Gold or US Bonds – Which is Bubble?

Gold or US Bonds: Which is Bubble?

What is the truth in the headlines? Many news headlines say that, Gold price is a Bubble. But many economists believe that, it is the bubble of the Bonds, the safe heaven.

In United States, people are convinced by the government that investing in Bank Fixed deposits and Treasury securities is a safe investment.

But well, see the above diagram of private and government debt. These so called safe investments are actually bubble. People who blindly invest in bank fixed deposits and government bonds in any part of the world are very soon going to be cheated.

This is because the US Government is going to weaken the dollar by several rounds of quantitative easings. President Bernanke also known as ‘Helicopter Ben’ has printed billions of dollars for the US citizens and thrown from the sky from the helicopter but right now this money is on the trees. I mean right now most of this newly printed money is in the bank reserves.

But when this money will enter into the circulation, it will cause hyperinflation and thus, your safe investments will shrink. Yup…Your Wealth in the bank fixed deposits and government bonds will be reduce in its purchasing power because of the higher inflation and that’s why people living on their pension plans and fixed income from safe investments will be the most affected people in the United States and Worldwide.

And this is the reason why you should start your own business as early as possible in your life. And yes, even if you are very near to your retirement, than also it is advisable to start your own business so that you can live peacefully after your retirement.