Re: This Gold "Breakout" May Be Premature-Beware: Deflationary Collapse Ahead-Faber
posted on
Sep 06, 2012 04:18PM
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I predict if Romney gets elected, because of Paul Ryan and Ron Paul we shall see strict monetary and fiscal discipline, reduction in government expenditures, debt reduction, lots of financial institution bankruptcies to stop the rot and increase their accountability, a deflationary depression, then recovery just in time for the next election. US world dominance will be preserved but the pain in the meantime will be intense. They won't tell you that but you can read between the lines. Ultimately not good for gold as the buck revives.
If Obama gets elected 4 more years of stimulation and QE, rise in social expenditures, pay-offs to the banks and their executives, inflation, and the world eventually goes down the old tubes economically as nobody can trust anybody because the rules are gonzo and there ain't no discipline. Good for gold, but a tense and difficult to live in world. Left wingers and socialists have the lowest contribution rate to charities, they really don't care, and think government should do it all so they can continue not to have to. Ike