Today’s economic stagnation is reminiscent of the Roman Empire’s slow collapse. Rome reached its zenith in the 2nd century, and then as fortunes slowly declined. Even after they tried to revive it, by the 3rd century the monetary economy had collapsed.
The entire global economic frenzy today is faltering on a same shaky thread, unsolved by every attempted revival. The vial part of survival is economy = production, distribution and consumption. When economic stagnation threatens these, the survival of a nation goes into a downturn. Not necessarily because of liquidity, but because of solvency. Not having enough money to pay all the money owed to countries to sustain self-independence becomes the leading cause of stagnation of economic collapse. Politics and economics may not go hand in hand. One is in control of the other by influence or force and the other job is to produces goods, and distributes it for consumption.
When the spook of recession, from the US across the Atlantic beget humiliating bailouts, downgrades, forced debt ceiling raises and geopolitical riots fracture the walls of economic foundation. It will take only one domino to tip the rest of the global structure to plunge. Recent example of this is the 42 year-old ruler of Libya, Moammar Gadhafi, whose government’s on the verge of collapse. “To give positive returns with little risk in today’s economy, we at Regal Asset focus through the noise. By seeing how everything connects have been lifting gold , investors feel a sense of security through investing in the yellow metal, because the inevitable geopolitical crisis seems unable to be stopped by governments or world banks,” says Regal Asset Team of Analyst.
Make no mistake, the QE 3 is often talked about to stop a frightening absolute global economic collapse. But as each country takes a plunge into recession, gold becomes a more important saving asset for investors, because even if printing continues the problems of debt will not end but multiply. And, with the Fed’s promised low interest rates until 2013, the risk factors in a greater recession/inflation will align to stocks and bonds.
All the mumbo-jumbo as to whim to blame is today a passé. The affects are important at hand–the ability to survive the ripples of a globalized economy. To take advantage of this in the markets, attention is given in gold that has defeated stocks for 12 years running. This is about 25% of the average person’s investment horizon. This decade is only beginning to set up for the biggest bull market in history.
When the world’s middle classes are feeling the squeeze of falling incomes and no opportunities, homes under water, hopelessness as to what to do, unemployment and poverty, what protects people in time of unbalanced global economy is gold. “There was a time, that the US Dollar was a receipt for gold when one could hand in a $20 dollar and get a $20 gold coin in exchange. Once, that $20 dollar coin was called the Double Eagle (Eagle=$10). Today, it’s worth $1890. Ditto for Silver Dollar Coins, there’re now worth $40 and more,” says Regal Assets Team of Analyst.