The price of gold passed $2000 today. Now this is not the first time and knowing how gold (and silver) rise and fall, it won't be the last time. But this particular rise has me thinking because this is the perfect environment where gold should increase in value. And continue to rise. This could be gold's 'perfect storm'.
Let me explain.
First, a couple of months ago, the BRICS countries allowed Saudi Arabia and other countries to join them. All are not locked in as of this writing but will be after 2024 takes off. Their primary goal is to get off the US reserve currency standard and find something more stable and fair to all. This most likely will involve gold and this alone should awaken us to the fact that gold prices should rise.
Then we have war.
War looks like it's on the horizon, and I don't mean one of those 'nuisance' types of wars that dominate the news but are no real threat to our normal American lives because they will never meet our shores. They only bother us in the loss of human life and the senselessness behind them, but years, and decades, of these smaller squeamishes have trained us that the U.S. is safe and still on top of the hill and has nothing to fear.
I believe that may likely change in the near future.
And third, let's look at our country's current leadership. I say that tongue in cheek, as I see no true loyalty or leadership for our country in today's administration. It is the worst we have had in generations.
And fourth, let' look at real inflation
Food, housing, energy, medical, the things that people, all people, need for survival, are on the rise. Hidden by smaller packaging, chart manipulation, and other illusions to make us think it is under control. Real inflation is at most Americans' doorstep, and even though it has taken a small lull as of late, is right around the corner.
Now add these four issues together, BRICS, war, bad administration, and inflation, and we have rocket fuel for gold prices heading north. Now mix one final ingredient, the true economy, and we are developing that 'perfect storm', which should be igniting the afterburners very soon.
I say this with extreme confidence. And will offer proof in this form, as I heard that we are currently experiencing the third-worst deficit in our history. We need to keep in mind this is without the US attempted recovery of some major problem. You see, even though we are headed to war, (not there yet), and even though we haven't had a financial crash in 15 years (there very soon), and even though we are not in the middle of a pandemic, or invasion, or 'natural disaster' taking out a city (give it time), we have a top 3 deficit year.
This is a first. Almost top of the crap pile without probable cause. Because there is no immediate reason for such high non-emergency deficits except, we are already out of control. Spending like adolescent bachelors seeing their first piece of ass in Vegas. USA gone wild.
This kind of spending should never happen and/but if it does, there must be a reason. It should be to help bail us out when we are at our lowest, not before we enter our lowest.
Looked at another way, we have entered a rabbit hole that most Americans can't quite put their finger on. Most don't see the pending disasters at their fullest.
Now I know I sound confused, maybe a Negative Nellie, but the simple matter is, that we may be months or years from deep war. A financial crash may be in the same timeline. We don't know exactly when, but they are coming. I don't see the train, but I do see the headlight, and man, do I feel the rumble. What I, we, do know is that we must stop that train, that deficit spending, if at all possible (which by design, isn't possible. A future blog).
So how does this all tie together with gold? Here's my belief. When you have an administration that is making armament deals around the world and that leadership cares more about under-the-table deals than America itself, and then these same imbeciles are pushing us to war, the train is seconds away. We will not be able to stop it if we try. And I don't see anybody trying (I think Trump would, but he is fighting his given witch hunt). A war, by the way, that could very well be against the 2nd and 3rd biggest powers in the world. Which when combined, have both all the needed manpower and natural resources for such a conflict, at their disposal. Countries who have lost all respect for us. Who want to knock us down a peg or two. Or three. Or more.
And a war like this will be expensive. Trillions of useless dollars printed at a time expensive. At a time when no country will be there to absorb that debt. We have used our last favor and no one feels they owe us.
This will fire up inflation like no one has seen in this country since, well, possibly ever. Maybe the first hyperinflation ever experienced in a first-world country. Which by the way, when complete, will not be first anymore.
So I suppose the real questions are: What role does gold play in your future? In our future? And the future of the United States?
And most important, do you have any?
(Make sure you share and pass this on to all your friends so they can learn and grow with us).