"Longer lives and rapid advances in technology could mean that some workers never have the option of retiring, Mark Carney has warned.
The governor of the Bank of England said yesterday that Britain was on the verge of entering a Fourth Industrial Revolution that would be dominated by artificial intelligence, automation, biotechnology and 3D printing.
He said the nature of work was shifting so rapidly that there was a risk that many workers would not be able to move seamlessly to new jobs, yet many may not be able to afford to retire either."
If you are searching for a way to escape from the serfdom being imposed on you by central bankers like Carney, then click this link to G. Edward Griffin's 21 Points.
Although there are some analysts who worry that higher interest rates are an early indicator of a developing bear market in gold (gold has no yield, the higher interest rates climb, the greater the relative appeal of other assets), the actual evidence doesn’t support this view according to Russ Mould of the investment platform AJ Bell (as reported in the UK’s Daily Telegraph).
Mould has examined the last seven cycles of US interest-rate hikes by the Federal Reserve, and notes that gold has on average gained 86% between the first increase and the last.
The Fed has hiked interest rates five times since 2015, and in this time period gold has gained 23%. Gold is currently at a five-month high (19 Jan 2018).
The reason for this behaviour: interest rates are often increased to forestall or temper inflation. Gold is regarded both as an excellent hedge against inflation and store of value. There is now a general belief that inflation will return this year. Thus, gold is seen as an attractive hedge. The consensus of opinion seems to be: hedge with gold in 2018.
Source: MoneyWeek (19 Jan 2018)
Tim Price, editor of the London Investment Alert, writes:
Those, like myself, who see merit in gold are often disparaged as “gold bugs”. I think the boot is actually on the other foot. There is no evidence throughout the historical record of any unbacked paper currency having ever lasted. The real swivel-eyed obsessives here are those people who put great store by paper, by fiat currency, that has no fundamental value whatever beyond the confidence that it may or may not inspire.
Don’t beware of gold bugs. Beware of paper bugs.
Tim's advice is sound. Ignore it at your peril.