Dimon warned that people are becoming comfortable with high valuations and assuming there will be no problems. He stressed that cycles always turn and admitted his anxiety is high.
The controversy comes at a time when the US is on the verge of an economic crisis. This crisis is rooted in President Nixon’s 1971 abandonment of the last link between the dollar and gold.
For investors, these shifts matter. Commodity flows, currency strength, sovereign debt stability, and geopolitical realignment are not abstract forces.
The short of it is that even all the doctoring on inflation was not enough to keep the debt-to-GDP ratio from tripping and falling on its head to levels worse than WWII.
Axel Merk oversees more than $4 billion in gold and gold miners. From that vantage point, he sees not just price action, but the flows and psychology behind it.
This could be as good as it gets before the negative effects of the next inflation problem created by the Fed and government become apparent to the public.
