Holter documents what happens when money supply and growth slows below nations' abilities to sustain their economies and debt turn
over level.
Caboom! aka collapse!!!!
This article is not for those who buy low and sell high, either getting that high
by gold metal's constant trading cycles high, usually requiring broker level
market understand/paid subscription to those that have that. Or by mergers/
buyouts , but then lose their shares and see long shares reduced, which are
in fact money lost in the long run. But this generation of rich board member
investors of emerging producing gold companies, don't care if screeww
their long shareholders. And of course day traders or those buying low and
selling high, and hoping for mergers/buyouts, don't care either.
From subscription section of jsmineset, so you can't link to it without one.
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'Credit Impulse and China'
by Bill Holter , March 23, 2017
https://www.jsmineset.com/2017/03/23/credit-impulse-and-china/ "From a macro standpoint, we stand at a crossroads because there is now
no entity (other than sovereign China) on the planet left that has the ability to
leverage up further (me- I guess by creating more ghost cities infrastructure
types, or perhaps have the gold quantity reserves to QE debt some more) .
(But) The Chinese are not stupid, they will not destroy their sovereign balance
sheet to aid the West in reflating.
China has already accumulated massive
amounts of gold knowing full well this day was going to come. The growth in
credit has definitely slowed, the “contraction” phase is next. The only problem
with contraction is that it cannot occur without taking the entire system with it in
a vanishing black hole. As I see it, the ultimate tool left to reflate
is to mark the
price of gold higher in an effort to reliquefy the global banks.
It is this phenomena of “austerity” or shrinking central bank balance sheets
that will destroy not only “finance” and real economies …but the currencies
themselves will evaporate as they are ALL “credit based”.
This is what JP
Morgan meant when he said “gold is money, everything else is credit”. He
understood currencies were all “derivatives” of gold. If you understand nothing
else financially than “gold IS money and will be the ONLY money left standing”,
you know enough to survive financially.
The credit impulse is definitely weakening, a reversal into outright contraction
will occur almost simultaneously to the break in confidence. This is a chicken
or the egg question,
either way, fear unlike anything we have experienced
before will prevail, and capital will seek real and natural safety in something
that has no liability. No one will trust anyone for anything. Conversely, everyone
will trust the only money on the planet devoid of liability…
gold (
silver) in hand!"