Gold-Debt-Deficits Don't Matter, Until They Do.................from Rico

It doesn't matter until it matters, but then it's too late...

 

GOLD

- I remember 1971 when Gold was $35/oz.

- Also 2000 when Gold was $250/oz.

- I 'got in' when it was in the $500's/oz.

- Conventional wisdom all along has been Keynesian, and Gold has been unloved, oversold, and unwanted in the West by investors...mainly considered as 'insurance' against governments and central banks fucking things up (what are the odds of that?) by untrusting sceptics of the system.

- However, from 2002-2018 Gold has been a 'winner' in USD, GBP, an EUR despite the bad press and manipulation/management of price via paper derivatives. [attached]

- The Globex spot price of Gold broke $1,350/oz last week.

 

DEFICITS 'n DEBT

- Western governments/economies owe many multiples of their GDP in debt and are insolvent. Japan may be the worst, but the US is catching up to them. The trillions 'owed' cannot possibly be paid back, so won't be. Currencies will eventually have to be reset/revalued [Remember: The 'old' French Francs and 'new' French Francs? The Zimbabwe Dollar? How about the Venezuelan Bolivar?]

 

SILK ROAD GOLD DEMAND

- While the West* has been blithely and blindly 'extending and pretending' that since nothing seriously bad has yet happened, it never will happen, [read: printing funny money and debasing their currencies] those fools in the East aka the Silk Road (India, China, Turkey and Russia) have been steadily acquiring it in increasing numbers. These are not stupid people compared to the dumbed-down smart-phone anodyne people of the West who could not survive if their 'smart' devices suddenly ran out of power. [attached]