As Keynes Rolls Over in his Grave, The “Barbaric Relic” Gets Set for Massive New Highs!

Before the markets turned downward on Friday, my inflation/Deflation Watch (IDW) appeared ready to challenge the five-year average. But the thrashing the equity markets took on Friday following the Brexit vote led to a decline and the five-year average provided resistance against the Keynesian inflation crusaders at central banks around the world. By the end of the past week, the IDW stood at 142.3 compared to a 5-year average of 144.11 and a 3-year average of 149.93. Clearly the price momentum for my IDW is toward the deflation side.  This is happening despite massive monetary and fiscal stimulation with western countries around the world (but not Russia) running massive fiscal deficits and with money printing on a scale the world has never seen before! And yet the brilliant minds from Harvard, Princeton and Yale can’t see or admit that Adam Smith, not John Maynard Keynes, was right. Free markets maintain balance. Rigged markets like those we have now can only lead to imbalances and ultimately chaos and a breakdown of society.

Meantime, against all efforts to manipulate the price of gold with massive paper shorts, like a suppressed beach ball, the price of gold appears ready to resume its secular bull market which is without a doubt the greatest gold bull market in history. With the “barbaric relic” (gold) rising despite massive central bank and bullion bank manipulation against it and with global prices refusing to rise despite unlimited quantative easing and massive fiscal deficits, how could Keynes not be “turning over in his grave?” I don’t mean to make light of death because it is a reality all of us must face one day. But Keynes has provided intellectual cover for the biggest economic lies of modern times and it is leading to ruination of the West.