The US Economic Fairy Tale—Save The System Or The Currency

The comments below are an edited and abridged synopsis of an article by Matthew Piepenburg

It’s no secret that gold is insurance against currencies that are already dying.

The US Economic Fairy Tale—Save The System Or The Currency - BullionBuzz -Nick's Top Six
Hand-drawn financial plans and charts coming out of an open book

Regardless of the US dollar’s relative (but ever-weakening) strength/hegemony, its (and other currencies’) inherent purchasing power when measured against gold has fallen by more than 98% since President Nixon closed the gold window in 1971.

Many can, will and do anxiously track and ask about the daily gold price, a price that is ironically measured in increasingly worthless fiat currencies.

This price fixation is especially true (and understandable) of speculators and traders.

But Piepenburg is a gold investor and wealth preserver. As such, his perspective, bias and convictions are patient and far-sighted.

He says that measuring gold, as well as one’s own wealth, in such fiat fantasy is a dangerous and consensus-driven habit, and thus he measures wealth in ounces and grams, not euros, dollars, pesos etc.

Gold, unlike various US bonds, is of infinite duration and finite supply.

Gold, of which central banks just bought over 1,100 tons in 2022, serves as a constant as the dollar races and scatters about the repo, euro and derivative markets in a complex madness that hides the fact that it is just a player in a familiar and losing game in which all fiat money reverts to its zero mean.

Up for discussion: Cracks in the debt egg; can-kicking the breaking egg; how a dollar-thirsty Humpty Dumpty wobbles; re-filling an empty Treasury—complex games, with no winners; where will the money come from; yes, the bond market is still the thing; Yellen in a corner and waking to reality; back to basics: the Fed as buyer/lender/spender of last resort; save the system or the currency; from Humpty Dumpty to gold; and from Humpty Dumpty to the big bad wolf.