July 5, 2019
Here’s how gold moved this week:
We started at $1,410 US/oz., jumped up $1,434 on news there was geopolitical stress between Iran and the US, and then dropped back down under $1,400.
Gold is usually a hedge against uncertainty for investors. Those watching this game keep 10 – 20% of their surplus in gold in case the stock market and debt-based investments do poorly in a bad economy.
And so gold rises when the usual forms of risk become too risky for the prudent. Those, like brilliant investor Stan Druckenmiller, who put all their eggs in one basket and watch it carefully, are finding the stock market and the system has reached a stressful point and they’ve come out. He’s out of stocks, into bonds, and says gold is good too.
But remember there’s a bigger game going on.
The world has been in a central bank system for the past hundred years or so, with money being made from debt instead of the creation of goods and services. The nations are now in so much debt that it can’t be repaid.
There isn’t enough currency or faith in the system for anyone to pay off what they owe.
At this point there’s usually a reset of some kind. Every 30 years or so there’s a reset of some kind. Like a winter of sorts. We’re long overdue for a freeze because the longer we go the harder the fall will be. Those with inside knowledge want to loot the last little bit before they get out and it all crashes down.
When a reset happens it’s not back to the stone age. Not usually.
The elites get together and there’s either debt restructuring or a rebalancing of some kind. They bail out their friends and bail in their non-friends.
Then new rules are made and they’re off to the races again.
The US is the global reserve currency which means every nation has to hold US dollars in order to trade with other countries, who also have to hold some US dollars. It’s given the US a huge advantage that other countries don’t have, but at the same time it means the US has to look after the global financial system’s health, and not just their own.
The US as the reserve currency, meaning the savings currency of countries, means they are always in debt because there has to be enough currency out there for trade.
But no one wants a US dollar trade system anymore. Not even the US.
But there’s so much debt, how can you fix it all without a world war?
How can you get rid of it without so much pain in default that there’s pitchforks against the leaders and blood in the streets? The elites don’t want this because they may lose control in the middle of a crisis.
A rebalancing that’s slow, like boiling frogs in a pot, is preferred by them. But they’re planning for whatever may come.
We have a few moving parts right now: a U.S. election coming up, a debt level reaching a non-confidence level, a currency war and trade war, and on top of that some kinetic war talk going on.
So watch the price of gold as a movie and not a snapshot.
Nations have always had physical gold backing up their monetary systems. In peaceful times it’s a little and in stressful time it’s a lot.
In wartime they store some in ally banks around the world so if they’re invaded the enemy doesn’t steal it all. But in the last years countries have wanted their gold at home. Where they know it’s pure and they know where it is. So no one trusts anyone anymore.
If there’s less trust in the system more gold is held.
Central banks don’t want the masses to use gold as money because the banks don’t make a profit from it, but they use it amongst themselves. They buy it, sell it, lease it out and do swaps and forwards to gain a little profit. They use the BIS as their central bank of central banks. They use gold as money. They all have some (except Canada….ahem).
So new rules are coming. New rules in a world without trust. That means gold will be some part of the new system.
The new rules will have to include China as a player, because they are now such a large trading partner.
And gold will have to be part of the backing of any monetary system to rebuild trust, and so China will have to hold more than they officially do in order to have enough to agree to whatever new rules are made.
China must gain gold for the elites to have a quiet reset. Quietly. Not loud enough to alert investors and cause a buying panic that will raise the price. Quietly buying and mining.
And so the price must be kept low until China and all the other major players are set. Once they have enough gold-to-GDP to play the game of Coins and Crowns with the big kids, then the elites will be ready for the reset.
Then there will be a build up of inflation as an attempt to get rid of the debt – same number with way less value.
The price of gold is suppressed a number of ways, but it’s getting harder and harder for them to keep it down a more and more people are seeing the huge cracks in the system and beginning to defend themselves.
It will no doubt rise in price from now, in leaps up and then drops down.
But the reset will come either by a managed reset where the average person is slowly boiled in a financial pot, or else by a crisis that either will or won’t be managed.
We all swing from tension to release in many forms. This one is global. This one will impact all of us.
And so this week gold jumped up and then was suppressed down again.
They’re not quite ready.
President Trump hopes it will hold until after the US election. Then he hopes to be part of managing a reset where the US is looked after. The IMF wants a reset with a global leadership and the US moving down in status.
The central bank system hurts the average person and gives power to the banking/elite class.
It’s a system that gains by taking from others, instead of gaining by innovation and creation.
But it’s s system that’s swung about as far as it can go.
If you’re watching you can get out of the way of the returning swing. If you’re watching carefully you may be able to see a way to not just protect yourself but see places to grow and expand.
Gold is the borometer for this weather system.
This week gold lept up on war talk and then recovered. Nothing to see here.
World Without an Anchor
words and music | Elaine Diane Taylor
©2019 Elaine Art & Media
Single available on iTunes.
In a world without an anchor
subject to the sea
Right before a tempest
Left screaming at the breeze
Walls of rage and water will test what you have learned,
That in a world without an anchor coins are tossed and boats will burn.
There’ll be ships that lie deep (in) state beyond (the) reach
Who will wear a yellow vest?
Who will wash up on the beach?
from “World Without an Anchor”
Not Much of a Holiday
words and music Elaine Diane Taylor
© 2015 Intelligentsia Media, Inc. All rights reserved.
Single available on iTunes
Bank holidays and long lines at ATMs to get enough for the day. Debt deals behind closed doors. The media telling us what to believe. China building islands in the South China Sea and claiming all the international waves. Markets close and rockets crash. Silken road, treasure, files hacked. Oil, fusion cold. News and nations all sold. More dealing to come. More standing in line for those who owe. Who owes? There’s a long line of nations in debt and this is far from done.
Preparing for the Fall live boutique album available on iTunes — featuring Wag the Dog, Black Swan Dive, American Pie and Gods of the Copybook Headings.
Coins and Crowns
words and music Elaine Diane Taylor
© Intelligentsia Media Inc. All rights reserved.
from the album Coins and Crowns available on iTunes
The costs go up and the jobs go down. Hunger goes up and hope goes down. Then anger goes up and it all goes down.