With many investors worried about the economic turmoil that has engulfed the globe, fear will power the gold market to unimaginable heights.
Fear Will Power The Gold Market
Stephen Leeb: “Recently someone asked the question-and-answer website Quora how much stronger America’s military is than the second strongest. The response, from a former paratrooper, was that we’re “1,000 times” stronger. And, he added, no power would have a chance against us in a conventional war…
“While the paratrooper may have been deliberately exaggerating for effect, his comments reflect the common assumption here that America reigns supreme in all things military. Unfortunately, that’s just no longer true – which isn’t to say that we can’t regain our former position as the clear military giant if we get our act together in time.
But meanwhile such complacency strikes me as being very dangerous, especially in the context of this particular election. My fear is of what could happen if in the near future some event drives home that we’re outclassed in some military areas. Might that cause us to panic, to overreact, to rashly seek to assert our dominance in any way we still can?
That fear is why in this election, for the first time ever, including throughout the Cold War, the front-and-center issue for me is whose finger will be on the nuclear button. Not that even in the best of times you’d want to turn over the nuclear codes to someone whose temperament seems, shall we say, not entirely steady. But the fact that our military options are shrinking exacerbates the concern.
Risks Rising On All Fronts
The “finger on the nuclear button issue” is motivating a lot of people besides me. That this issue has become part of today’s political conversation is riveting evidence that America in many ways has gone off course both economically and militarily, with risks rising on all fronts.
Rising risk means rising gold. The recent setback in the Midas metal is temporary. Moreover, if China has its way in setting world monetary policy and, along with Russia, continues to develop its military technologies, gold will likely experience the greatest bull market of possibly any asset in history.