Greg Hunter – Recent Bloomberg analysis says if China backed its currency with gold, the price would need to be 50 times higher than it is today. According to Bloomberg, that would be a gold price of around $64,000 per ounce, which is much more than gold expert Jim Sinclair predicted a few years ago.
Financial writer Bill Holter weighs in, “That was a few years ago, before some of the QE, and Jim has said that $50,000 gold may turn out to be laughably low. . . . I think it is very curious that Bloomberg would run this because Bloomberg is as mainstream Wall Street as you are going to get. . . . It would be my guess that Bloomberg has some type of information that China is going to announce their holdings. I can show you that China has 10,000 tons of gold. That’s pretty easy to do. I use the figure of 10,000 tons, and oddly enough, that is the figure that Bloomberg used.”
Let’s imagine a small mountain kingdom with only ten very scarce and thus highly valued seashells in circulation. These few shells are certainly valuable in terms of scarcity, but there aren’t enough of them to act as a means of exchange.
One solution to this innate problem of scarcity—money has to be scarce enough to retain value but not so scarce that there isn’t enough of it in circulation to grease trade—is for the kingdom to issue 100 slips of paper for each shell, each slip of paper representing 1/100thof the shell’s value. Now there is enough money in circulation to facilitate trade and each slip retains a store of value equal to 1/100th of a shell. The slips are paper money, i.e. currency.
This system works well, but the rulers of the kingdom aspire to consume goods and services in excess of what their share of the shell-backed money can buy in the open market. The kingdom’s leaders print another 100 slips of paper without acquiring a shell to back the new slips with intrinsic value. Nobody seems to notice, and so the leaders print another 100 slips. Note that the kingdom didn’t produce more goods and services; its leaders simply produced more money.
Eventually this excess of paper slips reduces the value of each slip in circulation. What once cost 10 slips now costs 20 slips. This reduction in the purchasing power of money is called inflation, as the price of goods inflates as the money supply is increased while the production of goods and services remains unchanged.
Let’s assume the kingdom’s leaders avoid the temptation to expand their consumption by printing money rather than first increasing the production of goods and services.
As the kingdom expands its production of goods and services and its population, the original 1,000 slips of paper are no longer enough to facilitate trade: lacking money, people revert to the clumsy alternative of bartering goods and services or issuing letters of credit. The purchasing power of the existing money might well increase due to the imbalance between the demand for money (high) and the supply (limited); what once cost 10 slips now costs only five slips.
The value of each slip has now detached from the underlying value of the shell. It’s not the scarcity of the shell that is creating the paper’s value—it’s the scarcity of paper money itself which is creating the paper money’s store of value.
“. . . for the last seventy years, the US dollar has been the world’s dominant reserve currency. Make no mistake—as US power shifts, so will the dollar’s reserve status. And this changes everything.” – S Black
Bangkok, Thailand ~ Only hours ago, Gallup released a new poll showing that only a small minority (just 17%) of Americans still view the US as the world’s economic superpower.
Echoing former US Treasury Secretary Larry Summers’ quip, “There is surely something odd about the world’s greatest power being the world’s greatest debtor,” it appears that economic reality is finally beginning to set in for Americans.
Yes, it turns out there are consequences when you habitually indebt future generations in order to buy bombs, drones, and body scanners.
There are consequences when you regulate every aspect of society, from how much people can earn on their savings, to what they can/cannot put in their own bodies.
The decline of the United States as the world’s dominant superpower was always inevitable. No nation or empire can hold the top spot forever.
History is full of examples of once-dominant superpowers that have declined (and even collapsed altogether).
In these times, everyone needs to have a clear understanding of what money actually is, because when you ask anyone on the street what money is, they pull out federal reserve notes and the rude awakening is just ahead that these pieces of paper are anything but!
If you owned the printing press, you’d want the citizens of the world to think of your fiat as real money. That campaign has worked for a long time, but just ahead, we’re going to see the US dollar become worthless, as a direct result of the criminal and unconstitutional actions of the Federal Reserve. This group of parasites who own the Fed are not part of our government. Their names are secret. Their deed, destructive to the financial structure of the world and likely to produce a worldwide depression that could last 25 years, with starvation, unemployment, chaos and war! For this reason, I have written a script, recorded it and added an article to explain what’s going on, so that the public is more informed.
One cannot deny the similarities of the collapse of the Roman and American Empires. Individuals need to protect themselves from this collective fate by getting their fiat, intangible wealth out of the rigged and now doomed system and into real tangible assets like silver.
A most powerful force is kindness. It seems to have a life of its own. It´s like a manifested organism multiplying on the inside and the outside. Highly contagious.
There are levels to the value of it of course.
Some manifested kindness is not kindness. It´s selfish. It comes with a condition. I once came across this Tibetan doctor who would treat her patients for free. Asked why, she would say: It will get me a good karma for the next life!.
Really. Don’t think the universe sees through that? Cosmic Certified Selfishness. C´mon.
Any act of kindness that comes with a condition is ego-build up.
Any act of kindness that comes without condition is ego take down.
This autumn I accidentally stumbled in to some very kind people who taught me the value of kindness. It amazed me. It came without any conditions. Just a reach out and doors opened.
That is really valuable, the door opener effect. Every person on this planet is plugged into a neural network and when networks open up, the climb uphill becomes somehow easier. It transcends into a beautiful journey with a gentle breeze supporting you.
Be a door opener, it’s a loving quantum leap.
So I try to go with the currency of kindness and manifest it as good as I can. Not easy, but I think I´m getting the hang of it. A lot of Matrix programming to the concept of kindness has to be transcended. The goody-goody do right. What if people abuse it and such?
They can`t because I noticed I didn’t care if they did and then: nobody did.
Before I sound like a Southern Baptist Holy Roller who just met the Lord I also discovered that I had to call on my dark passenger from time to time. The shadow. The ego. And manifest rage and anger.