12/15/2016 - Edelweiss Journal: The Challenge Of Preserving Capital In The Financial System

Edelweiss Journal: “After a decade of extreme monetary experimentation, it is now commonly accepted that global fiat money, expansionary money policies and central planning have served to distort the price-finding role of the free market and, as a consequence, the valuation of all assets .. The bifurcation between financial and real economies has grown ever larger, and this has been to the benefit of participants in the financial economy. Precisely because of the scale of this gap between the two, and because of their very different modern natures, a transition back to the real world provides an insurmountable challenge for most who have spent their careers developing skills suited now only to the financial system .. In this scenario, owners of real productive assets, which are genuinely scarce in nature and unavailable to most, seem best placed to prosper. For they do not require liquidity within the financial system, nor to be told what the current price of their company’s shares is. Furthermore it is likely that, in times of real adversity, the best of these businesses will find opportunities to strengthen their position further.”
LINK HERE to the report

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