Posted on 08/04/2020 9:32:35 AM PDT by delta7
Why buy government bonds when you can buy gold and make profit?
It’s a good deal for the government to borrow at no cost for 15 or 30 years
Not into giving investment advice, I give survival advice. From my grandfather to father to myself, was taught first and foremost- NOT how to make money but how to NOT lose your money....that is the trick, realize 2-4 percent inflation each year, US dollar index fluctuation, all effect your purchasing power. Onto survival, at the very least one MUST first have physical gold and silver, 10-20 percent. That is the absolute first item to aquire, then go in to paper investments. I can be called a gold bug,( term used by paper people) but every single meltdown since 2001 I have had the perfect peace of mind knowing I own , in my hand, ( no second, third party promises to pay.) a Tier 1 asset that only increases in value during times of uncertainty and unrest. “ Money”, stocks, real estate, bonds, just simply do not offer that peace of mind. Do remember, the US Constitution and God almighty himself declare gold and silver are to be used as “ money”.
“It basically means a repeat of the 70’s for America, where the feds had to offer higher interest rates to get bonds sold. Higher interest rates means high inflation. It also means high unemployment.”
Interest rates in the late 1970s were high *because* of high (expected) inflation. They don’t *cause* high inflation.
It will cause inflation because of the cascading effects. Governments must charge high interest to sell their bonds. Banks are going to have to borrow at higher rates to pay for their loans. People are going to pay higher rates. That will have effect on prices to cover the loans people and corporations make.
It will be the property that goes belly up this time. And the evictions and bankruptcies will be huge.
The only asset the government will have left are student loans. Lol.
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