Central Bank Deception exposed, Silver and Gold Price down, while almost every single Silver and Gold Bullion dealer is OUT OF STOCK – March 17, 2020,
So, we’re reaching the tipping point, as I’ve been stating for years now, austerity measures, austerity measures, austerity measures. The president that severed the U.S dollar from the Gold standard wasn’t a Democrat President, he was a Republican President, had President Nixon not severed ties between Gold and the U.S he would have had to deal with an economic crash which actually was derived from Franklin D. Roosevelt and his “New Deals”.
FDR’s new deals we’re called public sector growth and they were unsustainable however when Nixon inherited that financial mess, you have to remember that the market had adopted to the growing size of government, the FBI during the Nixon administration, became a ‘necessity’ and thus the warfare/welfare state was established and required a golden goose to sustain it.
Once the Democrats caught wind of Welfare State that could be financed, with fiat dollars, the Johnson administration created the Great Society which was an expansion of the welfare state that America is dealing with today. Well, under the Obama administration that Welfare State has reached its peak and the Trump Administration appears to be at a crossroads.
The choice for the Trump administration is either to renegotiate the debt which equates to a normalization of interest rates global or head into Negative interest rates, which equates to the U.S dollar and other global currencies basically being a coupon with an expiry date.
If the U.S dollar via the Federal Reserve goes negative it means you should keep your money out of the banks and expect hyper-inflation sometime in the distant future if the debt is renegotiated, it gives the world time to shrink their public sector and their welfare states, before interest rates shoot up.
If there isn’t a decision to deflate the dollar, well, then this equates to Silver and Gold Prices skyrocketing, there’s no getting around it, now, let me make myself clear that I’m not a fan of a Gold-Backed currency, I prefer Gold and Silver as their own bartered market, but Gold, silver, copper, platinum, etc. all have properties needed for industrial purposes and if the governments screw those markets up, the entire global economy flatlines.
This is why people like me say there will be debt renegotiation, but hey, I’m not afraid to be wrong, maybe thee central bankers really are crazy, because clearly the Silver and Gold markets are being manipulated OR the reason why the gold and silver markets aren’t going up as they should is that central banks are secretly purchasing and propping up stocks!
What that would mean is that the price of Gold and Silver isn’t necessarily being manipulated, what could be happening is they’re telling the truth about where stock market prices should be right now! Meaning in a normal deflationary market $1500 for gold would be the going price.
You see if interest rates rise $1500, it becomes a lot of money, it’s not looked at as a lot of money now, because banks are giving away money, but if deflation occurs, a lot of people will be lucky to get a loan for $1000.
In a rising interest rate market, Billionaires become Millionaires and lower-tiered Millionaires make a few hundred thousand per year. That’s how a market works, your Net worth is often worth less than you think, is a sang I got from Rich Dad Poor Dad author Robert T. Kiyosaki.
The deflation of asset prices can turn your world upside down in an instant, in actuality, if Donald Trump renegotiates the debt, he might no longer be considered a Billionaire! I expect Donald Trump to win the upcoming election, but during his second term, we will all see what he’s really made of!
In regards to Comrad Sanders or Joe Biden if either win, the markets won’t be this nice, and I can’t imagine a Democrat having to deal with austerity measures, Nixon was smart enough to kick the can down the road, based on market demand at the time.
If you research the period of time with Nixon, people had been talking for years about speculators being a threat to the stability of the U.S dollars, I know Gold bugs like to ignore human behavior, but ask your grandparents and remember there was no internet back then, so if upstanding people in the streets and in the media kept saying that speculators were causing local prices to rise, financially uneducated citizens often believed those claims, which is why there was little to no push back when America severed ties to the Gold Standard.
The same is true now, there are billions of financially illiterate people in the world, who assume that this is an easy fix, I even know rich people who are ignorant about money.
It’s deflation or bust at this point, deflation is debt renegotiation and higher interest rates, bust equates to get yourself a Gun! Sure you might need a gun when the national debt is renegotiated but, for once poor people or people who stayed out of debt will come out winning.
Gold is barter and bartering takes a whole new level of financial sophistication, that I’m not too sure about. One of the main reasons Gold didn’t work, was the minimum wage, which is a government price control. Regulations and precious metals, don’t work well together.
Entitlements, when people feel entitled to things, that ideology and something tangible isn’t a good mix. Gold still requires labour, market labour can unionize and drive prices up, in event Gold mines are Nationalized and then unionized that also drives prices up
As I’ll continue to say, the problem approaching humanity is Austerity measures! That’s why most people don’t like to even think about debt renegotiation because the Welfare State will cry foul and the welfare State is larger than you think and when things to reset financially, governments, won’t do what they should do which is nothing, they’ll instead intervene, the more your government intervenes the longer the depression. This is why for me I actually see America in a better position than most of the other countries will be.
If America renegotiates its debt, obviously other countries will follow suit, but you see the problem is, most countries have MASSIVE public sectors. I brought up America’s warfare state because whether you like it or not, the U.S Military offers a lot of value to the world. Even Canada can’t defend herself without the U.S military, this is one of the reasons people all over the world hoard U.S dollars!
The U.S military is the military most countries need to protect their borders, this is why the U. dollar holds it’s valued and would probably hold its value even if Trump default on America’s debts. With that said, if your countries public sector is bloated and your fellow countrymen feel entitled, America defaulting on its debts will be tough times for you because the deficits your government is running will cost them more to pay back as interest rates rise!
America defaulting does have a downside, it must they’re less trustworthy, meaning interest rates will go up, now moving forward I don’t know how long it is before interest rates return to zero, but one thing I will say is Donald Trump is a rare individual.
After Trump who knows, maybe a Socialist Democrat who is ignorant to everything I explained becomes President and completely misinterprets the fiat monetary system and spends, over regulates and borrows, the U.S dollar by this time may have met a challenger, because the debt renegotiation doesn’t mean happily ever after, it just means bankruptcy protection.
So with that said, assets, what is a true asset will reign supreme in the future world and I’m not necessarily sold on Gold and Silver coins being money. What I am sold on is the fact that Gold and Silver are a good hedge against inflation.
If this monetary system is the new normal I’d hoard silver and gold and slowly sell it off to finance my retirement. But if you’re hoarding it in hopes of getting rich, I think the central banks have already shown what they’re capable of, I also believe the Government will work against you, possibly adding additional charges to gold hoarders and to date, I still have yet to see Gold and Silver hoarders creating their own digital infrastructure, because even they seem to price their gold in U.S dollars, which tells me they’d have a hard time pricing themselves into the modern-day market.
The market wants deflation, the market even seems ready to accept it, with that said, I’m not entirely sure what the future holds, because Austerity measures is a terrifying experience for people dependent on the Welfare State and most Governmental leaders will feel the wrath of Austerian economics when people who believed in socialism are faced with the reality that it doesn’t work!
Interesting times ahead