The following posts are quotes and paraphrases:
Satyajit Das: The ECB and European banks are in a “doom loop.” the ECB loans money to the European Banks at near zero interest rate to buy their country bonds to drive down rates so their respective countries can issue even more debt at lower interest rate payments. They then each guarantee each other. (Das is a renowned author and world expert on derivatives).
Fred Hickey: Wall Street is in a pickle. The stock indexes, in terms of Price/ Sales are more overvalued than ever before. It now requires perfect execution by the Federal Reserve, which has been been wrong on every single macro forecast since the 2008 financial bubble (GDP, housing, subprime, etc) to keep the markets inflated. (Hickey is only “Barron’s” Roundtable participant to have correctly called every bull and bear market cycle since 1992).
Frederick Sheehan: Business Week, October 19, 1929: “There is…reassurance that, in the fact that, should business show any further signs of fatigue, the banking system is in a good position now to administer any needed tonic from its excellent Reserve system.” (Sheehan is a highly esteemed financial author).
Eric Sprott: “All this money printing is designed to help the U.S. address its massive obligations, which include its current debts and off-balance sheet obligations of around 80 trillion dollars. Their annual revenues are only around 2.8 trillion dollars and their expenditures are 3.5 trillion. Everyone knows there’s no way they can afford to keep going and cover their obligations. This leaves money printing to cover the gap”. (Sprott is a celebrated money manager known for his timely calls in precious metals).
James Walker: When people start asking questions about the efficacy of the current monetary policy they will realize the Central Bankers are not to be trusted. If they are not to be trusted after printing trillions of dollars, there will be a movement into harder assets. This has already happened in India and China the last two years. At that point we will be lucky in the West if there is any physical gold left when the time comes. (Walker is the eminent head of the highly successful Asianomics).
Christopher Wood: “…has a provocative long-only asset allocation for U.S. pension funds: 50% physical gold bullion, 30% Asia ex-Japan equities, and 20% unhedged gold-mining stocks”. (recent “Barron’s” interview. Wood is the renowned chief strategist at CLSA- Asia and perennially voted top strategist in Asian industry polls).
Russell Napier: “Given deteriorating economic fundamentals, deflation is likely to occur in the United States. Once deflation sets in and once investors realize that QE (Quantitative Easing by the Federal Reserve) does nothing to help the real economy, the S&P 500 Index will likely collapse (at least 50% down, although probably not all in one year. (Napier, an esteemed independent strategist and co-
Quoting Alan Greenspan in “Gold and Economic Freedom” : “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.”