I like the following simple explanation. "Currency inflation is when the currency declines so the assets rise in proportion. This is not actually a gain in real terms; rather it is how tangible assets act as a hedge against government. You will often hear gold will soar to $10,000. The question would be that type of rally would be profitless. Your monthly rent on a condo would probably be $10,000. Everything is relative. Then there is DEMAND inflation, which is typically one of two aspects. It can come in the form of a hot item like Pet Rocks, Cabbage Patch Dolls, etc. The second aspect is a shortage of something such as wheat or corn and the demand forces the price to rise."
I think they could tackle the enormous global debt bubble in multiple phases of controlled inflation. Kind-of-like "controlled demolition". Introduce a "new dollar", which is 100 times stronger than the current dollar: 100 current dollars = 1 new dollar Force foreign trade and the banking system to use the new dollar instead of the old one, while the old one will still remain in use. Give meal tickets to people, so that they don't starve, while the current dollar is being gradually phased out. Launch the "#2 new dollar" a few years late (like 5-10 years later after carefully monitoring the trend): #2 strong dollar = 100 new dollar Bascially, do the same thing over again. This means: controlled devaluation of the dollar by 100 %, two times in a row. 100% first and 100% again, that means 10,000x devaluation Essentially: hyperiflation. But a controlled one. They could introduce 1-2-3-4 new dollars every 5 years. I know it sounds nuts. But this could be a solution in a sci-fi movie. If a measure could be implemented to do this in a controlled way, it could work, as the new dollar's purchase power would be 100 times greated than the earlier one. This means that the Fed would have to "force" an exchange rate 100x greater for the new dollar. Sadly, I think the old dollars would always devalue a lot more than 100x, because they would be phased out of the primary markets that drive force to the currency. Several Eastern European countries did actually do this, I believe in the 1940's, 1950's. They cut a few zeros from the currency. But this was harsh and people lost a lot of money.
by devaluation of 2x -100% do not increase the trust of bond buyers lenders they want their gold back seems like Oct of 2020 in coming to play https://www.facebook.com/groups/947867908642430/permalink/3228963023866229/
Interesting... "Let us wait for November presidential election result. Whoever wins and if the policy of containment and intimidation continues, then it is time to show some true mettle. Talk is cheap." https://www.facebook.com/howard.chew These people are obviously not very smart. Keep pushing for conflict, if real conflict happens, do you think you still can live in Australia freely?
The idea is to encourage them to trust the new dollar. "Controlled demolition" is the idea, basically controlled hyperinflation in steps. And if it's controlled with previously-set rules, everyone might as well know about it. They could simply tell people what is going on and thus, debt could be gradually paid off.
there is no way, they will fall for a false one, as the other national currencies would have to rise, and triple of gold price too the dollars day under the sun is no more, times up. kaput
the wait won't be long, next month we will get the absolute CCP response 3 major sectors, business exclusions totally banned
Won’t matter as much as you think, Google and Facebook banned, but still doing very well. The global market is much bigger than any singular market.
Chinese saying, short pain is better than long pain. If it's going to be inevitable, the earlier it happens the better. https://en.wiktionary.org/wiki/長痛不如短痛
I'm very curious about Q3 GDP/employment rate/inflation results across the world (top regions, main powers and regional powers). If Corona spreads more, then some countries might force lockdown and/or certain industries (like travel, automotive, HORECA will be more affected). This will be positive for gold.
Gold Price Forecast – Gold Prices Could Reach $1660 in September "The spike-high we forecasted in gold last week appears complete. Prices collapsed to $1874.20 by Wednesday before rebounding. We think gold could retest support near $1660 in late September, which will present the next great buying opportunity. Gold and precious metals are extremely cyclical. Roughly every 6-months prices form an intermediate cycle low – the last low arrived in March. The current decline is just starting and may last 4 to 6-weeks. Our preferred target window (gold chart below) supports a bottom in late September or early October." SOURCE: https://www.fxempire.com/forecasts/...d-prices-could-reach-1660-in-september-666721 I thought the bottom is/was at around 1,800 $ somewhere. Now they're telling us the "big truth". Permabulls believe it is just "breathing" (Faber and Schiff said something like it will go higher after a small dip, but not below 1,800 $ - if I remember correctly, it was precisely Faber who said this).
Even more interesting is buffets move into gold mining stocks, it will get mainstream attention and other investors are sure to follow. Even Peter Schiff does a special Saturday podcast to discuss...
"Ghost Town": Shocking Dystopian Video Of NYC Shows An Abandoned And Boarded Up 5th Avenue https://twitter.com/tadgermania/status/1291717913980747776?s=20 https://www.zerohedge.com/political/ghost-town-shocking-dystopian-video-nyc-shows-abandoned-and-boarded-5th-avenue
I was thinking about $1750+, 50% retracement to March lows and around $19 for silver. August-Sept was bad for gold last year. I remembered making a buy when it dipped to $1425. At that time we were all discussing about how much it will dip and that particular dip was shallow. But prices weren’t that crazy at that time.
I don’t buy that a pull back is the next phase. I think it’s going to push on. I don’t make many short term predictions and admit this could be wrong just a feeling.. looking at the stocks and the oversubscribed capital raisings I don’t see demand halting so soon as Sept
I made a mistake, the $1425 buy was in July. Last year, the dip was after August and prices drifted no where till early Dec. Even before the spike over $2000, a lot of analysts (some may call them anal-ysts) had forecast a pull back based on technical analysis. In my opinion, the spike in gold above $2000 is caused by blm protests which spread the virus causing an extended wave 1 and panic across the USA. If you look at the infection charts, phase 1 was already in decline by early June and if the protests didn't happen, all the lock downs could be lifted by now.
