Gold-O-Mania Is Coming
The comments below are an edited and abridged synopsis of an article by Egon von Greyerz
The buoyancy of markets in recent years has lulled central banks into a false conviction that they had saved the world after the 2006—2009 Great Financial Crisis.
But central bankers continue to navigate like drunken sailors between the evil forces of Scylla and Charybdis as in Homer’s Odyssey.
Few of the bankers have understood that printing unlimited and worthless paper money will not allow them to pass the strait of Messina without major—or more likely catastrophic—damage to the world economy.
As exuberance continues to dominate intoxicated stock market investors, they haven’t yet noticed that all is not well on the perilous seas.
Still, most markets continue to respond positively to the printing press rather than to the underlying fundamentals.
Printing presses don’t create real value; they create bubbles full of worthless air. But sadly intoxicated investors confuse air, which is free and has no value, with real, intrinsic values.
For example, what is the intrinsic value of Bitcoin or BTC? How should BTC be valued? Does the $60,000 price today reflect the real value, or was the 10-cent price 10 years ago more correct?
Up for discussion: Bitcoinomania; central bank digital currencies—CBDC; gold on its way to new highs and beyond; gold-o-mania; and gold is for wealth preservation.