ANOTHER ALL-TIME HIGH! Let’s break out the champagne as Japan’s Nikkei 225 Index has hit a new all-time high last Thursday! I am sure those that look at the headlines must be thinking that Japan must be doing great! What many likely DON’T know is that this all-time high just eclipsed the previous all-time high from 1989.
In a mere 34 YEARS you got back to where you started from and now have a TINY profit to show for it. While this may be a big story- to me the larger story is how they had to “print” their way back to the record. In Japan their currency is the Yen. They have been conjuring up Yen out of nowhere for decades. As I am writing this at 5PM on Monday March 4th. any Japanese citizen who wants anOUNCE OF GOLD has to pay 318,187.00 Yen. That is Three Hundred Eighteen Thousand Yen.
Gold is the ultimate money and has been used extensively in the past to determine how fiat currencies were holding (or not holding) their value. We can see that pretty much all of the “gains” in their “markets” are a result- not of growth and industry but in the debasement of their currency. This is the path that all developed nations are on- just at different levels. This is likely the main reason that central banks (the ones debasing the currencies) are buying gold in record amounts. I believe they all know the end game- “Print and debase”.
The governments love this too. It allows them to tax capital gains even though no real corresponding VALUE has been created. Central banks conjure up cash from nowhere and charge us interest, the collapsing currency makes it appear that homes, cars, etc., are getting more expensive when, in reality the “money “ you are using is just losing purchasing power. Even stocks, when measured in gold, have a NEGATIVE return since 1971. In the meantime, plenty of capital gains taxes have been paid.
I also believe that this is one reason for those “in charge” to suppress the price of gold- so that economists and regular people remain as clueless as possible to the “print and buy” scheme and the negative long-term effects of inflation and poverty.
While our “markets” are also reaching all-time highs it is interesting that over the past 2 years “investors” are just now getting ahead of where they were in 2022. Let’s not worry about that fact. We are doing the same thing- propping up bonds and enterprises that should be dead and buried and new companies should be springing up to take their place. This, of course, would lead to many campaign donors losing out and we can’t have that now, can we? This stifles innovation and leads to economic malaise- which we are seeing right now.
Still another all-time high was hit last Friday also BUT, unlike the euphoria over the stock “markets” there was little, if any, reporting of it or any fanfare at all. That is because the all-time high that was hit was for GOLD . Certainly, if you are trying to keep the idea that “all is well” alive you can’t have people knowing that gold is rising. As a matter of fact, as I am writing this on March 5th. gold- the pet rock, barbarous relic (that central banks and major banks can’t buy fast enough) is up $300.00 in the past 12 months. That is 16.3% for those keeping score. A year ago, the price was $1840.00.
If anyone thinks that this is the exception- even with all the manipulation to keep the price down in the past 5 years gold has risen from $1275.00 in March 2019 to $2130.00 as I am looking on 3-5-2024. This would be a 67% return in the past 5 years. 67divided by 5 would be 13.4%. SHH! (Gold performance from Kitco)
Just think about what the price SHOULD be without all of the games being played to keep the price low as those “in charge” and others who are astute enough to see what they are up to BUY IT ALL.
I also find it amusing to see so many upbeat about our “markets” when the economy is collapsing beneath us. Those who I would consider to be “in the know” have been dumping stocks almost as diligently as central banks and major banks have been buying gold. Are the billionaires buying now too? They only have to report major sales– they don’t have to tell us what they do with the proceeds.
I believe that anyone who is thinking that this latest runup in gold is the end of something is dead wrong. I believe that this is likely just the beginning of a MAJOR uptrend that will take the majority by surprise. There are many reasons but the most important are:
- BRICS have announced a blockchain and digital system which will allow trade in their own currencies. While many countries are already trading in their own currencies- or in some cases the Chinese Yuan and Euro- this has the capacity to really undermine the use of the US dollar and could lead to a substantial decline in its price. I use price because it actually has NO INTRINSIC VALUE. If you think inflation is bad now- you haven’t seen anything yet. While many are questioning whether or not the BRICS can pull this off, keep in mind that the weaponization of the US dollar has led most of the developing world to want to ditch using the dollar in trade. Remember BRICS was 5 countries prior to 2024. On January 1, 2024, 6 new members were added. It may be 5 now as Argentina appears to be backing out. 35 other countries have formally applied for membership and a few others have informally requested to join. Most of these countries are those that produce most of the world’s natural resources and food.
- The US is going into another $1,000,000,000,000.00 (1 TRILLION) into debt every 100 days. This doesn’t even count off-budget items which adds tens to hundreds of billions (that we know of). As I have said- with each dollar conjured up out of nowhere it steals value from every other dollar. Therefore, the VALUE of hard assets go UP with every dollar “printed”. With the breathtaking amount of “printing” and debt issuance many people are surprised that gold, silver and other hard assets are not FAR more expensive. As I have said before, the level of fraud in this market is off the charts and when the manipulation ends most people will be stunned when it is revealed.
- The USA is no longer looked at as a beacon of freedom and rule of law but now we are seen as a laughingstock similar to any banana republic with the rule of law breaking down. Political prosecutions, and “printing” of the currency to pretend that we are still solvent and prosperous- of which outside the top5-10%- we certainly are NOT.
- The US dollar is backed by the full faith and credit of the US government. So far, we can clearly see that we are spending ourselves into oblivion, there is no end in sight, and it likely will end with a resounding THUD which will be the dollar crashing under its own weight. Of course, those “printing” the cash don’t want to take the blame so it will be blamed on Russia, China, Iran or some other “enemy”. The fact is that the printers are the problem. If taxes were required to fight wars there would likely be far fewer, if any, wars. Look at the riots in France and Germany as their delusional “leaders” are plotting acts of war on Russian soil (Germany) and threatening to send NATO troops to fight (France).
The bottom line is that the world is changing. MATH says that we can never retire our debts and promises made without destroying the value of our currency.
WHAT IS THE VALUE OF A PROMISE THAT CANNOT OR WILL NOT BE KEPT?
I am not waiting to find out!
Be Prepared!
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