RE: stock market crash on the horizon26 Nov 2020 02:30
Hi Max
Don't deny what you say is a possibility.
Nother idea. Currencies used to be supported by a Country's stock of Gold or Silver such that the total money was about equal to the reserves. That ended years ago cos interest rates became so low that to borrow a zillion $ hardly mattered to Politicians. All they have to do is issue some more Govt Bonds at zero (or less) interest rates, which is great provided there are buyers.
So who are the buyers? And will they keep on buying? Heard the Chinese are buying all the Gold they can, cos they have a plan.
Result, if you have to pay 20% for Govt Bonds the whole of Western economy will go bust. China won't do that cos it will destroy their export market, but no doubt they are taking over the World (and maybe not a bad thing rather than most of our mad politicians).
Might Cost a wheelbarrow of Cash to buy a loaf of bread, then Gold is King.
BoL