A Forecast From the Desk of Ron Paul:

05.07.2017 • Switzerland

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Henry Bonner – Strategy and Council Letter (Switzerland) –

In Lausanne … What are we doing …? What are we preparing for …?

We are talking about the “crisis” that comes in our missive … and we try to understand where it will come from …

‘This Feast Will End.’

We are not the only ones to doubt that “something is not right …”

You yourself, no doubt, have your questions on the health of the economy …

You are not alone…

For example, politician Ron Paul in the US – the only one we know who wants to reduce the size of the state – believes that a crisis is in the near future … explaining in an interview on CNBC that :

“I would not be surprised if stocks fall by 25% by October …”

If Wall Street absorbed losses of this order, we would see panic seize a good number of investors … perhaps putting an end to the rise once and for all …

continuing:

“I think the markets are right to be nervous: They do not know what to expect from the Fed.We do not know what the Fed will do … or how the markets will react …

“Given that they do not know what to prepare – and can not know – I do not expect the market response to these unforeseen events to be a boon.

“As a reminder, the Fed has not for the moment been successful in its forecasts for the future, nor in the decisions it has taken.

“I do not think this atmosphere of ‘bubble,’ nor that the gains that occur on Wall Street will last forever. In my opinion, all this is coming to an end. “

If Dr. Paul is right, then we should be prepared …

‘Not Surprising If Gold Grows 50%’

Pursuit Dr. Paul:

“People have the impression that the market can climb forever, that we have entered an era of earnings that last forever.

“Believe me: The rules that have always existed continue to exist.

“We have too much debt, and too much money circulating on the market.

“Sooner or later we’ll see things change. If this market were to fall by 25%, and gold by 50%, this would not be surprising to me. “

What to do?

If Dr. Paul is right, then we have to prepare ourselves …

Would it be so surprising if he were right?

Our equity market is already sinking slowly since the beginning of May …

How long will it take for the algorithms to decide that it is time to sell?

What will it take for investors to take their money out of the markets?

What would happen if the market dropped by 5%? 10%? Would it be possible?

Of course, Dr. Paul is not the only one to sound the alarm …

As the economist Pierre Jovanovic explains, the debt of France is well above what you believe … explaining on TVL that:

“The regions are indebted but they no longer fall into the overall debt of France. It’s still incredible! Today, the official debt is 100% but technically France is indebted to the level of 140 to 150% … “

As Jovanovic explains, when you take the departments into account, you have figures of the same order as Greece (177% of GDP in 2015) …

What can you do …?

As Dr. Paul advocates, you can start by having some of your assets in gold …

As a reminder, the price of gold has dropped starting in 2012 … and reached 880 euros per ounce in December 2013 … rebounding since to reach 1,080 euros an ounce today.

For our part, we also have assets in Bitcoin, although we do not know in which direction this currency will go …

We explained in a recent message that the Bitcoin is in competition with other currencies of this type … of which there were 700 at the beginning of the year … and maybe thousands today.

On the other hand, Bitcoin also has an advantage over others: its number of users …

The more you have people who use a crypto-currency, the more you have “computing power” – computers – that are dedicated to facilitating transactions …

Thanks to its number of users, Bitcoin is more stable and safer than the others …

So, some believe that Bitcoin – the first come – will remain the currency of preference …

Of course, the Bitcoin also has a problem that – for now – has not prevented it from getting stronger …

When you pay your taxes every year, you are obliged to pay them in euros …

You can not pay with a “other” currency – like the Bitcoin …

Of course, you can always exchange your Bitcoin for euros at the time of paying your taxes, but you will be forced to pay taxes on your earnings – if the value of the Bitcoin has climbed since you bought it …

As a result, most people do not want to complicate their lives by using Bitcoin to pay for their shopping …

On the other hand, when the situation worsens – as in a crisis – then people who have Bitcoin – like those who have gold – could do better.

According to testimony from Venezuela, where the crisis is so severe that shops lack food, some residents use the Bitcoin to avoid holding the Bolivar – for which the rate of inflation is more than 1000% per year:

“The Bitcoin saved my family from hunger, and gives us the freedom – in our finances – to emigrate in the near future. Thanks to the increase in value of the Bitcoin – and its stability in relation to the economy of Venezuela – my family is part of a small minority who can afford food and even leave the country . “

In short – have gold. And maybe also a bit of Bitcoin … (more information on how to get it to follow …)

Truly,

Henri Bonner

-Read more at www.lettre-strategie-conseil.com (French)-

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