Gold is a barometer. It measures trust in governments, their policies and fiat currency regimes. I fear we are at the begin of very turbulent times where Gold and Silver will show to us again why they have been safe havens through history. In this blog I try to address the main triggers for decreasing trust in Western government currencies regimes that will result into rising Gold and Silver prices.
Early 2020 the narrative was to fight the Corona virus. Now almost 2 years later more and more people start to see thru all the government propaganda as the fear monger is benig used to push a digital control state agenda and the experimental injections are not doing what was claimed by Pharma. As the narrative slowly unravels, and even some mainstream media starting to question the current policies, trust in governments is being harmed and will be lost, while billions are spent by governments claiming to fight the Corona crisis at the same time. The past 2 years billions of government spending has gone to businesses and employees for not producing, not servicing and not working. Yes, you may read that again. Been paid for not doing nothing. It’s like a fantasy world, an upside-down world where every logic has turned into non-logic. Big corporate got a big piece out of this party pie, and that money moved into offshore tax safe havens mostly, while small business and employees used the money to invest or spend.
Energy & Climate
A second important trend are rising energy prices, especially in Europe. Lack of investment in oil and gas has left a sector that’s been cut off from investment to build and secure future supply as ESG policies play an important role in this. The past year has started a slow awakening process that ESG policies are cause for a coming energy crisis that will create unforeseen ripple effects all over the real economies during the coming years. Cheap, reliable energy is essential for a healthy economy, it’s needed for growth as well as for a stable society. One of the biggest misguided principles of ESG is that we can do without fossil energies and can fully relay on so called renewables wind and sun while keeping the same living standard we’ve accomplished with fossils energy. The truth is that for years Western governments cooperated with climate activists in a fight to reduce CO2 emissions and framed fossils as harmful and bad. A false narrative has been created that humanity is able to control the climate on earth by reducing CO2 emissions. And these CO2 emissions policies are also developing into tools to build the control state. Rising energy prices erode the living standers of citizens and drive up the costs for businesses.
It’s not hard to understand that once free Western World citizens aren’t happy with these developments and this will erode trust in governments more. While again billions are spent on CO2 emission policies, and renewables, it slowly becomes clear we that we paying a very high price for a lower Western living standard and less freedom. While humanity has created many technical solutions, so far there aren’t solutions that rival the energy density of fossils and uranium. Solar panels and wind mills can’t be manufactured without fossil energy, we can not mine without fossils. Spending billions on renewables, EV subsidies and framing oil and gas as obsolete and cutting them off from investment is like building a house without a fundament.
Central Banks Digital Currencies
Jens Weidmann, president of the German Central Bank gave a recent speech “Fintech and global payments landscape – exploring new horizons”. He basically confirms that the EU is considering to favor digital currency. Digital currency may be the ‘wet dream’ solution for every Central Banker because every transaction can be easily tracked and the government can shut your credit off or your account for any reason. The usual reasons to justify all this is to fight money laundering and terrorist financing. Who is still buying that BS? Just a few risks of digital currencies to consider:
- Expiring money
- Increasing negative interest rates
- Capped withdrawals
- Taxed withdrawals
- Gifts taxation
And once you are in this nightmare you can’t get out, it like Hotel California. Central Bank Digital Currencies are the ultimate tool box for the control state. You don’t need much fantasy to see links with carbon tracking and vaccine passports. If this plan becomes reality, then I fear dark times for Europe are ahead as the consequence is that capital flees Europe as it already started to do into Gold and Silver and to other regions as Asia. Remember that markets always front-run trends and that is also a reason why Gold and Silver are going to shine sooner or later.