Gold Price: The Single Greatest Determinant of the Upcoming Monetary Breakdown and Currency Collapse_____________________________________________________________________________________________________
SOTN Special Note:
Since time immemorial gold has functioned as the universal currency. Whatever its value was considered to be by a kingdom or nation effectively functioned as the benchmark against which everything else was valued.
The price of gold in modern civilization is no different. It is universally regarded as the barometer of the general economic health of the world. When the price of gold is high, there is much insecurity in the global marketplace; when the gold price is low, investors have much more confidence in future economic activity.
Because the US dollar was artificially propped up as the world reserve currency with the post World War 2 Bretton Woods Agreement, the petrodollar in particular began to function as the new benchmark. While this unsustainable arrangement guaranteed great prosperity for the USA, maintaining it exerted a tremendous amount of pressure on the worldwide system of currency valuation. The ever-increasing monetary stresses in the aggregate which resulted have now put the health status of the U.S dollar at great risk.
Every day that passes throughout 2016 will only see this precarious situation become more fraught with currency volatility and financial instability. In fact many of the armed conflict and military maneuverings across the planet are due to this underlying dynamic. The Federal Reserve’s over-reliance on what is basically a dollar printing press has significantly cheapened the value of all the greenbacks in existence.
As more countries decouple their payment systems from the petrodollar and sell their dollar-denominated debt, the FED has resorted to printing even more money out of thin air. Other nations, particularly those that are vulnerable to energy price fluctuations, suffer greatly due to this fatally flawed American monetary policy. Whenever the FED implements another round of quantitative easing to cure its financial flu, the rest of the world comes down with pneumonia…to the extent that they are married to the petrodollar. Venezuela is a perfect example of a nation not far from ‘respiratory failure’.
Why Gold Always Goes Up In The Wake Of Quantitative Easing
The Bottom Line:
It is in times like these, when economic instability and financial insecurity abound everywhere, that people and nations alike will reflexively move their money into gold and silver. Gold especially is respected as the best hedge against all types of market crashes and economic collapses. For this reason the citizens of India, China, Japan and the like have been purchasing gold and silver bullion at unprecedented rates. Such buying sprees have exerted even more pressure on the highly manipulated gold and silver markets. For these and other important reasons a gold breakout is not “If?” but “When?” … … … in 2016.
GOLD BREAKOUT 2016: It’s Only A Matter When, Not If
The explanations posted below present some essential background on how the world got put into this perilous position—an especially dangerous place for the U.S. economy.
State of the Nation
May 29, 2016
China’s Market-Shaking Gold Strategy Rocks Anglo-American Financial Domination