KW: Even the Wall Street screamers are now noticing something serious has shifted in the market. When central banks like ours start talking about negative interest rates you know they are completely clueless about the outcome this will generate as they will have destroyed interest rates, the price of money. No one is going to put up with this for long so they either put money into property thereby creating an even bigger bubble or buy shares as has been happening now ever since the FED printed off an extra 4$trillion for players to play with or look to precious metals and exotics like cars paintings to over price as investment. All this cuts out any wealth transfer to the vast majority of folk who are not involved with any of this so the split between rich and poor gets even bigger creating more and more social tensions. Have you noticed that young people are the suckers who are now buying shares? They are the ones who have only seen booming markets and believe that markets only go up. We have seen this tragedy play out before but whikle share brokers continue to reel in huge commissions you won’t be told the truth about what your doing. All the financial commentators are already owned.
Doug Casey writes. But what is important I believe is to understand that the US government has printed more money recently than it has for its nearly 250-year existence? It’s the biggest monetary explosion that has ever occurred. It has helped push the price of gold—and ultra-lucrative gold mining stocks—to multi-year highs. But that’s nothing compared to what is ahead of us.The coming money printing will be unlike anything we’ve ever seen before…That’s because governments around the world have thrown out the last semblance of fiscal and monetary sanity. They are bailing out everyone and everything at the cost of trillions of dollars. Where are governments getting all this money? They’re simply creating it out of thin air. It’s hard to comprehend such enormous numbers.
Here’s some perspective…
One million seconds is about 11 days ago. One billion seconds ago was 1988. One trillion seconds ago was 30,000 BC.
A trillion square miles would cover the surface of 5,000 planet Earths. Suppose you had a job that paid you $1 per second, or $3,600 per hour. That amounts to $86,400 per day and about $32 million per year. With that job, it would take you nearly 31,700 years to earn a trillion dollars.
Suppose you earned $50,000 a year, the typical household income in the US. It would take you more than 20 million years to make a trillion dollars. If you had a trillion one-dollar bills, you could cover the surface area of the state of Delaware twice over. If you stacked a trillion one-dollar bills on top of each other, it would reach 67,866 miles high, about one-fourth of the distance from Earth to the moon. If you took that same trillion one-dollar bills and instead stacked them end-to-end, the length would exceed the distance between the Earth and the sun. The picture below shows a trillion dollars in $100 bills, double stacked on pallets.
On the lower-left side is a barely visible human for scale.
So, that’s how big one trillion is.
When any government starts carelessly spending and printing trillions, it’s a sure sign that you’re entering dangerous territory. When it’s all said and done… the money printing going on right now could reach into the tens or even hundreds of trillions of dollars. It’s an unfathomable amount of money. It will likely unleash the biggest gold mania ever. In fact, it has already started. The gold market is moving rapidly, and you don’t want to get left behind.
Savers beware, U.S. “real” yields are at a new low. And while that’s bad for cash, it’s the recipe for a gold bull market.