GOLD: Now, More Than Ever

The title expression is not new. It has been repeated countless times throughout history. When the Persians threatened the Greeks, the meme was heard. When Attila was coming to Rome, everyone was made safe due to the Pope buying off the threat with gold. No matter what or who controls government, people would always horde gold because they knew in a crisis, it could save them. 

Change is constant...

was the genius of Heraclitus. However, even he would admit that gold retains itself, no matter how much time passes. People, from early civilization understood that you cannot carry your house to move if danger beckons. Anyone in California who is threatened by wildfires can relate to the point. You can carry some possessions, but if bandits appear, they will steal them from you. However, you can hide gold to deceive the thieves. Wherever you go, it is recognized as value. It will buy you food and shelter. It will allow you to start again anywhere on the globe or 50-states. It is the security of the ages. 

Founding Fathers

were good, honest men. Maybe within each, especially the wealthy, there was a personal agenda? However, in the understanding in what they were trying to achieve, they put forth their best reasoning to lay the cornerstone for our nation. It is why gold is written into the constitution. They knew currency is the framework to create prosperity. By having gold behind our dollar, it allowed Jefferson to purchase from Napoleon, the Louisiana Purchase. Napoleon could have sold to anyone, but he wanted the strength and value of gold. It is the same principle that allowed us to buy Alaska from Czar Russia. They wanted the strength and value of gold. Would anyone sell a possession to the US today for its fiat currency? I don't think so. And that brings us to the heart of the title. 

Sold Out!

President Wilson sold out the nation to influential bankers to create to the Federal Reserve. The Fed was an idea of the rich to protect themselves from "Black Swans." All the BS about mandates and purpose of the Federal Reserve is just that, BS! It is like the magician who uses deflection to take away your eyes from his deception. At the moment, the machinations of the central bank is catching up with them. Our central bank takes its cue from Japan. As long as Japan can continue to "play the game" the Fed can do the same. The problem for Japan is twofold. One, they are not the world's reserve currency. The global community can continue without the yen. Two, their aging demographics. The Fed governors know that the US is the world's reserve currency. It like holding an ace in your hand as the down card. The Fed's real problem is debt. It has to be repaid. As it grows, it multiplies due to compounding. We are at the inflection point. The point where society is realizing the danger in the dollar due to its shrinking value. Inflation is not rising prices, but the less purchasing power of the dollar. The more dollars printed, the less value they retain. 

The "Promise"

is all that stands behind fiat dollars. When you have something to sell, (read export) you seek the best price for your product. If the return value in the transaction keeps declining, the seller will demand more for his product (read inflation). Sellers are losing confidence in the promise of the dollar. 

Biden's dilemma

Some of his spending plans are very much needed. His problem is money and using it without having any. You print it. This is debt. He has to fight Congress that is overly influenced by the banking industry and the military. These are the enemies of America. At least, the America that our founding fathers gave us. The freaking military has dominated the federal budget ever since the Cold War. The rich have bought their influence to suppress workers and unions. Outsourcing is a form of suppressing labor. Our government is not in touch with our citizens. It is the central root to the January Insurrection. Even those who are aware of the dangers in debt, see no other choice than to continue to play the game until some financial crisis erupts to change the game. This is where the Fed is directing us. 

Old 5%.

As long as I can remember, banks would pay you 5% to deposit your money with them. The excessive money printing by the Fed ended this way of life. It should have been an alarm to our falling standard of living. We have been declining ever since. We are no longer in the top twenty in living standard. Our schools which is our future is also declining. Covid-19 exposed the US manufacturing decline. We cannot even produce masks! Everything is imported. We are import dependent. Tariffs can help stop this bleeding. Tariffs will cause inflation, but it is the correct medicine to stabilize our economy. When things balance out, tariffs will help the middle-class to grow again. We, at Evolution could talk a book on the subject. The Fed has turned our balanced economy with its best feature, social mobility into a bar-bell economy. Rich (weights) on one end, nothing in the middle and poor (weights) on the other end.

Now getting back to interest rates. If they were to return to 5%, our country would collapse due to the interest due on past debt. It would consume almost half of our yearly budget. The military is not protecting America, they are bankrupting our nation. The Fed is destroying our currency. Together, this leaves you, Dear Reader, to your own self survival. You need to prepare and the charts for those of you that are so inclined, are reinforcing the call for gold - now, more than ever. Before that, think about the following.

Building Collapse...

was a tragedy in South Florida. If you allow me to use it as a metaphor to what the Fed is doing to our dollar, there is a perfect correlation. The condo was built on reclaimed ground. This is the Fed introducing a reclaimed currency, fiat. When you build on solid ground, your foundation is strong. The Fed took our strong foundation and applied the principles to fiat. You can't fake foundation. Cracks began to appear in the condo like 1929 in our economy. The Fed supplied patchwork repairs like spackle on a crack to smooth it over. To all, the fix appears to work. It hasn't. Why, you ask? Because the foundation is sand or "promise money." The dishonesty of the board like the Fed as things are under control is a lie. One night the moment of reckoning appeared. Down went the building. One morning, the news will announce a financial emergency. It could be derivatives crashing, loans not paid that causes a contagion within the banking industry. The list is long. It will be like when FDR said you no longer have the freedom to own gold. The thought is heavy and fearful, but no government can stop what people of the world know. Gold is honest. Gold is valuable. In a crisis it can save your life. Sadly, people died not even knowing at the moment, why it was happening to them.

Hammer...

Gold ended the month of August with a hammer under candlestick charting. This is super bullish. Maybe the Fed takes their cue on fiat from Japan, but traders thank the Japanese for candlestick knowledge. Gold is above its 200 and 50-day moving average. The precious metals market is in harmony as silver also moved above its moving average. Reread our past articles to locate which miners we believe will do best before the prices rise to high and you can only hope for a pullback. You might not get the chance.

History is on gold's side. When you buy gold, you know what you are getting and what it is valued. Gold can be exchanged anywhere in the world. It is liquid and portable. In these dangerous financial times, you give yourself an option for security. You can't put trust in politicians. When did they ever keep their "promise?"