How You Can Profit From the Coming Devaluation
New York fund manager Roger Lipton has resurrected a classic, publishing a new edition of Harry Browne's celebrated volume from 1970: How You Can Profit from the Coming Devaluation. The United States stood on the precipice of its first major moment of reckoning for decades of apparent post-war wealth generation wrought from a continuum of inflationary policy. The US government would not succeed in maintaining the official gold exchange rate any longer, and Harry Browne not only predicted the unavoidable devaluation, but also pegged the timing with impressive precision.
Then, as today, there were some folks out in front of the crisis, encouraging investors to seek exposure to gold and silver and thus reverse a terrible macroeconomic scenario into an opportunity for profit.
"The U.S. Federal Reserve has already completed two debt-monetization campaigns, one "Twist," and a dizzying array of bank rescue facilities and liquidity injections. Yet even after all those historic interventions, a hyperaccommodative zero-bound interest rate, and a massive economic stimulus package, the U.S. economy has unfortunately failed to reach the kind of "escape velocity" that might encourage authorities to ease up on the accelerator. Further intervention will inevitably follow. Indeed, because governments and the moneyed interests fear a deflationary spiral above any other scenario, I believe we find ourselves mired in an unseemly vicious circle that gold expert Jim Sinclair has deftly labeled "QE to infinity." The debt issuance, central bank balance sheet expansion, and corresponding currency debasement that still looms on the horizon even after all that has been done to date speaks to the unspeakable scale of the underlying crisis."