Stanley Druckenmiller & James Rickards & Tyler Durden: Interest On The Debt Is Going To Kill Us. There’s No Way Fed Will Stop Easing! One Way Or Another, Owning Physical Gold Is The Safest And Most Effective Way of Insuring Against Hyperinflation.
Hedge fund legend Stanley Druckenmiller on exploding debt interest.
Two short highlight clips from Druckenmiller’s rare interview last week on CNBC
Here’s a chart of interest paid on the U.S. national debt.
Interestingly, we have already paid $150 billion for fiscal 2013.
However, central banks can only create liquidity, not wealth. If printing money were equivalent to creating wealth, then mankind would not have to get up early on Monday morning. Only a solvent central bank can halt hyperinflation. The longer governments run large deficits, the longer central banks continue to monetize them, and the longer their balance sheets grow, the higher the potential for enormous losses and thus hyperinflation.
Necessary preconditions for hyperinflation are a quasi-bankrupt government whose debt is monetized by a central bank with insufficient assets. One way or another, owning physical gold is the safest and most effective way of insuring against hyperinflation.
Rickards expand on his sometimes controversial ideas, including the national security risk posed by clandestine gold purchases by China, hidden agendas of sovereign wealth funds, and more!
A Steve Quayle reader has reported that the 2 dozen gold Krugerrands he kept stored in his safety deposit box in a Cincinnati 5/3rd Bank have been confiscated, and that the 5/3 Bank Manager informed him that a CIA agent was the culprit who cleaned out his stash of phyzz- but that all fiat dollars were left untouched in the box.
While this in an anecdotal account, this emphasizes a point we have long made here at SD: if you don’t hold it, you don’t own it!
Full account of Fed gold confiscation is below:
“The truth of the proposition that, ‘although gold and silver are not by nature money, money is by nature gold and silver,” is shown by the fitness of the physical properties of these metals for the functions of money.”