SEGMENT #1: Serbia acquired additional gold with President Aleksander Vucic saying “I think we’ll continue doing that because of what we see in which direction the crisis in the world is moving.” He further sited slowing growth in the euro area. It’s quite an astonishing admission from a president that the world is getting closer to a major financial crisis. The Real Money Show will be bringing more information about renewable energy. We start with an article from CNBC showing that renewable energy sources are set for a 50% increase over the next 5 years. Solar will make up 60% of the increase.
SEGMENT #2: The ECB admitted this week that low interest rates are causing increased risk-taking that could threaten financial stability. ECB vice-president Luis de Guindos stated that “While the low interest rate environment supports the overall economy, we also note an increase in risk-taking which could create financial stability challenges. TRANSLATION: While the ECB used low interest rate policy and flooded the financial system with money to support the banking system, the effect on the public was completely ignored. When economics set in and the public was forced to change the way it invests (by taking risk) the ECB states these consequences as if they were unintended. So here we are, savers be damned. You either sit their and lose, take undo risk (and have the ECB denigrate you) or perhaps you could choose gold.
SEGMENT #3: Russia, Serbia, and a bevy of central banks eased rates in what looks like one of the most coordinated central bank efforts since Bernanke’s orchestration back in 2008.
SEGMENT #4 & #5: Returning to the Saver’s Choice; Lose, Risk or Gold, The Real Money Show explore the growing issue of underfunded pensions. Many experts have been warning of the day of reckoning when woefully underfunded pensions would either refuse payouts or raise contributions. Neither will be wanted, but here we are. We show several examples which are the tip of the iceberg along with a recent anecdote experienced by a recent Guildhall Wealth client.