Interesting article by Marc Faber
http://wallstreetexaminer.com/2016/...-created-global-socialism-backs-donald-trump/
He is a perma-bear and doom monger. BUT i think he has a valid point.
Central banks are buying up bonds at insane levels. And its doing very little to jolt the economy's production levels, wages are stagnant, inflation stagnant and there is a brewing class of people extremely p*ssed off with the world. Politics has taken a big lurch away from the center ground
So what will the central banks do next? Well of course they will buy more assets, corporate bonds, then what are they left with? Buying outstanding shares, houses etc etc. Before long central banks will end up owning more and more of everything. And when that happens they start making decisions based politically and not a free market.
Normally this would happen in one or two pockets of the world and people can move their assets to more stable areas, but when it happens globally how is one safe from governments eroding free markets and our assets? Or the government looking to tax our assets to pay for their mess (wealth taxes, bank bail ins, huge hikes in inheritance taxes, devaluation of currency etc)
I know this sounds like a bit of a conspiracy theorist thread and maybe i am going a bit nuts (happy to hear a positive spin on things) but how can one protect themselves should this rise of central bank dominance continue. I guess precious metals as they can be stored out of the way of governments. Paying off your home as quickly as possible so even if you cant sell the thing you at least have security.
http://wallstreetexaminer.com/2016/...-created-global-socialism-backs-donald-trump/
He is a perma-bear and doom monger. BUT i think he has a valid point.
Central banks are buying up bonds at insane levels. And its doing very little to jolt the economy's production levels, wages are stagnant, inflation stagnant and there is a brewing class of people extremely p*ssed off with the world. Politics has taken a big lurch away from the center ground
So what will the central banks do next? Well of course they will buy more assets, corporate bonds, then what are they left with? Buying outstanding shares, houses etc etc. Before long central banks will end up owning more and more of everything. And when that happens they start making decisions based politically and not a free market.
Normally this would happen in one or two pockets of the world and people can move their assets to more stable areas, but when it happens globally how is one safe from governments eroding free markets and our assets? Or the government looking to tax our assets to pay for their mess (wealth taxes, bank bail ins, huge hikes in inheritance taxes, devaluation of currency etc)
I know this sounds like a bit of a conspiracy theorist thread and maybe i am going a bit nuts (happy to hear a positive spin on things) but how can one protect themselves should this rise of central bank dominance continue. I guess precious metals as they can be stored out of the way of governments. Paying off your home as quickly as possible so even if you cant sell the thing you at least have security.
