Loading ...Doomsey Thoughts
Sometimes I think about golds upside.
My thinking is sovereign debt defaults.
If gold is worth $$$… then that’s because so much debt in circulation…
Debt defaults destroys this. We saw this in 2008 and 2020 to a very small extent.. and look at the hit gold took.
Shouldn’t gold be priced less?
I think we will have a burn out run in gold.. and it will collapse.. with the currency its priced in.
As long as fed can continue the show… printing debt into existence.. or now the govt via fiscal stimulus… gold has upside…
But when we approach the real end game.. and the market starts to sniff it out…
Thats the end for gold.
I HAVE NO IDEA WHATS NEXT.
Tell me I’m wrong… please.
“The illusion of freedom will continue as long as it is profitable to continue the illusion. At the point where the illusion becomes too expensive to maintain, they will just take down the scenery, they will pull back the curtains, they will move the tables and chairs out of the way, and you will see the brick wall at the back of the theater.”
Frank Zappa
A true philosopher! Thanks Aurum!
I found this concerning the end game for debt collapse and gold…
Extrat from : https://goldstandardinstitute.net/classroom/when-gold-backwardation-becomes-permanent/
“…
Conclusion
Permanent gold backwardation leading to the withdrawal of the gold bid on the dollar is the inevitable result of the debt collapse. Governments and other borrowers have long since passed the point where they can amortize their debts. Now they merely “roll” the debt and the interest as they come due. This leaves them vulnerable to the market demand for their bonds. When they have an auction that fails to attract bids, the game will be over. Whether they formally default or whether they just print the currency to pay, it won’t matter.
…”
Thanks for that link Patrick. It looks as if the process it describes has now started.
This quote is also very telling “No amount of price change will bring back trust in paper currencies once the gold owners have lost confidence . “