“2018 – A Year of Epic Market Disruptions? Part 3” – Jay Taylor, Editor, J. Taylor’s Gold, Energy & Tech Stocks
2018 marks the 10th year of the current credit cycle. Nearing its end, interest rates are rising prompting banks to sell their Treasuries and make loans. With that, the real economy is growing leading to rising wages and prices. Inflation fears are rising, setting the stage for the end of the cycle. But this is not your father’s credit cycle. Debt is rising much more rapidly than GDP and growing geopolitical tensions are depriving the U.S. Treasury of foreign sources of funding relied on in the past. And not only usual adversaries like Russia, Iran and China are seeking ways to dethrone the dollar, but the Euro zone has joined those efforts following a reversal of Obama’s Iran nuclear deal. How will the Treasury respond to this growing crisis? Most likely, it will do what most bankrupt nations do. They hyper-inflate their currencies. The end of this cycle is near and we are approaching that point in time when owning gold and gold shares are more necessary than ever.