Gold, The Great Reset: World Leaders Are Getting Ready To Reset The World Economy

In March gold hit $1450 after the collapse triggered by the collapse. It fell from $1,704 in just a matter of days in a massive correction. Even so, it discounted the damage that the pandemic was going to cause because the market reversed right away as the Fed announced record stimulus. The Fed leveraged about 10% of GDP to cover the potential losses in the market or about $20 trillion. This suggests the magnitude of the damage that the Fed was anticipating.

Courtesy: Ticker Tocker

Today, consumer spending is down a few percent and the Fed has only spent about $3 trillion. We believe that the economy is going to need far more stimulus than that amount when we see how much damage the pandemic has caused in the US and around the world.

All of the stimulus is going to cause massive inflation down the road. As the Fed prints more money, each dollar is worth less. Inflation has to occur, so assets that are based on the dollar will inflate, but will really be worth less. Gold is now an alternative currency, which has real value and is not just a piece of paper. The big money woke up and bought a huge amount of gold supply in just three days, which marked a V bottom reversal in March.

We trade gold because it has the volume to day, swing or long-term trade. It also allows you to trade futures, options, ETFs, stocks or indices. There are thousands of instruments under gold that you can use to design a customized portfolio. We use the Variable Changing Price Momentum Indicator (VC PMI) to design such portfolios.

The market got overheated at $2,089, it reverted right back down to the daily, weekly and monthly mean, which were all close together. Gold activated a short trigger all the way down into the buy area of $1,862.

The biggest mistake the US made was when Nixon removed the dollar from the gold standard. The dollar then became a fiat currency, like all the others, and the government could print as many dollars as it wanted when it wanted. This meant that, over time, the dollar was worth less and less. It is now worth a penny or two compared to what it was worth in terms of buying power in 1971. Taking the dollar off of the gold standard was the beginning of the end of the American empire. Since 1971, the US dollar has declined 98% compared to gold. The dollar collapsed because of the tremendous amount of debt that has been accumulated and because so much money was printed to support the Vietnam War. Now, we are seeing the final stages of that collapse of the US empire. We have record debt, which is about 130% of GDP. Interest rates are at almost zero. We are looking at potentially even more stimulus, which means printing even more money, which further devalues the dollar even more. We are in dangerous waters in terms of hyperinflation striking. We could soon look like a cousin of Venezuela.

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Disclosure: I am/we are long NUGT.

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Gary Anderson 1 year ago Contributor's comment

Collateral backs the issuance of money or is supposed to. Houses, bonds, etc. Not strictly fiat money which is tied to neither.