Hubris is a deadly sin. It is an arrogance and conceit of the highest degree that eventually leads to failure. As we reach the final stages of the current economic cycle, hubris is prevalent everywhere. Central bankers and bankers believe that they can continue to create wealth by printing and borrowing money. Since it has worked so well for 100 years in this latest cycle, why can’t it continue?
…Long term, no one has ever got away with creating a system based on fake money, unlimited debt, zero or negative cost of money with the government and the bankers being the main beneficiaries.
PG View: von Greyerz wrote this piece last week, before the supreme hubris of Janet Yellen yesterday when she said she doesn’t believe we’ll see another financial crisis in our lifetime. “Now is the moment to acquire wealth protection insurance in the form of gold,” says von Greyerz.