As we look back on 2023, a simple question for folks to ask themselves would be “Have the events that have unfolded in 2023 provided more reasons to own gold?” Our contention is physical gold is the only form of real money that has survived throughout time in its original form. Gold is a way to hold purchasing power outside of the banking system. Gold is the ultimate chaos asset, and financial chaos is festering more and more every day. America is reaching a breaking point in so many ways, at least it certainly feels that way.
The Federal Reserve Bank was formed in 1913, and our US dollar received its first real devaluation in 1933. FDR through Executive Order 6102 made it illegal for US citizens to own gold and lowered the amount of gold backing our dollars significantly. The Bretton Woods Agreement in 1944 established the US dollar as the world reserve currency and pegged the price of gold.
President Richard Nixon suspended all convertibility of US dollars into gold in 1971 and started the fiat currency experiment that still exists today fifty-two years later. Yes in 1971, the elimination of the gold standard was done temporarily and is still in existence today. That fiat experiment is on fumes. Our paper dollar is backed by nothing. Where does the value of it come from? Is it safe? Is the dollar a store of value over time? And when we say the fiat money experiment is on fumes it is because the politicians and central bankers have abused the ability to print money and create debt. The monetary base and debt are out of control. Our leaders have been beyond reckless when it comes to our country’s finances. And it is going to get worse.
Some of the biggest bank failures in US history occurred in 2023
Have we forgotten already that some of the biggest bank failures in US history occurred in 2023? Silicon Valley Bancshares, Signature Bank, and First Republic Bank all went down in March. Credit Suisse Bank needed to be rescued overseas. The Fed recently bailed out a Japanese Bank. Banks are on a fractional banking system. That means that a small portion of deposits is actually still at the bank. Your money is loaned out, invested, and traded in derivatives. Those are only digits on a screen. Repos, swap lines, it’s all a banking scam. Banks are being held up artificially with all of these fancy new programs that just lend banks more liquidity behind the scenes. Let’s not mention FDIC insurance which in itself is a total joke.
Our banking system is drowning in unrealized losses, the latest figure is over $640 billion. When depositors withdraw funds out in quantity, liquidity by the banks needs to be raised and investments need to be sold. When bonds are sold that have a lower yield than the current market, those bonds are liquidated at a loss. Banks are also drowning in empty commercial office space as many still work remotely. Shopping malls are ghost towns and are mostly open for smash and grabbers these days. Any financial institution that is subject to mass withdrawals is insolvent. Yes, ANY financial institution. The banking crisis of 2023 and the upcoming banking crisis in 2024 and beyond are significant reasons to hold purchasing power outside of the banking system. We would recommend some of that purchasing power be in a tangible asset like gold and silver in your possession.
BRICS in 2023 provided major reasons to own gold now
BRICS stands for Brazil, Russia, India, China, and South Africa. In August other countries petitioned to join BRICS. The countries accepted were Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates. These countries are doing business with each other in “local currencies.” They are bypassing the US dollar more and more. BRICS contains a large part of the world’s population and is a major threat to the eventually diminished role of the US dollar as the world reserve currency.
Many of these nations are accumulating gold at a historical rate. A new currency is probably inevitable that could be backed by commodities like oil, natural gas, gold, and silver. These countries see our leadership, they are sick of the US bullying, and they see our debt and deficit spending. Other nations are hedging their bets when it comes to owning US dollars and US Treasuries. Most of these countries have been net sellers of US Treasuries and big buyers of gold. The actions of BRICS and their new members in 2023 are a reason to hedge your bets with gold as well.
The debt of the US accelerated and grew in 2023
You will hear $34 trillion any day now. The debt of the United States is staggering. The debt of the world is mind-blowing. More debt and more deficit spending are on the way. Covid was an excuse to expand the monetary base and flood the system with liquidity. The Build Back Better Plan and the Inflation Reduction Act were more plans put together to spend and create more money out of thin air. Our deficit spending is over $2 trillion annually. The cost to service our debt is over $1 trillion annually. More spending and more debt are inevitable as our fearless leaders now have to “Save the World” from climate change.
Is the debt ceiling being raised again? Of course, it will be. The government is insolvent. This Federal Reserve System was created to inevitably be torn down. When the system collapses whose fault will it be? It’s Trump’s fault. No, Putin did it. No, China invaded Taiwan that’s why. No, the earth is boiling and we will all die if we continue to use fossil fuels to generate energy. We have to spend trillions because John Kerry said so. It’s a circus people and the clowns are in charge. No disrespect to the real circus clowns out there. The present debt and added debt in 2023 are the major reasons to own gold going forward. The debt of our government and other governments will matter.
2023 saw many instances of political chaos
Political chaos you say. How can that be with the upstanding political parties and individuals leading our great nation? It’s a disgrace and an embarrassment. President Trump shocked the world in 2016 to beat Hillary Clinton. I think there is good evidence that events led to a questionable voting election in 2020 that has never really been explained or fixed for future elections. Now it seems everything is being done to make sure the Bad Orange Man is nowhere in Washington DC in 2024 besides in a courtroom somewhere in the country defending himself.
The Speaker of the House situation was interesting. What are these clowns doing? These are the people we are counting on to lead us. You must be kidding me. These people can’t be the best the world has to offer. Where is the pride? Where is the respect? Where is the comradery to be in the greatest country on Earth? Where is the responsibility to lead the people? Well, the chaotic political environment and the chaotic ridiculous politicians will no doubt lead to a chaotic financial situation. The political chaos of 2023 and beyond is a serious reason to own gold.
Billions have now been sent to Ukraine and more recently approved
How many billions have now been sent to Ukraine that no one knows where it is going? Maybe it’s just another way to circulate more fake money back to the US for companies like Lockheed Martin, Northrop Grumman, and other defense contractors. I don’t know. That’s the problem. Does anyone know where the money is going while we have so much here within our borders that needs serious help? Who is going to rebuild Ukraine anyway, Black Rock?
In 2002, the War on Terror according to George W Bush was supposed to cost the American people $75 billion. It has cost over $8 trillion. The Pentagon failed its latest audit. It seems that they can’t account for $1.9 trillion of their assets. The military-industrial complex will not stop. President Eisenhower warned us about the military-industrial complex. The ultimate war asset is gold. The current wars and conflicts in 2023 are a reason in itself to own gold. China and Iran wait in the wings as another reason to hedge your bets in a tangible asset like gold.
A looming CBDC is a major reason to own gold
It was disclosed in 2023 that 114 countries are actively pursuing a CBDC (Central Bank Digital Currency). This means that our bank and retirement accounts would be held at the Federal Reserve Bank or the US Treasury. All of our accounts will be monitored and our money could be turned on and off based on a social credit score. This is already happening in other countries. How desperate would the US citizen have to be to accept this?
The government can’t be counted on to roll this out smoothly without glitches. Once we are in a total digital system with all of our assets we are stuck. A CBDC eliminates any control or privacy we have left concerning our money. It is imperative to have purchasing power outside of the monitored CBDC system. That is where tangible assets like gold and silver come into play. I am very confused as to why anyone would want to have all of their assets in this kind of digital system. The progress on an eventual CBDC by our government and other governments in 2023 is a major reason to own gold. Having purchasing power outside of the financial system digital or not has never been more important.
Our currency in 2023 was devalued even more
Inflation is the devaluation of our currency. Our US dollar has lost 19% of its value since 2020. $1 in 1999 is now worth $.55. Our dollar is dwindling in value. The more the government spends and prints, the more purchasing power we lose in our paper currency. 2023 was just another example of our dollar being fiat currency, not money. Real money should be a store of value. Our dollar since 1971 has never been a store of value over time. Our dollar loses value over time. Physical gold holds and gains purchasing power over time. Physical gold continues to act like real money and that’s how it should be looked at and a reason why you should own it.
Inflation numbers in 2023 continue to be skewed and lied about
I think we can all agree that prices have gone up substantially in the last few years. Exactly how much is anyone’s guess. The inflation numbers always get revised later on anyway. I would say all of my daily need items are up 20% to 50% over the last few years. I think we can all agree that prices are never going back down to those previous levels either. How do these politicians and central bankers say that inflation is over? Possibly the pace or rate of increase of inflation is slowing a bit year over year. Inflation was never transitory. Inflation and the devaluation of our currency are part of the financial system that we are in. We even print and borrow the money to pay the interest on the current borrowed money.
The Fed is faced with two choices as I see it. Either they stop lending and printing money to buy assets or they mouse-click more fake money than ever before. Well, if they don’t mouse-click fake money the markets and the economy crash. If they continue to mouse-click trillions more of fake Federal Reserve Notes, our dollar continues to lose purchasing power. Maybe we get both. Maybe we get more mouse-clicked money and lose purchasing power with our currency to hold the markets up and then the markets just collapse based on the law of enormous numbers and reckless greed.
And these job numbers. Are these reporting agencies serious as their numbers always get revised months later? What kind of jobs are being created? Are we counting people who are taking on a second or third job? Who exactly is in the labor force and who is actually looking and being hired? And what jobs are being created? Are they because of the government bills being passed and deficit spending? Who is hiring these people? Many of these new jobs are at the IRS, or CRT teachers, or maybe DEI (Diversity, Equity, and Inclusion) positions that the government is creating. Are most of these jobs creating any real goods or services? The continued absurdity of job numbers and inflation numbers in 2023 is another reason to own gold. We don’t know what to believe.
Over time gold has shown the ability to keep up with the cost of living. The paper currency our government continues to push on us does not. $1 from 1971 is now worth about $.13. $1 from 1999 is now worth $.55. On the other hand $1 worth of gold in 1971 is now worth $70 in gold. $1 of gold in 1999 is now worth $8 of gold in 2023. When we consider gold as real money, which is how it should be viewed, there is a drastic difference in holding fiat dollars versus physical gold when it comes to lost or gained purchasing power.
2023 also brought into focus two important factors especially when it comes to our money. For one financial privacy does matter. With the adoption of a CBDC imminent over the next few years and considering the banks are sharing our information with government agencies without our consent, it makes no sense to have all of your assets in that kind of system regarding financial privacy. Physical gold outside of the banking system allows some financial privacy in a system that is headed towards a system of zero financial privacy.
2023 also importantly pointed out that chaos is here in so many ways. There is political chaos with President Trump’s court cases and the upcoming 2024 election, the current administration, and all branches and divisions of the government. We are living in a clown world. The banking chaos from March has not been fixed. Banks are sitting on at least $640 billion in unrealized losses and that number would be bigger but the figures from the failed banks have been taken off of that list. What kind of banking chaos would you expect when the first bank goes down and customers lose their deposits? Having purchasing power outside of the system in gold is more important today than ever.