In an interview on CNBC Marc Faber of the Gloom, Boom & Doom report stated the obvious, If the Chinese bubble bursts one day, which inevitably will happen — maybe not tomorrow, maybe in three months, maybe in three years — when it happens it will have devastating consequences for the global economy. This was in response to the effect of the free printing of currency by most central banks.
China is moving quickly to the number one global economy & a faltering of their economy could be the third economic disaster in a decade. The US collapse in 2008 along with the current EU meltdown are setting thing up for China to follow suit in the next 3 to 5 years. The end crisis will be postponed until the sovereigns go bankrupt, Faber told CNBC. They can postpone the end-game endlessly…say another five to 10 years. Each money-printing exercise brings about unintended consequences. These unintended consequences are higher inflation rates than had no money been printed.
With all of the money being printed one thing that remains the same is the finite amount of gold. Gold will continue to benefit from inflation, quantitative easing & any economic melt-downs by keeping its real value. As part of a diversified portfolio those holding precious metals & rare coins in a Tangible Asset Portfolio will thrive during any economic downturn.