Are You Prepared for the Next Economic-Depression?

Dear PGM Capital, Blog readers,
In our blog post of Last Sunday, May 6^th 2012, entitled “Are You Prepared for a World Heading for Populism?” we analyzed how growing populism, combined with excessive debt and aging population in the west, may trigger a very hard, deep and long depression.

Although we dislike being right about our predictions that they will have a deep impact on the life of great part of world population. However the reactions of world capital markets after the results of the elections up to now are in line with our analysis and prediction done in above mentioned article.

So what’s next for the markets and World Economy?

With coming elections, in the Netherlands, (an AAA rated Eurozone country) in September and the USA (World largest Economy and also the most indebted country on earth) in November of this year, politician and policy makers will try to do their utmost to do window dressing in order to avoid results like the ones in Greece and France.

We believe that both the FED in the USA and the ECB in Europe will try to do their utmost to avoid a start of a big depression in 2012. The only way for them to achieve this is by massive stimulus and money printing.

Below Quote of Abraham Lincoln, proves that this will be unsuccessful in the longer term:

You can fool some of the people all the time, and all of the people some of the time, but you cannot fool all of the people all the time.

For those who believes in entitlement and populist politician, the following quote of
“Johann Wolfgang von Goehte” might be an eye opener.

None are more hopelessly enslaved than those who falsely believe they are free.

Politician, policy makers, and central bankers may be successful in 2012, in creating the proper window dressing in order to achieve their (political) objectives in the short-term, but sooner or later the bitter truth will come out as follows:

• Accumulated Debt obligations must be repaid.
• Entitlement has never worked in the longer term.
• Success is only guaranteed by Hard work, Dedication, combined with an Ahead of the Curve Education and Good Governance.

When reviewing below Exter’s Pyramid we should agree that the Economies in the West have been moving since 2001 downwards in this Exter’s Pyramid and that we are currently in the phase of purchasing of Government bonds & Cash Soon Investors motivated by massive money-printing, bond purchasing by Central bankers and subsequent hyperinflation, will realize that the only safe place for their money will be GOLD

With the current temporary correction in the price of Gold, Silver and other precious metals we believe that an excellent entry momentum has been created for those who want to have a long-term position in these precious metals as a safe-haven for them to weather the coming perfect Socio-Economic storm.

Due to this we advice investors and the middle class to exchange their paper or fiat currency for Real Money: Gold, Silver, and other precious metals.

Before following any investing advice, always take your investment horizon and risk tolerance into consideration and keep in mind that the price of Commodities, Precious metals as well as the stocks of their producers can be very volatile and that sharp corrections may happen in the short term.

Yours Sincerely,

Eric Panneflek
Chairman