Jim Grant, founder and editor of the highly respected Grants Interest Rate Observer and one of the world’s leading experts on US and international interest rates and financial markets appeared on Bloomberg’s “Taking Stock” on Tuesday, March 24. He is very bearish on bonds, calling them ‘risk without return’ and quite bullish on Gold and Silver.
Gold is a Hedge Against Depredations of Our Financial Masters and a Dollar Based Calamity; In Coming Years Stocks to Struggle and Silver is the Silver Lining.
Ron Paul appeared on CNBC’s Kudlow & Company last week; making his case to abolish the Federal Reserve and work back towards the gold standard:
Michelle Cabrera shouldn’t sound so incredulous, didn’t Jim Rogers appear on CNBC just recently saying the same thing?
Interviewer: “What would be ther first two things you would do if you were in Bernanke’s seat tomorrow morning?”
Rogers: “I would abolish the Federal Reserve and I would resign.”
I think it is fair to say that Jim Rogers does not mince his words.
It is becoming clear that investors are currently paralysed by fear and finding it difficult to make rational decisions in the face of unprecedented turmoil in international markets.
In this article, I will attempt to explore some of the issues that investors should be considering in the light of recent market volatility as shown below:
It was obvious to any casual observer that debate about whether the US was in, or approaching a recession, was increasing.
According to a January article in The Economist “[in] recent opinion polls, almost six out of ten Americans believe the country is already in a recession.”
And the media are increasingly willing to confront the situation head on. CNN Money this week featured John Williams of shadowstats.com who stated:
“We have a severe recession ahead of us, with even higher inflation … probably the worst business cycle seen since the great depression.”
His advice?
“You want to be liquid, you want to be safe, and I would hold a little bit of gold as a hedge against inflation.”
It was obvious to any casual observer that debate about whether the US was in, or approaching a recession, was increasing.
