FAST FIVE: 'The Crisis Is Upon Us' – Macleod Warns 'We Have Never Seen Anything Like This'

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Meanwhile, investors had enjoyed an equity bull market.

Today, passive investors are little more than cannon fodder for a system that absolves itself of any responsibility for outcomes.

If you bought gold when Nixon suspended the Bretton Woods agreement, you would have preserved the purchasing power of your money compared with owning bank notes or possessing instant withdrawal bank deposits.

His reward for doing so is that by providing his savings to a businessman, his return must exceed his personal time-preference.  The medium for matching investment and savings is obviously credit.

There can be little doubt that with balance sheet leverage averaging over twenty times in the Eurozone and Japan, and with some British banks not far behind, that the global contraction of bank credit will be severe.

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