The path to monetary collapse

Goldmoney Insights/Alasdair Macleod/5-21-2020

“Few mainstream commentators understand the seriousness of the economic and monetary situation from a V-shaped rapid return to normality towards a more prolonged recovery phase. The fact that a liquidity crisis developed in US money markets five months before the virus hit America has been forgotten. Only a rising gold price stands testament to a deeper crisis, comprised of contracting bank credit while central banks are trying to rescue the economy, fund government deficits and keep the market bubble inflated. The next problem is a crisis in the banks, wholly unexpected by investors and depositors. At a time when lending risk is soaring off the charts, their financial condition is more fragile than before the Lehman crisis.”

USAGOLD note:  It is that unexpected crisis – a black swan event suddenly cropping up somewhere in the financial sector – that has already pushed many money managers into the gold camp.  Should it occur, the resulting demand for gold could make the flight to safety since the beginning of the year look tame by comparison.