Harry Dent Warns of Gold Deflation, Deflation, Deflation Deflation – May 5, 2020,
No offense to the believers in a Government Gold Standard currency, but the Gold standard has never worked, it’s always failed as humans historically have always wanted their ‘leaders’ whether their leader is a king, an emperor, a dictator or a politician, a large portion of civil society has always wanted their Government to engage in Alchemy.
There is no gold or silver to pay the debts of the kingdom, this historically is usually when the Alchemist show up. The Alchemist often would be involved in the transmutation of “base metals”, upgrading ones copper to silver and upgrading ones Silver to Gold, this Alchemy was often permitted for brief periods in a civilization to allow stimulus before the perpetrator of this scam was later killed for fraud.
During deflationary periods, the average citizen doesn’t care why things got bad they just want an easy way out. I’m often perplexed with Gold Bugs who want the Government to make Government money backed by Gold? Why in the hell would you want the government to have a Gold standard based on the incompetencies of governments all over the world?
I’m not really a fan of Bitcoin, but I understand it, they’re building the infrastructure to get away from central banking and reckless government spending, at the very least Bitcoin has made its mission clear get as many people using Bitcoin as possible to prevent the Government from doing anything about it.
Sure I’d even argue Crypto as presently designed is a little short-sighted, but they did what Gold bugs have for the most part refused to do, which is to create their own form of barter.
I can still use fiat dollars to buy Gold, sure it’s in short supply, but I can till purchase it with fiat dollars, yet Warren Buffet today can buy up the entire Gold and Silver markets with I think 10% of his net worth, that’s how tiny the Gold and Silver markets have allowed themselves to remain.
Gold and Silver bugs are waiting on the Government to make their investments pay off, which I find extremely odd, I personally purchase Gold and Silver for Savings purposes, but I don’t ever want Gold to be government money, let all the suckers hoard fiat dollars.
A Gold Standard has NEVER stopped Governments from printing money
The purpose of the governments today is to keep cash flowing, government spending all over the world is out of control, imagine what idiot really thinks that if the government had a gold standard that this gold standard would stop the government from printing money? a Gold Standard has never stopped governments from printing money!
If $20 USD = 1 ounce Gold coin and some socialists became president of a country I guarantee that with that president’s first term 1 ounce of gold would equal $30 USD that’s how we end up in fiat monetary system, there’s always an excuse for socialism, how do you prevent socialism? You opt-out, rich people don’t hoard money, they hoard cash-producing leader leads.
People want to feel a sense of security, you buy an Apple iPhone because you feel more secure with the Apple organization which has proven for the most part to be a more secure experience. The Government presents itself as security and only suckers fall for that nonsense, nothing about a politician is secure, when I hear a politician speak it’s often terrifying.
Idiots want government protection, idiots want government security, but the government security farce has it’s benefits if you want to be rich, because once the government is involved in something, including money creation, you know the end result is going to be disastrous! Your entire plan should be to prepare for the ONGOING government disasters!
If you’re reading this you should be disagreeing with some of the things I’m writing, because we’re all unique and offer something unique to the market. The government offers one size fits all, in my opinion, we’re heading for economic deflation, it doesn’t matter how much money the government prints because a lot of it is going to be evaporated into thin air via bankruptcies.
I’ve already started to spend less, I stopped going to restaurants years ago, long before COVID-19, you’d have to be a moron not to see what was coming. Now, I still think Trump will renegotiate America’s debts, but I’m not betting the houses and kids on it!
Maybe something else happens, who knows, who cares, bottom line is you shouldn’t be measuring your gold against fiat dollars, gambling on capital gains, because when Gold does go it’s bull run, it’s going to be reasons that coincide with a rising market and most people are going to get this short confused with financial armageddon.
As Harry points out and I agree with him, Japan has been where America is going since the 1990s as bad a shape as the U.S is in the rest of the world is in far worst shape. When investing never ignore the political climate of the country. Socialists had profits! Socialists see profits as exploitation, this is why you never want a country filled with Socialists having a GOVERNMENT Gold Standard!
Interesting times ahead!