2023: As Markets Implode, Gold Is Poised to Explode
The feedback beneath are an edited and abridged synopsis of an article by Egon von Greyerz
Egon von Greyerz and Matthew Piepenburg check out the dangers of geopolitical battle and a rising world debt disaster. Each tendencies level to an exploding gold market.
The shortage of statesmanship and continued supply of Western weapons and cash quite than peace negotiators to Ukraine counsel that this battle runs an rising threat of nuclear brinksmanship. Such an absurd threat in a world with over 13,000 nuclear weapons and nearly zero management is past the pale.
What could be managed, nevertheless, is investor recognition of, and preparation for, the poisonous profile of world debt ranges. Since 1971, world debt has exploded from $7 trillion to over $300 trillion. That is dwarfed by an almost $2-quadrillion world derivatives market. When measured in gross counterparty phrases quite than internet exposures, the BIS fiction of ‘secure’ world spinoff publicity fully ignores the acute threat of those monetary weapons of mass destruction.
As for the impact such distortions have on world markets, Matt sees rising desperation behind our leaders and their damaged forex and inflation fashions.One instance of that is the falsely telegraphed excellent news of a development towards central financial institution digital currencies. Present fee insurance policies to combat inflation are an equally flawed thought. Egon and Matt alternate ideas on how these damaged fashions will proceed to destroy world credit score and forex markets.
In fact, the distortions and imploding markets (property, credit score, fairness, money) level to an exploding gold worth. As Japanese banks and nations flip more and more towards bodily gold, the misdirected West appears history-blind because the gradual transfer away from the US greenback continues its simple development.
Briefly: 2023 seems to be heading into deeper and extra harmful territory for which gold gives apparent safety.