risk off....gold up, page-135

skol, gold is of no value if govt balance budgets and pay back their debt and real interest rates are positive.

in fact, gold performs very poorly in that environment

so, when

govt budgets balanced
govt pays back debt
interest rates 'real' return

then I will move away from gold

I know there have been times, ebbs and flows, where govt went into debt, then reduced it... then ran deficits, then surpluses

But Mr Skol for 10+ years we have deficits and increasing debt (as a % of GDP); do you see it changing; do you see it reversing... as it is supposed to

no, mate; sorry, but currency debasement will go on forever; there is no scenario that can reverse it;

the plan is so, so obvious from govt viewpoint

1) create inflation so we can reduce our debt
2) to hell with the future, kick the can down the road just aa little bit; just make sure OUR SKIN is looked after until we die

I am amazed these govt care NOTHING about the future or the future children; you can see the same re the destruction of the environment (I am not a green, by the way... liberal, through and throught).

Back to your question: when govts are financially responsible, it means their currency can be believed; so when govts are responsible, then I will be happy to be in TLS and QBE and BHP

Skol, it is good for you that you made your fortune during the ponzi scheme of the west for the last few decades; good for you; but if you measure your wealth in debased currency, then you are in big trouble