What Are Investors Most Afraid Of?
A new survey from Deutsche Bank has the answer. Not surprisingly, the Federal Reserve figures in two out of three of their biggest worries.
First on the list is inflation. Thank the Fed for that.
Second on the list is a new COVID variant.
Third is fear of a central bank policy error. We’re talking about you again, Fed!
The realization that the Fed is the biggest source of investor fear – 0ccupyig both the first and third places – undermines its claim that it promotes the effective functioning of the US economy.
The United States used to be on a gold standard. Now, says Jim Grant, we are on a Ph.D. standard.
Gold has proven to be more reliable.
Ron Paul Says…
“The road to authoritarianism is paved with fiat currency.” So says the former congressman, presidential candidate, and monetary expert.
In his latest newsletter, Dr. Paul writes, “Germany’s Deutsche Bank recently released a paper warning about the Federal Reserve continuing to disregard the inflation risk caused by easy money policies designed to “stimulate” the economy and facilitate massive government spending. Germans have reason to be sensitive to the consequences of inflation, including hyperinflation. Out-of-control inflation played a major role in the collapse of the German economy in the 1920s, which led to the rise of the National Socialists.
“This pattern could repeat itself in America where we have already witnessed the rise of authoritarian movements. Last summer, groups exploited legitimate concerns about police misconduct to ferment violence across the country. Can anyone doubt that an economic crisis that leads to mass unemployment, foreclosures, and maybe even shortages will result in large-scale violence? Or that the violence will be exploited by power-hungry politicians? Or that many people will once again fall for the big lie that preserving safety requires giving up their liberty?
“… We may still have time to prevent collapse in America, or at least to make sure the collapse leads to a transition to a free society. The key to success is spreading the ideas of liberty until we have the ability to force the politicians to dismantle the welfare-warfare state and the fiat money system that is the lifeblood of authoritarian government.”
Need a Laugh?
The Cleveland Federal Reserve has produced a series of three animated Lego videos explaining inflation. We won’t spoil the hilarity by telling you exactly what they say, but to at least give you a taste, the second one ends with this teaser: “So, who helps keep inflation under control? The Federal Reserve!”
The third episode tells us “that with the help of the Federal Reserve, there is just the right amount of inflation!”
All we can say is “God help the poor propagandized American people!” Here’s the link to the Cleveland Fed so you can watch for yourself.
A Republic Monetary Exchange precious metals professional can help you create a gold and silver portfolio that will meet your personal wealth protection needs and prepare you for the financial dislocations ahead.