Saturday
Yes, the Israeli slaughter of Christian and Muslim Palestinian civilians really could transform into a widespread Middle East war at any moment. Yes, N.A.T.O. really could double down on their proxy war with Russia by sending uniformed troops into Ukraine thus creating W.W.3. Yes, rarely in history have the economies of the whole world been so broken and, accordingly, governments been in such trouble.
But I don’t think that is solely why Gold is in such strong demand. The majority of the population still stare credulously at their televisions and imagines that, by so doing, they are being informed. Few have any idea what is happening in the real world. They complacently go about their lives without even back-up food stocks, let alone a comprehensive Plan B. They persist in voting morons into government.
The huge movements in the price of Gold over the last week or so are caused by big dollars, not the dollars of working people desperately trying to safeguard their future.
So what is happening with Gold?
Any dissection of Gold’ sudden spark into life has to begin with the understanding that Gold is not measured by currencies. Currencies are measured by Gold.
IT IS THE PRICE OF CURRENCIES THAT IS FALLING.
Gold, as usual, is going nowhere. Gold was, is and will always be, a store of stable value. That is the ‘how’ and the ‘why’ that makes it the measure of value. Only the measure of value could have become money. That Gold is a store of stable value is denied by some otherwise smart commentators. By doing so, they are, unwittingly, denying that Gold is money, but that is an aside.
So, why has the ongoing fall in the value of currencies suddenly sped up so dramatically?
Here is where the story wanders from objective to subjective. I think that the answer is twofold:
1 The debt is becoming understood to be unpayable. When the debt collapses, then the currencies, which are representatives of that debt, also collapse. However, that situation has been an obvious incoming for decades. What has suddenly brought it into focus?
2 The answer to that could be the C.P.I. numbers just released. Price inflation is continuing to rise. That means that central banks will raise interest rates because they believe that will bring down prices. It won’t, but what it will bring down is the value of existing bonds (past government borrowings).
That impacts the balance sheets of the banks as they carry these bonds in their Asset column. Many thousands of U.S. banks are already in deep trouble and rising interest rates will make a bad situation worse. How much worse? I don’t know, but I suspect that some very big money is seeing the re-emergence of major bank problems in the near future.
If U.S. banks start failing, then it will ripple out across the world very quickly. An understanding of that would make swapping your currencies for Gold most attractive.
IF that is so, then the currencies will continue to fall as demand for Gold will continue to rise. Don’t be fooled by the market opportunists who buy into a ‘rise’ – any rise. They will also sell in their herd enthusiasm and cause huge corrections. But, if the above is correct, then nothing can now stop a terminal downtrend in the value of currencies – all of them – i.e., a continuing rise in the ‘price of Gold’.
Oddly enough, the U.S.$ is likely to be the last to fail, not the first.
Watch the banks.
Yes, the Israeli slaughter of Christian and
Muslim Palestinian civilians really could transform into a widespread Middle
East war at any moment. Yes, N.A.T.O.
really could double down on their proxy war with Russia by sending uniformed troops
into Ukraine thus creating W.W.3. Yes, rarely
in history have the economies of the whole world been so broken and, accordingly,
governments been in such trouble.
But I don’t think that is solely why Gold is
in such strong demand. The majority of the
population still stare credulously at their televisions and imagines that, by
so doing, they are being informed. Few
have any idea what is happening in the real world. They complacently go about their lives without
even back-up food stocks, let alone a comprehensive Plan B. They persist in voting morons into
government.
The huge movements in the price of Gold
over the last week or so are caused by big dollars, not the dollars of working people
desperately trying to safeguard their future.
So what is happening with Gold?
Any dissection of Gold’ sudden spark into
life has to begin with the understanding that Gold is not measured by currencies. Currencies are measured by Gold.
IT IS THE PRICE OF CURRENCIES THAT IS
FALLING.
Gold, as usual, is going nowhere. Gold was, is and will always be, a store of
stable value. That is the ‘how’ and the ‘why’
that makes it the measure of value. Only
the measure of value could have become money.
That Gold is a store of stable value is denied by some otherwise smart
commentators. By doing so, they are,
unwittingly, denying that Gold is money, but that is an aside.
So, why has the ongoing fall in the value
of currencies suddenly sped up so dramatically?
Here is where the story wanders from objective
to subjective. I think that the answer
is twofold:
1 The
debt is becoming understood to be unpayable.
When the debt collapses, then the currencies, which are representatives
of that debt, also collapse. However,
that situation has been an obvious incoming for decades. What has suddenly brought it into focus?
2 The
answer to that could be the C.P.I. numbers just released. Price inflation is continuing to rise. That means that central banks will raise
interest rates because they believe that will bring down prices. It won’t, but what it will bring down is the
value of existing bonds (past government borrowings).
That impacts the balance sheets of the
banks as they carry these bonds in their Asset column. Many thousands of U.S. banks are already in
deep trouble and rising interest rates will make a bad situation worse. How much worse? I don’t know, but I suspect that some very big
money is seeing the re-emergence of major bank problems in the near future.
If U.S. banks start failing, then it will
ripple out across the world very quickly.
An understanding of that would make swapping your currencies for Gold most
attractive.
IF that is so, then the currencies will
continue to fall as demand for Gold will continue to rise. Don’t be fooled by the market opportunists
who buy into a ‘rise’ – any rise. They
will also sell in their herd enthusiasm and cause huge corrections. But, if the above is correct, then nothing
can now stop a terminal downtrend in the value of currencies – all of them – i.e.,
a continuing rise in the ‘price of Gold’.
Oddly enough, the U.S.$ is likely to be the
last to fail, not the first.