The Coming Gold Hoard-Rush: If Interest rates are never normalized cash will be trash here’s why – July 2, 2021,
There’s a potential serious gold rush in the works, now by gold rush don’t confuse it with what happened to Bitcoin which as many of us are observing is clearly being manipulated. The coming Goldrush may mirror the prior gold rush, meaning that prices may indeed start creeping up as it becomes apparent that government debt servicing will be impossible to achieve via tax collection.
If governments can not service their debts via taxes, the U.S is able to hold on as the worlds reserve currency and it becomes abundantly clear that interest rates are never going to be normalized under this current fiat system, what happens next IN MY OPINION is quick jump for Gold followed by a continued ascension, which is going to become extremely problematic because the price of silver, platinum, and palladium as an example will rise, which changes MANUFACTURING globally.
Why you should care, is because the more PHYSICAL cash that comes into circulation the richer the rich will become, therefore making a fiat dollar crash more of a debacle. It’s not like everyone is in debt, there are a lot of people free and clear of debt, what is often forgotten is that malinvestments in a market economy are malinvestments, and government price and wage controls are the real reasons why they want to avoid a crash. If let’s say government wage and price controls exist in an economy and a company propped up by government malinvestment goes bankrupt, it will become more expensive and RISKY for a new startup to replace said bankrupted business, which means HIGHER PRICES for consumers.
In a real market economy, a crash is only a big deal if you don’t have any financial education. Large corporations as an example go bankrupt all the time in a market economy, the problem with a bankrupt corporation is that the government loses all the tax revenue generated from these large corporations, which is ultimately why Big Governments are often at war with small businesses and prefer providing corporate welfare for many large businesses.
Now in certain parts of Europe as an example when the government goes to war with small businesses, those small businesses simply raise prices and push their governments to impose tariffs on foreign competitors, this is why economic growth is often so slow in Europe, in North America, we’ve created a consumption-led economy that in many ways would benefit nations like China, however, the Chinese government doesn’t respect the property rights of its citizens and therefore, a lot of Chinese People hoard foreign currencies like the U.S Dollar.
Often not talked about is why the Chinese Communist Party was hell-bent on annexing Hong Kong, well, Hong Kong was known for helping Chinese citizens to get the hell out of the Renminbi. What people tend to forget about socialism and communism is that nobody in their right mind wants to hoard anything that they know will imprison them. The Renminbi is a prison currency for most Chinese People and this is almost like fuel for the U.S dollar and other global reserve currencies.
As I pointed out in an earlier post, China’s ban on Bitcoin wasn’t going to do anything to the USD-derived price of Bitcoin, because a Bitcoin oligarchy already exists. Because Gold is more decentralized than Bitcoin an actual free market decides the price of Gold, the digital market decides the price of Bitcoin.
Why this is important to understand is that most fiat dollars in circulation today only exist digitally, I had pointed out in earlier posts that a lot of people borrowed money to buy bitcoin. Well, a lot of people are BORROWING money to buy real estate, or borrowing money to buy a car or FOOD. Digital money and physical money appear to be taking a different direction and this is very important to understand because if the Federal Reserve stands pat and the U.S and other governments continue to spend DIGITAL money into the economy.
What’s going to happen is people are going to start pricing things differently in the real economy. Now, the real economy might be given a different name by the government. I often refer to fiat government currency as coupons meaning they’re a voucher entitling the holder to a discount for a particular product or service during a specific period of time. Coupons only have value if people are willing to sell you something for them, during periods of deflation certain things are taking off the shelves, not because they can’t be manufactured, but because there’s no incentive to sell them.
How hoarding works, is that certain things just aren’t going to be available while at the same time prices are rising, because there is going to be less of an incentive to work. The people who want open borders, because they assume mass migration will equate to cheaper labour don’t realize that mass immigration is expanding the welfare state which in turn is expanding government debt, which ultimately equates to a deflationary economy, which will be propped up with cheap easy to acquire U.S dollars.
Now, because I expect demand for the U.S dollar to remain high GLOBALLY, this equates to a whole new economy emerging outside of the system. How this economy manifests itself is beyond my comprehension, because humans value things based on their necessity to them at any particular time. If interest rates aren’t normalized Fiat hoarders of cash are going to get crushed, this will include people in debt also.
Because if this new economy starts emerging, I expect certain goods and services will not be available to the public at large. Now, while this is happening I expect the price of gold to jump quickly and simply continue rising gradually until either interest rates are normalized or a new system is created and ACCEPTED by people who are profit-driven.
I keep hearing about digital dollars, and why I’m not sure about it is, because as we see with Bitcoin and its lack of privacy it’s actually helping the government to enslave humanity, Bitcoin is still grid reliant and it’s transparent and it’s helping to catch individuals THE GOVERNMENT deems as lawbreakers.
Many of us are watching what’s happening with Donald Trump’s taxes. His tax situation appears to be purely politically driven. If we all subjugated ourselves to a forced digital dollar, I’d personally assume that people with the means to do so will simply stop doing private and personal transactions in a manner that the government can monitor, what this ultimately means is that if Bitcoin does all the leg work and is allowed to remain as a vehicle to trade, I assume Gold and potentially other forms of barter will do the same although in a different manner.
I personally don’t value anything in U.S dollars and it gets easier for me to do this with every passing day. If I can save outside of the digital arena it becomes a waiting game, right now, the price of gold is stagnant primarily because a lot of people expect interest rates to rise, but I don’t care about interest rates rising I want to know is when are interest rates going to normalize if the answer is never, there’s a gold rush coming and as I’ve stated in prior posts, don’t be surprised if Gold goes on sale before this gold rush occurs.
Do I think the Gold sale is right now? Yes and No, you buy what you can afford to lose. If your fiat money is more important to you, hold onto it, all I’m saying is if there are no interest rate normalizations in the future, do not expect the price of gold to remain low, because there comes a time when even the Gold dealers say to themselves our fiat cash flow is guaranteed and we’re raising prices.
Interesting times ahead
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