An oceanic-scale demand push from “all parts Far East” is building, as the desire to own gold and silver promises to place an increasingly solid foundation for years to come.
China, India, and Southeast Asia have historically accumulated precious metal as a savings vehicle, a hedge against political uncertainty (e.g. India’s surprise call-in last year of 80% of the country’s paper currency), and as an expression of affection. China’s newly-emerging affluent middle class alone is set to become larger than the population of the U.S. Frank Holmes collectively refers to these elements as “love and fear trades”.
China’s One Belt-One Road (OBOR) Initiative – the world’s largest-ever construction project – is designed to link 60% of the world’s population in a cooperative financial and economic matrix. Taken together, the continued migration of gold supply from West to East is baked into the cake.
For a deeper understanding of how and why China is leading the charge – and going about capturing an outsized portion of the global gold supply – see my essay from last summer, titled China’s Get the Gold Plan: Part II.
Even as the West ships much of its remaining gold eastward (largely via Swiss refineries who “repurpose” it into .9999 fine gold), countries like Germany and Turkey have stepped up to the plate, becoming noteworthy demand drivers in their own right.
Fund managers are finally realizing that gold deserves to be a permanent portfolio asset holding category. In The Morgan Report and in Riches in Resources, David Morgan has written extensively about this for both individual investors and institutional clients. Just one more “silent lever” by which a long-term, rock-solid foundation is being built under gold’s demand… and price.
Gold Supply Vein Seizures:
[Due To Paper Inflated Supply Distortions By JP Morgan Sold To The Comex ~ Driving The Price Per Ounce Below The Cost Of Mining. Some Call This “Peak Production” Which Is Brought About By Fiat Paper.] [Another Tool The The Deep State Employs In Their Attempts At Overthrowing Constitutional Money For Their Fiat Control Is By Legislation That Closes Mining Operations. An Example Is From The Deep State Proxy Senator Dianne Feinstein ~ Feinstein’s Agenda 21 Desert Protection Act To Block U.S. Gold Mining
Metaphorically-speaking, available data strongly suggests (with evidence mounting sharply since 2015), that over the next few years an ongoing narrowing of the global gold supply’s veins and arteries is leading to a series of demand seizures, climaxing in a systemic “heart attack”.
[The Fraud => Fiat Paper Gold Sold To The Comex Choreographed On Paper/Charts An Increase In Supply And A Decrease In Price ~ While ‘Real Physical Gold’ Was Being Diminished ~ This is Choreographed Primarily By JP Morgan And Citibank.] JP Morgan Ordered To Stand Trial For 2017 Antitrust & Silver Market Rigging
As of 2017-18, this trend shows no signs of abating
Gold Silver Vs US Debt Clock
You could wrap $1 bills around the Earth 79,922 times with the debt amount!
If you lay $1 bills on top of each other they would make a pile 2,242,204 km, or 1,393,241 miles high!
That’s equivalent to 5.83 trips to the Moon!
Gold/Silver And The Dollar Devaluation?
1) Voltaire said over 200 years ago, “Paper money eventually returns to its intrinsic value – zero.”
2) The value of the U.S. dollar has declined from about 1/40 of an ounce of gold to its current level of about 1/1300 ounce of gold since 1971.
3) Because central bank and government policies perpetually increase debt and currency in circulation, the value of the dollar inevitably trends toward zero.
4) The destination of the dollar is clear – to near zero. But the journey is important. Will the path of dollar devaluation be slow and steady or a crash that hyperinflates the dollar currency?
5) The U.S. dollar is the reserve currency in global trade, but its importance declines every year.
6) Reserve currency status does not last forever.
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The value of the dollar as measured in gold since 1913:
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The value of the dollar has devalued against food, automobiles, and most other commodities and paper assets. Another example of devaluation comes from the tobacco index (a proxy for the cost of cigarettes) as calculated by the St. Louis Federal Reserve:
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The dollar is heading toward zero along with other unbacked debt based currencies. It may take several years or many decades. The specifics and timing of the journey are unclear.
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Why? Debt! [Keynesianism]
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Dollars are created as debt; they are borrowed into existence by commercial banks and central banks that increase debt and collect interest as revenue. Official national debt has increased exponentially (a straight line on a log scale graph) since 1913. [Only Zionist Banks Are Given Counterfeit USD To Exploit Against The American People aka; Keynesianism]
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Another interpretation of debt comes from FRED, the St. Louis Federal Reserve. The FRED tracks total debt securities, which also have increased exponentially.
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Everyone wants more dollars to spend, whether they are single mothers, small business owners, corporate managers, state governments, pay-to-play foundations, or national governments.*But as more dollars are borrowed into existence, debt increases, and every existing dollar is devalued closer to zero.
(left) and John Maynard Keynes (right)
at the Bretton Woods Conference conspiring Rothschild’s Private Federal Reserve 1913. ~ The Year Zionist Woodrow Wilson Violated The Constitution And Allowed Not The US To Control The USD But Rothschild]
[Zionist Keynesian] Bankers understood this before the Federal Reserve was planned at Jekyll Island in Georgia in 1910.
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They wanted to increase bank profits as they encouraged government and individual debt, collected interest, and gradually squeezed the value out of savings and investments through their inflationary increase of currency in circulation.
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Why Create The Federal Reserve? Wealth and Power!
- Politicians spend more dollars (deeper into debt) buying votes and transferring wealth to their friends and owners.
- Bankers increase their wealth and power.
- Governments spend more dollars for wars and entitlements. They increase wealth and their influence over other countries.
- Corporations borrow inexpensively to augment their wealth, power and bonuses.
Woodrow Wilson Allowed Them Back In:
Franklin Roosevelt Contained The Banks Via Glass Steagall Act => Prevented Banks From Making Risky Bets With The People’s Money:
Then Billy Clinton Reversed FDR’s Glass Steagall Act;
And Here We Sit:
Devaluing the dollar has transferred wealth to the upper few percent, the financial and political elite. Read David Haggith.
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The Problem:
Dollar devaluation benefits the financial elite. The lower 90% suffer if their savings and retirement are stuck in dollars which do not retain value.
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The middle class can protect savings and retirement from devaluation if they depend upon hard assets such as gold and silver. You can protect your purchasing power with real money that has been a store of value for thousands of years.
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But why invest in gold when the U.S. stock market is roaring higher?
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Warren Buffett suggested one million (or more) for the Dow in 100 years – a compound rate of increase of 3.8% per year.
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Both stocks and gold will be priced much higher as dollars devalue.
Gold would increase to over $2,000,000 in 100 years at a 7.7% compound growth rate, its growth rate since 1971.
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Official national debt would exceed $100,000 trillion at its current growth rate. A reset is more likely.
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Consider this graph of gold divided by the Dow since 1971 when President Nixon severed the remaining gold backing for the dollar. Gold and the Dow have risen since 1971 but because the Dow has bubbled to all-time highs and gold remains 33% below its all-time highs, the ratio favors gold in late 2017.
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Central bank “money printing” and [Banks borrowing the fiat USD] outright purchases of stocks [Mostly Japan] have levitated the DOW. [Its A Fiat Bubble to The Demise Of American Public]
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John Mauldin reported that the list of stocks owned by the Swiss Central Bank is 66 pages long. Amazing!
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“Printing” currencies from “thin air” to buy stocks is an exceptional benefit exercised by the Swiss Central Bank (and others).
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Russia and China have steadily purchased gold bullion. Russia reports they own 1,779 tons of gold, while China obscures their holdings. However reliable speculation by Alasdair Macleod indicates that China holds in excess of 20,000 tons of gold. Both countries have converted devaluing dollars received from trade into gold, and both appreciate currently inexpensive gold prices.
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Unfortunately, the American public and institutions prefer digital assets and paper debt while Russia and China have accumulated gold bullion.
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Repeat: Russia and China have accumulated gold bullion.
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They understand that dollars will be created by the trillions, and thereby hasten the devaluation toward the dollar’s destination of near zero value. Gold will become increasingly valuable because it is desired by individuals and governments while the supply is small and grows slowly.
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The Journey – Possibilities:
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Slow and steady:The dollar is devalued slowly while gold rises 6 – 10% per year. Many dollars will be created while politicians talk and collect payoffs.
- Spikes and jolts: Interest rates could increase from multi-generational lows and cause another credit crisis as per 2008. The dollar might collapse as central banks address their self-created problem by attempting to reflate the dollar and credit bubbles. The global trauma in 2008 might be mild compared to what could happen with currently inflated stock, bond, and currency prices. Expect government created distractions. (The spikes and jolts scenario seems likely.)
- [ Las Vegas Plot Thickens: Stephen Paddock’s Plane Was Owned By Obama Administration Intelligence Contractor ]
- Loss of Control: Central banks and governments lose control, “black swan” events occur and currencies hyperinflate. Think Zimbabwe, Venezuela, Argentina, and hundreds of other countries and currencies. Expect severe social trauma if governments hyperinflate.
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The path the dollar travels on its journey toward zero is important, but gold and silver will become increasingly valuable in all scenarios. A credit crunch may devastate many debt based assets and cause hard assets to spike upward. Hyperinflationary “money printing” will boost gold prices to unheard of numbers as the value of dollars, and most fiat currencies, falls toward zero.
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[Remember digital assets like debt based bitcoin can only cash out at the established rate of the USD]
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Prologue:
- The destination for the dollar and most unbacked currencies is near zero.
- Global debt will increase exponentially and currencies will be devalued. Gold is the ultimate hard currency and will be priced much higher in devalued currencies.
- Digital debt based assets have been levitated to previously unbelievable levels. Who would have believed in 2009 the Dow would exceed 23,000?
- Debt (leverage) has increased to dangerous levels. Global debt exceeds $200 trillion. U.S. official national debt exceeds $20 trillion and unfunded liabilities are $100 – $200 trillion. Europe has issued trillions in negative interest rate debt. Dangerous!
- Few believe in 2017 that gold will sell for $10,000 or far more during the next crisis. However, it is only a matter of time.
- The ratio of gold to the Dow suggests gold will be revalued much higher, possibly soon.
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All of the World’s Money and Markets in One Visualization
Click Here To Enlarge
Deutsche Bank And The $64 Trillion Derivatives Of Fiat Debt
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