On this table, from Trading Economics, you see the deficits (Gov/Budget column) and the growth rates (GDP Growth column). Technically, a country whose existing debt is greater than GDP and which programs a deficit greater than the growth of its GDP is unable to repay its existing debt; it can only pay interest by creating money.
This is why gold is currently reaching such levels.
As Henry often points out in his columns, the recent rise in global stock markets is illusory when comparing the value of stocks to the real currency, gold. The “gain” of indices expressed in a currency is only the materialization of monetary inflation.
If stock indices are rising so much without real profit growth, it is due to monetary inflation.
A freedom that we do not use risks being confiscated
With countries like the United States, Japan, Italy, and France whose public finances are in serious trouble, the currency crisis is expected to intensify.
Especially since the rise in prices is fueled by the dreams of the great planners:
- Fight against “climate change” requiring the development of intermittent, unprofitable and heavily subsidized energies
- Return to customs barriers and forced industrial relocations
- Manipulations of interest rates and the rental market making real estate more expensive
Hence the use of the ultimate currency: gold. Physical gold of course, let’s not forget that central banks store physical gold in their vaults. They do not store certificates in computer memories.
Soon, the central bankers’ so-called fight against rising prices (wrongly called “inflation”) by the same central bankers who issue money without compensation will be seen for what it is: a scam.
Once this deception is unmasked, will central bankers leave individuals free to also acquire the ultimate currency? Where will they take measures to prohibit individuals from trading gold?
As I explain in my book on money, political and monetary authorities have always wanted to cut the link between the currencies they control and the gold they cannot control.
As with cash, freedom can only exist if we use it. We still have the right to buy and sell gold: let’s take advantage of it! Buy legal tender coins to catch the monetary authorities at their own game (I detail why in my book).
There is also an important difference between gold and cash. Gold is stateless. It will be difficult to control your trading everywhere in the world at the same time. Imagine an international body decreeing that gold trading is prohibited worldwide for individuals. This would be the very admission of the fraud constituted by all fiat currencies.
The monetary crisis is approaching, because we have never seen a generation agree to pay the debts accumulated by the previous one. However, all currencies today are debt, with the exception of gold. This debt was accumulated in particular by the generation of baby boomers. You feel at the moment in France a palpable acrimony towards retirees accused by the youngest of being rentiers. These young workers do not want to pay more taxes to pay the interest on this debt which they believe does not concern them.
Regardless of your age, for once, what is good for central bankers – gold in vaults – is also good for you (gold in physical, tradable form stored in a safe place, which you check).
Read also :
5 reasons why young people should be interested in gold
