Apocalyptic Proposition (with added analog chart)
Add this ratio to the hefty list we already have in the precious metals market! The idea was to show how monetary policy, through the fund rate, can “control” the health of the fiat currency. If gold price increase show a depreciating fiat currency (among other clues), then a a “correct” Fed Fund Rate show keep it’s appreciation subdued.
Here is the non-analog version of this ratio. Flat-line… until.. well 2008, then Gold AND the Fed Fund Rate showed how dire was the situation.
We gotta zoom in to really see how this started… 2001 was really the start… just like shown from pricedingold that the half life of the USDollar started its 4-year cycles in 2001. http://pricedingold.com/half-life-of-the-us-dollar/
Now, a zoom to today.. looks familiar? Very possible that the US Dollars resumes its decay curve.. and we get +6000$ gold in a foreseeable future
True Insanity! This could very well signal the end of the fiat currency system, and that before 2030!
Edit: Adding an analog version… adds more chapters to this unfolding storybook
You even work on Christmas day Sir Patrick 🙂
Very interesting
I would like to point out that The US Dollar depreciation is NOT dependent on Euro or Yen or Bhat or Peso Appreciation
Everyone watches the US Dollar Index
It could actually rise in your scenario as “lesser” currencies dive in value faster
The only thing to measure Depreciating currencies >?
The True barometer of currency pressure ?
Bitcoin !
🙂
Anything can happen Patrick.
The POTUS was able to sell $3T in debt, and he said so in a speech to the Nation, nobody believed him at the same time rates fell…….go figure….. Nobody seen it coming did they? Tipped over foreign markets and the US markets did what?
IMO nothing is off the table in today’s market environment, these REPO markets are interesting and ominous.
Expect the unexpected is my point here. 2020’s will be Epic but in which way IDK? I can only imagine what the “Financial Engineers” have waiting up their sleeves……like you Patrick I imagine they are working today as well.
Merry Christmas Goldtent
GLTA
Great stuff Patrick, and scary. A
This rabbit hole needs more digging… definately do not fully understand what I’m reading in this storied chart..