Proposed by GoldFix for ZH
Written by Jim Willie C.B.
Now is the time to cite the many reasons why gold has risen and why gold will continue to reach much higher levels. U.S. government debt and the default of U.S. Treasuries deserve, in my opinion, to be the main factors, along with high price inflation. These factors are not mentioned in the press. The Jackass has been telling impatient customers and frustrated colleagues for the past five years that the price of gold won't break the $2,000 mark with sustained momentum until government debt American is widely seen as being on an accelerating trajectory towards default. WE ARE HERE, since even the prestigious St. Louis Fed has publicly declared that the US government's debt is unsustainable. The picture of the defect is being painted.
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Growing perception of U.S. government debt default and U.S. Treasury bond default. The $34 trillion debt will never be repaid. Borrowing costs are more than $1.2 trillion annualized.
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Growing perception of monetized US government debt and monetized repayment of US bonds. The severe shortage of foreign bond investors has become an acute problem.
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Growing perception of steady status for higher price inflation. The actual CPI is at least 5-6% higher than reported.
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Growing trend of large-scale wealth transfer from US Treasuries to gold in banking systems. This phenomenon is a historical factor, observed once a century.
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Increasing tendency of bank depositors to withdraw funds from the banking system and invest in the more stable gold. Individual account holders are very concerned.
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Progress with the BRICS countries in creating payment systems other than the US dollar, resulting in a significant volume of sales of US Treasuries. They are all dedollarizing to eliminate risk.
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Growing resentment from victims of dollar weaponization, who wish to avoid the US dollar in favor of gold for trade payments and reserve management. The US government has weaponized the dollar and attacked any country that acted otherwise.
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Hidden agenda of Western central banks to escape grotesque insolvency by investing heavily in gold, then driving the price up to $3,000, then $5,000, then $10,000. Former BIS Chairman Zijlstra presented this plan in the 1990s. In effect, the Fed inflicted a whopping $120 billion loss on its balance sheet on the US Treasury. He is insolvent.
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Growing perception of an inflationary depression in the US and Western European economies, evidenced by false price inflation statistics. The depression began with the economic lockdown of 2020. Subtract at least 6% of GDP (economic growth) to get into reality, false inflation measures. The United States is in the grip of a deep inflationary depression.
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Insolvent major banks took long positions in gold, while depleting the GLD fund, used as a price suppression tool. They have $740 billion in unrealized asset losses. They need to buy gold slowly, because any rapid sale of US bonds will result in a bond default due to convexity (snowball effect).
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China and Japan support their Yuan and Yen currencies with gold purchases. In addition, China and India support the price of gold after each strong attack by US-British bankers, who use short selling methods.
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Shift of geopolitical and financial power from West to East as the King Dollar sunset. The global revolt is gaining considerable momentum. The American-British bankers abused their position as masters of the dollar. The East will develop a fair and equitable system based on the Gold Standard.
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Growing movement towards a strong asset base for the global monetary system. The movement has many participants, considerable momentum and will not be stopped. The Von Mises Corollary states that a paper base is followed by a metal base.
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Failure of trust in all things American: banking practices, financial market controls, economic statistics, war, information networks, social absurdities, political fascism.
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Long list of mining projects put on hold, each expected to take almost two years to resume production. Several large mines have been closed due to the reported threat of COVID. They will gradually reopen when higher precious metal prices are seen as stable.
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The explosion of global debt relative to GDP, currently over 330%, and growing. This ratio has doubled over the past two decades.
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Rapid introduction of gold-backed digital currencies in the dedollarization revolt, which include the Gold Token. Several nations will launch their versions.
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The power of on-demand liquidity for XRP from Ripple Tech with a gold base. It will become one of the favorite vehicles for Blockchain platforms.
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Growing specter of war in many parts of the world, as globalist fascist regimes are deposed, while waging a war to maintain their grip on power. Every war will appear to be suppressed and not to proliferate. The wars waged by the US-UK-NATO axis will see the Israeli war as the last war of the cabal.
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Dark money will find a path to gold, from money laundering hideouts, drug cartels, Langley warehouses and huge shrink-wrapped stores. They will seek a safe haven. At the same time, another hidden hand could be the US military as a buyer of silver, a crucial metal in the guidance systems of all these missiles.
GOLDEN BULL CHART
The greatest transfer of wealth in history has begun. He still has years to complete. The profound irony is that the big banks, led by the hidden initiative of the central banks, will ensure the march towards a much higher gold price, higher multiples. The catapult has been built.
NEXT MONEY
The foundation has been built. Gold first had to break down the castle door like a battering ram. Next, the price of silver will force a historic short squeeze based on a large-scale covering rally. Fibonacci panels will be drawn. New energy and technology patents will be deployed, promoting a renaissance of economic development. This chart shows the most promising potential for a massive price increase, which will be sustained.
THE PARADOX OF THE RISE OF THE AMERICAN DOLLAR
The SuperNova will be a remarkable phenomenon to observe. Foreign central banks must sell, release, unload and abandon US Treasuries held as FOREX reserves. In doing so, they reduce their US dollars held in reserve, which form the basis of their currency. Paradoxical consequence: their currency falls against the American dollar. The Japanese financial crisis will become a case study. The derivatives selloff supports the rally, as demand increases for the USD needed to complete the selloff. Refer to bond derivatives and Petro-Dollar derivative contracts. The USDollar will go up and up, then up again, before disappearing. Gold is taking its place all over the world. The process will be disruptive, painful, progressive and violent.
Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a doctorate in statistics. His career before launching the newsletter in 2004 spanned 24 years. He aspires to thrive in the world of financial writing, unhindered by the limitations of economic qualifications. Visit its newly renovated free website to find buttons to subscribe, view and more at www.Golden-Jackass.com. There is now a hyphen in the URL address. For any questions regarding subscriptions or consultations, use the Contact Us site.
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