Comparing the Great Depression with Economic Conditions Today:
When you walk down most streets in America today it may not seem like a Great Depression is upon us, but there is no escaping the reality that the fundamental social and economic conditions throughout the world today actually have more catalyzing force to trigger a global economic crash than the conditions that triggered the Great Depression that began in 1929. Major market collapses are rarely perceived as obvious trends when we are living through them. Not until years after the event when historians impassively summarize the speed and magnitude of a crash are we able to clearly see the trends. This is because historians are compelled to conceptually compress all the discrete events that comprise the “crashing process” into a singular “crash” so that the events and accompanying lessons can be more easily understood by our posterity.
Price is Paramount:
In today’s unpredictable economic environment and into the foreseeable future, if you can consistently protect your principle from the falling U.S. Dollar and inflation and capture a few percentage points of profit you are doing very well. However, for a gold and commodities-based strategy to work, the fund manager absolutely must have direct access to deeply discounted prices on the commodities; otherwise the unpredictable fluctuations in the spot price of gold and other commodities will create too much acquisition risk and your portfolio could still be crippled by negative returns……Read More