Worldwide there is NOW a gold buying binge. The big banks short gold through derivatives to keep the price low, which keeps the dollar high. JP Morgan alone has more gold shorted $2 trillion, then all their assets. As the price creeps up, the shorts will be squeezed, JB Morgan will be forced out of their short position and gold will surge even more. And the dollar will dive.
Gold is a good investment for those who have an army to protect it. Silver's better, if all you have is a private bank vault. If you don't have either one, I recommend steel: tools of a useful trade and small-scale agriculture. Super-insulate a home that's too small to attract thugs, and learn to love the life of a simple serf. But gold? If you can carry it, so can a thief (or government seizure; like last time).
Yes, but, it’s not an unlikely scenario that if the dollar ceases to be the world currency that the US government would once again confiscate all gold . Question: since you and I aren’t the only ones who know what’s happening, isn’t it likely that the elites (superclass) are actually driving this train off the cliff on purpose because we are at the breaking point with the rising debt and dropping GDP ? They want a great reset . They do not care who starved or loses everything. Great Depression round two. Reset the US economy and usher in a new global currency.
Why would the "elites", who own the vast majority of financial assets, want to destroy the system which made & keeps them rich? I have never seen any satisfactory answer to this question.
The best answer I have found is eugenics. Thanks to technology, the elites no longer need vast numbers of workers to keep them rich and comfortable. So a global war or economic crash or pandemics or civil wars helps keep the population down. Have you read Limits To Growth? These people are only concerned about themselves.
can some one help me with the flows of cash back to the US. The way for someone to "get rid of the dollar" means they have to buy something in exchange, right? So they are "panic buying" when they "panic sell" their dollar. The liquidation of the IBM stock gives them more dollars, which would mean more panic buying of something from someone that is willing to hold US dollars. Does this mean that we should expect the trade deficit to suddenly become a trade surplus? Demand for US goods/services goes up because of the "panic buying"? Dollars flood back in to the US so costs of goods/services in the US goes through the roof (as denominated in US dollars)? Is that an accurate description of the scenario? Does that look like record profits for US companies or just massive shortages of "stuff"?
Return cash flows would almost immediately be frozen by the presiding US administration (what would you do under such circumstances in their place, leave the bank doors open, or close them?)
Foreign traders holding the US dollar would dump them for any viable trading alternative (at this time probably the yuan).
The fact that the exchange rate would rapidly shift in the yuan's favour under such circumstances, is a function of the increasing desperation of all those attempting to divest themselves of the dollar, or at the very least reduce their exposure to “catastrophic” losses.
In short order it would not be long before all USD’s held outside the Continental United States (or a closed, and allied trading alliance established as a consequence) were not worth the energy necessary to transmit a trading package of non-physical balances regardless).
So the irony is, those left holding USD’s outside the US would not even be able to use them as wallpaper, fuel, or insulation.
I believe the point of the article is that “de-dollarisation” represents an unpredictable, and inevitable cascade of failures (driven entirely by fear, and human nature), and once a cascade begins, it must be violently halted, or allowed to continue until the energy driving it is depleted, much like a cattle stampede in an old Western movie.
Of course this all assumes that it is possible for “de-dollarisation” to occur peacefully, isolated from all other potential considerations.
Which would be nice, however I do not believe is the case :-(
I'm so tired of hearing that gold is a scam, from the establishment financial industrial complex. Thank you for putting this so succinctly!
Worldwide there is NOW a gold buying binge. The big banks short gold through derivatives to keep the price low, which keeps the dollar high. JP Morgan alone has more gold shorted $2 trillion, then all their assets. As the price creeps up, the shorts will be squeezed, JB Morgan will be forced out of their short position and gold will surge even more. And the dollar will dive.
Buying
Gold as a long term investment is a scam.
I'm trying to decide whether to hedge against complete poverty with actual bullion. Thoughts?
Gold is a good investment for those who have an army to protect it. Silver's better, if all you have is a private bank vault. If you don't have either one, I recommend steel: tools of a useful trade and small-scale agriculture. Super-insulate a home that's too small to attract thugs, and learn to love the life of a simple serf. But gold? If you can carry it, so can a thief (or government seizure; like last time).
How did you go bankrupt? Two ways. Gradually at first, then all at once. ~Ernest Hemingway
Hi Peter - great article, really well explained
Thanks for that.
Ivan
Yes, but, it’s not an unlikely scenario that if the dollar ceases to be the world currency that the US government would once again confiscate all gold . Question: since you and I aren’t the only ones who know what’s happening, isn’t it likely that the elites (superclass) are actually driving this train off the cliff on purpose because we are at the breaking point with the rising debt and dropping GDP ? They want a great reset . They do not care who starved or loses everything. Great Depression round two. Reset the US economy and usher in a new global currency.
Why would the "elites", who own the vast majority of financial assets, want to destroy the system which made & keeps them rich? I have never seen any satisfactory answer to this question.
The best answer I have found is eugenics. Thanks to technology, the elites no longer need vast numbers of workers to keep them rich and comfortable. So a global war or economic crash or pandemics or civil wars helps keep the population down. Have you read Limits To Growth? These people are only concerned about themselves.
typo "But if do foreigners want a crapload of dollars, "
Brilliant
Good Article, check out my stuff as well: https://theamericanfreedomchatroom.substack.com/p/inflation-bonds-overnight-reverse
Thank you! Very helpful. I am very happy I subscribed to your site.
Very good article, but it missing links to sources of information. Providing them increases your credibility. Cheers!
Here here!
Just found your substack, and subscribed.
Thankyou.
Michael1964
can some one help me with the flows of cash back to the US. The way for someone to "get rid of the dollar" means they have to buy something in exchange, right? So they are "panic buying" when they "panic sell" their dollar. The liquidation of the IBM stock gives them more dollars, which would mean more panic buying of something from someone that is willing to hold US dollars. Does this mean that we should expect the trade deficit to suddenly become a trade surplus? Demand for US goods/services goes up because of the "panic buying"? Dollars flood back in to the US so costs of goods/services in the US goes through the roof (as denominated in US dollars)? Is that an accurate description of the scenario? Does that look like record profits for US companies or just massive shortages of "stuff"?
Return cash flows would almost immediately be frozen by the presiding US administration (what would you do under such circumstances in their place, leave the bank doors open, or close them?)
Foreign traders holding the US dollar would dump them for any viable trading alternative (at this time probably the yuan).
The fact that the exchange rate would rapidly shift in the yuan's favour under such circumstances, is a function of the increasing desperation of all those attempting to divest themselves of the dollar, or at the very least reduce their exposure to “catastrophic” losses.
In short order it would not be long before all USD’s held outside the Continental United States (or a closed, and allied trading alliance established as a consequence) were not worth the energy necessary to transmit a trading package of non-physical balances regardless).
So the irony is, those left holding USD’s outside the US would not even be able to use them as wallpaper, fuel, or insulation.
I believe the point of the article is that “de-dollarisation” represents an unpredictable, and inevitable cascade of failures (driven entirely by fear, and human nature), and once a cascade begins, it must be violently halted, or allowed to continue until the energy driving it is depleted, much like a cattle stampede in an old Western movie.
Of course this all assumes that it is possible for “de-dollarisation” to occur peacefully, isolated from all other potential considerations.
Which would be nice, however I do not believe is the case :-(
Michael1964