We’re going to get economic contraction that may be a depression and higher rates as the house-of-cards international financial system comes tumbling down. From Alasdair Macleod at alasdairmacleod.substack.com:
The end of the 54-year fiat currency era is imminent — that is gold’s message. Increasing credit risk means higher interest rates, which will burst credit bubbles.
The yield on the long bond is ready to break out on the upside over 5%, giving a technical target above 9%. Implications for all financial markets are dire.
Introduction
That central banks are ditching dollars for gold and have been for at least the last four years is an important message for us all. Geopolitics and even US politics are involved: but the fact that this widespread rebalancing of reserves is taking place is the clearest indication that the ultimate insiders to the currency game know that the dollar’s gig is nearly up.
Critics of the 54-year old anti-gold propaganda spreading out of the US and being repeated ad nauseum by its Keynesian epigones in the G7 are no longer dismissed as conspiracy theorists. Increasingly, the middle classes in these nations see the threat from rapacious governments taking their earnings and savings. And these defenceless victims of social democracy are only just beginning to understand that there is an additional theft of their wealth through the debasement of their currencies.
Initially, their wake-up call came from the bitcoin concept. The legal relationship between corporeal gold and incorporeal credit remains a mystery to them — but not to the insiders at central banks.
Reasoned economic and monetary theories, confirmed by historical evidence, tell us that currencies must return to gold standards to secure their values, circulating as trusted gold substitutes. Only then, can general economic progress resume. Getting there is going to be extremely difficult but is not the focus of this article. Instead, we must all focus on how to protect our personal wealth from the death throes of the dollar-based fiat currency system.
The debt-cum-credit bubble
One of today’s most common errors is to believe that the cost of debt is always controlled by central banks. When debt is not excessive, a central bank can manipulate interest rates and bond yields to some extent. But when debt is excessive and rising exponentially, it is creditors who have the final say.
These are the conditions emerging today. The authorities won’t admit it, but the US economy is sliding into recession, which with its government debt to GDP ratio at about 120% means that buyers of accelerating dollar debt issuance will see increasing risk of a debt trap. Bond yields will reflect that risk, and will rise accordingly.
Elders in the family won’t come off those Silver Certificate ones and backed by gold notes but at least they let me look at them.
Tricky Dick was ordered by the globalists to take us off the gold standard?
I thin we’re gonna need a bigger wheelbarrow.