The global fire brigade running out of water

[swissie]

The global "Fire Brigade" (Central-Banks) running out of water.

-Back to 2007/08: The central banks "saved" the world from economic collapse by pumping massive amounts of liquidity into the system. Fine!
But appearantly the Patient (the world economy) still needs high dosages of the drug called "easy (free) money" just to stay afloat.

At the slightest "hunch" of an economic slowdown, the central banks open the floodgates again. (see Central-Bank actions of last week).
Indicating that they must be getting very "nervous" about the Patient. A bad sighn.
Have increased the percentage of precious metals in my portfolio as a result of this.

Investors dilemma: If "the big storm" should finally hit, would the correction of those accumulated economic imbalances be rectified by massive inflation or will a deflationary downward spiral ensue?
I realise, that in case of deflation (without political/social unrest), precious metal holdings will be subject to the same deflationary pressures.
Investors (hedgers) dilemma.

At any rate, quite sure that unfolding events will deliver the answer. In the not so distant future.
After the "event", we can sit in front of the fireplace and tell our grand-children stories about "I should have" or "I shoulden't have". As the case may be.

[EbhB]

... the REAL tell-tale sign is that a post like this gets NO comments for close to a couple of weeks!

 

Thailand might well turn out to be a safe haven, the baht might be rising already due to that... 

 

After all, the economy in Thailand is still REAL, millions of real businesses of all sizes, not all propped up by fiat. And the gold is real money here ????

 

Anyone not getting into physical PCMs now will seriously regret that at some point down the line...