Tim Price: King Carney Fails To Command The Tides
Comment of the Day

August 20 2013

Commentary by David Fuller

Tim Price: King Carney Fails To Command The Tides

My thanks to the author for his ever-interesting letter, published by PFP Wealth Management. It is posted in the Subscriber's Area but here is a brief sample that will provide food for thought
Our thesis is that we are perilously close to the disorderly end-stage of a 40 year experiment in money and unfettered credit. That experiment started when US President Nixon took the US dollar off gold in 1971, and in the process created a global unbacked fiat currency system for the first time in world history. The history of paper currencies is instructive, too. Not one has ever lasted. Fast forward 40 years.. Texan fund manager Kyle Bass points out that total credit market debt now stands at some 360% of global GDP. For an individual country to maintain a debt to GDP ratio of 250% is consistent with that country deficit-spending its way through a war - such as was the position for the UK in 1945. For the entire world (read: notably the western world) to be loaded with such an untenable debt burden today suggests that something has gone catastrophically wrong with our banking and credit system

David Fuller's view It will certainly be interesting to see how all this plays out over the next few years. The only certainty is that there are always investment opportunities in any market environment, and the extensive Fullermoney Chart Library will help us find them.

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