TheRealZed
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Powell is a smart guy, I'm guessing he is thinking - damn, no good options left!
AXSTONE PM SCRATCH PAD & JOURNAL
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Pyramid
Fly on the Wall
Powell may be a smart guy, but he's a complete tool of the globalists. "No good options left" is fair and true. My best guess is that "The Fed" raises interest rates to the 5% area with hopes that whatever fake inflation statistic they are using meets that 5%. The "Fed" legally has no reserves, nor is federal according to the US Constitution. We are being fleeced by the communists. To what end is not clear, but it's not good.
TheRealZed
Retired Sailor
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So far the 10 year note seems to think that they can't do it. Trading @ 3.5% is a massive gap to target... we will see if the trend turns but for now still trending down even if it seems to be getting some support at these levels.
AXSTONE
Fly on the Wall
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. . . 3 Ways Physical Precious Metals Defend Against the Central Bank Digital Currencies Around the Corner ⋆ 🔔 The Liberty Daily
Central Bank Digital Currency “deniers” will tell us all there’s no way they can ever become a reality. They’ll continue saying such things until the moment they’re actually rolled out, which appears to be imminent. Even as the powers-that-be at the International Monetary Fund, World Bank...
thelibertydaily.com
AXSTONE
Fly on the Wall
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REVIEW:
Jim Sinclair: The central banks will buy the government debt. That’s called quantitative easing.
HRN: Doesn’t QE undermine the dollar?
Jim Sinclair: The dollar is an exercise in psychology. It’s a piece of paper with a promise to pay but there’s nothing in which it can be paid. It’s legal settlement for debt but there’s nothing that it’s convertible into. To maintain confidence, it’s necessary to maintain the stature of a currency. In an arithmetic sense, if you go into a market to sell a supply of apples, and if you’re the only seller, you can get a nice price. If more sellers, meaning more apples, come into the market, there goes the price of apples. QE creates more dollars, which increases the supply.
HRN: If QE doesn’t stop soon, what will happen?
Jim Sinclair: The end game is a virtual reserve currency linked to gold. It will be based on an average of major currencies, which will slow down the movement in the index. The International Monetary Fund (IMF) is moving in that direction with Special Drawing Rights (SDRs). The dollar will be just another currency. The dollar’s not going to zero. It could loose a significant part of its buying power, which it already has and could again.
HRN: How would a virtual currency work?
Jim Sinclair: There would have to be a broad measure of the money supply, such as M3 used to be for the U.S. dollar, but on an international basis. The price of gold would be related to that measure. Central banks would have to value their gold according to their contribution to or extraction of international liquidity, so the price of gold would rise or fall on its own.
HRN: Wouldn’t that be a gold standard?
Jim Sinclair: There’ll never be a return to a gold standard in my opinion. The end of all hyperinflations has been a commodity currency. That’s exactly what happened in Germany, for example. Gold has the capacity to give confidence to people if there’s some relationship between the currency and gold. The virtual currency will be linked to gold but not convertible into gold.
HRN: So, a gold component will restore confidence?
Jim Sinclair: The answer is a commodity currency. That’s what happened every time there was this type of situation in monetary history. The rentenmark, which ended the German hyperinflation in 1923, was supposedly backed by all the real estate in Germany, but the government didn’t own that real estate. The point is that it wasn’t true. There was no great commodity backing for the rentenmark, but it was enough. It was a period when people were searching for anything to restore confidence in the currency.
www.financialsense.com
Jim Sinclair: The central banks will buy the government debt. That’s called quantitative easing.
HRN: Doesn’t QE undermine the dollar?
Jim Sinclair: The dollar is an exercise in psychology. It’s a piece of paper with a promise to pay but there’s nothing in which it can be paid. It’s legal settlement for debt but there’s nothing that it’s convertible into. To maintain confidence, it’s necessary to maintain the stature of a currency. In an arithmetic sense, if you go into a market to sell a supply of apples, and if you’re the only seller, you can get a nice price. If more sellers, meaning more apples, come into the market, there goes the price of apples. QE creates more dollars, which increases the supply.
HRN: If QE doesn’t stop soon, what will happen?
Jim Sinclair: The end game is a virtual reserve currency linked to gold. It will be based on an average of major currencies, which will slow down the movement in the index. The International Monetary Fund (IMF) is moving in that direction with Special Drawing Rights (SDRs). The dollar will be just another currency. The dollar’s not going to zero. It could loose a significant part of its buying power, which it already has and could again.
HRN: How would a virtual currency work?
Jim Sinclair: There would have to be a broad measure of the money supply, such as M3 used to be for the U.S. dollar, but on an international basis. The price of gold would be related to that measure. Central banks would have to value their gold according to their contribution to or extraction of international liquidity, so the price of gold would rise or fall on its own.
HRN: Wouldn’t that be a gold standard?
Jim Sinclair: There’ll never be a return to a gold standard in my opinion. The end of all hyperinflations has been a commodity currency. That’s exactly what happened in Germany, for example. Gold has the capacity to give confidence to people if there’s some relationship between the currency and gold. The virtual currency will be linked to gold but not convertible into gold.
HRN: So, a gold component will restore confidence?
Jim Sinclair: The answer is a commodity currency. That’s what happened every time there was this type of situation in monetary history. The rentenmark, which ended the German hyperinflation in 1923, was supposedly backed by all the real estate in Germany, but the government didn’t own that real estate. The point is that it wasn’t true. There was no great commodity backing for the rentenmark, but it was enough. It was a period when people were searching for anything to restore confidence in the currency.
Interview: Jim Sinclair on Gold and the World Financial System
Over the counter (OTC) derivatives are the reason we are going through what we are going through now. An OTC derivative is a kind of wager on what something will do. Up until 2009, most of these wagers had very little, if any, money behind them and, if the direction you bet on didn’t come to...
www.financialsense.com
TheRealZed
Retired Sailor
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Unfortunately, if this was to happen over a weekend, they'd deem it an unfair windfall and try and tax you into the ground. Swapping the gold back into what you need could get really hard. I'm seriously hoping that the rise is way more gradual and nowhere near as attention attracting. I'm happy to be right, I don't need the world to know that fact.
TheRealZed
Retired Sailor
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A reasonable, well thought out and unemotional response to the idea that an instant reset of golds value to 50K (errr 80K, what is it now? Wasn't it raised alot?) might not play that well for the average gold investor. Especially those living in quasi communist regimes. I do so enjoy discordance with you Ax, know that you are appreciated.