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Robert Fitzwilson continues:


“I’ve been doing this for almost 40 years and this is an incredibly dynamic situation, but investors need to have a long-term view.  Unfortunately, because of the mainstream media, people have adopted a trader’s mentality and that’s ultimately destructive.  I would describe our approach as being one of a turtle because we believe there is going to be this massive transfer of wealth, from paper to real assets.


Investors need to have a large percentage of their assets in things that will survive and also prosper during this wealth transfer period.  There is a wealth transfer going on, all the time, when you print money.... 


Continue reading the Robert Fitzwilson interview below...  




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“If someone can tell me when the printing is going to stop, then I can tell you when to sell gold.  But there is no evidence of that.  In fact the printing is accelerating.


What historically triggers a problem is people come to the conclusion the money is no longer trustworthy and at that point, you get the panic.  Everybody tries to get out of paper and into hard assets.


So that’s what’s going on and the vast majority of people don’t realize that their money is being diluted every time the printing presses are called into action.  They are looking at the deleveraging of their home prices going down, but the inflation is swirling all around them.  It will show up in prices and it will show up in velocity.


In this environment, gold has gone up because the global money supply has gone up.  I think the chart of global money supply, the global debt and the price of gold is pretty much the same chart.  In reality, we are on the verge of a hyper-deflation of the currency because it’s the currency that’s going down.


Gradually the currency is going down, but history tells us at some point in the future it accelerates and then gold goes up exponentially.  But by the time everybody figures it out it’s too late.


Having gone through the inflation of the 70s, it’s hard for younger people to imagine how bad this really gets.  I went through the numbers, over the weekend, to refresh my memory.  I think the mortgage rates hit 21% at the peak, which means you were paying for your house every five years.  The inflation rates were 12% to 14%. 


One of the asset classes used in the 70s were discount bonds.  Many people had lost 80% to 90% of their money in those bonds, but when the inflation really hit, they were completely wiped out.  So this is very serious stuff.  This time around it is orders of magnitude worse because it’s the entire planet’s financial system.”


© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.


Eric King

KingWorldNews.com

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