You can’t debase money as the Federal Reserve and European Central Bank are doing without people turning to real money—gold and silver—if they’re allowed to do so. From Egon von Greyerz at goldswitzerland.com:
The buoyancy of markets in recent years has lulled central bank heads into a false conviction that they had saved the world after the 2006-9 Great Financial Crisis.
But central bankers continue to navigate like drunken sailors between the evil forces of Scylla and Charybdis as in Homer’s Odyssey.
Few of the bankers have understood that printing unlimited and worthless paper money will not allow them a pass the strait of Messina without major, or more likely catastrophic, damage to the world economy.
As exuberance continues to dominate intoxicated stock market investors, they haven’t yet noticed that all is not well on the perilous seas.
Still, most markets continue to respond positively to the printing press rather than to the underlying fundamentals.
Printing presses don’t create real value, instead they create bubbles full of worthless air. But sadly intoxicated investors confuse air, which is free and has no value, with real, intrinsic values.
To take an example, what is the intrinsic value of Bitcoin or BTC? How should BTC be valued?
Does the $60,000 price today reflect the real value or was the 10 cent price 10 years ago more correct?