Oh Lordy.
Yawn
miscreanity: i've been meaning to ask you. one of your basic tenets is that CB's will
never allow riots in the street here in the US as an argument against deflation ever being allowed to occur (as if they could control it
).
how do you reconcile the fact that Draghi and his merry band of CB's along with the IMF/Troika-F*cks have been more than happy to impose austerity demands onto the Greeks, Spanish and Irish despite the fact that they are clearly leading to riots, rise of Nazi-like Golden Dawns, and public suicides? seems to me as long as ECB/EMF loans get extended to the debtor countries, like Greece, and then are channeled back to the Northern European banks for debt payments, they are more than happy to let this deflation/depression grind on.
why can't that come here and lead to a deflationary collapse in gold prices?
My statements have been that deflation is occurring simultaneously with inflation. Deflation is always in effect, and inflation happens when real growth outpaces the former. There is no way to stop a deflationary collapse, only mitigate the effects. In other words: buy time.
When the body is severely injured, it attempts to shunt as much blood to the core as possible - the head and torso. The limbs are expendable when ensuring survival of the organism. This is what's happening in the western financial system - the periphery composed of the PIIGS is being sacrificed to protect the foundation in NY, London, and Brussels.
It's the whole system - global. We're in the same boat as the Greeks, facing the same riots and chaos. The difference is they're not critical to the system. You throw the weakest link under the bus to cull the herd and allow the strong(er) to go on, hoping disease hasn't spread. Remember fears of contagion? Too late.
QE has been an attempt to rehydrate a dehydrated body, but the real problem is an electrolyte imbalance. The more water put into the body, the more screwed up the levels of potassium, magnesium, and sodium get - enough to cause a heart attack. Correct action wasn't taken because in order to replenish electrolytes, continued suffering would have to be endured - potentially risking organ failure or even death. The QE quick fix was a knee jerk reaction that now has no antidote.
The futures markets have been a major tool used to store liquidity, which is why they've become increasingly volatile. The financial body is now bloated and can't function properly, even less so than it could before the 2007-08 crash. At least it's still alive...
... there is tremendous vested interest in promoting paper money. When you have that kind of vested interest, people aren’t going to go down without a fight...The reason physical gold won't collapse is because it doesn't rely on the financial system. Paper is just an easily reproducible representation of value held elsewhere, unlike real assets. Among real assets, few can be stored over indefinite periods of time, and fewer have a stock to flow ratio capable of storing wealth at a global scale.
Awareness is the only hurdle gold has surmounted which Bitcoin has not - it's only a matter of time, but gold's revaluation will probably happen before Bitcoin becomes commonly recognizable to the majority of people. I look at gold as a several-thousand year old, interim monetary solution - and it's soon to hand its crown off to cryptocurrencies, just not as quickly as we might like.
