And so, according to Swiss analyst Egon von Greyerz, the global financial crisis has already begun. And its result will be the collapse of financial markets and the depreciation of most currencies. But before this happens, you can watch the last increase in the value of the main assets. This also applies to the US dollar, whose prospects are already obvious.
Investors should not forget that the us dollar has lost 90% of its value against gold since 1913, when the Federal Reserve System (FRS) was founded. And since 1999, its depreciation to gold has been 80%. The dollar has long been on its way to collapse. Many do not even know how quickly it will disappear. Russia, China, Turkey, and Iran intend to trade gold among themselves using national currencies. Later, other countries will join them when the dollar’s decline accelerates.
The main reason why the value of the us currency will become zero in 100 years is the catastrophic situation in the US economy.
I would like to point out here that I don’t think the dollar will disappear completely. I think that the dollar is waiting for a very large devaluation. It is very difficult to predict exactly how many percent, but it seems to me that this currency will remain, it will simply cost much cheaper than the current values.
So, the world is in the final stage of a manipulated bull market
Dark times are coming to the world economy. Financial regulators were able to keep the global economy afloat for 10 years after the 2008 financial crisis, only through quantitative easing and a zero-rate policy. It is worth noting that about 4 trillion was poured into the financial system dollars to prevent the crisis from developing in 2008. Now, as you know, Donald trump is pursuing his policy of raising interest rates. It is because of higher interest rates that we are likely to see the collapse of the global financial system. Because the higher the rate, the more difficult it is for a credit institution, a Bank, or let’s say a Corporation, to pay its debts.
So, these incentive tools will no longer work
One day, people will realize that paper money no longer has any value, and digital records that are called “money” will disappear as quickly as they appeared.
While Western countries continue to reduce their gold reserves, the Eastern state at this time continues to increase its gold reserves, buying yellow precious metal at low prices. Most Central banks sold their gold on the world market. And countries such as Russia, India, and China continue to regularly increase their gold reserves. In the East, I understand perfectly well that it is better to have physical gold at home than to store it in London or new York.
The best guarantee of the safety of gold is direct control over them
By the way, London recently rejected the issuance of gold to Venezuela. That is, this is the gold of this country. It is no secret that many European, CIS, and Latin and South American countries store their gold partly in the United States and England. This was due to many reasons, but we will not go into these details now. But the most interesting thing is that London refused to issue gold because the money from the sale of this gold can be used to Finance corruption. In fact, this is a precedent in General in world practice. And if such a trend has already started, then that they did not issue gold to Venezuela, then this can happen to any other country. Recently, Hungary and Turkey have regained their gold.
A striking example of gold migration from West to East can be seen in Switzerland, where refineries produce about 70% of the world’s gold. According to the customs service of the Alpine Republic, the largest supplier of the precious metal is Britain, which itself is not engaged in gold mining on its territory. Obviously, we are talking about Bank bars weighing 400 ounces (12.4 kg), which are transported in Switzerland to small bars weighing 1 kg. these are the bars preferred by investors in China.
Statistics on gold imports in Switzerland regularly indicate that large volumes are coming from Britain for smelting. There is also an assumption that the official reserves of gold in the United States are about 8,000 tons-doubtful, because the export of gold from the United States is much higher than imports and domestic production. Also, the US stubbornly does not want to audit its gold and foreign exchange vaults. You understand that a structure that has nothing to hide can easily prove the opposite. Here, the audit is not carried out intentionally, so that the bitter truth does not arise. If it officially turns out that there is much less gold in the US than it should be, then this can significantly affect its price.
Official gold reserves in Germany – 3,300 tons, the IMF – 2,800 tons. In fact, the reserves in these countries may already be half as much. Most likely, they sold part of their reserves on the market or leased them, receiving ious that will never be paid for in physical gold, because the gold market will have a shortage of precious metals in the event of a collapse in financial markets.