In many ways, my September 5th RANT – “DOLLAR-PRICED GOLD” – was one of the most important I’ve ever penned. In it, I wrote:
…the MOST IMPORTANT point in understanding REAL MONEY; and ultimately, the key to the Cartel’s demise – and with it, the GLOBAL FIAT CURRENCY REGIME. And that is…the world DOES NOT revolve around the United States!
In other words, one must realize gold is a universal currency – recognized as having equal utility and wealth-preserving functions – WORLDWIDE!
When one grasps this simple concept – it becomes crystal clear that SIX BILLION people are competing for rare PHYSICAL gold and silver resources; NOT just 300 million Americans. Also, that PMs are priced in dozens of other currencies, so one cannot just look to “DOLLAR-PRICED GOLD” to determine global trends.
Not to mention, “purchasing power parity” calculations; “spending intensity” trends; and varying rates of money printing, government intervention, and economic growth – yielding significantly different inflation rates…
And, of course, THE MOST IMPORTANT fact of all; that is, that since 1971, the ENTIRE WORLD has utilized unbacked – i.e., fiat – currency…
August 15, 1971: A Date Which Has Lived In Infamy
…anchored since 1944 to the “almighty dollar”…
Consequently, more dollar reserves have been accumulated than any other currency, enabling it – for now – to stay atop the “currency debasement totem pole.” Moreover, such “status” has enabled the U.S. government to print GARGANTUAN amounts of worthless scrip to “support” preferred financial markets like stocks and bonds, while suppressing “enemies” such as Precious Metals; which, in recent years, they have attempted with a vengeance.
Fortunately, reality ALWAYS wins out; particularly when speaking of simple mathematics…
Simple math and common sense..by Eric Sprott – Bill Holter, Miles Franklin
…which is precisely why gold is nearing an ALL-TIME HIGH in essentially all fiat currencies (prices as of midday Monday, 11/26)…
As I have emphasized countless times before, it MATTERS NOT what Central banks attempt – legal or illegal; as the “genie is out of the bottle” – GLOBALLY…
Gold has already achieved an ALL-TIME HIGH in Indian Rupees, and shortly will do so in two of the world’s three largest currencies – the Euro and Yen; followed shortly by the so-called “safe haven” Swiss Franc (currently pegged to the Euro), with the all-important Great Britain Pound and U.S. Dollar lurking less than 9% away.
In other words, no matter where you live, the oncoming financial tsunami will sweep up your nation’s fiat currency; wherein, your ONLY salvation will be to convert it to REAL MONEY, as soon as possible.
PROTECT YOURSELF, and do it NOW!
Call Miles Franklin at 800-822-8080, and talk to one of our brokers. Through industry-leading customer service and competitive pricing, we aim to EARN your business.
Another excellent article Andy. I would say, however, that it is probably only the US citizens that may not quite fully grasp that gold is priced in many currencies other than just the US$.
Of course, the people reading this should have a pretty good grasp of that fact but I find (being from Canada) that as the US has historically (last 50 or so years) been a shining example for the world and the consequent focus, that other countries tend to get left out and not discussed in many forums or mainstream media.
Whether it is like the struggle of a younger sibling always feeling like they are being overlooked and trying to get recognized in their older sibling’s shadow or chalk it up to outright jealousy; either way there are many people in the US that just have no grasp that there is a vast world out there and it does function independently of the US – despite its past might – and the world doesn’t revolve just around the US as most in there think it does.
Once the US$ loses its reserve currency status (inevitable), this fact will come home and hit the US shores with the impact of a tsunami far greater than the one that hit Japan in March 2011.
Some outside the US find it to be arrogance but it really is not. I have travelled extensively throughout the US on business and pleasure and I can assure you that US citizens are just as friendly as Canadians, just as warm and just as, well, just as just about everything.
My point is that how can one blame people from the US for being so egocentric (not meant in a bad way) when they are not exposed to what happens outside their country to the levels of people in other countries being exposed to what happens in the US?
For instance, you may notice I did not use the term “Americans” for a specific reason and going back to the point about egocentrism. In the Western Hemisphere we live in the Americas which incorporates both North and South “America” and includes many countries like Canada, USA, Mexico, Brazil, Argentina, Chile and the list goes on.
To the point, there are many, many countries in the Americas so for people from the US to automatically refer to only themselves as “Americans” it can be viewed as a bit egocentric.
How dare I state something like this one may ask? My retort, is that there are many countries in the continent of Europe and they are all considered Europeans as they live in “Europe” but they can also be referred to as French for those than live in France, Germans for those that live in Germany and well, you get the picture.
If US citizens and others who live in the USA started referring to themselves as something other than just Americans, it could go towards them accepting that there is life outside the US and thinking about how they fit within the global economy and how they will be affected by what happens in other countries, ie: China’s voracious appetite for gold will be affecting the USA very soon as the wealth transfer from West to East is completed.
Rest assured though, my fellow Americans, we will be right behind you begging for scraps once our currencies are debased to nothing as well – that is, unless we have precious metals.
Sorry to rant.
Tim
Tim,
Wonderful commentary!
Andy