Huge Gold Buying Opportunity ahead once the Federal Reserve Raises Rates, Most likely rate hikes will be Reversed When the Welfare Leeches look to Government to solve their financial problems – January 5, 2022,

I don’t know the situations worldwide, but because of family ties, I’m well aware of how Canada and the United States health with the pandemic. Justin Trudeau and Donald Trump both come from privileged backgrounds and both imagined that buying votes would be the most effective way to avoid a market crash. Justin Trudeau was re-elected in Canada and Donald Trump lost the 2020 election in the United States.

The end result however is that debts have exploded and there’s obviously a lot of malinvestment in the global economy. If you were a money moron before you got a free money from the government, chances are you’re even dumber now that you can see a financial benefit in obeying tyrannical political orders. From an economic perspective, the world is headed for inflation, I see no appetite from anyone for austerity measures, meaning that these proposed Federal Reserve rate hikes are nothing more than window dressing.

The game I see being played is the Federal reserve and possibly other central banks raising rates only to bring them back down again once they realize that inflation will not subside based on their controlled interest rate hike. a reminder that central bank rate hikes aren’t market rate hikes, central bank rate hikes are a few overly paid morons behind a desk trying not to make Joe Biden look like a complete idiot.

With that said, nobody wants a return to the Gold Standard which represents either austerity measures or WAR! Even China would fall if a Gold Standard were implemented in this economy. a Gold Standard equates to the governments of the world having to have a return on their INVESTMENTS.

The term “Government spending” is tossed around nowadays, by the real word is supposed to be Government investments, when the government steals money from its citizens via inflation or strong-armed tax collection, what the government is claiming is that it knows how to INVEST your money better than you do. People began overusing the term government spending because the government debts continue to pile up.

Without fiat money, most governments would be bankrupt, and this is what’s important to understand if or when the central banks begin their controlled interest rate hikes. Yes, central bank buying of assets plays a huge role as well, but government regulations continue to pile up, meaning that the cost of doing business is not coming down.

 

Yes, sure a few, industries might be able to slash prices, but this climate change initiative by governments is currently fixed, meaning that prices businesses have to pay for higher energy prices, will remain high. Companies in debt that will have to declare bankruptcy aren’t the real problem, the problem will be the expensive cost to replace them. All of this screams inflation, but I expect most market participants, not to comprehend this.

 

I’m hearing a lot of people who assume that a controlled central bank interest rate hike will solve the problem and the evidence shows otherwise. In Brazil as an example their president has had a difficult time trying to slash spending and cut regulations, those on the Leftist political spectrum imagine austerity measures as a stimulant to the rich. So even though interest rates went up in Brazil and Turkey, prices have also gone up, because you see, what most people don’t understand is that money or bartering is not supposed to be CENTRALIZED.

What I might pay a premium for, others won’t be interested in. debt is supposed to be reserved for BUSINESS people who know how to turn a profit. Government people do not know how to turn a profit, most of the voters who vote for Left-wing politicians to redistribute income for their benefit, do not know how to turn lemons into lemonade PROFITABLY.

 

What this ultimately equates to will be a lot of people seeking capital gains in what appears to be a coming bullish cash flow environment. Business-minded people will have to fix this Big Government mess, but of course, Big government people aren’t going to admit defeat, but what I expect is going to accelerate in the very near future will be SHORTAGES potentially of Gold and Silver in the future and this is going to fuel a bullish run, but before we get there, expect people to dump their Gold and Silver when they hear interest rates hikes and assume it will stop inflation.

I can even imagine a massive dump of Gold and Silver especially if the Republicans win in 2022, but make no mistake about it, until the appetite for austerity measures becomes reality, inflation more than likely will continue. There are simply too many shortages problems in the economy and too much-BORROWED money in the wrong hands sending incorrect pricing signals.

I expect a retreat in Gold and Silver prices, and this is great buying opportunity regardless of the outcome. It’s important to comprehend that the problem in the modern era, is the government is too big and there are too many voters who want things to remain the way they are. When does this attitude change? I have no idea, but if Gold and Silver dip below a certain threshold that make it unprofitable to mine? I hope you see where I’m going with this!

 

Consider setting some capital aside just in case I’m right. Sure I could be wrong, but if I’m right and the idiots sell, WOW! We’re talking about a chance to build foundational wealth!

Interesting times ahead