In my unending quest for TRUTH, I occasionally read opposing viewpoints. Frankly, I spend less than 1% of my time on such, as I already know the END GAME. However, I often obtain valuable insight in the process; none more so than the subject of today’s RANT.
Below is an interview with Ambrose Evans-Pritchard, Business Editor of the Daily Telegraph. His distinguished history in politics and economics give him a unique perspective; and in many instances, provides provocative views of the future.
I disagree with half his big picture predictions – such as that the U.S. will maintain its global leadership role. However, I was intrigued by what he had to say about the gold standard; as he brings up a truism that even die-hard gold standard believers may not consider. And that is, that gold standards, too, can be grossly manipulated…
Here is another reason I’m against the gold standard, I think it is good to have free gold that is not controlled by any government; instead of trying to use it as a foundation for currency, which they will try to manipulate. It is better to have it as free, as a store of value; holding public currencies to account. This way, people can see gold rising against other currencies, and that tells you something.
It is the final reproach for the other currencies; it is sort of the umpire if you like. It sits there as a store of value and it goes up and down and by its movement it tells you about the other currencies. It holds governments to account. The last thing you want is gold to be concentrated in the hands of the government, who then say we have a gold standard; worst possible thing. You want gold to be completely free.
In ancient times, Roman emperors and Greek treasurers “clipped coins” to surreptitiously “print money” during so-called “gold standards”; and today, “financial alchemists” would similarly defraud the public, even under a “new gold standard.” Worse yet, “gold standards” are by definition manipulations, as they attempts to arbitrarily set gold’s price – as they did at $20.67/oz throughout the 19th century; and $35.00/oz from 1933-1971…
I have long deemed gold the “Barometer of Bad Tidings”; as even the most financially illiterate have thousands of years of human experience in their DNA; and thus, instinctively KNOW rising gold prices means a weakening economy, devaluing currency, rising geo-political tensions, or all of the above.
If left unfettered today, gold would sharply rise, reflecting the current, sorry state of the world; to a price that – care of decades of suppression – at least ten times the current value; assuming ZERO new money printing, of course…
If such a spike were to occur, there is NO DOUBT a market panic would ensue; likely resulting in COLLAPSE of most – or all – fiat currencies; which is EXACTLY why Pritchard’s utopia is impossible. That is, government officials would NEVER decree something that would undercut their personal wealth and power.
More likely, Marc Faber’s assumption that the faux economy will be overwhelmed by panicking market forces will be the ultimate outcome…
…as the current system is on its “last legs”; with the more important question being “WHEN” than “HOW”…
Our study concluded that ALL 599 fiat currencies studied failed, with a median age of 38.5 years. The U.S. abandoned the Bretton Woods agreement in August 1971 – making the dollar a fiat currency – 41.3 years ago.
– Vince Cate
Either way, PMs will inevitably be propelled to their “equilibrium levels”; coinciding with the END of the global fiat currency regime. Then, and only then, will prevailing governments have the opportunity to create a new “gold standard”; which, I assure you, they will; whether at a fixed price or in Pritchard’s hoped-for “freely trading” world.
NO system is perfect, ALL government-created systems are corrupt, and ALL markets are manipulated. However, the important, overarching concept is that once the current fiat regime is discredited and destroyed, CONFIDENCE will be lost for generations. Thus, no matter what the government decrees, your PHYSICAL gold and silver will initially increase their purchasing power – as the manipulative suppression ends; and subsequently, maintain it indefinitely.
PROTECT YOURSELF, and do it NOW!
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