Loading ...The Gold Fake News
As we head into the end of the tumultuous quarter, the future does not look much brighter. Everything we have believed over the years is coming to test those hardened beliefs. Gold has penetrated the August low and despite all the chanting, drum beating, and the same old stories of hyperinflation, those scenarios pale in comparison to the facts. In January 1975, M1 money stock was 273.4 billion (see Fed St Louis). That rose to 385.5 in January 1980 – a gain of about 141%. Gold rose from nearly $200 in 1974 to $875 which was a gain of about 437% – obviously greater than the increase in the money supply. Now the M1 reached 5,574 billion as of September 14, 2020. If the entire theory that gold rises in proportion to inflation were true, then it should be trading at $12,668.00.
All of these scenarios are just sophistry – they are just a gold mask to hide the true face behind. They sell newsletter and are in search of a new crop of unsuspecting investors to keep the scene going. I was a bullion market maker during the 1970s. The scenarios put out today are the very same they have been using all along for decades.
Gold will rise not because of the money supply, but because of a collapse in confidence in the government. These people have everything ass-backward, as they say. It is NOT the hyperinflation that causes gold to rise, the hyperinflation takes place because people no longer trust the government, have hoarded their wealth in gold, tangible assets, or converted to another currency when the problem is isolated as with Zimbabwe or Germany during the 1920s post the Communist Revolution of 1918.
The future rise in gold will have NOTHING to do with the money supply, hyperinflation, or any of that nonsense. These people do not understand that the central banks cannot increase the money supply enough to even match the destruction in capital formation which has taken place on a global scale with over 300 million unemployed. We are in the midst of a real live invasion, but this is not an army landing on the beaches, this is money being used to bribe our pretend “representatives” who run government no different from the collapse of the Roman Republic that forced Julius Caesar to cross the Rubicon. But the fake news back then painted him as the tyrant as they do today with Trump. The people cheered Caesar and the senators had to flee Rome because they were the corrupt oligarchs. Once more, this invasion of our future is being carried out by American oligarchs.
Do not expect gold to rise for any of these nonsensical scenarios that are up there with Global Warming creating confusion and just false narratives. Gold will rise BECAUSE of a collapse in the confidence of governments on a global scale. Just as the Roman Republic fell and became Imperial Rome, we face the same crisis on a grand scale post-2032.