Death may come invisible, or in the holy wall of fire
In the breath between the markers, or on some black I-80 mile
From the madness of the government, to the vengeance of the sea
Everything is eclipsed by the shape of destiny
– Conor Oberst/Bright Eyes, No One Would Riot for Less
2010 Recap: Macro Trends Playing Out as Expected with Some Surprises…
Heading into 2010 I focused on three investment areas that I thought would benefit the most from the insane policies of desperate global Central Banks and governments adhering to the orders of the financial oligarchs that control them. They were to be long precious metals, agricultural commodities and oil. Not only was I a believer that most globally traded “hard assets” (as opposed to residential real estate) would do well as global fiat currencies are competitively devalued, but I thought that the three subgroups mentioned above would do particularly well since they are also strategic commodities. Basically, in a world going through the type of dangerous geopolitical shift we are in at the moment (these happen once in a generation and are called “Fourth Turnings” by Neil Howe and William Strauss) governments and in fact all institutions become subject to upheaval and revolution. Since governments are made up of human beings (generally narcissistic power hungry ones) we can generally forecast how they will react to such tension. In their attempt to maintain power and status governments usually do one of two things. They turn on their own people (or minorities within their own societies) or they turn the anger of the populace on a foreign enemy. In an environment where the global financial system is based on digital monopoly money created with a keystroke by Banana Ben and company, money itself will become suspect and any large foreign government with even a basic understanding of money matters will buy all the gold they can so that if necessary they have real money to use the basis for a new currency if necessary down the road. Just as gold is a necessary hedge for individual Americans that can see the destruction of currency values by their own government, it is too a hedge for China, Russia and others against their U.S. dollar reserve assets and indeed the global financial system to which they are a major participant. Agricultural commodities are just as important since if a nation like China cannot provide food at a reasonable cost to its citizens there will be revolution overnight. In fact , this is true in any nation. Oil fits in to the equation as a hedge if the whole thing breaks into global warfare which can occur once a nation loses the financial war happening now. If you don’t have access to enough oil you will lose any major conflict. Why do you think we are in the Middle East and are looking for an excuse to attack Iran? To spread Democracy? Don’t make me laugh.
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