Tuesday
My interest in Gold spans forty-four years. My ‘taste’ for the yellow metal was born of panning for it in the Putumayo River in Colombia in 1976. The first moment of holding Gold in one’s hand is never forgotten.
The absurd panic that sees half the world wetting itself and suspiciously peering at their neighbours from behind curtains, or scurrying to the supermarket while keeping a ‘safe distance’ from other scurriers, may be amusing, but it has caused immense damage to economies everywhere.
My immediate concern was that it would bring on the debt collapse before Gold was circulating in sufficient quantities to remedy the situation. That fear is fading. The bond markets are holding up well, while more and more Gold continues to re-enter circulation.
The end of shutdowns will expose the beginnings of hard times – far beyond people’s experiences and expectations. Unemployment will rise above 20%, and likely go higher. Working people, let alone the unemployed, will no longer be able to afford the luxury of being fat.
An odd aside: in the Great Depression of 1929 – 1946, the boom industries were drugs, mostly alcohol, cocaine, weed, heroin, laudanum and morphine (the psychiatric ‘cure’ for addictions was to ice-pick the brain. Today their cure is to ice-pick the mind with antidepressants). The other boom industries were gambling and prostitution. All guaranteed to fritter away such little money as there was as quickly as possible. A situation of poverty does not make everyone suddenly sensible.
The system of irredeemable fiat – debt notes – will not go quietly. Central Banks will do everything and anything to prop them up for as long as possible – they already are (negative interest rates). Any collateral damage, such as the economy and people’s jobs, will be deemed justifiable, as long as their system – the one that holds their privileges in place – holds together.
Most people alive today are going to witness Gold as money again. Even though it is the historic norm, it is going to be an enormous surprise to them. It will begin the re-birth of the economy.