Wanna zap gold demand and force people to spend their savings by selling gold? Make food unaffordable and throw in “power shortages” & “strict virus curbs” for good fun…
(by Half Dollar) One thing I can’t stand about the Bitcoin Fanboys is how they’re always lying about how “Bitcoin” is a lifesaver for all of the day-by-day, hand-to-mouth poor people living in Third World Countries with unreliable infrastructure and supply chains in which disruptions can be quite literally a matter of life or death.
In my experience, which includes two US Army fieldtrips to the Middle East, one of which was a combat deployment in the Iraq War, as well as my extensive travels to, living in & studying in Mexico, off-and-on since the early 1990s and a time before Mexico slashed three zeros off of the peso, as well as living and working all over the United States, including the Northeast, the North, the South, the Midwest, the Southwest and the West, money, savings, and investing don’t really work like that.
Excluding war zones undergoing active destruction, in my opinion, investment is the rebar sticking up from the concrete house, patiently awaiting the start of a second floor.
That is to say, in Third World Countries, in Developing Countries, in Heck Holes, and in Any Country, really, especially in late 2021, poor people are just trying to survive, and they don’t have any financial savings, much less do they have any unbacked, energy-debt based “savings” in Bitcoin, but rather, if they do have investments, money, or savings, then they have real savings, which could be cash for the short-term & ultra-short-term, or they have their savings in the form an actual, useable thing, like a blender, a cistern or a washing machine, and if so fortunate, some people have savings in the form of gold & silver.
It’s just the way it is.
Just like baby sea turtles hatch on the beach and instinctively know how to get to the ocean:
Humans instinctively know, although most will only understand once it is way too late, that gold & silver are money, which is totally not the same thing as unbacked, debt-based fiat currency dependent on exponential, unsustainable growth.
In other words, if poor people have any savings, the people are quite literally saving-up for that next tank of propane, assuming, of course, they will actually have food to cook, and In certain parts of the world right now, at this very moment in time, it’s not looking so good.
Do the so-called “Bitcoin Billionaires” still tell starving people to “have fun staying poor”?
The irony is that pretty soon, we’ll all be Trillionaires, and the only question is whether there will be starving Bitcoin Quadrillionaires first, or will Bitcoin be moot at that point?
Nonetheless, the gold community is not innocent of embellishing not so much outright lies, but stretches of the imagination, and a time-tested classic is that “the Chinese are buying tons and tons of gold right now to protect themselves from something-or-other”.
What the Analysts, Armchair Quarterbacks, Experts, Gurus, Pundits and Worse don’t tell you is that it works in reverse too.
News Flash: Gold & Silver are, first and foremost, around the world, twenty-four hours a day and eight days a week, money, and people are always saving or spending their money.
Nonetheless, as the embellishment goes, the Commies of the CCP, not to be confused with the CCCP, are way smarter than Americans, and the Chinese people in general also understand love better than Americans, and as such, the so-called “love trade” only adds to the crapton of gold buying, so when the price is right, and by “right”, meaning, “low”, especially when love is in the air, the East puts a floor on the gold price because the Chinese will come in and scoop up all of the physical gold they can get their hands on.
Now, it seems to me like the Chinese, now “advanced”, for whatever that means, have been spending more of their hard earned savings on speculating in the real estate market in a financialized kind of way as opposed to a reinforced concrete kind of way, and since at least late September, it seems that all is not so well in China.
But I digress.
Yes, if the price of gold goes lower, not just the Chinese, but all smart people, really, will load up on the shiny, precious metal, but what happens when prices of other things, like essentials needed to survive, food, or energy, simply go too high?
Here’s the question: If a non-insignificant number of Chinese can’t afford to eat, or, at the very least, are having to spend what they would have otherwise saved on food & energy, then how are the Chinese going to buy gold and effectively keep a floor under the gold price at current levels?
On second thought, that’s not the question.
This is: If a non-insignificant number of Chinese are having a hard time with food price inflation and energy prices right now, then wouldn’t some of those people need to tap into their savings?
They don’t call it a “rainy day fund” for nothing, you know!
Furthermore, if the general overall plan is that the Corrupt Evil of this world desperately needs some gold for the physical market, and that gold is needed like, yesterday, then wouldn’t it be in Corrupt Evil’s best interest to bear down with some pressure and force the hand of real savers of real money?
Which brings me to a point I would like to make when we are presented with headlines like these from an article that was updated today:
Taking the news at face value, by the time it is approved for reporting by the MSM Propagandists, especially as this specific article has been written in accordance with the “transitory inflation” narrative, an actual thinking person can only imagine that food price inflation is going to worsen from here, and, by extension, in my opinion, that Westerners looking for the marginal Chinese investor to come into the gold market are going to be disappointed.
Moreover, if there are indeed worsening food shortages, energy shortages, and all of that other price increasing stuff, than said marginal investor may indeed be coming into the market, but only because he or she needs to sell some gold to be able to eat.
The first paragraph from the Bloomberg article captures the essence of my point (bold added for emphasis and commentary):
“(Bloomberg) — Vegetable prices have soared in China in recent weeks, costing more than meat in some cases, and creating another headache for consumers already hit by power shortages and strict virus curbs.“
Now, everybody knows ‘Ol Half Dollar ain’t no dang mathematician, but I’m pretty sure that what we’ve got here is a good old-fashioned “Triple Whammy”.
Additionally, recall that back in late April of this year, after gold had been “rallying” for several weeks, I wrote about how Corrupt Evil was starting to put real pressure on India in order to suppress gold.
It appears that right now, the playbook is to put the pressure on China and force the gold out of weak hands.
You may not be able to eat gold, but you can buy food and energy with it.
That’s the beauty of gold & silver in such a hostile world.
A hostile world that is hungry for food and thirsty for fuel.
Amidst the Zombie Apocalypse…