I believe that coordinated central bank actions in the USA, EU, Japan and China may occur soon. The global economic problems are severe and are now linked on an international, global basis. This coordinated global action will attempt to kick this can down the road one more time. China’s European exports are down 25% and other countries such as the U.S. are down as well. The excess of the 90’s has filled up the houses of baby boomers with trinkets and big boy toys. Baby boomers are starting to focus on retaining value for their retirement now. Hoarding will replace the spending of the last twenty years. Abortion has reduced the next generation by over 25 million so their is a void on consumers to take up the slack. Japan has been in a two decade funk.
Tangent Capital Senior Managing Director Jim Rickards discusses the S&P 500 priced in ounces of gold. I believe this graph provides a more realistic view of what is happening to value for the average citizen. Gold continues to be the canary in the coal mine and central bankers have spent a lot of resource attempting to manipulate the price of gold downward, never upward. Why? True money reveals the fallacy of the current prevailing economic thought.
Watch: http://www.bloomberg.com/video/this-is-your-s-p-500-on-inflation-Y8IWXJ4jQmS~XNcbrSVshw.html