"After a wild week of trading that saw chaos erupt in Europe and the price of gold and silver soar, the Godfather of newsletter writers, 90-year old Richard Russell, warned that great deflationary forces are now overpowering central banks and the world is going to see gold-backed currencies once again.
Richard Russell: “The great deflationary forces that are overpowering central banks everywhere have settled in. In an effort to combat the world deflationary forces, every nation wants a cheaper currency to benefit their exports. The result is a world choking on ever expanding fiat money.
This is pushing assets higher. The result will be a limited-time explosion with assets priced in terms of soaring fiat currencies. This will give us the third phase of the bull market that started in 1980. Ultimately, the power of world deflation will end the bull market and we will enter a correction (bear market) that will take the price of everything except gold to unbelievable new lows.
I expect the reaction to world deflation will be the revaluing of gold and new gold-backed currencies, in an attempt (as FDR did in 1933) to thwart deflation. The one percent of smart money sees the picture and is preparing for it..."
at http://kingworldnews.com/russell-great-deflationary-forces-overpowering-central-banks-expect-gold-backed-currencies/
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