Digging through the entrails of the fundamentals associated with the global economy and markets, it increasingly strikes me that there is really only one investment I’d now consider a “sure thing” – and that is buying gold on dips...
...Of course, the sovereign nations could decide to resolve their massive debt problems through default – and some most certainly will. But at this point, that these nations will reduce their current, let alone future, obligations to manageable levels without crushing their respective economies – never a politically palatable choice – is literally impossible.
Thus, while there will be much grandstanding about making tough choices and hard budget cuts, when push comes to shove, you can bet that the choices made will be those most likely to return the politicos to office, and the cuts nothing more than window dressing, quickly offset by spending increases.
In a world awash in funny money, gold is the only sure thing...
Sunday, June 06, 2010
The Sure Thing
Casey Research (yesterday):