Was it harder to drink all the food dye–or peeing with such incredible accuracy?
Fables, Fairy Tales, And The Gold Standard
by Tyler Durden Wed, 02/13/2019
Pesident Trump often tweets about the strength and health of the U.S. economy, and two weeks ago, he tweeted that the U.S. economy was the Gold Standard throughout the World.
The fact that Trump capitalized the words “Gold Standard” may have piqued the interest of those who believe in sound money principles. Trump has in fact spoken in the past about a return to the Gold Standard, and some of the issues surrounding this are summarized in an October 2018 article: Trump Puts Gold Standard On The Table.
A simple interpretation of Trump’s tweet means that the U.S. economy is the envy of the world, the benchmark by which other economies measure themselves.
Nevertheless, Trump’s tweet can be viewed as valid in another way, whether this interpretation was intended or not. When the U.S. dollar was de-linked from the value of gold in 1971, the U.S. dollar and its economy became the Gold Standard. The U.S. dollar is the primary reserve currency throughout the world, and therefore almost everything bought or sold in the world has a reference point to the value of the dollar.
The value of the dollar is related to the health of the U.S. economy, and the U.S. economy, absent a “real” gold standard, IS the monetary standard throughout the world.
…Gold selling banks and brokers usually sell paper “gold” without necessarily acquiring more physical gold reserves. Spoken plainly – they often sell gold they do not have. It is easy to imagine how this scheme can distort price discovery in the gold market.
The paper-derivative gold supply scheme is an accomplishment that should make even Rumpelstiltskin proud.
…There are many well-intentioned shepherd boys in the gold market (and some not so well-intentioned), who on regularly highlight problems with the worldwide monetary system. The “wolf” in this case might be characterized as a form of worldwide monetary reset, perhaps with physical gold as a benchmark, rather than the U.S. dollar.
There is burgeoning and unsustainable debt creation worldwide. The U.S. dollar is losing ground as the benchmark reserve currency. There is increasing accumulation of physical gold reserves by central banks worldwide. The BRIC nations are creating payment systems to rival the U.S. dollar-based SWIFT payment system. There is indeed evidence that the wolf is on the prowl, and investors should consider how to protect their savings and long-term purchasing power.
On the other hand, shepherd boys have been crying, “WOLF!” for over a decade since the 2008 financial crisis, and many investors have been misled – especially those who have bought paper-derivative gold on a DATE-CERTAIN-THIS-IS-THE-BIG-ONE panic.
We believe that investors should seriously consider buying precious metals. But investors should also prudently assess whether they MUST ACT NOW when they do so.
Here is the bottom line for the long-term: every major economy is printing more and more paper currency. The value of money, like any other commodity, rises and falls as the supply changes. As the money supply continues to increase over time, the value of gold relative to those currencies will increase over time. It is that simple.
Here’s why we believe The Boy Who Cried Wolf metaphor is so appropriate. The wolf is coming. We don’t know when, why or how, but he is coming. It could be next month, or it could be many years from now. When he does come, it won’t matter whether you purchased gold at $1,200 or $1,500 per ounce. Either way, your purchasing power should be protected over the long run.
Until the wolf does come – and even after he does – it might be prudent to purchase physical gold (or other precious metals) on a routine, dollar-cost-averaging basis, regardless of the headlines and whatever the shepherd boys are calling out this week.
“GOLD shall destroy FED” Q (1 of 3)
Gold & silver have been manipulated for decades. The great “mouse trap” of the FED is a complex system of corridors, all leading to the same end [TRAP]. Think of the corridors as your employer-matched, pre-tax 401k, IRA, stock-market investments, savings bonds, fractional-reserve bank accounts (where you are an “unsecured lender”) and the like. Additionally, you can’t forget about the various “paper” pathways the big boys play with (using your money, of course), like futures contracts and derivatives (which are “bets” based on underlying assets).
The “mouse trap” is an engineered system of individually created components designed to attract your money. Shiny objects that excite us consumers enough to “invest” our fiat dollars in. After all, how could anyone pass up the “free-money” their employer offers in the 401k-matching program?
A good mouse trap is void of escape routes. All paths lead to capture, death. As such, we are conditioned as consumers to follow the heard, trust our “financial planners” and “save for retirement”. Side note—I always laugh internally when someone says “we have a diversified portfolio”. Translation: my barely-educated financial planner (who took night classes to get her “license” to sell “financial instruments”) made a few smaller commissions when pressed, by spreading a portion of the client’s life-savings into “safer” bond-related instruments offered by their institution of slavery.
The truth is, real diversification is the great unknown to 99% of people. It requires people to, as an example, buy physical gold or silver—and store them securely. This, to most people, is more terrifying than the notion of being a real-life landlord. liquidating their mouse-trap investments to buy an apartment building—to rent out to others is the stuff of nightmares (which Hollywood reminds us of via movies like “Pacific Heights”). These concepts scare people to death. It is unheard of in our society (just ask any licensed financial planner).
The Baby Boomer generation offered the cabal a perfect crescendo of financial harvest near the inevitable end of the fiat-money life cycle (typically around 50 years, give or take). A great cherry on top of the fiat sundae—75 million boomers socking as much as they possibly can into the mouse trap the last ten years of their careers, in order to fund comfortable retirements.
BUT—all good things must come to an end. The trap is sprung with the requisite market crash, typically followed by a good old-fashioned war. In a perfect scenario, a well-timed war could even prolong the inevitable crash—providing yet another scapegoat (“Those damn Iranians cost me my retirement!”).
BUT, TRUMP.
“GOLD shall destroy FED” Q (2 of 3)
Q has informed us that the FED is in the killbox. Also, that “GOLD shall destroy FED”. We have learned that a handful of families control the money globally. Forgive me mixing my metaphors, but the FED is the beating heart that sends an endless supply of bloodmoney through the global cabal’s circulatory system. Trump knows how to kill the enemy; cut out the heart. No more FED = no more cabal. Knowing this, we can ponder potential outcomes.
The cabal has suppressed the true value of gold—so it never becomes an escape from the trap (since they can’t control what they don’t have access to). They FEAR the public ever waking up to the little-known fact that gold is true money (not fiat currency).
In order for gold to destroy the FED, its true value must be realized. No more price suppression (another topic worth the dive), means gold will find its true, free-market value. In order to take a stab at the mechanics, I offer the following straw-man.
$1,245 Current spot price for gold (currently takes 1,245 fiat dollars to buy an ounce of gold at the long- suppressed price)
$10,000 Real value of gold (assume 8X increase)
$1.00 NEW GOLD-BACKED US DOLLAR is secured by gold held by the US Treasury.
Discussion:
What happens to our ~$20T in (known) debt?
60% EVAPORATES overnight when the new USD is denominated in GOLD (at gold’s new free-market, 8X price level)
Remainder of US National Debt is retired via 1) current gold holdings and/or 2) new, untapped gold mining on US soil (see Bix Weir’s roadtoroota.com for info on Grand Canyon deposits)
US Trade Deficits are balanced. Any future president who allows a deficit to grow, does not get re-elected, as the publicly visible draining of our GOLD RESERVES (and national wealth) will not go unpunished. Hence, Trump’s efforts to hammer-out trade deals before the restructuring.
INFLATION ENDS. Over 100 years of unconstitutional theft of American’s wealth through increasing the money supply, without adding underlying value, ends. No more theft of 2% per year of our dollar’s purchasing power. The gold-backed, USD will be the strongest in history, preserving our wealth—individually and nationally. Russia and China are prepared to follow closely behind—then the entire world.
“GOLD shall destroy FED” Q (3 of 3)
CRYPTOS will be allowed to exist, outside of the USD. This provides a healthy competition for the new, strong gold-backed dollar. Once the cabal is dismantled, these too have a better chance of finding true, free-market values.
Steve Bannon (who may well be involved behind the scenes in the Q movement), praises the virtues of cryptos. So much so, that Bannon often speaks of his “3 pillars” of future liberty; 1) citizenship and its inherent values, 2) personal ownership and control of an individual’s “data” and 3) the rise of cryptocurrencies as a means around the banks, supporting true peer-to-peer commerce and trade.
Central banks as well as their supporting major banks have long criticized the ownership of cryptos, which is an indication of both their fear and its true potential. A world that embraces cryptos, is a world that no longer needs banking institutions. As such—I am personally suspect of ALL CRITICISMS of crypto as a concept (even on this board). If it is a LARP—why bother criticize it? If it is truly transformative—shouldn’t we expect paid shills and all banks to go out of their way to publicly hate on crypto?
I just wonder if President Trump’s new gold-backed US Dollar, has a future as a gold-backed crypto-US Dollar…
Either way—2018 has been GLORIOUS!
God bless Q+
WWG1WGA!
Sauce:
https://www.youtube.com/watch?v=ofpzaA–jME Wayne Jett is great author (The Fruits of Graft), speaker as financial historian—great place to start.
https://www.youtube.com/watch?v=h3vFIwSBsFg