It all comes down primarily on the politics. What do central banks do? A good question to ask is what were they designed for?.
Bullseye!
certainly not to allow gold to reascend the throne of a monetary reserve currency.
all they have to do to short circuit your dreams is to stop QE and let the USD skyrocket which it appears they have decided to do. do you really want to trust your future to Ben Bernanke?
Banks in general formed as vehicles to provide security of accumulated wealth - in the form of gold & silver. Paper notes simply provided claims on wealth held at banks, allowing convenient ownership transfer for purposes of commerce so it wasn't necessary to carry the metal around on your person. That mitigated the risk of being robbed, since the banks provided secure storage. Incidentally, this is essentially how gold will act as a reserve again.
The investment aspect developed into a separation between the paper claims and actual assets within the banks, while depositors operated under a different assumption - awfully similar to what's going on now.
Central banks provide another layer of abstraction on top of the original purpose of banks, having even less to do with real wealth.
A major recurring theme throughout history is that there is an entire societal disconnect regarding the very nature of wealth. Both form and function have once more been distorted to a point where it is becoming completely impossible for the illusion to associate with physical reality.
As I pointed out earlier in the thread, even if the US shifts gears to full austerity, the rest of the world is already straining to move in the opposite direction. The Fed may be successful at getting the dollar to rise in relation to other financial instruments, but will still be sliding along with them. The US is not alone in the world.
How's this for a long-term trend? Only a decade run? Try 40+ years, with no sign of letting up. The chart will probably have to start measuring US wages in gold
dust.
Even more discouraging for workers generating
real value, but being lured toward saving in paper:
It's taken a long time, but the unwashed masses are finally coming to understand what's going on. A shame they'll seek salvation from the same ones that destroy them. History is a
rhyming bitch.
you are going to lose alot of money.
Fiat "money".
It doesn't matter which fiat you're holding. There is only one class of truly global currencies that has real value. It is not yet Bitcoin, no matter how much we might be hoping for that to be the case. Precious metals are not going away in the same manner their paper counterparts do - got it?
