Stagnation in the developed world, uncertainty in China, and political instability in the Middle East could make for a rough 2013….
With growth anemic in most advanced economies, the rally in risky assets that began in the second half of 2012 has not been driven by improved fundamentals, but rather by fresh rounds of unconventional monetary policy. Most major advanced economies’ central banks—the European Central Bank, the US Federal Reserve, the Bank of England, and the Swiss National Bank—have engaged in some form of quantitative easing, and they are now likely to be joined by the Bank of Japan, which is being pushed toward more unconventional policies by Prime Minister Shinzo Abe’s new government.
Moreover, several risks lie ahead. First, America’s mini-deal on taxes has not steered it fully away from the fiscal cliff. Sooner or later, another ugly fight will take place on the debt ceiling, the delayed sequester of spending, and a congressional “continuing spending resolution” (an agreement to allow the government to continue functioning in the absence of an appropriations law). Markets may become spooked by another fiscal cliffhanger. And even the current mini-deal implies a significant amount of drag—about 1.4 percent of GDP—on an economy that has grown at barely 2 percent over the last few quarters….
Gold Bank Run Accelerating: Next Stage Of Global Financial Collapse By April – Why Foreigners Are Pulling Their Gold With Max Keiser & Alex Jones
The bank gold run is accelerating, according to Max Keiser, as the Swiss are now getting ready to ask for their gold back from the criminal banksters in New York. Max feels that the ‘next stage’ of the global financial implosion will occur by April. Long ago Max forecast that when other countries began demanding their gold back from the NY bankster criminals, the next stage of collapse was about to occur. Countries now want their gold back. What’s next? From MaxKeiser.com.:
Gold Bank Run Accelerating…Now the Swiss Want Their Gold Back- All 1040 Tons of It!
With last week’s announcement by the Bundesbank of the repatriation of 674 tons of German gold from Paris and NY over the next 7 years, we predicted that an avalanche of gold repatriation requests would soon be made to the BOE and the NYFed.
It appears that Switzerland may be next to the game, much to the dismay of the SNB.
My guess is that 2013 and 2014 are going to be big up year for the precious metals, but we still have to contend with the central planners and the various government policies, which have been actively trying to keep the gold and silver prices from reaching fair value. The central planners are losing the war. They may win an occasional battle or two, but they’re losing the war, and eventually gold and silver are going to go higher.
So predicts James Turk, founder and Chairman of GoldMoney.com.
From James’ perspective, gold is not an investment. It’s a sterile asset, meaning it does not generate income. What it is, is money. Its function is to store wealth.
But money, like investments, can be overvalued or undervalued. And what we’re witnessing on the world stage is a gross mispricing of money as central banks engage in depreciation of their fiat currencies via inflation (i.e., money printing).
The process causes a transfer of wealth from those holding overvalued money to those who hold undervalued money. That’s what’s been going on for the past decade as the price of gold has steadily marched upwards versus fiat currencies.
But this process is not efficient. Mass awareness of this wealth transfer is low, so confidence in paper currencies is still high, supporting their perceived value. Market intervention by central banks and other parties conspires to keep the prices of precious metals artificially low and suspect.
This maintains an arbitrage for individuals to buy gold and silver at a discount to true value, which James believes will be slowly realized in full over the next several years as the bull market in precious metals approaches its third and final phase….
The cuts are coming…
“We think these sequesters will happen because the Democrats have opposed our efforts to replace those cuts with others,” Ryan said during an interview with David Gregory on Meet The Press Sunday. “We passed legislation, I voted and passed it in the House, twice to replace those sequesters with cuts in other areas of government. So we’ve shown precisely how we should protect defense spending by cutting spending in other areas.”
“But we think these sequesters will happen because the Democrats have opposed our efforts to replace those cuts with others and they’ve offered no alternatives,” he added.
Watch the full interview below, courtesy of MSNBC: