James Turk on King World News:
“The bond market is clearly rebelling, Eric. It is starting to focus on the dark-side of QE. Regardless whether or not QE saved the financial system – and this point won’t be known for years – all of this monetization from QE is not preventing rising unemployment and an economic free-fall in the US, UK and continental Europe. And we can probably add Japan to that list.
But here’s the important point, as economies head into the tank, more loans in the banking system will become impaired, and many banks around the world remain over-leveraged with weak balance sheets. As interest rates rise, the long-term interest rates banks have locked into in on their loan books will mean the value of those assets will be declining, further adding to bank woes.
Even the Fed’s and other central bank balance sheets are not immune to the loss in value of the fixed-rate paper they own when yields climb. In other words, the next big banking crisis may be just around the corner, and the best way to prepare for it is to own physical gold and silver.”
Read the complete article at King World News here.
Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.