"Western Central Banks Have Set Us Up; You'll Hear The Printing Presses From Mars"

As Marc Faber said at SocGen’s January conference, if he could short central banks directly he would do so, but gold is the next best thing; and despite it being sucked into the general commodity malaise,Albert Edwards says “Gold is a must-have holding in this world.”

Via SocGen’s Albert Edwards,

The Chinese have clearly shown investors that using Yoga-like mind games (or indeed loose money) to elevate the stock-market will end in tears.

This is undoubtedly a global story and I have not one scintilla of doubt that the western central banks have set us up for an even bigger version of the 2008 Great Financial Crisis/Recession – but this time rock bottom interest rates and large fiscal deficits will mean only one thing; QE will be stepped up to such a pace that you will hear the roar of the printing presses from Mars.

Gold is a must-have holding in that world.

Gold bulls will cite the 1970s experience as to why they are not worried about the current slump in the price, which many see continuing to $900.

For after rising some 550% between 1970 and the end of 1974, gold suffered a 50% retracement from $195 back to $100 before its 9-fold surge from 1976 to 1980 from $100 an ounce—to over $920 an ounce.