Mainstream

The original purpose of this blog was to highlight that irresponsible monetary policies that had placed the world, particularly the U.S., in a position that would lead to a massive correction and severe economic downturn. The reality is that this is no longer the hypothesis of a lone blogger but the overwhelming theme running through main stream media. Over the last four years I have looked for articles to link to this blog to try and support this argument. What were previously a few isolated voices has become a screaming, discordant chorus. The papers are riddled with references to the "severe recession" and a few to economic "depression".

Let me recap on some key statements from my first post in August 2004. Yes it is self indulgent, but I'm a blogger after all:

"Defaults on securitised mortgage debt in 2007-2009 will no doubt be a key catalyst in the unravelling of the Western financial system"

"There is a credible possibilty of a cascade failure in the banking system leading to a liquidity crisis"

"massive declines in both property and equity markets with a wholesale destruction of wealth not seen since the early 1930's"

And for the near future:

"As a medium term response, expect a full-scale rejection of economic rationalism and a vast increase in government economic regulation"

As for my prediction on gold......the appreciation in the gold price we have seen over the last four years was primarily driven by commodity price appreciation. What we are now seeing for the first time is the very beginning of the re-monetisation of gold. My guess is for a 15-25 times appreciation in the gold price over the next 5 to 10 years. I'm no gold bug and I certainly could be wrong....lets wait and see.......