This Is Why The Price Of Gold Will Be Launched Into The Stratosphere
This Is Why The Price Of Gold Will Be Launched Into The Stratosphere from King World News
With the next global crisis rapidly approaching, this is why the price of gold will be launched into the stratosphere.
“One simple rule to follow: Determine what is best for the government and know that is what the powers are working to make happen. Inflation is what is best for a government with enormous debt.” — Ayn Rand
Systematic Over-Indebtedness & Inflation
By Ronald-Peter Stoeferle, Incrementum AG Liechtenstein
June 20 (King World News) –The goal of every organism, every human being, and every bureaucracy is to maximize his chances of survival. To this extent, deflation constitutes an existential threat to the current monetary system that needs to be fought at all costs. To gloss over the inherent instability of the credit system, the existing credit deflation will be compensated by extremely expansive central bank policies. We think this is a tightrope walk…
The central banks try to fine-tune this tightrope walk between deflation and inflation. The following chart shows the annual growth rates of central bank balance sheets since 2003. Evidently the Bank of Japan has been pursuing a relatively restive central bank policy. The ECB, too, has been relatively restrictive with an annual inflation rate of “only” 27%. The People’s Bank of China holds the title as inflation world champion, closely followed by the Swiss central bank and the Federal Reserve. By comparison, the stock of gold has only been growing by an annual 1.48%. This underlines the relative scarcity of gold in comparison with fiat currencies that can be inflated at will.
King World News note: The chart below illustrates why the Western-led price suppression scheme in the gold market is so incredibly important to central banks. When the price of gold is eventually unleashed, fiat currencies across the globe will collapse accordingly.