Why Higher Prices Are Deflationary To The Economy and why Gold Prices Haven’t Skyrocketed Yet – October 13, 2021,

The current price of Gold and Silver is currently stagnant and this is baffling people who consider fiat money real money. I like to point out that Rule by Fiat or rule by decree money is not real money, it’s a confidence currency, that many of us would like to be real money because a Gold and Silver standard or using Gold and Silver as a means of exchange dissolves Progressive/Socialist/Communistic ideologies almost IMMEDIATELY.

Forget welfare, pensions, insurance, big government projects, financing for wars, minimum wages, rent controls, unnecessary regulations on the private sector any and all Big government projects will struggle to be financed if a Gold and Silver standard was implemented.

Forget even a Gold and Silver standard, an oil standard, a solar panel standard, a wheat standard any financial standard that requires commodities would destroy the medium of exchange model we enjoy today. It’s for this reason why Gold and Silver prices will be reluctant to rise and why I suspect the rise in Gold and Silver will occur once the private sector is forced to PERMANENTLY raise prices, once it’s an accepted reality that prices will have to rise to meet the new normal, expect Gold and Silver to take off and have record new prices, but before we get there it shouldn’t surprise you if Gold and Silver prices in fiat dollars retreat.

Why Gold and Silver prices might retreat?

Already in India, people are being forced to sell their Gold to survive, this is of course the part of the rule by fiat money system people like to conveniently ignore if you imagine Gold and Silver to be commodities, there are periods in history in which commodities are sold at firesale prices, because what could is Gold and Silver if you can’t eat?

As many of us know the Government is usually responsible for poverty, however, if you feel forced to transact using rule by decree currency, you may find that you have to liquidate in order to purchase fiat money. One of the reasons i am not a Libertarian is because I don’t believe in legal tender laws, I don’t believe in a Gold or Silver standard, I believe Bank runs are natural because banks are businesses and I’m a firm believer that financial education trumps a Gold or Silver standard.

As long as a person understands the rules of money, they can prosper in almost any environment, what central planners, president, and prime ministers do is they lower the standard of living so they have a permanent underclass. Currently, the central planners seeing the writing on the wall of energy independence globally, have manufactured a climate change crisis, many of us know they’re doing this because the third world’s standard of living has been getting better and this threatens the power structure because it’s a clear signal that free markets work and if free markets work, eventually people all over the world will abandon centralization of power.

How this translates for Gold and Silver is that you will have to begin pricing things in Gold and Silver and imagining the world without fiat money. That’s how you get rich in the modern era and it’s difficult because most people price things in U.S dollars. You get the true value of Gold and Silver relative to other commodities in industries which have least government influence.

This is why Bitcoin as an example shouldn’t be ignored, there is clearly a demand to escape fiat currencies, but it’s not until fiat price inflation can’t be contained that the world will dump fiat money. That period in history hasn’t arrived yet, but it doesn’t mean you shouldn’t prepare for it. A lot of electronic equipment has changed in price and the reason for this is that it’s not as regulated as other parts of the economy and it’s often outsourced to third world nations in which their government ECONOMIC overreach is limited because their fiat currencies are considered worthless in marketplace.

Worthless fiat currencies give you a glimpse into the true value of Gold and Silver, because for many they consider the U.S dollar to be as good as Gold, but the mere fact Gold and Silver can buy so much in these third world nations should give you an indication of their value in a world in which government regulations aren’t distorting prices.

Interesting times ahead!