Fiat Currency is Political Money: Harry Dent sees Gold Prices Retreating, I agree but for different reasons – August 14, 2020,

Harry Dent has gotten the reputation for getting things wrong quite a few times, primarily because he is known for making bold statements when in fact an explanation of his positions would suffice. As far as the price of Gold in fiat dollars goes, I don’t really care, Gold could drop to $300 I’d still hoard my gold.

I personally view gold as a form of bartering, I don’t see gold as money, I do see Silver as money, my Lord and Savior Jesus Christ was not sold for Gold, he was sold for Silver because on the main streets of the Roman Empire, the average person was trading in silver which was more liquid than Gold.

Gold is trading for big business, if you’re not industrious, your gold more than likely will be hoarded, which is what most people did with their Gold-backed U.S dollars during the last Great depression. Because the Governments back then weren’t allowed to have an elastic money supply, the then Democrats leadership under FDR assumed that government intervention was the best method to get people to spend their coddled gold.

Franklin D. Roosevelt made the Great depression worse because he wasn’t an industrious man, a brief history on FDR is he grew up rich and privileged and he practiced law working for a prestigious law firm before getting into politics. Teddy Roosevelt FDRs cousin was a Republican and Statesmen, Franklin D. Roosevelt was a Democrat and I’d label a Progressive-Socialist.

Progressives don’t imagine the importance of industrious people to a society, instead, progressives focus on trying to appease the mob. FDR assumed that by siding with the demands of the working he form a new deal with industrious people of society, but because of FDR’s limited exposure to Industry, with every new deal he made law, a new problem would arise and these new problems created excessive costs to the American way of life, which put even more Gold into hiding.

This in time led not only to wars but the creation of fiat money. The role Gold plays in the creation of fiat money is deflationary pressures. The government can’t create a welfare state if money is backed by something tangible. When money is backed by confidence, money is supported by the political structure of a society.

One of the reasons Switzerland or the Swiss Franc as an example has so much value is because of their system of governance, people forget that Switzerland is landlocked, but its currency continues to be in-demand, because of the Swiss model of governance which prioritizes municipal governments over federal governments.

Like it or not the central bank isn’t the main problem in society, the main problem in society is politics and politicians. Money could be backed by anything, if the politics of a nation are bad, there will be inevitable deflation. If a badly run nation’s money is backed by gold, the people with the gold during economic downturns will either hoard or flee with their money.

Now, this is where fiat money comes in because the governments with their central banks can inflate the currency, now, this fiat system does have it’s limits, Venezuela and socialist Zimbabwe found out those limits, a non-markets-socialist-run country with an out of control central bank obviously well lead to hyper-inflation.

Now, how this reflects on Gold is interesting because unless you know how to barter your gold during periods of economic chaos, you’re gold has no value. Gold is a form of bartering, the U.S dollar in actuality wasn’t backed by Gold initially money in the U.S was backed by Silver.

This is important to understand because in actuality the silver price is what you should be paying close attention too. Gold is signaling the printing of money, but what the price of gold is ignoring are all the deflationary indicators.

Silver is in Industry more so than Gold, so Silver will tell you what’s going on in the real economy, if you pay close attention to the price of silver, what you’ll notice is that it’s finding a hard time to find a new high, why? Because Industry is in a transition period and in my opinion, the transition period revolves around who will b the next President of the United States.

Oddly enough, Biden and a Green New deal will be good for silver and Gold, Trump oddly enough will equate to a different challenge, which will push Gold prices down. But, in the meantime, the markets aren’t sure who will win the U.S presidential election. Which is why I expect Gold prices will be going up. Fiat money is a political dollar that will always find a way to punish bad economic policies.

Central banks Printing money doesn’t mean more money being printed, it means more money being readily available for the right candidates. If you have bad credit and no business skills you’re not going to get a loan at the bank, and if let’s say Joe Biden wants to punish you for being industrious and successful, industrious people aren’t going to go into debt and grow the economy for Joe Biden, without some loopholes and guarantees! FDR’s great depression lasted as long as it did because before his New Deal would be accepted by the industrious members of society, they needed promises and guarantees. It’s really that simple!

Interesting times ahead!