Mr. Gold explains, “This bubble is like any other bubble in mankind’s history…”
” In the 1920s, credit was extremely easy. When credit tightened, it was the wealth effect in reverse. We saw this again in the early 1970s. We saw this again in the 1987 crash. Interest rates went from 7% to over 10% . . . and that bubble popped. We had the emerging market debt problem back in the early 1990s, Long Term Capital in 1998, the Dot Com bubble in 2000, the 2007-2008 Great Financial Crisis, and all you have to do is look at a chart of bond yields and you’ll see that each time yields spiked, those bubbles popped. Right now, interest rates are spiking, and this is the biggest bubble.
This is the everything bubble. Everything is in a bubble. The only things that are not in a bubble are gold and silver because they are real money.
I think gold and silver are reflecting the risk of the debt structure coming down.
From a global standpoint, countries are moving away from the dollar. They don’t want to be trapped in the dollar system. The dollar is the world reserve currency that is issued by an insolvent bankrupt entity.
Higher rates, that’s what is going to blow everything up, higher rates.”