Countries Do Not Go Broke!

Eric,

The Final Pillar in gold lies with in the condition of longer term government bonds.

Jim,

RE: Avoid stocks in nominal or real terms? Tableb should clarify that.

Eric

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Eric,

RE: He is not correct on all things. It is his bond comment that I wished to show. Eventually the Dow in this period will make all time new highs maybe by order of magnitude. This is why the Fed is focusing on longer bonds than short.

Jim

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Jim,

RE: I totally agree on the bond comment. Stocks, on the other hand, will do things that will misdirect the public in terms of proper explanation.

Eric

A rising stock market can result from what Jim has described as "Currency Induced Cost Push Inflation". This is not the first time in history that the stocks and other movable assets have jumped as a result of the printing fiat notes, coin clipping, or what is commonly known as currency devaluation.

Jim is totally correct,

Countries do not go broke.
Countries do not fail on their debt.
Countries simply RESTRUCTURE their debts declaring that to be the end of their problems.
What countries do is to deck their currencies as a public company doing the same would deck their share values.
On a significant basis the result is "Currency Induced Cost Push Inflation."

Countries such as Germany, Italy, France, China, England, US, etc – there are too examples to list, have all experienced what I have termed devaluation steps in movable assets as a result of currency debasement.

Devaluation Steps: S&P 500 Total Market Return and Inverse price of Gold