Agree with all your sentiment there but desensitization to financial bad news is like desensitization to violence. Just because we can take violence on TV and in films it doesn't mean we would necessarily walk into the middle of a pack of crazed machete wielding maniacs. Gold at the moment is telling us something. The reversal of trend must be pretty obvious to most by now. Falling yields on sovereign bonds and gold rising together mean investors are looking for safety like never before. Of course there is daily variation but both these trends are very strong.
Brexit caused the value of government debt sitting in the sub zero yield zone to increase by $1.3Trillion worldwide overnight bringing the total to $11.7 Trillion.
This phenomenon of negative yield in debt markets is new (only two years old) and is hitting us like a tidal wave. You should know my views on how stupid this situation is by now. See the chart below.
View attachment 204246
Now when the ship has sunk what would you rather be clinging to, debt that can't be repaid or gold. I know this is not a good simile as gold sinks but you get my drift.
I've discussed my views on the "market solution" to this problem on the NST threads. Eventually we will see rising interest rates and inflation so in the long run so position yourself for that IMO. If you have large debts on property or anything else that your income or investment returns can't support I think you could ultimately end up in big big trouble IMHO.
Eshmun
