Gold Prices Getting Hammered As Global Economy Continues Its Deflationary Death Cycle – April 29, 2021,
Malinvestment plays a large part in hiding deflation in an economy. For example in countries like Canada and America, citizens and even illegal immigrants have seen a rise in their fiat denominated balance sheets as well as a rise in the value of their assets if they have any.
Furthermore, with debt deferrals in financial products like mortgages and auto loans, more malinvestment has been able to occur on the consumer side while productivity continues its decline. Most people forget that inflation data has been changed to reflect positively on whatever politician is in charge of running the indebted Western nation
The end result of all of this financial manipulation is that Gold is the only asset reflecting deflation in the economy and yet, Gold continues to hover at around $1700 per ounce. People are also now selling their Gold at a discount as many people imagined that with all of this supposed money printing by central banks that the price of Gold should have skyrocketed already.
But as most of us who understand that it’s the retail banks that issue most of the fiat money comprehend, Inflation running red hot applies only to those who don’t tie real money to commodity prices. The U.S dollar as an example continues to fall next to the Canadian dollar, the Canadian dollar is still imagined to be a commodity-based dollar.
Sure the idiots in charge of running Canada, in order to fulfill Welfare election promises, imagine themselves to have found a golden goose, but DEBASEMENT of the currency doesn’t always happen right away, because the private sector is usually reluctant to raise prices, instead what the private sector typically does is shrink the size of its offerings, automates more or it adds cheaper ingredients/parts via outsourcing.
Furthermore, in fiat dollar terms, people forget about the debt component, which is also deflationary, the public sector is in far worse shape than the private sector as far as debt goes and with more egalitarian types getting into politics, these politicians are raising the cost of living just to get votes.
I like to point out that often it’s the central banks simply facilitating the stupidity of the Democracy. So this IN-DEMAND cycle whereby thieves in a democracy seek to find someone responsible to finance their dumb ideas creates an atmosphere of FIRE SALES, unfortunately, to benefit from these firesales you’ll have to believe that your ideas are in fact virtuous. Ever notice that rich people appear to be doing things EFFORTLESSLY?
As a Canadian, Wayne Gretzky had a saying “skate to where the puck is going”, in an era of junk, VALUE goes on sale because you know most humans are idiots and follow what they believe everyone else is doing! The price of Gold is telling us that the economy is deflating and when Gold talks I listen.
For those of you who buy Gold simply to realize capital gains, it would be stupid of you to buy Gold, because Gold is real money! Gold is defense, Gold is insurance, Gold is jewelry, it’s a luxury, reserved for people who understand why it’s money. Being able to SAVE anything has always been a thing believers in private property do.
Fiat dollars aren’t private property, fiat dollars belong to the State and as I like to point out, I’m glad Gold is no longer tied to fiat money because if the central banks weren’t able to reinflate this dying economy, you better believe that those same socialists coming for your freedom of speech freedom of expression and well overall freedoms would be coming for your gold too.
Instead, now, the attention has been shifted to bitcoin, digital gold as many are calling it. I love the idea of Bitcoin getting all the attention, after all, I don’t sell my gold, and if I did it wouldn’t be for fiat dollars, if I were forced to sell my gold it would be for my own survival.
So the Gold numbers without the noise should be looked at for it is, which is deflation in the economy, as many people know more and more money is going into the stock market, why? Because as we’ve heard savings rates are up, because the cost of going to a job for many people has DISAPPEARED!
A fool and their money is one big party and most of the fiat money is going to where it believes it will see the most capital gains. In my world, this is called malinvestment and I know how this story ends! Anyone telling you that THE ECONOMY is inflation believes that fiat money is legitimate money. I don’t believe that for a second, my fiat dollars are called coupons.
I’ve been calling Canadian dollars coupons since the 1990s, I consider U.S dollars value coupons because whenever I go on vacation everyone wants U.S dollars. This deflationary death cycle ends when the private sector can’t turn a profit and is forced to raise prices. What happens when the private sector is FORCED to raise prices is beyond my comprehension, because whichever politician is in charge when this happens is going to act as if they’re in control of everything.
Gold ETFs suffer their largest outflows in 4 years as higher interest rates hurt investment demand | businessinsider.com
Interesting times ahead