"In that case, many of the economic advances that globalization has brought to the United States - and the world as a whole - will be reversed. The world economy will have to adapt to a much lower level of efficiency, with higher manufacturing costs and less outsourcing. Both inflation and unemployment will be high. The result: We'll be looking at a decade of inflationary recession, with declining living standards. We have already traveled a considerable distance toward de-globalization and should work towards reversing this trend. We should keep trade barriers down and international capital markets open. As protection against the possibility that governments and markets will fail in this attempt, investors should look in one direction - at gold. In a world of inflationary recession, in which international investment opportunities are blocked and government bonds are dangerous, gold remains the most reliable store of value. Others will realize this. So investors with gold in their portfolios will at least have the satisfaction of increasing their capital, while others are losing theirs."
Others view this as a great buying opportunity as the wall of worry has provided plenty of traction for certain investment sectors. As for now, I am content to build a cash position and continue supplemental purchases of silver coins and commodity stocks like D.
Regardless
As dire as some things seem we are reminded of a couple basic principles... The sun will still come up tomorrow. And life will go on...
