Economic Deflation: Will Gold Prices Mirror What’s Happening To Platinum Prices? Gold $1000USD? – July 7, 2022,
To give you a glimpse into how I think, I’ve been calling for record low Gold prices for about 2 years now. The reason I’ve been calling for record-low gold prices is that the Federal Reserve doesn’t print money. During my financial education journey, it came to my attention that not only is the Federal Reserve not a central bank, I also learned that the DISTRIBUTION of money is for the most part CURRENTLY left to the PROFIT-driven private banks.
Now, some people imagine that private banks will soon lose their control over the money supply and we’re going to get something like the “Fed-Coin” or a central bank in America that actually prints and distributes money. Sure this could happen, but the problem with this happening is that it’s clear to most of us that the Federal Reserve and other central banks around the world HAVE NO IDEA what they’re doing.
Once you comprehend that central bankers aren’t as smart as they pretend to be, you can see with absolute clarity, that private banks losing their control over the distribution of money will QUICKLY lead to hyperinflation?
Why would central banks printing money lead to hyperinflation even in this TECHNOLOGICALLY advanced economy in which transactions can be monitored? The COST of doing business. If you haven’t been paying attention, progressive politicians, appear to have NO understanding of the cost of doing business. This lack of understanding by most politicians of the COST of doing business is on full display.
Recently Joe Biden attacked Private RETAIL gas companies, claiming that ALL of them were price gouging. Where have we heard that before? If guessed Hugo Chavez, you’d be correct. Often ignored by people with a lack of financial education is how Venezuela destroyed its private sector.
In the mind of Hugo Chávez and people who shared his views, the Private Sector was a greed-driven group of people who would only raise prices to make politicians look bad. What low IQ politicians like Hugo Chávez didn’t know was that it was the COST OF DOING business that was raising prices. When you’re in business, the cost of doing business is something you understand FULLY, but if you’re a politician, it’s hard for you to comprehend that if all the costs along the supply chain have risen, the retail seller has to raise their prices because they don’t they’ll go BANKRUPT.
a market economy revolves around competition, if one business’s prices are too high, it will invite a flock of competitors, who will want to steal market share. Now, the only reason competition wouldn’t want to steal market share is if the COST of doing business is TOO HIGH! Joe Biden in his infinite IGNORANCE, imagined that ALL gas stations were inflating prices?
When the opposite would be true if gas stations were greedy. As everyone in business knows, gas stations make their profits by selling candy, soft drinks, cigarettes, and other things. This is just a preview of how truly dumb a large chunk of modern politicians are and how this relates to the price of Gold is that if let’s imagine for a moment that private banks are phased out or replaced by central banks, this will be an OPEN invitation for politicians to push forward not only their Green New Deal agendas but also all their other socialist ideals
Because these low-IQ politicians will imagine they have full control over the money supply, they’ll ignore the cost of doing business and begin THROWING money at every problem that’s making them appear stupid and/or unpopular. If you don’t know the cause of hyperinflation in Venezuela, the reason was that the GOVERNMENT tried to replace the increased COSTS by printing money.
So as the costs of doing business got higher Hugo Chávez printed money to cover those rising costs. This means that all the economic INEFFECIENCES the Hugo Chávez government caused in the marketplace did not go away, they were merely paid for by printing money, which inevitably led to the Bolivar becoming worthless INTERNATIONALLY.
Because remember, Hugo Chávez destroyed the Venezualan DOMESTIC markets first, which is why Venezuela became DEPENDENT on IMPORTS. Now, once you start doing import-export we’re now talking about the FOREX markets. The foreign exchange markets figure things out rather quickly and if a flood of Bolivars is coming into the marketplace looking to buy actual stuff, the forex markets are going to price down the Bolivar and once this happens, it’s GAME OVER.
Now, in the United States, there are millions of people who understand how a market economy, which is why Joe Biden is seen as an idiot. But in Venezuela, the numbers of people who understood a market economy, were minuscule, meaning that a lot of Venezuelan people imagined Hugo Chávez as some sort of genius. In Canada, the current Prime Minister and his followers thought it was a good idea when the Prime Minister froze the bank accounts of his political opponents?
In the minds of Justin Trudeau’s followers, the Prime Minister should CONTROL the economy and the money supply. This is how the average person thinks, it’s hard for the average person to put value on REAL money and it’s for the reason why Platinum has been declining in value. But the Platinum as money crowd is a lot smaller than the Gold and Silver as money crowds and it’s for that reason that the Gold and Silver prices to date have been SLOWLY declining.
But my argument is that the world is NOT ready for austerity measures yet, which means, the price of Gold and Silver will likely hit rock bottom, presenting a buying opportunity of a lifetime. I personally think the current price of platinum could possibly be the future price of Gold which as of the time of me publishing this is around $900USD.
The economy is DEFLATING, and progressive politicans want to spend more, infact the Bond markets imagine the Federal Reserve hit a ceiling for how high it will raise rates, my thinking is that the Federal Reserve cares nothing about house prices and is instead attempting to reign in GOVERNMENT spending. Because the Federal Reserev doesn’t PRINT money, if the governemnt BORROWS money with cutting spending and REGULATIONS, the cost of living is going to rise and the American purchasing power in AMERICA is going to reach an all-time low, as the forex markets PROP up the value of the U.S dollar.
Why will foreign nations prop up the U.S dollar? Because as I like to point out, the world is HEAVILY dependent on the U.S CONSUMER, most governments all over the world use REGRESSIVE taxation as their means to pay for their welfare state, meaning that if the U.S dollar fails, their WELFARE state fails.
I Canada as an example, a lot of private businesses only exist in Canada to sell to American consumers. All Canada means to a lot of Canadian companies is CHEAPER labor costs and the labor costs are only cheaper because the Canadian dollar and the Canadian cost of living are cheaper than the U.S. But if let’s say the value of the Canadian dollar reached parity with the Greenback? a lot of Canadian businesses dependent on the U.S consumer, would be UNPROFITABLE.
I use the Canadian example but this is true all over the world, meaning that if there really is a new monetary system arriving, switching over is not as simple as some people imagine it is, which basically means to me that if the price of Gold and Silver fall to the rock bottom prices I imagine they’ll be this will be a buying opportunity of a LIFETIME!
Because there are NO guarantees, that austerity measures will be considered for the next 5-10 years, meaning that after the commodities crash what comes next is likely a commodities BULL MARKET as most people are going to completely misinterpret what’s happening.
Interesting times ahead!