As The Monetary Madness Continues, Here Is A Dire Warning

As the monetary madness continues, look at the dire warning below.

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“Inflation makes it possible for some people to get rich by speculation and windfall instead of by hard work. It rewards gambling and penalizes thrift. It conceals and encourages waste and inefficiency in production. It finally tends to demoralize the whole community. It promotes speculation, gambling, squandering, luxury, envy, resentment, discontent, corruption, crime, and increasing drift toward more intervention which may end in dictatorship.” — Henry Hazlitt

And for those worried about the action in gold and silver…

By Ronald-Peter Stoeferle, Incrementum AG Liechtenstein

September 30 (King World News)

► Unconventional monetary policy has resulted in a further inflation of asset prices and has raised the level from which they inevitably will drop

► After the end of QE1 and QE2 the S&P 500 declined and only regained upward momentum once the Fed announced more easing; the end of QE3 was then implemented in a less abrupt manner via “tapering”

But it‘s unlikely that the Fed can return to monetary normalcy without affecting asset prices

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► If the Fed fails with the normalization of interest rates, the already crumbling narrative of economic recovery could collapse

► Meanwhile, there are signs for an economic slowdown (or even a recession) in the US – further expansionary measures are hence more likely than that the Fed sticks to the plan of further tightening

► After we saw “peak bullishness” on the US dollar and “peak bearishness” on commodities last year, the sentiments – that depend crucially on the narrative of a healing US economy – have changed

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Since the beginning of 2016 the Incrementum Inflation Signal
indicates a full-fledged inflation trend

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The New Bull Market In Gold Was accompanied By An Increase In Price Inflation

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► Strong negative correlation between the yields on inflation-protected bonds and the gold price

► The breakout in the gold price was accompanied by an increase in inflation concerns being priced in

► The market appears to have correctly anticipated the change in the inflation trend

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King World News

Interviews with market experts from around the world with a focus on precious metals.