In 2008, when the markets plunged by 47%, central banks and the government HAD A CHOICE: allow debts and companies to run the normal course of bankruptcy or INFLATE AWAY by intervening in the process. The decision to bail out the financial system’s most powerful corporations, which were the banks, PAVED THE WAY for the unprecedented COVID-19 response and the way interest rates operate globally in 2020.
The Federal Reserve is an institution that COLLECTS DATA from innumerable sources and makes analytical decisions based on its lawful mandate and risk tolerance.
Failure to act in the Great Depression of 1929 has played a major role in the thought processes of FED chairmen over the decades.
A lack of adequate response in 1929 is what historians blame the central bank for. When there’s a monetary system that pegs gold ounces to the supply of government currency, public trust is measured by their ability to convert notes to precious metals. When there’s a STRICTLY CREDIT system in place, as we have right now, gold is marginalized in the eyes of the public.
Only 0.5% of global wealth is held in gold; most don’t care to learn about it and some EVEN SCORN it as a thing of the past, yet it is trading near all-time highs and has been a TOP-TIER performer in the 21st century.
In our opinion, gold is becoming LESS VOLATILE and more of a MUST-OWN asset since the ETFs have made it a thing of comfort to have exposure to.
In my networking group, which I highly respect, we had the following question raised in light of the comparisons made by the CHART BELOW between 2020 and 1929:
The question: Is the GREATEST CRASH on record coming?
We’ve gathered answers from billionaires and money managers who are MARKET VETERANS, along with large hedge fund managers. The result? NO MARKET CRASH is predicted!
I want to go over the reasons behind this since many feel like THE EARTH IS SHAKING beneath them and they’ve been living under that premise for years!
The Internet is FILLED WITH forecasts of doom, -80% wealth destructions and the worst economic conditions in modern history, all based on the chart below of the UNSUSTAINABLE NATIONAL DEBT.