Prayers For Deflation: Debts, Deficits and the declining price of Silver and Gold – March 18, 2021,

As long as fiat currency is all the rage, people are going to judge fiat dollars based on the policies of the central banks. So if you believe the central banks are the only game in town, the problem clearly isn’t the central banks, the financial problems stem from Western Democracies, which at the moment have a war going on between savers and seekers of money not connected to productivity.

I’ve never been a fan of LEGAL tender laws, I’m the type of person that believes that money should be privatized, I’m a believer that taxation is theft, I believe if a country is worth fighting for people will fight for it. However, in a democratic process, I and people like me have been voted out of influence, Legal Tender laws are all the rage and currently, the most popular legal tender is the U.S fiat dollar.

The U.S dollar is currently more popular outside of the United States than it is inside the United States. The problem is so pervasive that current United States Secretary of the Treasury Janet Yellen wanted to harmonize corporate taxes, to prevent U.S dollars the Biden Administration wants to confiscate from leaving U.S borders.

Although the stupidity of politicians continues to mount, the U.S Federal Reserve has been the financial holy temple that all the central banks of the world hover around. Even if a country is more fiscally responsible than the U.S government, that country via that countries central bank may still debase its currency from appreciation to the U.S dollar.

If you wonder why? The primary reason is that America has allowed itself to be a consumer-fueled nation, while at the same time having elements, that are fighting like hell to get the free market economy that led to the U.S civil war, back.

It’s not common anywhere on the planet for a nation with so many people fighting for a free market, consumer-first economy. Furthermore, America has some of the lowest tariffs in the world, this, of course, allows for the U.S dollar to be weaponized against Americans as U.S dollars can be purchased CONVENIENTLY all over the world.

Now as good as Gold is, Gold doesn’t enjoy this same luxury, in fact in countries like China, if a person buys a gold coin or gold bars, the customer has to wonder if the gold is indeed Gold, because fools gold still exists in many parts of the world and it’s this human flaw that won’t allow the common person to trust using gold as money.

Well, as we’re all well aware, a gold-backed currency was successful for some time in the United States, but Democracy put an end to that. Since Richard Nixon TEMPORARILY removed people’s ability to refund their dollars for U.S government gold, Gold has been on a tear, so much so that’s it’s often ignored.

Because of this consumer-led economy, unless you’re a believer that the governments of the world will have to repatriate their currencies with gold, the fiat dollar or cryptocurrencies are the only game in town. If this is true, then Gold is put in a position of its value being one of ONLY an industrial precious metal.

So, if people are imagining Gold to only have numismatic or industrial value, then one would have to assume Gold will find a bottom until it doesn’t. It’s important to understand that money is a convenient form of barter, bartering at its core is trading commodities.

So if there is a crisis in any currency supply, people tend to gravitate to commodities. Recently as an example, the crypto-currency ethereum had a bit of a currency crisis in that users of that currency voted to build in some deflationary measures, because at the moment there doesn’t appear to be any problem with commodity prices, this currency crisis in ethereum had little effect on its market price.

The bear jumps out the window, the bull climbs up the stairs, this has usually been the story with commodity-based currencies, they’re the backstop for human error. Although Bitcoin imagines itself to have the perfect currency or digital asset system, the reality is that Bitcoins value is priced in U.S dollars, from a commodity perspective, Bitcoins’ steady rise actually equates to it being an unproductive asset.

But, Bitcoins rise, is also a signal of trouble for the fiat monetary system, as people have to ask the question why is the bidding price for each bitcoin marching upward in FIAT dollars, simply because people are apparently not selling? Wealth is generated via market fluctuations, the entire of a purpose of a market-based economy is to find wealth inefficiencies, bitcoin is efficient as a digit asset not so much as digital currency, but a currency is derived from a commodity, and without government intervention, in the forms of legal tender laws, anyone can create an efficient commodity-backed digital currency in which at the very least, all parties involved could have legal claims of physical goods or services for hoarding and spending said digital asset.

So, as the price of Gold deflates, it appears that pressure is going to mount between central planners and central banks. If the debt is allowed to crash, and interest rates are allowed to normalize, there is no currency crisis, however, if the central planner, central bank merger is complete, history has shown us that this tends to lead to the destruction of money. There’s nothing the Chinese Communist Party can do to get people to VOLUNTARILY hoard the renembi.

I’ve written before that Donald Trump was one of the first U.S Presidents I’ve ever observed basically threaten the Federal Reserve Governor. Prior to Donald Trump threatening the Fed Chairmen, it had appeared that interest rates may have been headed to normalization, but since Donald Trump made those threats, interest rates have gone back down.

I’ve noticed a change in behavior from Jerome Powell since Trump made those threats and the changes in Powell appear to be a more Dovish federal reserve. Now, for myself, I’ve noticed this type of dovish behavior in socialist countries in which the central banks are terrified of the central governments, in China as an example I’m pretty sure their central bank head would be executed on the spot if he/she dared to engage in actions that would threaten Xi Jinping and the Chinese Communist Party.

Now, in America, if you think about it, what would Jerome Powell gain by being the Paul Volcker of this era? With every passing day, Jerome Powell is closer to getting the hell out of there. I also like to remind the reader that whether they like it or not Donald Trump was not a traditional Republican, on paper, Donald Trump looked more like a Democrat and because of this I’m certain Jerome Powell didn’t want to feel the wrath of passionate Trump supporters.

Now, under Joe Biden, I’m sure Jerome Powell doesn’t want to feel the wrath of the various Leftist establishments. All of these events are why I’m anti-legal-tender laws because in the end most people are looking out for their own best interests and this leads to why I believe that the price of Gold is no longer important in the grand scheme of things, you either trust the government or you don’t!

If you trust the government to do what you believe is the right thing, I can see your bearish case for Gold, if you’re like me, you’ll see the bullish case for Gold. In the year 2020, I’ve personally purchased a lot of stocks and assets at liquidated prices.

I’ve never felt so clear-headed, but my mind is in the future, when it comes to bartering I don’t pay attention to the present, I’m not a quick flip type of person, is this or that going to help me get to where I want to go, that’s how my mind works.

Wage growth has been stagnant and prices in government fiat dollars are rising, now ask yourself is that deflation or inflation? Well if you understand wages in the private sector are a reflection of the REAL ECONOMY you’d know that the economy is deflating, however, if the euphoric nature of Government fiat money has you believing BORROWED money into existence not linked to any productivity comes without consequence, I can imagine your argument for inflation.

Minimum wages as an example is the government destroying productivity, but some will argue that it’s inflation, again do you believe that your government is doing the right thing or don’t you? In my world, you can pretend that austerity measures and normalized interest rates are an ancient relic of the past all you want, but I’ll play both sides thank you very much and I’ll continue buying my shiny yellow rock, while I spend the government’s money for as long as it has value.

Interesting times ahead!