good discussion - tnks GB !
lets assume:
USA / JAP / China / EU / (and soon Oz) - all have 2 much debt.
looking at the 1940's post ww2 experience - real rates were large and negative for circa 8 yrs....and you wernt allowed to hold Au.
given CB's will cap rates (and arguably have been for 12-13yrs in western world, plus 20 in Jap already)......
inflation creation to date has been nil to marginal........really need to see an inc in lending to the private sector (arther than banks buying bonds, then flipping to CB's).
there is only one remaining thing that can be done to "pay down the debt"...
whats the "potential" for 5k Au and 300 Ag ?
every big insto on the planet knows all this ......
when it turns - and (arguably it has to - imho)- this entity has 500-600/Oz op margins ......given the mine life - 4 - 6bn valn is possible
maybe - they will wait for a spike in DXY (which should force down prec metals.....to do their "switching" from bonds (which are a guaranteed negative rtn) to Au / Ag etc.
may we live in interesting times !
rgds
V_H
good discussion - tnks GB ! lets assume: USA / JAP / China / EU...
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