UK CPI inflation at 2.7%

[Barry Dragon]

Nah, Pot Noodles is the way to wealth preservation.

UK stock market is at an all time high while UK base rate is at an all time low. Why's that? Easily available credit, and credit is a polite word for debt. The world's in an enormous debt bubble. When it pops then we get the reset. All by design.

Source? Sell off?

My sources predict a gain in GBP.

[Organ Morgan.]

Yeah, it's the US dollar's turn to have a place at the front of the worst currency race and consequently the pound, euro and yen rise against it. But never forget that nothing backs any of them. The foundations that supports them are intangible ones, faith and confidence. Once those disappear we'll have a crack-up boom as people rush to exchange their rapidly depreciating paper.

Some examples here of what happened in Germany between 1919-1923. http://www.bbc.co.uk/education/guides/z89dcwx/revision

[Barry Dragon]

Yeah, it's the US dollar's turn to have a place at the front of the worst currency race and consequently the pound, euro and yen rise against it. But never forget that nothing backs any of them. The foundations that supports them are intangible ones, faith and confidence. Once those disappear we'll have a crack-up boom as people rush to exchange their rapidly depreciating paper.

Some examples here of what happened in Germany between 1919-1923. http://www.bbc.co.uk/education/guides/z89dcwx/revision

That is true of everything that has value though. Whether its diesel cars falling out of favour. Or gold becoming more or less popular. Or housing. Tell me something that has a value that is not subject to falling prices when people stop backing them?

You seem to think Gold is a safe bet, but its no different to Art, to Houses, to Currency. It has a perceived value, perceptions change, and therefore values to. Whether or not something is a tangible asset or not doesn't change matters. What use is gold if everything goes kaput.

Do you try and understand how currencies fluctuate? https://www.fxstreet.com/economic-calendar Using this page is a start. Economic shocks are not on their but by nature they are not really predictable.

[Organ Morgan.]

These currencies we have, all of them are fiat ones, as I said are backed by zilch. Because of that infinite amounts can be created in an instant. The vast majority of it doesn't even exist as paper and coins but as digits on computer screens. You can't say that about art, land, property, precious metals, diesel cars, etc.

I wouldn't describe owning or buying gold as a bet but an insurance policy. It's been money for thousands of years, same for silver, because of its rarity. The pound and US dollar have lost 96% of their purchasing power in the past 100 years, most occurred since 1971 when the US closed its gold window as France demanded their debts be paid in it rather than paper. Of course, debts and inflation have shot up since then because the equilibrium with the money supply with the growth in goods and services has been skewed to such an extent that these major currencies dare not normalise interest rates as they've been in extend and pretend mode delaying the inevitable implosion since 2008 by piling up even higher debt piles.