Gold News

Gold vs. Government

Governments are even more incompetent than we realized...

WE ARE enjoying our month in the country, writes Bill Bonner in The Daily Reckoning from his French chateau.

Not exactly a vacation...but close. We work in the office from 8am until lunchtime at about 2pm. Then, we turn our attention to other things. In the summer, that means painting.

We're repainting the billiard room, because Elizabeth decided that the curtains needed to be changed. And then, we're repainting a farmhouse, top to bottom, before renting it out.

Painting is a fairly relaxing occupation. You can do it while thinking about other things. Rolling the walls or cutting in the corners, some men might think of going hunting...or playing golf. We try to figure out what is going on in the world economy. For these are remarkable times we live in. We see what is happening...pretty much what we expected.

But we're not sure where it leads.

Regular readers may have noticed a shift in our thinking recently. Well, you can blame latex. As we were painting in the billiard room we began to see that governments are even more incompetent than we had realized. They can't even create inflation on demand!

A few months ago, we were preparing for inflation...even hyperinflation. Now we're not so sure. The depression and the Chinese vigilantes may hold off inflation...even for years.

Does this mean you shouldn't buy or even sell gold? Well...we wouldn't go that far. Even in the Great Depression, Gold Bullion and gold-mining stocks rose in price. And the one and only sure thing is that the world monetary system is dangerously unstable. We'll hold gold until it settles down. Just don't count on getting rich from it in the short-term.

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New York Times best-selling finance author Bill Bonner founded The Agora, a worldwide community for private researchers and publishers, in 1979. Financial analysts within the group exposed and predicted some of the world's biggest shifts since, starting with the fall of the Soviet Union back in the late 1980s, to the collapse of the Dot Com (2000) and then mortgage finance (2008) bubbles, and the election of President Trump (2016). Sharing his personal thoughts and opinions each day from 1999 in the globally successful Daily Reckoning and then his Diary of a Rogue Economist, Bonner now makes his views and ideas available alongside analysis from a small hand-picked team of specialists through Bonner Private Research.

See full archive of Bill Bonner articles

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

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