Thursday , 23 November 2017


Physical Gold Cannot Possibly Lose Out Over Fiat & Digital Currencies – Here’s Why

Gold cannot possibly lose its central position as the pre-eminent money used by thegold-and-currencies world for thousands of years. The aggressive measures of the Anglo-American Axis with regard to gold are absurd and they will lead to total disaster both for the Axis, and for the world which has been forced to follow its lead for over forty years.

So writes Hugo Salinas Price  (www.Plata.com.mx) in edited excerpts from his original article*  entitled Copernicus, Galileo and Gold. Part I. A HAT TIP to Arnold B. for bringing this article to my attention.

[The following article is presented by  Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]

Price goes on to say in further edited excerpts:

We are deceived when we consent to think about the “price of gold”. At the very outset of our thoughts regarding gold, we are wrong, just as astronomers prior to Copernicus were wrong in thinking about the solar system as geo-centric, with the Sun, Moon and planets describing perfect circles around Earth. Gold is – to follow the astronomical simile – the center of the monetary universe, and the planets – the currencies – circle the Sun, which represents gold. The correct starting point is the price of a currency expressed in terms of gold, and not the other way around.

When the price of the dollar was fixed at $20.67 per ounce of gold, up to the time of FDR, the price of the dollar was $1/20.67 = .0483782 oz. of gold, or 4.84 hundredths of an ounce of gold. When FDR “raised the price of gold” he actually lowered the price of the dollar: $1/35 = .028574 oz. of gold, or 2.86 hundredths of an ounce. Thus, FDR lowered the price of the dollar from 4.84 hundredths, to 2.86 hundredths of an ounce.

The purpose of devaluing the dollar by lowering its price in gold was to cheapen labor costs (without telling Labor what he was doing!) and put more people to work by getting them to accept working for lower wages, without their understanding what was going on. Cheaper labor meant cheaper American products and more exports.

It is a principle of economics that undervalued money is exported from the country where it circulates, and overvalued money flows into the country where it is overvalued. In 1934, with the dollar at 2.86 hundredths of an ounce of gold, gold was overvalued on the world market, and for that reason enormous quantities of gold began to flow into the U.S. from all corners of the world. At the outbreak of WWII, the gold stock of the USA was gigantic as a result of inflows of foreign-owned gold.

At a “price of gold” of $1388/oz, more or less where we are today, the price of the dollar is $1/1388 = .00072 oz. of gold. [As such,] gold is leaving the USA and the West, which is dollar-centric, because at .00072 (7.2 ten-thousandths) of an ounce the price of the dollar is overvalued, and gold is undervalued.

There will come a moment when the managers who control the price of the dollar in gold will find that they have run out of gold to sell, and are powerless to support the price of the dollar. That moment is approaching; before the dollar controllers run out of gold to sell, the world will devalue the dollar and there will be nothing that the U.S. will able to do about it. This is already happening in the countries of the East – the Middle East, India, Pakistan, China and Southeast Asia, where gold trades at premiums to the undervalued “price of gold” which the Anglo-American Axis insists on maintaining.

_____
Save time! Here are 4 ways to access the best articles on the internet!
Sign up for our FREE Market Intelligence Report newsletter (sample)
Follow the munKNEEdaily posts via Twitter or Facebook
Set up an RSS feed: It’s really easy here’s how
_____

The premiums effectively devalue the dollar just enough to ensure that the gold travels from West to East. Russia, the remaining Western power not subject to the Anglo-American Axis, is also sweeping up gold. The Axis is auctioning off its gold to the highest bidders, and the highest bidders are taking it off the market.

When the Anglo-American Axis can no longer rig the gold auction and support the price of the dollar by selling gold, because they have none left to sell, then the rest of the world will bid for gold, not only against the US dollar, but against all other currencies. The prices of currencies will fall like stones, tending to a new world equilibrium, where the flows of gold seek to eliminate both under-valuations and over-valuations wherever they present themselves.

If no one nation or block of nations can manage to establish its currency as the world reserve currency and thus supplant the dollar, then, since no one currency will be supreme, supremacy will devolve to the legitimate monarch once again: gold will be the international monetary language of business once again, as it has always been. Thus, the price of gold will become extinct, as Professor Antal E. Fekete has predicted. All prices will be gold prices, or silver prices at various ratios around the world.

The pertinacity of the Anglo-American Axis in auctioning off all its gold, down to the last available ounce, shows the world that the Axis is betting everything it represents, on the ability of the dollar to dethrone gold: this is the Church excommunicating Galileo and insisting on the central position of Earth in the Solar System. A very big mistake!

Gold cannot possibly lose its central position as the pre-eminent money used by the world for thousands of years. The aggressive measures of the Anglo-American Axis with regard to gold are absurd and they will lead to total disaster both for the Axis, and for the world which has been forced to follow its lead for over forty years.

In the worst case, as the rest of the world devalues the dollar by purchasing all the gold available in the West, the partisans of the dollar may find themselves corralled into a devastating total war as a last desperate measure to support their outlandish pretention to supplant gold with a man-made fiat currency, the dollar. Once again, nemesis will follow hubris, with mankind as the tragic figure.

In my view, the wise (always a small minority in all ages) will squirrel away some ounces against the day of the ignominious collapse of the Anglo-American Axis’ attempt to reorder the world’s monetary system around a paper and digital currency.

[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]

*http://www.plata.com.mx/mplata/articulos/articlesFilt.asp?fiidarticulo=213

Related Articles:

1. The Myth of the Rising U. S. Dollar

Leave a comment

dollar-cash-money-hundred

Year-to-date, the dollar index, a trade weighted index comparing the U.S. dollar to a basket of six major currencies (Euro @ 57.6% weight, Japanese yen 13.6%, Pound sterling 11.9%, Canadian dollar 9.1%, Swedish krona 4.2% and Swiss franc 3.6%) is up 2.95% as of April 29, 2013 – but the U.S. Dollar Index is not the U.S. Dollar. To ascertain what may happen to the U.S. dollar, let’s look at the greenback from a couple of different angles Read More »

2. What’s Happened – and Will Continue to Happen – to the Value of the U.S. Dollar

economy-usdollar3

Technically the U.S. left the gold standard in 1971 but, in reality, we abandoned it in 1913 with the creation of the Fed…setting the stage for the collapse of the dollar. [Given that this is] the 100th anniversary of the creation of the Federal Reserve, it seems only fitting that we should present a brief history of the U.S. dollar debasement since then. Words: 1144 Read More »

3. Spend Your Bernanke Bux Now on PHYSICAL Gold & Silver! Here’s Why!

1 Comment

If Venezuela were any guide, we would have to say “Buy gold and silver, right here, right now!”…For those of you who hold Bernanke Bux, aka fiat paper, pay close attention. Those Venezuelan citizens who held paper Bolivars took a 46% hit on their purchasing power. Those citizens there who held gold and silver saw an equivalent 46% jump in their holdings.  If you think it cannot happen here, you are wrong.  It already has. Words: 295 Read More »

4. Race to Debase: How Gold & Silver Have Performed vs. 75 Fiat Currencies

It’s that time of the year again where we examine how gold and silver have performed against 75 fiat currencies around the globe.

5. Gold & Silver vs. Fiat: Do You Live In An Imaginary World Or In Reality?

Make no mistake about it, it is the central bankers that are leading governments around by the nose, and by proxy, governments leading people around by the nose, and that “nose” is inhaling “lines” of fiat. Unless cured, all addictions end badly, and the only “cure” central bankers have for ever-increasing fiat is, ever-increasing it more. [You can protect yourself, however, by] demanding less of the valueless fiat and keeping, and growing, your wealth by buying and accumulating real value: physical gold and silver.  Anything less, and you are still dealing in the imaginary world that is failing. [This article explains why that is the case.] Words: 834

6. What is Money – Really – and Why Do We Need to Own Gold – Really?

7. It is Imperative to Save in Physical Gold Not Stocks or Bonds! Here’s Why

 This article clearly demonstrate how the millions of investors who invested in the stock market over the past decade actually fared when their performance was measured in gold instead of dollars. You will be shocked at how poorly they (and you?) have really done and you, too, will come to the consclusion that – investing in the stock market is for losers. Words: 790

8. This Chart Proves That Your Currency Is Being Debauched At An Accelerating (Parabolic) Rate! Got Gold?

[According to the chart in this article,] all currencies are being debauched. The price of gold in each currency approximates a parabola, meaning the use of printing presses is accelerating. Each unit of currency is losing purchasing power at an increasing rate. The trend points to a worldwide currency collapse unless the creation of money stops. [Take a look!]. Words: 282

9. GOLD: The Currency Without a Printing Press

When it comes to investing in gold, investors often see the world in black and white. Some people have a deep, almost religious conviction that gold is a useless, barbarous relic with no yield and an asset no rational investor would ever want. Others love it, seeing it as the only asset that can offer protection from the coming financial catastrophe, which is always just around the corner. Our views are more nuanced and, we believe, provide a balanced framework for assessing value. Our bottom line: given current valuations and central bank policies, we see gold as a compelling inflation hedge and store of value that is potentially superior to fiat currencies. [Here are the details of our analyses.] Words: 1316

10. James Turk: Why Gold is Preferred to National Currencies

11. The Single Best Reason to Own Gold Is…

Today all currencies are fiat, that is, they are money only by government edict, by the law; they have no inherent value and are not backed by reserves. Because of this central bankers around the world can create/ print new money almost without limit, and as with all markets currency prices are set by the law of supply and demand, and as more dollars, euros, pounds and yen are created, their value falls. [Let me explain the ramifications of such action.] Words: 785

12. My Rationale For Owning Gold

13. Take Note: Gold and Silver are NOT an Investment!

14. If You Don’t Think Gold IS a ‘Safe Haven’ Then You Don’t Know the Meaning of the Term!

gold-bars4

15. Why, Pray Tell, Would I Want to Own Gold??

 

One comment

  1. What is most important to me is that the Banks are doing the best and Gold/Silver are dong the poorest!

    What better indication that those that control the money supply are gaming the system in order to make it appear that PM’s are a poor investment to the masses, while at the same time the Central Banks are continuing to buy up PM’s at bargain prices!

    If you don’t think that PM’s are now being manipulated by the Central Banks, then I think that you should not be investing in buying additional PM’s!
    BUT
    If you believe that the Central Banks cannot continue to keep printing paper money forever then what is happening now is nothing but a huge buying opportunity!

    Consider: As the Central Banks further restrict credit and loans to us, what other options besides selling PM’s (at a large discount )do small investors have, if they want to grow what is left of their portfolios? This is a move to drive a stake into the hearts of all those that are still holding PM’s; while at the very same time, these same Central Banks (who are in on the deal) are scooping PM’s up (using their own printed paper money) at very low prices.

    My gut feeling is that when the PM “reversal” happens, it will be so extreme that most small investors will not be able to jump on-board before the prices have skyrocketed relative to where they are currently, due to the market dynamics that favor the really big investors.

    Here is a great PM question for you, Are the Central Banks still buying Gold, and if so why?
    I look forward to you reply and your readers comments!