The Global Investment Landscape

With central banks in parts of Europe and Japan setting negative interest rates, along with global moves discouraging the use of cash and the ongoing mispricing of assets such as gold and silver, it is a good time to take a step back and take stock of the global investment landscape.

Interest rates around the world are low. In many places at or even below zero. Even the FED is ‘test driving’ negative interest rate scenarios in the US.

In some places you could even be paying banks to hold your money (not the other way around)!

At the same time there is a war on cash – meaning locking you into whatever planned tax, regulatory and financial planning mechanisms governments and central banks take around the world is increasingly easier.

This is of course coupled with more and more regulations surrounding what you can do with your money. In the US, even passport revocation for unpaid taxes is now law.

With interest rates around zero, and real inflation (not the governments’ cooked numbers) around 10%, investors are feeling the squeeze. The central banks of course understand what they are doing. Pushing capital into the stock/bond/real estate markets as investors search for a good rate of return – both as the banks/bonds are paying close to nothing and real inflation is significant.

At the same time with the dramatic ‘quantitative easing’ that has gone on around the world, meaning a dramatic increase in the global money supply and global debt, there is more capital than ever looking for a home with an inflation-beating rate of return. This dynamic has artificially propped up the stock market and specific real estate markets.

At the same time the metals markets, which given the precarious situation of the Dollar/Euro (see dramatic increase in money supply/debt) are manipulated and held artificially low – through naked short selling and other means by large financial institutions working in unison (while those same institutions and more importantly central banks around the world are buying physical gold and silver in record numbers).

Another piece is oil prices. In many emerging markets, the economy (and government) rely on oil revenue. So in places like Ecuador and many others, prices of real assets, such as productive land have remained low, in part due to low oil prices.

Ways to play it

Buy gold, silver and farmland.

For a couple of thousand years of monetary history, gold and silver have functioned as money. It was only in 1971 When Nixon closed the gold window that we have had what amounts to a 40-year expe