woensdag 3 oktober 2012

James Turk: Why you should own gold

Interesting presentation from James Turk. What keeps me bullish is his Gold Money Index which still indicates that gold is way undervalued at this time.

Another item mentioned in the video (an item I've talked about many times) is the deficit to outlay ratio. The U.S. is spending money which is borrowed for 40% on average from foreigners.

The latest data on deficit to outlay ratio in August 2012 shows that we borrowed 52% from foreigners to spend on our U.S. programs (medicare, social security, defence, pensions, education...):

Chart 1: Deficit to Outlay Ratio

If we keep going this way, hyperinflation is a certainty.

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