Productivity | Strategy | Profitability
Productivity | Strategy | Profitability
Gold’s historic 2,300% leap in the 1970s from $35 to $850 per ounce occurred right after President Nixon took the US off the gold standard.
Moreover, in the early 2000s, gold tripled in value – soaring from under $300 per ounce in 2000 to $1,000 by 2008. This 3x move was part of the commodity super cycle. Today is a better set up and here is why. Market volatility is rising. Despite the phoney reporting that inflation is coming down, inflation is at its highest level in 40 years. Lies like ‘the M2 is contracting’ are monstrous-style falsehoods with disturbing intensity. The more false the statement, the more enthusiastic the lie.
M2 is a cherry-picked stat showing cash circulating plus money in bank accounts and money markets. The reason M2 is shrinking is that people are withdrawing their savings en masse to make ends meet. So stating that M2 is shrinking to demonstrate you are fighting inflation is pure insanity. M2 is shrinking because people’s real wages have decreased for 21 consecutive months (a new record).
People are pulling out money to buy food and pay overheads. These are for the people lucky enough to have savings. Another way of saying this is that bank deposits are negative.
1. Market instability will continue in 2023
2. Inflation will increase in 2023 for many reasons, such as past QE and supply chain disasters.
3. The Fed, US Treasury, Executive branch and Congress will do their normal debate dance about raising the debt ceiling or closing down the government.
The Fed is lying when they say they are fighting inflation by raising rates.
If the Fed really wanted to fight inflation they could increase the reserve requirement for banks. Banks do not hold cash reserves that match your deposits (within the fractional reserve banking scheme.) So if you deposit $100,000 dollars, the bank does not have to keep ANY OF THAT UNDER YOUR NAME. Your deposit, by law, is just a loan to the bank. And if they fail, they are either bailed out by the public or ”bailed in” by law. A ”bail-in” means they keep your deposit, and you lose your money. They will give you a paper certificate symbolising worthless shares of the very bank that went bankrupt.
The following chart shows what gold did against the S&P 500, Dow, and Nasdaq in 2022.
Now look at gold against standard asset classes together in one chart.
Let’s discuss why gold will continue to do well in 2023. Gold is the barometer for how people feel overall about monetary policy. If the market believed the economy was healthy and that monetary policy made sense, gold would drop like a rock.
So we have these things happening:
1. Market volatility.
2. Raging inflation (40 year high)
3. Systemic risk (based on debt, derivatives, equities, and the way banks are allowed to function)
4. The distorted bond market.
5. Safe havens like real estate are no longer safe havens.
6. Geopolitical instability (greatest since WW2)
Too many conventional gold and so-called silver experts keep harping on the same thing when it comes to silver and gold. They talk way too much about what the Fed is going to do. They talk way too much about existing stockpiles relative to future demand. They talk too much about cup and handles, Fibonacci analysis, and other technical analyses.
Why such distrust? Because of the increasing lies by the government, The Fed and the legacy media.
Small snapshot of government lies.
1. We are not in a recession.
2. The economy is healthy.
3. Inflation is Putin’s fault.
4. There is no energy shortage.
5. The inflation reduction act will reduce inflation.
6. The American economy has never been stronger.
7. We can phase out fossil fuels.
8. There is a virus that came from bats.
9. There is a vaccine that is good for everyone.
10. Raising rates will cool inflation.
11. The war in Ukraine was Putin’s fault.
12. We need a $1.75 trillion Omnibus spending bill.
13. We need members of Congress to buy and sell stocks after they receive classified briefings.
14. It’s OK to release the Strategic Petroleum Reserves.
15. It’s OK to have the children of Pelosi, Biden, and Kerry broker national security-sensitive energy deals with foreign governments.
Even the stupidest things like hearing that the government wants to ban gas stoves makes no sense. My thinking is, of course the government wants to ban gas stoves, all the easier to turn off the grid. This is about centralisation, whereas having your own gas (whether it’s your car or stove) is decentralised, yielding more freedom. Note the pattern here?
Gold is rising because there is a lack of trust in the health of the US dollar at home. This domestic lack of confidence stems from the reasons I mentioned above.
NO SUCH THING AS COINCIDENCE: WHY IS THE U.S. DOLLAR FAILING AT HOME?
It’s a matter of trust. Metals people know that the US dollar has lost 98% of its purchasing power over the past several decades but the emotion of trust is just as significant. The structure of the fiat financial system has destroyed the middle class. The oligarchy has siphoned wealth through inflation and taxation. Manipulated interest rates and money printing have grown the wealth gap. And it’s bound to get worse. At this point, I’d like to point out that the term mentioned above, ”oligarchy,” is only partially true.
We’re suffering through a lethal mix of oligarchy and plutocracy, but we mostly have a kleptocracy. Kleptocracy differs from plutocracy (ruled by the richest) and oligarchy (headed by a small elite). In a kleptocracy, corrupt politicians enrich themselves secretly outside the rule of law through kickbacks, bribes, and special favours, or they simply direct state funds to themselves and their associates.
Those closest to the money printer were the primary beneficiaries. The US printed $6.4 TRILLION, and in 2021 billionaires saw their wealth increase by $5.1 TRILLION. The ruling class benefited from the money printing. Meanwhile, the middle class had their businesses closed, and their living cost doubled, destroying savings; The Fed stepped in and said they would champion ”The fight against inflation” (which they created & benefitted from).
Now let’s discuss what has happened internationally.
The US has enjoyed dominating the global monetary system. It’s often presented to the public like it’s the natural order of things, such as the law of gravity, or just believed it’s a given, like oxygen will always be there to breathe. This assumption-based narrative leads people to think that the rest of the World is alright with the US being the global reserve currency or this is just the de facto World state of affairs.
Nothing is further from the truth.
The US must be vigilant to maintain US dollar hegemony. The playbook looks like this:
1. The US can print the dollar to oblivion while other countries are forced to hold it.
2. Other countries hold something that the owner can devalue at any time.
3. The US can print up its dollars and buy real things of value with it. The US receives tangible items in exchange for paper.
4. The US can confiscate other countries’ currencies because of our military advantage. That is what just happened in Russia.
5. The US can also block other countries from using the global financial system (SWIFT)
Naturally, hundreds of countries are trying to exit this type of system. The de-dollarization process is well underway. BRICS has unfurled their Russian Ruble pegged to gold. This system was designed by Russian economist Sergey Glazyev. Sergey Glazyev and his eastern and southern partners are seizing this unique chance to ”jump off” the sinking ship of the dollar-centric debt economy. Sergey Glazyev, is a Russian economist and architect of the gold-pegged ruble. Why was he the first person the US sanctioned in 2014?
The Fed is intentionally destroying the US and the World’s economies as an excuse to ‘come to the rescue’ with their CBDC.
The Fed knows they created inflation and that they can’t raise rates to fight it. We don’t have the funds to service the debt. Therefore, it is simple logic to understand they are intentionally destroying the economy.
Why is The Fed wrecking things intentionally? Because this will give cause to ‘come to the rescue’ with their Central Bank Digital Currency. The CBDC is also called The Fed Dollar. You can look it up here under President Biden’s Executive order #14067
Here are some disturbing features of the CBDC:
Instantaneous credits and debits.
Fully Programmable, so it can be turned off.
A social credit merit system.
Just recently all US flights were grounded because of a computer glitch. Meanwhile globalists are telling everyone to “beware of more cyber attacks.” Remember, there is no such thing as a coincidence. Like a switch, all our funds can be turned off. This is why you need real money like gold and silver. Not the Fed Digital Dollar! EG