Gold Clarification
The comments below are an edited and abridged synopsis of an article by Martin Armstrong
Gold does not rally because of inflation or rising debt. It rallies when there is a collapse in confidence. Central banks have no desire to raise rates because their budgets will blow apart. The Fed is restrained by the ECB and other central banks pleading with the Fed not to raise rates.
Do not get confused when central banks say that they won’t raise rates. They can regulate the short-term, but long-term rates are set by the market. That is why we have Quantitative Easing—the banks buy long-term debt trying to reduce those rates because they cannot control them.
So it doesn’t matter what they say. The media said the market would decline because the Fed was raising rates. Interest rates ran up from 2016 throughout Trump’s four years; they only dropped due to Covid manipulation. The market rallied with higher rates—it crashed with lower rates—OMG!
Gold will not rally due to debt levels, QE or any other scenario. Gold will rally due to confidence collapsing. We are dealing with the failure of central banks and the collapse in Keynesian economics. Central banks cannot raise interest rates and they have destroyed the bond market while wiping out their pension funds because they said that these funds must invest in government debt. They have destroyed the economy and they are using Covid as a military tactic.
Gold rises when confidence collapses. When the public realizes that the Covid nonsense will never end, confidence will collapse. Governments intend to default on all public debt and replace even pensions with Guaranteed Basic Income. They are moving toward these goals gradually so the people do not realize what is taking place.
For now, there is still the short-term risk that the US dollar rises because Europe has utterly been destroyed and Klaus Schwab is in full control. Every strategic person in a key position is also on his board at the WEF.
