Commodity Trade Mantra

Posts Tagged ‘Fiat Currency’

More Reasons to Own Gold and Silver With Each Passing Day

Does a 0.25% Fed Funds rate increase really change the fiat currency destruction policy adopted for decades & provide an impetus to sell gold and silver in exchange for devaluing paper & digital fiat currencies? There is no end in sight to the fiat currency purchasing power devaluation objectives of Central Bankers & start converting fiat currencies into wealth preserving physical gold and silver.

Are You Prepared for the Hyperinflation Shock? Get on the Gold Wagon Now!

The problem is that no one is prepared for the coming shock. All of this printing will result in global hyperinflation of at least similar proportions to the Weimar republic or Zimbabwe. The final decline of the currencies will be reflected in the gold and silver prices. Gold at $1,330 and silver at $19 is a bargain, but with hyperinflation, we could add quite a few zeros to their prices.

Future Prospects for Fiat Currency Money & it's Purchasing Power

The faith and credit-standing of issuers of paper money, and not the known and suspected inadequacies of commercial finance, is the last rotten pit-prop supporting the system. We can easily see how a new round of monetary expansion designed to save the global banking system from its nemesis will lead, not to a Lehman-style outcome, but to a collapse of paper currencies.

Gold And Silver – A Clarion Alarm Call For All Paper Assets

Gold or silver does not ever change. What changes is the [falsely]perceived [worthless]”value” of fiat paper currencies. Those who [unwisely]choose to own paper assets of any kind, especially in the stock market and digital currency held in banks, are being given a clarion alarm call by gold and silver that your time has reached its expiration date.

Central Banks Hated Silver - But May Now Soon Start Buying Silver

A long time ago central banks had silver in their vaults as a safe haven. Of late, central banks were not interested in silver is because it was in their interest to hate it. But for how long? They love it when they need it. Central banks have little to none silver, but things can change – fast. After all, it is not like having silver is new thing for them.

Central Planners Freaking Out On Discussion on Role of Gold

Michael Hiltzik thinks “a return to the gold standard would be so not right that it’s not even wrong.” The truth is there are plenty of economists who question the stewardship and discretion of Congress, the president, and, especially, Federal Reserve bankers. Heck, even Alan Greenspan is criticizing the fed and talking about an important role for gold these days.

Silver Is More Important Than Anything Else In The World

If I am correct about the silver for delivery coming from the most likely of all places, China, then I believe this will be looked back on by historians as “the Chinese silver fox in the West’s golden hen house! Am I correct? I don’t know but we will soon see as the global paper financial edifice is quaking on its own. The silver can ONLY be coming from where it exists…Chinese legacy silver!

Death Of Cognitive Dollar Dissonance & The Remonetization Of Gold

Gold, the only internationally-recognised non-national money provides the international monetary solution to an economically multipolar, globalised, competitive world. As gold again begins to circulate to settle cross-border balance of payments, it resolves the perennial floating fiat currency dilemma of ever-growing imbalances & associated ever-growing debts to finance them.

The Rehypothecation of Gold, and Why It Matters

Why keep the nation’s gold reserves so mysteriously secret? Maybe rehypothecation isn’t the reason; then what is? Fear of precisely what? Isn’t gold supposed to be a foolish relic? What’s the danger in letting people look at the foolish relic and count the bars and note the serial numbers on the bars? What’s the risk in that?

Gold Backed SDR "Is Quite Likely To Happen", LSE's Lord Desai Warns

Some argue that “no other global currency is ready to replace the U.S. dollar.” That is true of other paper and credit currencies, but the world’s monetary authorities still hold nearly 900 million ounces of gold, which is enough to restore, at the appropriate parity, the classical gold standard: the least imperfect monetary system of history.

Valuing Gold – USD Fiat Money Quantity Update

The purpose of FMQ, is to quantify the difference between sound money & fiat currency by including the steps by which gold has been progressively absorbed into banking system from private ownership & into government vaults via commercial banks & Fed. FMQ shows gold is substantially under-priced in dollars on a long-term value basis.

There’s More to the Gold Rally Than European Market Fears

You’ve probably read that gold’s breakout is resultant of what’s currently happening in Europe, but there’s much more to the story. If the dollar or any other fiat currency were universally acceptable at all times, central banks would see no need to hold any gold. The fact that they do indicates that such currencies are not a universal substitute.

Crude Oil, Silver Prices and the US National Debt

Expect the S&P to correct downwards (eventually), expect silver and crude to resume their upward trajectory (eventually, probably soon), and, like the inevitability of death and taxes, expect debt to inevitably accelerate higher. Gold and silver are real money, and they are insurance against the craziness and volatility of debt.

Gold Is A 6,000 Year Old Bubble - Citi's Dutch Strategist Throws Up All Over Gold

If gold is indeed such a worthless insignificant “fiat currency”, then why just two months ago, did Citibank rush to be “reclassified as a spot Market Making Member of the LBMA? Could it be that gold actually has some value to Citi, if nothing else than pocketing commissions from traders, now that the bank’s rigging is no longer possible?

Gold and Deflation: History Shows That Conventional Wisdom is Wrong!

Deflation is a disaster for those who are indebted because the dollars needed to repay those debts are deflating away, making the debt ever-harder to pay off. Since people have no faith in fiat currency, they demand a proven store of value. Until the mentality of man changes, gold will always have intrinsic value as a replacement currency.

Gold or Crushing Paper Debt

More war means more debt and higher inflation. Increasing national debt is as certain as death and taxes. Increasing consumer prices follow. Our financial world seems more unstable & more dangerous than usual. Which has been safer under difficult economic & political conditions during the past 3,000 years – gold or debt based paper?

A Strong Dollar? Why has the Dollar Rallied?

To answer the question whether or not King Dollar is back to stay, I don’t believe there is ANY chance at all and the current strength will be very transitory. The U.S. is broke on too many levels to count from financially to morally, ethically and everything in between. So why has the dollar rallied?

The U.S. Dollar: Currency Masquerading as Money

A critical attribute of money is that it be a store of value. The U.S. dollar has lost value at an increasing rate since 1971, losing 75% of its value from 1914 to 1971 and 96% from 1971 to 2014. Such a precipitous decline in the U.S. dollar’s purchasing power disqualifies it as real money.

Gold And Silver Are Money: The Truest Form Of Money

Let us be clear about one thing & to never forget: gold and silver are money – the truest form of money. Everything else, the fiat Federal Reserve Note, erroneously referred to as the “dollar,” the Euro, the Yen, the Swiss Franc, or any other form of currency is worthless paper money, backed by nothing.

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