Financial crisis

What constituted, up to now, worries in Italy, Spain, Portugal and, of course, Greece, risks happening in France as well. Bad loans, or non-performing loans, along with the risks they entail for the banking system, constitute a new danger that has to be seriously taken into account.

With debt bubbles in the US, Europe, China, Japan and Emerging Markets, the world is likely to drown in printed money in the next 2-5 years. At that point gold could easily be 175 million Dollars, Euros or Yen. That level is of course meaningless in real terms.

100 years of financial mismanagement has not finished the 5,000 year track record of gold as the only money which has survived in history. The next 4 to 8 years will prove that again.

It is absolutely unreal how the world pays so much respect to mediocrity or even incompetence when it comes to running the financial system. Central banks and their heads have created this monster balloon which is now waiting to be popped.

France will not publish a list of countries holding its public debt, contrary to the United States, for example. But we have nevertheless found, in exclusivity, some data.

This is the story about Debtor, a newborn American baby. Debtor has just been born into the greatest economy in the world, a land full of promises and opportunities. This is what his parents tell him. But unbeknown to Debtor, he has been given a very bad start in life. Because the parents haven’t told Debtor, and how could they since they are not aware themselves, that he starts life with a massive debt burden that will grow manifold during his lifetime.

I think it would be interesting to look in the rear-view mirror to get an overview of the performance we can expect in large asset classes available to the French savers – and gold in particular.

The fractional banking system is soon coming to an end with the most massive bang. Holding physical gold seems like an excellent idea.

The dollar constitutes about 60% of global reserves, 80% of global payments and almost 100% of global oil transactions. So the dollar’s strength or weakness can have an enormous impact on global markets.

Gold trackers cannot be put on the same level as physical gold, which remains the only gold asset that serves as real wealth insurance.