Doc, Gilbert Lawrence is on the right track. If Donald Trump even starts to come close to winning the US elections, financial turmoil will start as he is already saying that he is going to re-negotiate the US debt. Trump is a master of bankruptcy and I have no problems visualizing him forcing debtors to take a haircut. Those holding US dollars will be in for some interesting times and those holding a lot of US dollars are already moving to protect their assets.
Add in the prospect of a few Trump wars and suddenly gold looks like a very appealing place to be. Mervyn On Thu, May 5, 2016 at 5:05 AM, eric pinto wrote: > By Katherine Burton (Bloomberg) -- Stan Druckenmiller, the > billionaire investor with one of the best long-term track records in money > management, said the bull market in stocks has "exhausted itself" and that > gold is his largest currency allocation. Druckenmiller, speaking at > the Sohn Investment Conference in New York on Wednesday, said while he’s > been critical of Federal Reserve policy for the last three years he > expected at that time it would lead to higher asset prices. “I now > feel the weight of the evidence has shifted the other way; higher > valuations, three more years of unproductive corporate behavior, limits to > further easing and excessive borrowing from the future suggest that the > bull market is exhausting itself,” said Druckenmiller, who averaged annual > returns of 30 percent from 1986 through 2010 at his Duquesne Capital > Management. As bankers experiment with "the absurd notion of negative > interest rates," Druckenmiller said, he’s wagering on gold. “Some regard it > as a metal, we regard it as a currency and it remains our largest currency > allocation," he said, without naming the metal. >
