Gold’s Middle Finger to Lying Currencies
The comments below are an edited and abridged synopsis of an article by Matthew Piepenburg
Sensationalism, like central bankers and policy makers, has many faces, views and voices. This may explain why we want to plug our ears and hug our knees amid a 24/7 fog of info-cycle pablum masquerading as information.
Up for discussion: Facts in a fog of sensationalism; something useful; pretending at exceptional; running uphill in roller skates; pension funds slowly abandoning a rigged ship; a revolutionary middle finger; and change is coming.
Central banks will eventually try to quash retail demand for gold by outpricing it once inflationary conditions get too absurd to control or downplay. The players in this rigged game may be corrupt but they aren’t stupid. They may hate gold in public, but they own a lot of it in private.
In a rigged game, it’s about the house controlling the casino: Failed policy makers recognize that once faith in the global fiat system implodes, whatever new currency the IMF, BIS and other players impose in the re-set to come, the new digital solution will have zero credibility unless it includes some form of recalibration to much higher-priced gold.
That’s why Russia, China and the world’s central banks are playing the long game and buying gold today at artificially repressed prices; once those prices multiply, the retail investor could easily be priced out of this rising asset.
Rigged or not, the smart money knows that gold follows the broad increase in the money supply per capita and increasingly negative real rates.
As inflation and money supply rises and as governments repress rates via monetized yield control, the setting for inflation to outpace yields is clear, which means the path ahead for gold is equally so.
If you still think today’s rising gold price is too high, you ain’t seen nothing yet. That’s a fact, not sensationalism.