting their mid-30s, will tie the knot and have children.

This will cause a boom in real estate, which will be a mild factor, driving inflation pressure.

2.Entitlement Spending: Most people misunderstand this topic, but it means that money velocity is about to go nuts, since the government will pay record amounts to retirees, who will go and immediately spend it.

No one is really SAVING their Social Security check.

Still, these two aren’t the real causes of what I believe will be the greatest inflationary shock this world has ever seen.

Governments devaluing their currency is!

It is NOT a coincidence that gold accounts for more than 60% of central bank balance sheet reserves. When people wake up to the fact that fiat currencies are going to lose 30%-40% in ONE DECADE, it will be too late for them.

Silver is the best hedge because of the ratio between it and gold. Nothing could be more attractive than silver as a long-term currency devaluation hedge.

The Rest…HERE

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