By JC Collins
Gold can account for value deficiencies in fiat currency and make adjustments for inflation on a larger macro scale when there are no other alternatives, and only to the extent which real value and purchasing power is maintained.
In historical times when the wealth of the world moved into gold because currency debasement led to the collapse of the sole regional empire, the masses were left with no viable alternative.
Historical examples from antiquity are of financial systems which started as gold coinage and were later debased with copper and other metals. When these systems ultimately and inevitably failed, the people economically migrated to the things which they knew, such as gold coinage and production.
The economic systems of today, both micro and macro, defined across the vast socioeconomic regions of the world, are all debt based to begin with, and production, largely in the western regions, has become something of a long lost dream of days gone by. The people, or the large swaths of the disorganized masses, have succumbed to the tantalizing dictates of socialism to such an extent that they take very little interest in the larger metrics of their financial existence.
This socialized cattle collective takes its talking points from media campaigns and figure head persona personalities who have been designed around a methodology which encourages the masses to feel a sense of familiarity and comfort with a message of acquiescence and complacency.
Along these lines the masses are provided the socialized legislation, which only encourages even more socialism, and a level of apathy that both confuses and confounds the modern thinker into a state of unlearning and departure from reason.
Today, if there was truly an unplanned or unexpected collapse of the financial system the large disorganized masses would not know what to do as there is no reference point outside of the socialized system, and would likely succumb to the macro mandates of the higher socialism which has been constructed outside of the sovereign framework of past ideologies and geopolitical borders.
This higher socialism has been designed by stealth through the implementation of educational curriculum and the subconscious implantation of new age religious type moral burdens, such as the green movement and bastardized equality campaigns of unnatural proportions.
There is always a marginal percentage of the population which is able to discern and reason outside of the parameters and constructs of the system they labor under. But even within that minimum demographic there are further breakdowns on awareness level and the cause and effect machinations at work.
As an example, an extremely small percentage of the global population today can explain the fundamentals of any socioeconomic system, let alone the complexity of the system which has been engineered around us today. It is challenging to determine with any level of accuracy what that number would be, but I would suspect based on website views and search engine hits that the number of only curious seekers is somewhere under 1% and within that slight margin we can define perhaps 10% who can functionally comprehend the totality of the system which is in use today.
These numbers only reflect the socioeconomic component of awareness as opposed to the engineered and conditioned awakening which has penetrated the collective psyche through the conspiracy theory mandates of restructuring the weapons of the weak for use against the very same weak from which they have previously originated.
What I’m saying here is that the awareness meme which has taken up a stance against the sovereign state is designed to eventually and gradually slip the collective into the larger super-sovereign socialism of tomorrow. Conspiracy websites and theories have slowly been consolidating under familiar banners and the people have “awakened” under this engineered and conditioned storyline.
And a percentage of these “consequential awakenings” have shifted into the socioeconomic camp of total economic collapse and precious metal manipulations. The plot structure from this demographic is that fiat currencies will collapse into hyperinflation and gold and silver will account for this by skyrocketing to extreme levels which defy reason. The nominal value of gold and silver, as opposed to the real value, being the purchasing power of the metals, matters little when it buys the same tomorrow that it could buy today.
Though we may see some continued increases in the value of precious metals over the next year or so, they will be offset by decreases in nominal value which will match and parallel the real value decreases which will facilitate the growing deflation taking place around the world.
One cannot discuss the real and nominal value of gold without further contemplating the dueling and symbiotic roles of inflation and deflation. It is so difficult for the linear human mind to comprehend the abstract realization of this simultaneous relationship. Let us attempt to explore this challenging aspect of the financial system.
Inflation, recognized as the devaluation of money, or decrease in purchasing power, by way of both marginal and massive money printing or creation, does not exist separate and overtly distinguishable from deflation.
Deflation, recognized as the increase in money valuation, or decrease in asset values, by way of reduced money printing or creation, does not exist separate and overtly distinguishable from inflation.
In recent years we have experienced massive inflation by way of economic policies such as QE money supply expansion. Yet, we have also experienced deflation as asset values have been dropping, especially in homes prices in the United States. Commodities and assets have been hit hard at a time when we are experiencing a massive expansion of the money supply, which is inflation.
So here we have inflation and deflation existing together simultaneously. But the relationship between the two becomes even more discomforting when we make the obvious connection that inflation is in fact preventing a slip into a massive deflationary event.
In simple terms, QE is preventing massive deflation, and the more asset and commodity prices weaken the more demand there will be for increased money printing and inflation. I have attempted in past posts to explain how QE is funding the implementation of the emerging multilateral financial system.
Understanding the above information is mandatory to understanding what this means.
And I’ve also stated in past posts that the price of gold and other precious metals are being manipulated, not downward as determined by the “consequential awakenings” of precious metals purveyors, but manipulated upward by covert monetary policies and procedures in order to maintain the symbiotic relationship between the deflation and inflation which we have been experiencing.
As challenging as it may be to comprehend the above information, it is one of the only accurate methods of describing the patterns and macro policies which are taking place in the broader socioeconomic world.
In the post Renminbi is Already a Defacto Reserve Currency, it is explained how the internationalization of the Chinese currency is taking the form of yuan denominated gold contracts from the Shanghai Gold Exchange, and that the ultimate goal is to include the renminbi in the SDR basket valuation.
No country, including the United States or China, wants to hold the reserve currency of the world. All mandates are consolidating under the control of the Bank for International Settlements and the same police state procedures and socioeconomic policies are being implemented around the world.
The rise of the world empire is upon us and with each passing month and year it is becoming more and more difficult to deny or ignore the massive consolidation of socialism.
No BRICS countries will change the system because they are also controlled by the same system. No gold standard is going to be announced which will see gold go to $10,000.00/oz. The wizards at the BIS are managing the transition based on lessons learned from the 20th Century.
What will the gold “consequential awakenings” preach when the SGE, COMEX, and all other exchanges around the world value precious metals the same? How will they convince the 1% of the disorganized masses that gold is going to atmosphere levels when it in fact has been subjected to deflation and is now denominated in SDR’s as opposed to one sovereign currency?
We will soon experience a shift in the balance which has been maintained between inflation and deflation as overt QE comes to an end and interest rates begin to climb. This will not be a reckless position or a move devoid of strategy. It will be a will planned and orchestrated methodology which is engineering the multilateral financial component and emerging super socialism of the rising world empire.
The world empire at first will appear prosperous and the masses will feel a sense of freedom and enrichment that has been missing from humanity for a long time. But all will not be as it seems as underneath the collective will be growing the same human discontentment which has plagued man from the very beginning.
Socialism may be what we have been conditioned to want and think, but it is truly chaos which has captured the hearts of man. And as the small minority of humanity will continue seeking truth and understanding, the inner desire of all will seek further balance and consolidation in chaos. Perhaps it is our natural state. – JC