Could The Price of Gold Sell-Off? It’s possible, but if we’re headed for potential War and QE Infinity do you really want all of your wealth in the U.S Dollar? – January 25, 2022,
It’s January 25, 2022, and the markets appear to be having a difficult time grappling with how to view prices for things in U.S dollars. the reason why the markets are having a difficult problem with the U.S dollar right now is that although people imagine a lot of U.S dollars flushing down, the truth is actually the opposite.
There’s a lot of U.S dollar-denominated DEBT in the system, whether it’s bankrupt governments, bankrupt corporations, or bankrupt individuals if rates start rising and the Quantitative Easing stimulate is taken from the drug addict this all equates to DEFLATION. Most professionals in finances opt to ignore the regulatory environment to avoid the political component of the financial system, but that’s getting increasingly difficult to do because covid-19 and the left-wing climate change agenda is a real thing and it’s a drag on the markets.
What this means for Gold and Silver depends on your interpretation of money. I personally don’t think CBDC’s are good for the American dollar, the reasoning behind Central Bank Digital Currencies(CBDC’s) is that the U.S has to keep up with China, and crypto but the current U.S digital dollar is all over the world. Widely accepted and has a cash component, if the U.S dollar becomes PURELY DIGITAL I’m not sure what that means.
The price of Gold and Silver is currently tied to the U.S dollar, but because Gold and Silver are physical commodities, that are extremely important to the global economy, most people are praying that the U.S dollar hegemony holds up because the prices of things worldwide are valued in U.S dollars
If Gold and Silver once again become money, that’s austerity measures, that’s a cut in welfare benefits, that’s better governance, less corruption. Although I’m presenting Gold and Silver is a better alternative to the U.S dollar, we have to remember that most humans prefer corruptable money, we have millions of people and businesses dependent on government welfare and government monopolies.
Without corporate welfare a lot of businesses will not exist, without government welfare of substance, the standard of living for most Americans will fall over a cliff. The U. dollar has created artificial wealth for people who not only don’t appreciate it but who have come to expect more of it. This of course is marching us towards war. In one year Joe Biden has created several situations in which America risks going to war.
Why could America be headed for war with Russia over Ukraine? Energy prices! Joe Biden and his administration believe that climate change is real and therefore they’ve gone to war with U.S energy, which obviously equates to empowering OPEC countries, China and Russia. These politics of energy dependence, created by Joe Biden have given Russia energy wealth, which also equates to American dollars flowing into Russia because it’s illegal for most western nations to be as productive as they’d like to be.
Now, in a sane world, this should be good for Gold and Silver, but you have to remember the human element. The U.S military is still considered all-powerful, the U.S dollar is still imagined to be all-powerful, why jump ship if you imagine that “this too shall pass”. So a lot of confidence is still being put into the U.S dollar and this could equate to a Gold and Silver sell-off.
Now, for me a Gold and Silver sell-off would be a dream come true because regardless of how much money I make, I tend to live BENEATH my means. If I’m making $5 dollars a month, I’m saving something. Most people in the modern era of constant currency creation, don’t see the world this way. Most people spend everything they have and find a way to get into debt so they can spend even more money.
Even ff the individuals who go into debt and spend for cash flow could be headed for a world of trouble if QE is ended and interest rates are normalized. Currency allows for faster transactions, a monetary system based on real money is an entirely different world. As I like to point out the only real inflation in a capitalist world comes via INNOVATION! Without innovation, capitalism is inherently DEFLATIONARY. What most politicians like to do in order to hold onto to power is KILL the human spirit.
Those in power want to make the world kneel before them, which is why political psychopaths like to start wars and destroy the economy. It’s to their benefit for you to be dependent on them. There are lies spread that Gold and Silver cause wars lol. No, wars have been started over Gold and Silver but human greed starts wars, the desire to be the richest and most powerful individual on the planet, this type of thinking starts wars.
Gold and Silver or financial education actually starts peace. When you’re financially educated no longer are you dependent on others to make your decisions, when you’re financially educated, you’ll see the world for what it is and not what you imagine it should be. It’s easier to recognize a psychopath when you have a basic understanding of financial education.
Money is indeed a form of power, so when people make power moves, you can trace it back to their desire to control the means of production. Most Commie countries, want to control the means of production. Because most Western countries, imagine manufacturing to be dirty, they take for granted the processes necessary to have finished products delivered to them. This is why it’s easy for most lovers of big government to hand over so much power to the state.
They imagine the means of production as being unimportant in the modern era. Well, handing over the means of production to Communists leads to war, and what happens now, is how much faith do you have in the U.S dollar over Gold and Silver. If the buying opportunity of a lifetime is presented to you, will you take it?
Because I remind you that if interest rates are normalized and QE ended, especially in this regulatory environment, consumer prices will not come down, in fact, they might get even more expensive, because a lot of businesses are in DEBT, and higher interest rates will equate to higher borrowing costs. Even if old businesses are replaced with new business models, the higher cost of living via regulations on the economy won’t allow PRODUCTION costs to come down.
This all equates to bullish Gold and Silver prices in the future, that is if you’re pricing things in U.S dollars. But make no mistake about it, if we’re headed to a future of hard money, you’ll have to be in a good asset position to benefit from an appreciated Gold and Silver price. I personally think it would be wise to count your wealth in both U.S dollars and Gold and Silver instead of one or the other.
Interesting times ahead!