By Richard Russell
Let’s be honest and say flat out that the world and the US are choking on debt. The only thing worse than unmanageable debt is debt that is compounding. The US debt, which can be measured in the trillions, is compounding at a low rate thanks to the Fed’s ZIRP policy. If the Fed raises rates, the US debt will compound at a higher rate, which will raise the total US debt by hundreds of billions of dollars.
The overriding trend in the world is now towards deleveraging and deflation. Ultimately, this must lead to default and bankruptcy. The current trend of compounding debt is unsustainable. And if it’s unmaintainable, it will lead to collapse, and perhaps the greatest bear market in history.
That being the case, here’s my strategy: when all other assets are crushed in the coming bear market, silver and gold, which have no debt against them, will ... Log in or subscribe to continue reading.