Simone Wapler – La Chronique Agora (France) –
Yesterday a dispatch from Bloomberg suggested that gold was rising as investors in the financial markets began to doubt the merits of monetary policies of central banks.
Yesterday, Albert Edwards, an economist at Societe Generale, analyzed that the people were soon to revolt against the same central bankers.
“Citizens will soon unleash their anger on the central bankers caught in the bag“
If this happens, if the majority of people end up admitting what I have been writing for almost two decades, gold should soon spray all its records.
Simply because the central bankers “make” the money (in the form of credit). They have created, certified and disseminated counterfeit money. This counterfeit currency has driven up the prices of all kinds of assets (real estate, stocks, bonds). To buy these assets and to build up their assets, the middle class must work harder than before the appearance of this counterfeit currency; Its savings are not only less and less paid but loses its purchasing power.
For example, here is the evolution of home ownership in the United States and rents reported to the US economy. Keep in mind that the American’s net income has been stagnating for 10 years. In fact, if you scrap the statistics a little, Many Americans get poorer…
Fewer Americans own their homes and rents are more expensive. Same phenomenon in the United Kingdom and in all the countries where a real estate bubble is inflating.
The general public, including trickery and embezzlement, will want to flee this counterfeit currency. What alternative currency will he choose then? The bitcoin, another crypto, gold, silver?
The monetary policy of the central bankers gave rise to a selective inflation tax, particularly affecting the middle class. The privileged, those who already have a large patrimony constituted and access to credit almost free, can use the leverage effect to continue to enrich themselves.
But we are not there yet. Let us go back to Albert Edwards and his prospective. When can rage go unchallenged? When will the people want to push the central bankers to the guillotine and put their heads on pikes? When will the “barbaric relic” be exhumed? When will some good financial sense come back?
The rage will unleash the next shock in the markets, according to Albert Edwards. The central banks will have grilled all their cartridges and will be unable to offer anything (apart from more than anything that did not work). Politicians will be quite willing to designate the central bankers to popular vindictiveness.
The euro, driven independently by Mario Draghi, a former Goldman Sachs, patented counterfeiter, will survive?
In doubt, a little gold or silver-metal (that’s good, they are not expensive at the moment) are a good precaution that you will not regret.
We never regret having too much precaution. We always regret not having taken enough.
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