The North Koreans are now believed to have developed a hydrogen bomb, hundreds or even thousands of times more powerful than the atomic bombs dropped on Hiroshima and Nagasaki. Further, North Korea has exhibited the capability to launch intercontinental ballistic missiles, which could deliver their bombs.
Hurricane Harvey wreaked devastation on southeastern Texas and western Louisiana, with losses estimated in the hundreds of billions of dollars. Now, Hurricane Irma, with wind forces equaling Harvey’s, is taking dead aim at Puerto Rico. The island territory is already in bankruptcy, unable to service its debt load of $75 billion.
While Irma’s course cannot be known with certainty at this time, it could hit Florida with the force that Harvey hit Houston. And, there is the possibility that Irma could head for Texas.
Meanwhile, the debt ceiling crisis is upon us. Many analysts of the political scene are saying that the need to cobble together a rescue package for Texas and Louisiana will override the objections by the Freedom Caucus for a “clean debt ceiling increase.” That remains to be seen.
Black swans are circling, and gold and silver are responding, both up this morning. Monetary analysts are noting the “flight to safety,” buying of U.S. Treasuries as well as the metals. With Treasures, they say, “You are guaranteed to get your money.” Ten-year bonds are yielding 2.07%.
If the Fed achieves its inflation goal of 2%, you break even in ten years, based on purchasing power. However, history has shown that once inflation takes hold, it’s not always easy to control. U.S. inflation in the ’70s hit 13%. At an inflation rate of 13%, the value of your money is cut in half in 5-1/2 years.
With gold and silver at these prices, and offering time-proven protection from inflation, they are the better choices when it comes to seeking safety for your money. See tremendous bargains on our Gold Specials page and our Silver Specials page.
