In today’s uncertain world with the ongoing pandemic and geopolitical tensions deepening a worldwide inflation problem, gold is back in fashion. Part of the allure is its role as a store of value at a time of persistently high inflation and when everything else seems too risky.Gold’s bull market is only just beginning.–John Ing, President and Chief Executive Officer at Maison Placements
Investors who don’t trust the economic numbers put out by the government turn to John Williams, who’s old school approach includes all relevant information, whether it favors the governments agenda or not. Currently, with the REAL inflation rate calculated by Williams at 14.8% (and rising), there has never been a more opportune time to own physical gold and silver. And since we know the gold and silver prices have been artificially held back, especially the last few years, the opportunity to buy “on the cheap” is even greater. One only has to look at the price action of crude oil, copper, palladium, uranium and lumber to understand where inflation is taking us. Soon, gold and silver will catch up and take the lead as the “go to” inflation hedge, just like the 1970’s. Finally, all time high negative real interest rates AND massive demand for physical gold and silver by China and Russia virtually assure sharply higher metal prices in the years to come.
Fed Rate Hike Will Cause Hyperinflationary Great Depression
by John Williams
Economist John Williams says the economy is in deep trouble, and the Fed knows it. Williams says the Fed talking up “robust economic growth” that is causing inflation is “nonsense.” Williams explains, “The one thing that is not causing inflation is ‘robust economic growth.’ So, when they talk about raising interest rates to kill this robust economic growth that’s triggering the inflation, that’s absurd, and the Fed knows it. . . . If the Fed foolishly raised rates as reflected in the payrolls as not being fully recovered, you are going to have a sharp downturn, a double dip depression here. At the same time, you are still going to have the inflation. You are going to end up with an inflationary depression or a hyper-inflationary Great Depression.” According to Williams’ forecast, “In terms of a crash, I am looking for much higher inflation, maybe hyperinflation, and I am looking for the economy to crash. You can address the inflation by personally holding physical gold and silver.”
So, jobs are going to disappear? Williams says, “They already have, but hopefully all the effects of the pandemic will disappear, and people will get back to work, but that is not happening now. There is no sign of it getting better. In fact, the numbers are indicating it’s getting worse. . . . The holiday retail economy in November and December declined at the worst pace since the Great Recession. You had a negative holiday shopping season. That’s not a booming economy.”
On top of that, Williams says the real inflation rate is 14.8 %, if you disregard all the gimmicks the government uses to make inflation look less than what it really is. Williams says, “That’s the highest inflation rate since the Truman Administration.”
In short, Williams points out, “The Fed has to keep the system liquid. So, the money is going to continue to flow, and they cannot afford to raise interest rates. If the Fed raises interest rates, it’s going to crash the economy from where it is now, and the economy is not healthy.” Williams says buy physical gold and silver and hold it against the inflation that is here to stay and will get worse.