Gold is a store of value. It holds your purchasing power when paper fiat money does not. Remember in 1971 the US dollar was taken off of the gold standard. Since that time and the “temporary” move, our money is backed by nothing but a promise. It was a promise by the government to pay all of its debts. The US Government cannot pay all off its debt and neither can the whole world.
- The Federal Reserve Bank took 80 years to print its first trillion.
- It took 18 years to print the second trillion.
- It took 5 years from 2012 to 2016 to print its third trillion.
- It then took 4 years from 2017 to 2020 to print its fourth trillion.
- In 2020 it took four months to print its fifth trillion.
This money printing and debt have consequences and a debt that will never be repaid. The trust in our paper money is slowly eroding and everyone can see it. The demise of America is imminent.
Central banks are printing like drunken sailors
Central bankers have been wrong forever. Inflation was previously in history isolated to a certain geographical area. The whole world is experiencing inflation today. The central bankers of the world have abused their power to print money. Now they are stuck. If they continue to raise interest rates dramatically, the economy and markets crash. If they print and inflate more, inflation runs wild and fiat money dies and becomes worthless.
Let’s look at the numbers briefly of these central bank wizards. They must be so smart to have the power that they do. No not really they just keep adding assets to their balance sheets at an exponential pace. The main six central bankers added over $28 trillion to their balance sheets since 2020. Central banks bought government debt and added it to their balance sheets where it just sits there. This is all done with a computer mouse and a few clicks. It’s a shell game and will end badly. The stock market has lost 20% this year and the Fed hasn’t started to clean up its balance sheet at all yet. Run for cover because when they do there will be fireworks in the bond and stock markets.
The US and world debt is skyrocketing
Norm Franz stated,
“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.”
Thomas Jefferson stated,
“I sincerely believe that banking establishments are more dangerous than standing armies and that the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a larger scale.”
With the debt numbers we are seeing today they must be rolling over in their graves.
US debt stood at $900 billion in 1980. In 1992 US debt swelled to $4 trillion. In 2000 US debt stood at $5.7 trillion, $10 trillion in 2008, $20 trillion in 2016, and $28 trillion in 2020, and now stands over $30 trillion. This is what they tell us. Who knows how much is missing? Global debt was $80 trillion in 2000, $120 trillion in 2006, and now the global debt is over $300 trillion. The whole world is printing and living on credit. You can’t fix a debt problem by issuing more debt. The numbers of the debt amount are mind-blowing. How much is out there that is not even understood? The implosion of the debt markets is inevitable.
Our fiat money continues to lose value
We have gone over many times that our paper money is backed by nothing. US citizens are seeing what currency devaluation looks like in real-time. Inflation is over 8% now and more likely that is a fib as well. Every major fiat currency has lost 97 to 99% of its value versus gold since 1971. Remember when a husband could support his family on an average salary, his wife took care of the family, and they could have three or four kids and send them to college? The numbers we see today have laid this to rest a long time ago and it’s getting worse, a lot worse.
Stocks are still historically expensive versus gold
The Dow to Gold ratio is rarely talked about. Does anyone even remember when gold and the Dow were roughly the same prices? In 1915 this ratio stood at 2.86, in 1932 it was 2.09; in 1980 the Dow was 1.3 times the price of gold. In 2011 this ratio swelled to 6.74, in 2020 it was 14.5, and now with a 20% drop, the Dow is still 17 times the price of gold. Is it so crazy to see both the Dow and the price of gold both at 5000 or 10,000? The numbers suggest bad returns for the Dow Jones Industrial Average and great returns for gold sometime in the not-too-distant future. The stock market is due for regression toward the mean compared to gold.
The US tax revenue in 2020 was $3.4 trillion and US spending was $6.6 trillion. That’s called a deficit. There have been deficits for decades. Since 1970 US debt has grown by 57 times while GDP has grown by 21 times. Is it any coincidence that the US Government is allowed to print and counterfeit legally but a citizen is thrown in jail? This fiat currency system is doomed to fail. It is doomed to fail because our elected officials continuously drop the ball. The system is reckless and it shows a lack of concern for its consequences.
So what are we supposed to do while we watch the money ship go down? One thing you can do is own something tangible that will always have value. You can move some paper market assets into something you can hold and control outside of this sinister financial system. You can eliminate the thought of waking up one morning and everything is just gone. No one knows what happened. But for the good of America We need your help now more than ever.
I can see it now read off of another cue card by our clueless leaders.
I’m sorry that is not acceptable. The gold you can hold is still available. The price of gold is still undervalued if we consider all of the paper money devaluations we have seen and will see. Yes folks there is a lot more money out of thin air on its way. How many more trillions need to be printed and spent before you wake up? The numbers say you need to own gold today more than ever. The only type of gold that will maneuver this quagmire is Gold that you hold.
