Why Gold Remains Relevant
Global Uncertainty
There is no doubt that we live in the strangest of times. Even though I am pretty sure that other generations of people have said the same thing. Only in our current social environment has insanity been accepted as sanity, social norms been thrown out the window in favor of open perversity and truth declared anathema.
The recent negotiation of the freedom for Julian Assange, where he had to plead guilty to conspiracy and his years of imprisonment in the United Kingdom accepted as time served is an open war against both the exposure of truth and freedom of the press. All the information that was released through the Wikileaks, did not cause any damage to the security of the United States, though this is the claim, but it has caused embarrassment for many officials.
Of the worst of the offenses of the United States government revealed in Wikileaks is the illegal spying on private citizens within the country without a warrant to do so. This lends to the now constant drumbeat that our government has been co-opted by persons who believe the government has rights over that of its citizens and the weaponization of the legal system for political purposes. The threat on free speech, real freedom of thought, is in full display as we have a government that wants to control information. The control of information is the first step to a totalitarian state, and everyone knows it.
Reading the reports on last night’s presidential debates there is one thing that became to totally clear to both sides of the aisle. President Biden is not fit to serve, and seeing this begs the question, who is currently leading theses United States? Finally if Biden will not be the candidate, will the Democrats at their national convention have the courage to elect a new candidate?
At this stage of the game, the race for the presidency is not in a good place. Biden previously ran as a politician that would unify the country, and he has not done that. In fact, the divide is much greater. Then constant attack on former president Trump by the media has led to the growth of his campaign with an outcome that is both sad for those jumping on the band wagon to destroy his credibility and for the campaign of Joe Biden, who’s obviously failing mental condition has him on the defensive. Most probably, if Trump had been left alone and ignored, his support would have dwindled, and he would be facing someone else. But the Democratic party and its allies created his campaign for him and now they have made their bed and must lie in it.
What has all this to do with gold? The United State of America currently remains the largest economy by Gross Domestic Production (GDP), about 40% greater than that of China. The United States government also has over $35 trillion dollars in debt and this is becoming untenable. Banks in the USA are also on the verge of collapse as previous financing during the pandemic turns upside down with the current higher interest rates. In addition the inflation burden placed upon the people of this country is ominous and though employment numbers claim growth, real wage growth is not strong while inflation rises.
Basically, we are amid a bad storm in turbulent waters and the United States needs strong economic leadership to come out of it. Second, the Ukraine-Russia war and the Israeli war are both draining resources. And finally the trades issues caused by the wars have created a bloc of countries now fleeing the United States dollar and weaking its position.
The basic question is who will lead this country and what will be the outcome? This is of most importance. If the USA catches a cold the rest of the world suffers. Unlike people in the USA, the rest of the world will accept some suffering to avoid disaster. Will the USA in the next four years? This is the great unknown.
While the Central banks around the world continue to increase their global gold reserves by selling debt of the USA and dollars it becomes apparent that this hard asset continues to be the bedrock of any financial decision and an insurance policy against government malfeasance in the future.
Luckily for the US government some of its debt is now being consumed by the ever growing Crypto Stablecoin market under the two coins USDT and USDC. But will this be enough?
At this juncture, it is very hard to say what the future holds for the people of the United States of America. Who will be the next president, is shockingly unknown and I am certain that, many wish there would be someone to ride into the fray on a shining white horse. Some claim that person should be Robert F. Kennedy Jr., but the Democratic party will never accept such a notion as he stands firmly against one of their largest supporters the pharmaceutical industry.
This leads me to my final analysis; world politics are in turmoil, the leadership in the USA is not clear and the threat of more war seems to be at every turn. There is only one asset that has proven to be resilient in these kinds of situations for over 5,000 years, and that is gold. The price of gold looks expensive to many being closer to all time highs. But what choice do you have….US Dollars investments? Nah, I’ll bet on gold to outperform.