Loading ...Is this what Plunger and Fully talking about?
Another “must read” https://seekingalpha.com/article/4334938-gold-market-be-to-snap-watch-gofo
Conclusion – Rethinking Inflation/Deflation
In a recession or depression, what is happening is that all the bad debt that was taken out during the artificial boom, is liquidated. Those who thought they had wealth wake up to realize it was all an illusion. Asset prices were inflated. It was all just paper. This is classic deflation, when the proverbial bubble pops and deflates. An inflationary recession, or stagflation, which is what it appears we are headed for, is seen on the surface as the opposite. But this, too, is an illusion.
In terms of real money, there are no inflationary depressions. If gold is real money, then we may see hyperinflation in terms of paper, but in gold terms a depression will still be extremely deflationary, as all assets lose value relative to hard money. Indeed, in the event that gold backwardation becomes permanent if the GOFO gets stuck in negative territory relative to the SOFR, then gold is money, the dollar is just paper, and everything deflates relative to gold as the paper price rises. In other words, hyperinflation is not really inflation at all. It’s actually complete and total deflation of the entire bubble in gold terms, with everyone who does not own hard money holding the proverbial fiat paper bag.
SOrry for the call out guys… A lot of stuff is mind boggling. Presently reformating my brain.
That’s basically it in a nutshell. What the FED is attempting is to do the debt deleveraging through inflation since we have so much debt it can’t take a nominal price decline as it collapses the system.
Of course its a fools errand
Alright, now we gotta find some highly leveraged cheap mining stonks to take advantage of this….Im still buying physical silver….need some joocy gold lottos and to hell with options (timing stinks)
This is a Great Article Sir Patrick
I think you may have unearthed the Gold Holy Grail
GOFO explained in simple terms
as in GOFO Yourself King Dollar
🙂
This is saved under Gold backwardation.
You are relentless Sir Patrick
Once governments open up the global economy again and transactions start moving and all the pent up demand is unleashed on dwindled supplies and inventories that haven’t been added to in months, we are going to see an absolute upside explosion in price inflation and all commodities prices and especially gold and silver will likely rise spectacularly. We will see a concurrent collapse in global debt markets at the same time as inflation eats into real yields and the Fed is forced to buy literally everything in order to keep nominal rates stable.
This makes too much sense !
Yikes