War always seems to be a useful distraction from less emotional, more pedestrian, boring subjects, like:
"Explain to me again, how the creation of fiat currency, the use of debt as money, and the system of creating it and trading in it, makes any economic sense" ?
No one EVER wants to talk about that... least of all the bankers ?
They will typically refuse to hold that discussion, without there being a gun held to their heads...
Except... they are, now... as that system, certainly in large part in result of the deliberate neglect enabled, is clearly fraying around the edges... having not "recovered" from its prior near death experience in 2008 ?
I've been around long enough I have a lot of "shoulda, woulda, coulda" stories... I declined buying bitcoin at $0.10, etc. And, I still don't believe it has any value, at all... which, even if true, doesn't mean it was smart of me to pass on making a trade that would have turned $1K into $270M, today ?
"Fishing in the right pond at the right time"... is useful and necessary... but "being there" doesn't make you the best fisherman... among other useful lessons. You also don't have to be the best fisherman to be successful... but a bit of fisherman's luck is always useful, along with "luck favors the prepared"...
So, what to expect when the entire fiat system... necessarily meaning every currency... goes up in smoke ?
War, again, is one easy answer... "pay attention to that, while we deny you an ability to pay attention to what you should be"... when a well earned lack of trust in people who are put at risk by being exposed as chicken thieves... induces them into doing stupid things. But, again, war doesn't actually offer any viable solutions...
With or without that distraction, maybe $1K in gold today turns into a similar or a better trade than buying into bitcoin from the origin ? If its possible... or even if it is made necessary... you still have to expect they will do everything possible to prevent it... as obviously still "mostly" on the wrong side of that trade... or not as much on the right side of it as a little bit of force being applied might enable ?
What happens to the value of gold in exchange... if it becomes "the only money" again ?
I don't know... The only "math" I've seen based on that... is that I've done, focused on the dollar and what it would mean to the dollar price of gold in dollar terms... if every dollar had to be fully backed by the amount of gold available to back it... which, last time I did that, gave a big number... on the order of >$50K per ounce. And, I think that since then... both the number of dollars has expanded... maybe close to tripled... and there is a creeping awareness emerging that the "number of dollars" you know about... is a wholly fictional number... that mis-states, under-states, how many "dollars" there really are by a wide margin...
I think that calculation is probably off, wildly... because there is clearly a huge error or two entrained in the accounting... enabled by a number of "sleights of hand" and "off balance sheet" accounting entries...
The BIS issued their hint or suggestion of their own "awareness" about that recently...
Which isn't really news to those who paid attention to the events in 2008... and learned then about the problems in the derivatives market and its (non-IFRS) accounting for "off balance sheet" transactions, with the "balances" in accounting perhaps not being overly fastidious... even in the maths applied... much less in their translation from "notional" positions into "reality" in defined obligations >>>> than assets existing ?
And, back then, in 2008, that was only one small corner of the tent being lifted... and today the tent, and every compartment in it, is vastly larger.
There is certainly an aspect of the current global conflict... the war of words, the trade war and the hot war all being the same war... only isolated one from the other by the pretense of formality in recognition of rules defining boundaries between them... and limits in behavior in consequence. But, in the economic aspect, that appears it boils down to a "race to the bottom" in an ongoing economic game of chicken... the challenge being to see who best survives the deliberate destruction of the global economy and the system of trade that has been developed within it over recent decades...
[The chicken thing keeps coming up... probably because... entirely due to no one taking proper care, yesterday, to put them in for the night, and not asking if others had... our Gilda got taken by the racoons early this morning... ]
Seems like a bad idea to me... but, no one asked...
Still, if that's the bad idea they're agreeing they're going to run with... best to not be taken unawares...
The doomsday scenario... in economic terms... doesn't require anything more than that ? Maybe they can pull that off without actually killing anyone directly, with weapons, but only by... starvation and the end of civilization ?
Might want to keep a stock of N100 masks, and a few iodine pills around, too, as best not to be taken unawares in those risks, also... along with unfettered access to clean fresh water, and arable land ?
Everyone's a prepper once its too late ?
The banks keep suppressing the price (because they can)... and they keep buying gold (because...) ... so, what do they know you don't ? |
