OFF INTO THE WILD WET YONDER How does this...
Gold to $5,000 an Ounce… and You Still Won’t be Able to Eat It
While in Tokyo this past week on business, I was lucky enough to arrange sit-downs with several people in the forex (FX) and cryptocurrency industries. Many of which were very successful, extremely intelligent, and (surprisingly) young.
I always enjoy talking with those heavily involved in either the soft or hard asset world, and yet rarely have I met someone on either side who gives so much as a damn about what is going on in the opposite side’s reality.
Example? Asking a precious metals investor if they like any global currencies will most likely get you the same response as if you had asked an FX trader if they hold any silver bullion (or even own a home—especially true in Japan).
One such recent conversation actually turned a bit edgy. A simple discussion about diversification and thinking outside the norm was quickly responded to with, “The economy is doing great! Abe is helping the stock markets move higher… things are going as expected.”
This actually caught me somewhat off guard. From a certain perspective I suppose things could be perceived that way, especially if you are a stock or FX trader following everything that Japan Prime Minister Shinzo Abe and his government throws at the markets. But for those focused more on “big picture” stuff, and not just a computer trading screen worried about pips on a 1–5 minute screen, the world doesn’t really look or feel much like things are going as expected.
On the contrary, things look rather dreary.
I countered with a discussion on why the U.S. and Japanese stock markets were moving up while price-to-earnings (P/E) ratios painted a very different picture of the markets. As well as the point that unemployment numbers in the United States are arguably inaccurate, with actual unemployment rates closer to 20% if you were to include all the people who have “dropped out” of the unemployed-but-looking statistics that the government uses. To this I just received smiles, polite nods, and an elbow from my colleague to change the subject.
Oh well, drink the Kool-Aid I guess.
The reality is that most opinions in Japan—as well as in the United States—are going to stick to the mainstream media’s view of “everything is fine.” And of course, if you are sitting in the studio of, say, CNBC or Bloomberg then most likely everything is fine for you (if not better than just “fine”).
But if you are the regular guy or gal on the street, working hard and trying to put a little into your government or corporate pension account, you might feel a little differently. Or at least be having some serious concerns about the future.
With my perplexities and misgivings about the future, I fall definitely into the latter. And as such, try to follow people in the economic and financial spheres who hold similar feelings. The mainstream media labels these types “doom and gloomers,” and that label certainly suits a lot of them. But in many other instances, the label is rather shortsighted.
One such gentleman is Martin Armstrong.
He has an interesting past, ranging from market making, financial modeling, and forecasting to high-level government advising, and even has a few years of jailtime under his belt (although, in all fairness, this seems a direct result of mainly being headstrong).
He has been featured in Time, The New Yorker, and Bloomberg magazines, among others, mainly for his accurate predictions using something he calls the Economic Confidence Model. In general, Armstrong believes the world operates on cycles, and that these cycles can be modeled almost to the exact date using the mathematical constant of Pi X 1,000.
These days he is more sought after in the alternative media space than in the mainstream. This may be because of his anti-government opinions, or possibly his anti-establishment ideas regarding fiat money and the global system that has been built upon it. In either instance, his voice—and voices like his—are not currently welcomed on the idiot box you have in your living room.
It is understandable, though. I mean, predicting the start of a prolonged collapse of the global economy in autumn 2015, gold reaching as high as US$5,000 an ounce in the near future because of loss of confidence in the government, and a total meltdown in the bond markets is the sort of stuff that most talking heads on CNBC tend to shy away from.
Nevertheless, this is why the alternative media world is crushing the mainstream media machine, because in a true democracy all viewpoints and angles are welcomed.
Do yourself a favor and spend 26 minutes watching his video interview with Greg Hunter. If anything, it will give you a more well-rounded view of the global financial umbrella that we currently shelter ourselves under. In addition, it just might make you think more deeply about where you put your money in the future, as well as what might be missing from your portfolio.