All Posts Tagged With: "central bankers"

That leaves real estate. That’s why people want to put money in real estate. It’s priced at fair value – statistically. So, you can buy it without worrying too much about it going down. And it’s not like gold. You can get income from it. Everybody is looking for rental properties with a decent stream of income.

We believe the “expansion” reported in the GDP figures is mostly counterfeit. It’s government spending and hot money filtering into the economy.

Now just because Ben Bernanke and the global cabal of counterfeiters don’t want something to happen doesn’t mean it won’t happen anyway. The deflating of the reflated asset bubble is going to happen sooner or later. The world’s massive inverse pyramid of debt is supported by a very small asset base.

But now we see that the central bankers are even more unreliable than we imagined. They are diligently trying to do the wrong thing, as usual.

Look at it this way, where would your rather put your money…on the brains and integrity of America’s central bankers…or on a dumb metal? We’ll take the metal!

What does this tell you? Well, the rational answer is that bullion or gold and silver coins are assets without counterparty risk. True, the value of gold and silver coins fluctuates with metals prices and liquidity. But your payment does not depend on someone else’s credit quality. Your payment is in your pocket.

First off, house prices are still rising in Australia, but for the second month in a row sales are falling. Here in Melbourne, the average house price is now $510,000 according to the RP Data Index. Melbourne prices are up 15% since January. Granted, that’s not quite as good as the stock market this year. The All Ords is up nearly 30% year to date. But it’s not bad for houses is it?