The stock market barfed overnight and my view that good long-term values are to be had is going to take a beating today.
What I am reading now is talk that hyperinflation is now possible with the term "Wiemar" being tossed about. The Wiemar Republic was in Germany nearly a century ago and people were feeding their fireplaces with cash rather than the more expensive firewood.
Iceland, thanks to its financial crisis, just chopped its interest rate 2.3% to 12% and that means it is effectively giving up on fighting inflation. Hungary just raised its rate 3% to defend its currency. Clearly, the global economy is fighting for its life.
Can we have a recession here with inflation? Here is a quote from the biggest gold bug on the planet - James Sinclair.
"Yes, a planetary Weimar is on the menu. Russia, the Middle East and China may just be the top survivors. Africa might just come into its own in such a scenario due to the amount of raw material and gold resources they have."
I am hurting on my own gold investments now but it is a small price to pay - just in case.