The Game Changer for Gold, the Historical Link Showing Debt Causes Crises, Bartering After Maria

Mike responds to questions about Jeff Clark’s recent story on Chinese oil imports being priced not in dollars, but yuan. And how they’re convertibility into gold on the Shanghai futures exchange creates a new and large source of gold demand.

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By Jeff Clark, Senior Precious Metals Analyst

It may feel like we’ll escape a debt crisis since, well, the world hasn’t ended in spite of runaway debt levels. Some of us hard money people feel like we’re taking crazy pills; how the heck can debt be so out of control, so completely unpayable, and yet the financial system keeps chugging along as if nothing’s wrong?

Well, history has a message for us: the current calm won’t last forever, because there is a direct link between government debt levels and the number of financial crises that occur. And since global debt levels are high—the second highest level in the past 150 years—it’s not exactly a stretch to conclude that another financial crisis is coming.

Analysts at Deutsche Bank recently released an extensive study that demonstrates the link between debt and crisis. One chart in particular screamed for attention

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Mike discusses the barter situation and struggle for survival on Puerto Rico after the disastrous Hurricane Maria.

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