Let me look in my crystal ball. Where is gold going.
Every time gold dips I buy. Why you ask. If the Mafia known as the Central Banks back up the money with just 10% gold then gold will go to $5,300 an ounce. If they do it at 20% then gold will go to hair over $10,600 an ounce. If the Mafia Central Bankers go to 50% then Gold goes to around $26,500 an ounce.Drum Roll then for To monetize 100% of the outstanding public and private sector debt in the U.S., the official government price of gold would have to be raised to more than $53,000 per ounce. Let's spin the wheel of chance and see which one they will do. 10 20 50 100 or somewhere in between. This is just for the United Stats debt and not the world wide debt. Every time one of the traders say sell the gold I buy. LOL GS is IMHO part of the FED ( I have followed the money) so I follow the Speekers I can semi trust. One would be JIM CRAMER. He says at least 20% of your portfolio should be in gold and silver. So......... along with Fabor Schiff and others then I know we are going to be in for a LULU of a ride.
First, you don’t need a gold standard to accomplish a devaluation of currencies and revaluation of the monetary system.All you have to do with your fellow Mobsters is offer to pay more than $10,000 an ounce for gold, central banks can effectively accomplish the same end goal — monetizing and reducing the burden of debts, via inflating asset prices in fiat money terms. See simple. Insider Trading on the largest scale and no one will do anything about it. IMHO.
So as this happens Rockefeller and his cronies IMHO because he knows physiology will watch hoards of gold investors go and cash in their gold. The central banks will pile it up. Hoards of investors will not sell their gold, even at $10,000 an ounce. But the actual movement of the gold It is the psychological impact and the devaluation of paper currencies that matters.
Second, I do NOT believe that a fully convertible gold standard.There isn’t enough gold in the world to make currencies convertible into gold. It would end up backfiring, restricting the upply of money and credit.
If you don’t already own some gold for the all the reasons that have made it a great investment for thousands of years, especially the past eight years, it is now essential that you buy gold to protect your money and profit in the months and years ahead. Please do not buy treasury's. IMHO We will be screwing China and they will not be happy. They will loose face. Not Good.
Stay liquid. If you’re caught in illiquid investments when the monetary system changes, investments like long term government bonds, long-dated Certificates of Deposits or other illiquid investments, including side-businesses or other investments where you’re money is tied up and you have no
control — you’re going to see the value of your money get devalued. Period.So by far, your best move right now is simply to keep the bulk of your money fully liquid. That means keeping your money in the safest of short-term investments, Treasury bill only money market funds.The interest rate yield is terrible, but with Treasury bill only money market funds ...Your cash is liquid. You can move in and out anytime you wish without penalty and very little risk of loss of principal.Your cash is safe from failing banks or brokers, and 100% guaranteed by the U.S. government. Although the U.S.
government is technically already broke and its financial condition is deteriorating and it’s going to be forced to implement a new monetary system, there is almost zero chance of Washington defaulting on its short-term (less than one year) obligations, in the form of Treasury bills. Meanwhile, in addition to the liquidity factor, since your funds are invested in a short-term money market, as interest rates
begin to rise, your funds will automatically be positioned to take advantage of it.
I have history on my side — Franklin Roosevelt’s 1933 emergency executive order that raised the price of gold and devalued the U.S. dollar. I also have company in my camp: Consider Fed Chairman Ben Bernanke’s comments on the subject ... “... it’s worth noting that there have been times when
exchange rate policy has been an effective weapon against deflation. A striking example from U.S. history is Franklin Roosevelt’s 40 percent devaluation of the dollar against gold in 1933-34, enforced by a program of gold purchases and domestic money creation. The devaluation and the rapid increase in money supply it permitted ended the U.S. deflation remarkably quickly ... the episode illustrates that monetary actions can have powerful effects on the economy, even when the nominal interest
rate is at or near zero, as was the case at the time of Roosevelt’s devaluation.”
Then there is George Soros’ recent proposal for a new monetary system involving the Special Drawing Rights, or SDRs, at the International Monetary Fund (IMF): Currencies would be devalued ... then repegged to each other and to SDRs ... and then SDRs would be circulated as an international currency. It will have to be backed by Gold. Given the global financial crisis ... the authorities’ efforts so far
that have failed to stem the crisis ... and the fact that drastic times require drastic measures — I believe the world is now embarking upon a new monetary era that will be put into motion by Bernanke and central bankers from around the world. Since a new monetary framework is already in the works IMHO To understand better, first, ask yourself the question: What would be the motive for a new monetary system? Well we here at the FOOL all know. The current financial system is irretrievably broken.Period. There is simply no way it can recover from the mountains of debt that originated largely in the U.S., with more than $60 TRILLION of outstanding debts ... and totaling some
$350 TRILLION worldwide. You know all the gory details: The failing banks ... the collapsing insurance companies ... airlines ... automakers ...plunging real estate values ... shrinking trade worldwide ... and more.It’s not just mountains of debt going bad. It’s also the fact that Authorities have not been able to print money fast enough to ward off another Great Depression. Despite massive amounts of liquidity injected into economies around the world — especially into the U.S. economy — and trillions
of new paper dollars issued for bailouts, the economy continues to deteriorate. Authorities will inevitably resort to an even more drastic measure, one they’ve used in the past, which is based upon
this very simple proposition ...“If we can’t print money fast enough to fend off another deflationary Great Depression, then let’s change the value of the money.”I am calling it the Mafia Debt Solution.It’s a strategy that can ease the burden of ALL debts — by simultaneously devaluing ALL currencies ... and re-inflating ALL asset prices.
I believe that Fed Chairman Ben Bernanke ... Treasury Secretary Geithner ...President Obama ... former Treasury Secretary Henry Paulson ...former Fed Chairman Paul Volcker ... Warren Bufffett ... George Soros and central bankers and politicians all over the world are well aware of it, and in my opinion, are already working on it. If you think I’m propagating some kind of conspiracy theory,
then consider the historical precedent To end the Great Depression in 1933 Franklin Roosevelt, devalued the dollar via Executive Order #6102, confiscating gold and raising its price 69.3%, effectively kick starting asset reflation. Only this time, it won’t be just the U.S. that devalues its currency. The world is too inter-related. Instead, Central banks and governments around the world will participate in a simultaneous and universal currency devaluation.( After all our dollar is just thin Air).This time, they will NOT confiscate gold. There would be riots all over the globe if they even mentioned the “C” word.But they don’t have to confiscate gold ...All they have to do is cease all gold sales and instead, raise the current official central bank price of gold from its booked value of $42.22 an ounce — to a price that monetizes a large enough portion of the world’s outstanding debts.
That way, just like in 1933, the debts become a fraction of re inflated asset prices (led higher by the gold price). (so simple it is brilliant.)That way, just like in 1933, the debts become a fraction of re inflated asset prices (led higher by the gold price).And this time, instead of staying with the dollar as a reserve currency, three new monetary units of exchange are likely to be issued, each with equal reserve status.The three currencies will essentially be a new dollar, a new euro, and a new pan-Asian currency (The Chinese yuan may survive as a fourth currency. But it will be linked to a basket of
the three new currencies).The new fiat monetary units will be worth less than the old ones. For instance, it could take 10 new units of money to buy 1 old dollar or euro.New names will be given to the new currencies to help rid the world of the ghost of a system that failed. Additional regulations and
programs will be designed and implemented to ease the transition to a new monetary system.The IMF will implement the new financial system in conjunction with the world’s central banks and governments. The IMF is already set up to handle the transition, IMHO and has had contingency plans allowing for it since the institution was formed in 1944.Included in the design and transition to a new monetary
system ...1. A new fixed-rate currency regime. Immediately upon upping the price of gold and introducing the new currencies, a new fixed exchange rate system will be re-introduced. The floating exchange rate system will be tossed into the dust bin along with the old currencies. This will kill any speculation about further devaluations in the currency markets, and drastically reduce market volatility.2. Compensatory measures to protect savers (who suffer most from a currency devaluation). For instance, a one-time windfall tax-free deposit will be issued by governments directly
to citizens’ accounts, or, to employer-sponsored pensions, to IRAs, or Social Security accounts.
Income taxes may subsequently be raised to pay for the giveaway, or a nominal global type of sales tax will be enacted to help pay for the new system and the compensatory measures.3. Additional programs will be designed to protect lenders and creditors. Lenders stand a much higher chance of getting paid off under the new monetary system — but with currency whose purchasing power is now a fraction of what it was when the loans were originated. So programs will be designed to help lenders offset the inflationary costs of their devalued loans, probably via the tax code.Will it work to help alleviate the deflationary pressures of mountains of debt going bad? Yes. I believe it will.But don’t expect the new monetary system to put the U.S. or even the global economy back on track toward the high net real rates of growth that we’ve seen over the last several years.That’s simply not going to happen. Not for a while. Hence Rogers saying China is the place to be. Instead, we’ll see massive asset price reflation, negative real economic growth in the U.S. and Europe — but continued real GDP gains in Asia.
Does my crystal ball say when? No but I figure in the next 5 years.