Let Me Explain to You What’s Going On

Fearful of the deflationary vortex, which will usher the way towards popular revolt and the removal of our leading politicians, central banks have upped the ante on their interventionist activities.

I’ve been watching this very closely and feel that I have a good handle on how this will end.

The presiding theory is this is all a house of cards, ready to implode, leaving Tyler from Zerohedge as the only human being left alive in North America. Although I believe this all ends very badly, I’ve adopted a more sanguine outlook for asset prices in the interim–because of what’s taking place in corporate bonds in Japan and now Europe.

Both the BOJ and ECB are buying up corporate bonds with extreme vigor. The scale of the purchases have caused others to front run these trades, causing bonds to spike and yields to plummet. The net result, at least for now, will pave the way for these companies to borrow money without cost, which, in turn, will lead to greater buybacks and a much more prolific mergers and acquisitions environment.

This all sounds very bullish, when in fact we are creating the rope by which will be swing at the neck by.

I’ve never liked gold, silver or bitcoins. As a matter of fact, I’ve hated them. But, because of this new paradigm, an era of wanton manipulation on a scale never seen before, I believe responsible money managers will begin, in earnest, allocating into gold with increased vigor. For the year, the yellow metal is only up 18 or so percent. When managers begin to realize what I think will occur, a rapid race towards currency devaluation by virtually all major players, gold will soar.

As such, I’ve taken core positions in gold and various gold miners today, all outlined inside of Exodus. I’ll discuss this in greater detail later, as I am on a school trip with my son at the moment.