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I have
long emphasized a point that few – if any – discuss regularly. To
me, it’s not just the MOST IMPORTANT VARIABLE in understanding REAL
MONEY; but ultimately, the key to the Cartel’s demise, and with
it, the GLOBAL FIAT CURRENCY REGIME. And that point, of course, is that the world DOES NOT revolve around the United States!
Twelve
years into the world’s most powerful bull
market – or should I say, the most powerful fiat bear market
– I cannot recall a SINGLE DAY when the U.S. MSM, or newsletter/analyst
community – discussed the movement of PM prices in anything other than dollars.
Remember,
for a substance to truly act as MONEY – as opposed to just currency
– it must meet ALL the parameters below. Dollars, Euros, and Yen only
meet the two black-highlighted points – the LEAST IMPORTANT, I
might add – as countless substances are both divisible
and fungible…
Conversely,
only GOLD and SILVER are accepted mediums of exchange EVERYWHERE –
which the dollar, Euro and Yen are decidedly NOT – and serve as
reliable stores of value, exactly the OPPOSITE of the dollar’s
performance during the Fed’s 99-year “reign of
terror”…
Sadly, the
secular, sheltered MSM – and much of the “PM
community” – refuses to acknowledge, or even understand,
that these issues are not just American, but GLOBAL. And equally important,
that PMs are not only priced in dollars. The fact is, essentially
EVERY country has its own fiat currency; most of which have been
anchored to the failing dollar since the gold standard was abandoned 41 years
ago – and thus, will soon be DEAD…
The
Average Life Expectancy For A Fiat Currency Is 27 Years … Every 30 To
40 Years The Reigning Monetary System Fails And Has To Be Retooled
Because
the U.S. dollar was granted “reserve currency” status at Bretton
Woods in 1944 – the world is DROWNING in dollar reserves. Nearly all
nations have been furiously trading them for ITEMS OF REAL VALUE, but there
are simply too many to go around, chasing an increasingly scarce supply of
“THINGS”…
Why Central
Banks are Buying Gold
Thus,
currencies are ALL falling in value against commodities – GLOBAL
RECESSION NOTWITHSTANDING – some more than others. The dollar has
certainly been weak, but remains atop the “currency totem pole”
due to said reserve status. Thus, currency collapse, and the resultant
inflation, has been greater EVERYWHERE – as reflected in
higher-priced PMs in nearly ALL other currencies. Not only that, currency
“blocs” like the Euro are under pressure from the POLITICAL
ramifications of ill-begotten alliances; thus, even so-called “first
world” countries are experiencing surging inflation and collapsing
fiat confidence…
Italians
Squeezed by $9.50-a-Gallon Gas Face Costly Drive
…but
then again, even “strong” political unions like the States are
suffering from the final stages of “fiat cancer”…
Near
record U.S. gas prices foreshadow new economic crash
The beauty
about gold and silver – as opposed to “investments” –
is they have inelastic supply AND demand. In other words, the higher
the price, the higher the demand; and, care
of the interaction of myriad factors, supply has an extremely limited
response to higher prices and demand. Thus, as fiat currencies fail –
one by one – GLOBAL PM demand increases, while supply remains stagnant.
As I write, numerous currencies have risen to within a few percent of last
year’s ALL-TIME HIGHS – most notably, the WORLD’S TWO MOST
IMPORTANT MARKETS – Euro gold and Rupee gold – as I write about
most every day.
Each time
PMs hit ALL-TIME HIGHS in another currency, demand growths surges further
– but particularly, when the two billion people utilizing
Euros…
…and
Indian Rupees realize their currencies have officially become TRASH against
REAL MONEY.
In my
view, these two events – likely to occur simultaneously –
will catalyze the long awaited PHYSICAL PM mania that causes the GLOBAL
financial system to quickly unravel, with the FINAL BLOW to occur when
“DOLLAR-PRICED GOLD” breaks its own ALL-TIME HIGH of $1,920/oz – and subsequently, the ULTIMATE KEY ROUND NUMBER
of $2,000/oz…
PROTECT
YOURSELF, and do it NOW!
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