Return of the Gold Standard as world order unravels.
"One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money."
QE3 = the third round of 'quantitative easing', ie printing money. A friend of mine tells the story of a member of the aristocracy playing cards with a member of the new middle classes a couple of centuries ago who owned a bank. They had a wager on who could tear up the most money and the bank owner won because, of course, when he tore up a bank note, he just printed another one. As my friend said, the governments of today have the upper hand in the present crisis because there is currently no world shortage of trees.
To put that in plain English, the next big thing will probably be inflation.
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