Gold and Silver will not be a Reserve Currency in the near Future
Let’s face it. The world is no closer to backing its currency by Gold and Silver than it was 50 years ago. Quite to the contrary, now with the advent of Crypto, they are creating fiat currencies with the ability to manufacture at whatever pace they deem necessary. I want to be very clear on this fact: even though it is not plausible they return to a gold/silver backed currency, if they did, they can still manipulate any kind of currency because they control the accounting. Think about that, do we trust China that the gold they say is actually in their vaults? The rumors of BRICS having some super currency backed by commodities is just that, a rumor, at this point.
Quite to the contrary. I would assume they would resort to confiscating gold bullion again way before they give in to any demands to return to a commodity backed dollar. Remember the policy during the Great Depression? 1933 President FDR signed executive order 6102 which forced US Citizens to sell their gold to which the government paid them a reduced rate per/ounce and sold it for a profit on the open market. I would assume the US Gov’t might resort to the confiscation of gold/silver way before it returns to a gold-backed standard.
We, the USA, Created our own Economic Enemy in China
Now let’s talk about money as a Demand on an economy. All economics is based off the simple premise of supply and demand. Money is never not in demand and the cheaper the money is to borrow the greater the demand becomes. But what happens when there is no supply? What happens when rates are low by they shut off the spigot? A quick study of 2008 is very revealing to my point.
From 1998-2007 money practically grew on trees. There was an abundance of supply and it was cheap, so demand soared! Money perhaps world-wide had never been so cheap in human history! Consider that for a moment. Banks were borrowing money from the Fed as low as 1% those years!? And then lending it out to us for 4 or 5%... No wonder they were creating absurd programs to lend: no income, no asset, no verification, bad credit, no credit, etc. They had all this practically free money and profits to be made but not enough demand, so they created the demand out of thin air… and then they blamed the salespeople when it all went belly up!? Remember that?? The mortgage brokers, the loan officers and many of the lowest people on the totem pole had criminal charges brought against them for writing bad loans!? What a scam! These salespeople were simply doing their job, writing their loans – selling the garbage paper that Wall Street and the bankers were creating.
And to solve the problems of the Great Recession they printed untold trillions and bailed out every industry, even those who created the scams in the first place… if you were big enough and had a strong enough lobby, you got Billions from the US Federal Gov’t who was really working in lockstep with the Federal Reserve. Then they printed trillions, they lowered the Fed rate basically down to 0% (they even talked about creating a negative Fed rate for a while!?) and threw money at the problem until balance sheets seemed to correct. But they bailed out the wrong people! They bailed out the people who had created the problem in the first place. They bailed out the free-money, no-conscience capitalists, these globalists who have no intention in the saving of America.
To Wall Street America is a marketplace. Very very important to understand! To Blackrock, Vanguard, the Epstein’s of Wall Street, etc. America is a market. In priority America is another place to do business and in distant second it is their home. Maybe they reside here for much of the year but to these titans who have houses around the world, America is but a market – howbeit the biggest and most thriving marketplace in the world but remember all that is changing with China's quickly emerging middle class.
Was there ever a time Wall Street was Patriotic? Isn’t that The question we need to be asking? Who is running our country? Wouldn’t you agree those in charge of our money, commerce, pension funds, 401k’s, savings accounts, business start ups, credit reporting, commercial lending, etc. have a lot of power over our the fate of our nation!? I will explain more. If I’m a hedge fund manager with 10 Billion in cash and I decide to move half of it outside of America for better “returns” on investment didn’t I just harm my own nation?? In a way? So was that “better return on investment” actually better in the long run? Probably not because I just took billions out of the US economy that could have created US jobs and a micro-economies within our own nation and gave it to another. I will continue to explain:
When we take 10 Billion out of our nation and give it to another, they get to create jobs with that money, they get to purchase their own products, buy their own real estate, invest in their own local economy and what do we get in return? Maybe a 15% annual return!? Maybe a cheaper product? That’s a joke! That other country, lets say China, could have produced 200% annual returns with that money but not only that, they were able to create a micro-economy that produced untold times more returns for their nation in their local economies, these micro-economic returns are harder to measure but very real, and have much longer lasting effects.
Wall Street and most of the investment bankers have been taking our hard-earned money and investing it throughout the world in what they call Emerging Markets, at rates hard to comprehend – and they are basically accountable to no one! (We will discuss more on accountability in future articles.) We may be able to hold them accountable when we remove our money from their management, but what about the pensions and the untold billions being invested for us? What average American has the power to dictate where that money goes?
Did you know we, the USA, used to do a lot of business with Central America? I need to study this history more but I have learned that our policies shifted to China in the 70’s and 80’s and away from Central, and to a lesser extent South, America. Perhaps at the time it seemed better because of the drug cartels? Perhaps the governments down there were deemed unstable? Maybe I should write a book on how they came up with this China policy in the first place? But I would be exposing a lot of corruption I am sure. In my opinion we chose to leave what might have been bad and go to something much worse!
Think about what we did those years in empowering China? We already knew the terrors and horrors of communism. We were fully aware of what Mao and Stalin had done to their own people! murdering tens of millions of dissidents. So why did we do it? What on earth compelled us to prop up this already evil regime!? We financed China. We financed their army, we financed their science/tech, we financed their rise to power and now their world-wide aggression - all of this is totally on us… that is to say, the US politicians who came before us… And Why? Why did we do it?
Wall Street could never afford to be patriotic. If one hedge fund started getting 40 and 50% returns throwing money into emerging markets, third-world countries and riskier investments, the other hedge funds and mutual funds would start getting pressure put on them for those big returns. There would have had to have been accountability to measure the US Dollars leaving the country to prop up others. I highly highly doubt there ever could have been any real accountability… not with Wall Street’s ability to purchase for themselves lobbyists, politicians and bureaucrats!! How many politicians and bureaucrats have been on Wall Streets payroll in one way or another? And now the proverbial plot thickens.
With Wall Street and the investment titans buying up for themselves politicians, who would regulate the amount of money leaving the county? No One. The story of Flint, Michigan comes to mind. Flint sometime in the early 1980’s had the highest per-capita income of any city in the nation! And look at it now! I would estimate as many as half of Flint’s beautiful old houses are now boarded up, vacant and rotting. But Flint is only one city, there must be thousands of mostly unknown and forgotten cities and small towns throughout America whose factories, industries and economies were shut down because some hedge fund, some banker or international business titan found a better deal in some Emerging Market (probably China).
Everyone is talking now about supply chains. We now have 40+ years of basically unregulated and unmonitored Wall Street Titans making not billion but trillions shipping our US Dollars throughout the world, creating economies everywhere, with America last. We have little to no manufacturing, we have little industry, during Covid it was finally revealed to us just how fragile our economy truly is. The good news is we have an abundance of land, commodities, ingenuity, skilled labor-force, highly trained engineers, tech gurus and potential to come roaring back. The bad news is most of the politics are against our own nation’s success!
President Trump started to fix things but he was fighting against an army of global interests, lobbyists, bought and paid for politicians, etc. – he was fighting against the status quo which is basically America-last. Don’t hear what I am not saying. Yes, we should do business with other countries. But how about we do business with our allies!? Isn’t that a novel idea!? Instead of throwing billions at Communist China and others who would love to see America and our US dollar fail completely, maybe we should fund nations whose ideology and vision better aligns with our own!? (I will write about this more in the future.)
Gold and Silver will not Save America
Of all the problems our nation and world faces at large, the number one problem is that the world is bankrupt. China is bankrupt, America (as a federal government) is bankrupt, I am less aware of the EU’s balance sheet but basically everyone has been borrowing for 40+ years and the world’s balance sheet is almost laughable, it’s so ridiculous. I have been told they stopped reporting on the actual debt as far back as 2002!!? But is the solution really to put all our money into gold and silver bullion!? That’s what many in our movement will tell you.
For more than 20 years I have been hearing colleagues of mine throughout the conservative (even Christian) circles convincing the world that Gold/Silver Bullion will save us. The simple argument is that the world’s economy is going belly up and when it does gold and silver will be basically priceless. But that argument falls apart quickly. If the world’s economy is in shambles and this world-wide depression comes, why on earth would anyone need gold or silver? To me, it’s simple math. What is the demand for gold/silver when the whole world has no money to spend?
To me there is an argument for physical gold and silver, if you want to create a new system of trade. If a movement wants to restore gold and silver as a currency, then I could see its value going up so long as the global economy with its fiat currencies continue to rise. But in the case of a global, world-wide depression… absolutely gold and silver will only lose its value when people realize they can’t eat it, they can’t fuel up their car with it, they can’t live in it, etc.
I have sold gold/silver bullion in the past. There is a possibility there will be a run-on gold and silver just because of the mystic and hype surrounding it. This might be The Only reason to buy gold/silver right now. Perception alone has the ability to create a boom or a run-on a commodity, like in the 80’s with the Hunt Brothers spiking silver. But in those times, you have to know when to sell to realize the profit. I have lots to say about economics and what will bless our nation. I have much more to say about what Saving America looks like economically but trust me, it isn’t gold or silver.
In fact putting money in gold and silver is a lot like Jesus’ parable of the talents (Matthew 25). He took the talent away from the man who only had one, why? Because he hid his talent in the earth, Remember? Well investing in gold/silver is a lot like putting your money in the earth. (Oddly enough gold and silver comes from the earth… perhaps Jesus was alluding to gold/silver in the parable?? I’ve never thought of that before.) When we take our money out of circulation and put it in gold/silver it becomes useless. Remember what Jesus said next? He said, “You could have given it to the bankers and it least earned some interest…”. Gold/Silver bullion right now is truly an economy destroyer, I will continue to explain.
Investing in a business, especially an American business, you are creating American growth for American jobs who will spend American dollars and create more of an American economy. At a minimum, giving it to the bankers, if they are patriots, they could lend your money and benefit the US economy. But the economy stops with gold/silver bullion. I suppose some will let you borrow against it but for the most part money comes to a halt once invested in these precious metals. It’s practically like burying one’s wealth into the ground and stopping the flow of money altogether. Something to consider as we are trying to save our nation and hold back the evils of the world from completely taking over.
Invest in America. I will close with this idea and write more in Part Two. We are all convinced to buy American now? Well I say, “Invest American!” You want to watch our nation come roaring back from these economic hardships? You want to create an economy that is very difficult to manipulate and crash? You want to overtake the Wall Street Titans and Global Bankers who continue to wreak havoc on our families? Invest American, locally.
Maybe Bob needs help buying another 40 acres for his milk cows? Loan him the money at 7-8%? That is a very decent return on your money, you are helping Bob, helping the community get more milk, Bob will be able to hire more people, who will in turn spend more money, etc. Or put your money into Wall Street where they can ship it off to China and fund all our enemies? Or put your money into Gold/Silver where it ceases from producing ANYTHING. We have to think very differently about our investments. Who on Wall Street represents American interests? I will cover this more in Part Two.
But I hope you take this to heart as we fight to win back our nation…
More to come…
Robert