Government Is The Problem — Everywhere!
9:48 amin economy, Government, Investing Thoughts Monty Pelerin No Comments »
Ron Holland, in an interview with the Daily Bell, believes that a revolution is beginning. People around the world are awakening to the fact that they have been exploited by government and its institutions. He believes the internet is the key to spreading this information and knowledge and that there is still the possibility of a peaceful reversal:
I am more optimistic about peaceful change, painful though it may be. I think what’s going on is going to become massive and overwhelming. I don’t think it can be stopped and my hope is that it will get so large so quickly that violence is not even going to be an option. The Internet Reformation is exactly that – a reformation of the systems of control and it doesn’t have to be violent to happen.
Mr. Holland understands why the problems we experience happened. He attributes it to overgrown governments, especially the central banks, believing they can run everything. His diagnosis is correct, but his outlook might be too optimistic. Power once gained is not relinquished willingly. Such a transition goes against the nature of government which aims to grow in both power and wealth. There are few instances in history where governments willingly downsized.
On the world stage, Holland believes China is the cornerstone of the economic outcome:
China is the key. Europe has already collapsed and America is not rebounding either. As you guys have pointed out, the dollar reserve system is all but dead. China is propping up the world but China has significant – really important – economic problems. All the BRICS do. Certainly Brazil, even Russia and India have significant inflation. Though it’s obviously most out-of-control in China.
His advice is to protect yourself from the destruction of fiat currencies:
If you want to get out of harm’s way, I think you must get out of US dollars and into gold – even at these prices. I don’t see much of a retreat as a matter of fact, not with the world’s economy in its current shape. These are big forces at work.
ETFs are not physical gold. They are securities. Gold shares are not physical gold either; they are investments that entail many risks. Only physical gold itself is desirable, in my opinion, when a person is trying to protect the purchasing power of their wealth.
Regardless of how our current situation plays out, this latter advice is likely to be valuable in any scenario.
