The Next Gold Rush Is Here

The retail and leisure/travel industries for example are hemorrhaging and unlikely to ever recover fully. Thousands of small businesses are also going under every month.


QE in 2021 will not only be used for more support to the undeserved banking system. Also, individuals and businesses will be direct beneficiaries of QE as Biden and Harris subscribe to MMT (Modern Monetary Theory).

Thus the money printing bonanza in 2021 is likely to far exceed the 2020 levels. This will not only put enormous pressure on the financial system but will also be reflected in a collapsing dollar.

The biggest problem is the massive amount of treasuries being issued in 2020 and 2021 only has one buyer. The old buyers of US debt, China, Japan, Russia, Saudi Arabia, etc are seeing the writing on the wall and are no more interested in buying depreciating dollar treasuries.


So the last man standing is the Fed and this is why Yellen is perfect for the job as Treasury Secretary. With her Fed experience, she will, with ease, plan for the biggest monetizing of US debt in history.

Initially, the dollar will be the biggest victim as an ever-increasing amount of dollars are created. Many currency observers watch the dollar index. But since this is not really a traded currency, I prefer the EUR/USD spread. The euro against the dollar is the commodity with the biggest trading volume in the world at $1.5 trillion a day. The S&P daily volume is around $150 billion and US treasuries $500b.


Below is a table of daily trading volumes that I have shown before (EUR volume not included). This chart was shown to point out that daily trading volume in gold is 850x daily mine production and twice as big as the S&P volume. I will not go into this table in detail here but suffice it to say that this massive gold trading by the bullion banks is a clear sign that they have major problems to balance their positions due to the naked paper gold shorts.

Coming back to the Euro-Dollar, this chart is now very bullish for the euro and thus bearish for the dollar. After a 12 year correction, the Euro is now breaking out on the upside against the dollar and looks very bullish. The Euro is already up 14% this year and is likely to strengthen considerably in 2021 as the dollar falls rapidly.

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