I just returned from the 2010 Conference on Sustainability in Michigan. I had taken some time off from writing while moving my office to a different place in San Diego and decided to utilize this time to attend a conference where two attendees I had quoted in my book were appearing.
Nicole Foss (Canada) from www.theautomaticearth.com and Steve Keen (Australia) from www.debtdeflation.com/blog were the keynote speakers in Michigan, among many others who are on the deflationary credit contraction side of the coin versus the inflation hawks such as Peter Schiff, Gary North and many others quoted at www.lewrockwell.com.
The one area that many of Austrian economists don’t seem to address in their rebuttals to the deflation hawks is “credit.” They simply don’t view credit as money and thus don’t consider it in their analysis of money supply. But there are some Austrian economists that do, such as Professor Geroge Reissman and Steve Keen.
It is this excess credit that is dwarfing any quantitative easing that the Fed has and currently is putting into the coffers of the banks (not the economy). Unfortunately, their is no stimulus coming from this action.
It Is the Banks I Watch the Closest
It’s all about the banks to me. The Fed cannot afford to have the banks implode. Without the Fed’s help, the banks would implode as I have outlined in Chapter 4 of my book, “Buy Gold and Silver Safely.” This is why you hold gold and silver, as insurance against what is to come.
I will be expanding on the above in the days to come, hopefully with the first article later today or tomorrow. Lots of data to sift through. The conference had me going from 7am to 9pm or 10pm in the evening. There really weren’t many positive sentiments coming from the speakers.
As an optimist about how people invest and maintain and/or grow their wealth, there are answers. Gold and silver are part of the solution, and an understanding of what is really going on allows one to possibly profit in other areas as well. I will reveal my thoughts on this in the next few days.
The current pull back in the price of gold and silver is healthy for the precious metals market. It also allows me to get the word out more and to allow investors to buy at lower costs. Unfortunately, the government (congress), Fed and the frailty of the banking system will take care of the future, which won’t bode well for those who are unprepared.
Related posts
About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.