Russell: “I've been talking about the good recent action of gold and silver, thinking maybe the “news” will get out about the US's unaudited and possibly missing reserves of gold. But now with trouble in Israel, trouble in China-Japan, trouble in Crimea and further trouble from that maniacal, homicidal leader in North Korea, I wonder if we could be on the edge of another War?
There's nothing more expensive for a nation than fighting a war, and the nations that fight a war usually sink heavily into debt -- which is why gold rises on war rumors or during a war. And I sincerely hope that visions of war are not the reason for the recent “firming” of the precious metals and mines. Again, I urge my subscribers to buy some silver. From what I gather from charts and my studies, it's time to own silver.
By October 1, the Fed will have completed its exit from QE and the market will be, to some extent, on its own. However, the Fed will continue its zero interest rate policy (ZIRP) well into 2015. I think the real trouble will be triggered when the Treasury auctions off a batch of its bonds -- and there are no bidders.
The last two generations are the only two generations in US history that have never experienced hard times. Can this continue? The US debt situation suggests to me that something new may be in our future -- at least something that people 60 years or younger have never seen. If the “great corrective bear market” does materialize, I think it will have to do with the dollar, and the US dollar as the world's reserve currency. I believe the decade ahead will supply us with a few surprises that may reshape our world....