Are the fundamental reasons for owning gold being short-circuited by the policies and possible success of ‘Making America Great Again’? Let’s find out…
from the Great Reset Opportunity Report
Great Reset Opportunity Report
Special Client Bulletin
Is MAGA Extinguishing the Need for Gold?
There are small rumblings among some gold holders that the destruction of the US from within, via Federal Reserve policy and just the very existence of a central bank, in conjunction with decades long actions emanating from Washington on behalf of its elite masters, which have been among the fundamental reason to safeguard oneself with gold, may be short-circuited by the policies and possible success associated with “Making America Great Again.” There is a basis to this reasoning, since the actions of the mentioned institutions and “rival” political parties were fundamentally in lock-step for the past three decades, as the foundations of the nation weakened under their lead. Then, miraculously through an election whose results shocked the vast majority of establishment anointed experts, a president was put into the Oval Office who appears to be taking on those same players and institutions understood by many gold holders as responsible for the corrupting and bankrupting of America and subsequently the ultimate collapse of the US dollar. Do note, there is a counter argument claiming that the advertised political battle we are witnessing between the Trump administration and the establishment elite is just a more elaborate version of the ongoing political dog-and-pony show, and that genuine change for the benefit of working Americans, the family, and the US as a truly sovereign nation will never materialize. This opposed position is well worth delving into at a later time, but for now this examination will accept MAGA as a sincere endeavor.
An immanent dollar collapse and corresponding economic reset has been expected by many in the gold community for some time. But presently, despite decades of exponential debt creation and legislative action that more often seemed to undermine the best interests of the nation, and now all that in conjunction with a president the mainstream media decries as irredeemably unfit and who is surely ruining the republic through his boorish behavior and lack of political acumen, the US Dollar has been soaring while gold languishes.
Could it possibly be that the supposedly irrefutable data and the lessons of history are being turned on their respective heads and national financial redemption be at hand? While the existence of today’s logically unsustainable debt creation system, and equally unpayable accumulated debt and unfunded liabilities are still with us, is there an unforeseen outcome that keeps the dollar perpetually stronger and more desired than all its rivals, including gold, and our debt-based economy able to carry on for an extended period of time far beyond that believed conceivable by many alternative economic analysts?
Let’s look at the data to see how the assumed inevitable and imminent demise of the dollar, and conversely the naturally associated meteoric rise in gold, has played out under the current embattled administration, as presented thru the gold price.
Chart 1 below chronicles the price of gold since the installation of the Trump administration. The attacks on the new president began long before inauguration day and only intensified after he was sworn in. A catalyst for this historically unprecedented and broadly coordinated attack is understood by the “deplorables” as the establishment’s response to Trump’s vow to “drain the swamp” and “Make America Great Again,” thus threatening to depriving the elites of their ill-gotten riches, unchallenged power, and diabolical plans for the masses.
In such an environment, gold’s rise in 2017 appears to correspond to the then commonly accepted resignation that the powers that be are unstoppable and our naïve new president would be crushed by the globalists and the economy relegated to second-world status exactly as the international elite are accused of planning and engineering? Under such a scenario it would be expected to see a flight to gold as the best means to store and protect wealth in lieu of financial assets denominated in US dollars.
But why the gold price pivot exactly one year into Trump’s term in office? What changed?
Could it be that despite the proclamations of the mainstream media that the fall of Trump is all but assured, especially with a hyper partisan congress that looks hell bent on handing the US over to the globalists, that despite the bluster of the president’s most vociferous detractors there is a bit of swamp drainage? Is it really possible that the seemingly invincible institutions behind the assault on Trump, and all that he claims to stand for, are now assuming a defensive posture and that MAGA is a sincere objective with an actual chance of achieving some measure of success?
Before jumping to any conclusions lets expand on some past history and the situation at hand. First, lets compare our current secular gold bull market with gold’s last great secular bull market of the 1970’s – illustrated in charts 2 and 3 below.
Chart 2 is showing us the course of the 1970’s gold bull market. A classic secular bull market is made up of three legs, with leg 3 consisting of two parts. The sequence is leg 1 up, leg 2 is a pull-back with a price retracement of approximately 50%, and the final leg delivers the greatest gains and is punctuated by a blow-off top. As shown below, that is exactly how gold’s bull run of the 1970’s played out.
I have consistently supported the position that we are currently in the midst of another great secular gold bull market. The picture of this current gold run, as demonstrated in Chart 3, appears virtually text book so far.
So, the big questions remain, are we now in the early stage of Leg 3 of a classic secular bull market, and if so, could the actions of this administration actually reverse what appears to be an unstoppable force as presented by the charts? Plus, could the recent years of gold accumulation by such powerful and in-the-know international plays like the Chinese and Russian central banks have been for naught?
First, in regard to question one, I have advocated all along that we began Leg 3 at gold’s low in December 2015. The critical question that remains is will gold’s secular bull market continue to play-out as the chart forecasts, or are we at an unprecedented time in history whereby gold’s secular bull market is stymied by the “draining of the swamp” and the commensurate restitution of the integrity of US institutions, thereby trouncing the fundamentals heralding the demise of the dollar and gold’s ascent? Could this possibly happen despite the overwhelming evidence and historical precedents supporting the gold bull? Remember, the US dollar is backed by nothing but confidence, the so-called full faith and credit of the US government. But if confidence is restored by the success of MAGA, will the massive debts of the nation be continually rolled with every more debt and the US dollar continually accepted globally without any significant devaluation?
There are several outcomes which can play out going forward. Keep in mind that these are high level possibilities of which there are several relatively minor variations possible for each one. First, MAGA could be sincere but just too little too late to turn the ship around and the march into full-blown globalization and massive wealth destruction for the 99% is inevitable. Second, we could be witnessing an extravagant coordinated act to again dupe the masses and the global elite’s plan is being fully implemented as designed. Under both these scenarios, the reason to acquire gold still rings true.
The third possibility would be considered a “black swan” type event. A twist of fate considered inconceivable by followers and believers in the ongoing economic, institutional, cultural, and civil deterioration plaguing the US. An unimaginable reversal from the nation’s multi-decade decent which has produced a hollowing-out of the real economy, the rise of a financialized economy, the evisceration of the middle class, and a two-tier legal system that has made a mockery of the notion of the rule of law and equal justice for all, to name just a few of the fundamental problems. But despite the incredible odds such a miraculous transformation would have to overcome, there are some voices who make the case that we stand at the precipice of such a time, and to be fair, there are some things taking place that lend a measure of credence to this view beyond wishful thinking.
Sticking to the subject of this commentary, the impact such an incredible and far reaching reversal would have on the future of gold is where I will stay focused. An initial conclusion one might draw is that a broad-based restoration of the corrupted institutions and reversal of destructive policies would restore genuine and profound confidence in the nation and vis-a-vis the US dollar, thus deferring the day of reckoning for the overly indebted US for possibly a substantial period of time. From such a resurrection of our systems, institutions, economy, and culture, the assumption could also be made that the need for gold as a safehaven asset would be either indefinitely postponed or greatly diminished.
A national transformation of our Nation as just described, with healing, restoration, rebuilding, and the administration of equal justice, would be an outcome I wholly hope for and champion, even if it meant the truncating of gold’s bull run. Never the less, I continue to believe gold still remains the best asset to be accumulating now. This is not because I do not see any chance, no matter how long the odds, that such a national rebirth could possibly happen, but that should such a phenomenon occur, it must usher in a revaluation of gold at a much higher price, as measured in US dollars. This opinion is derived from the premise that most of the ills, deformations, corruptions, and injustices permeating the US are ultimately the result of a debt-based economy, the dishonest money supporting it, and in-turn the world such a system engenders. Therefore, a genuine reset and rebuilding of our systems and institutions could only be achieved with the elimination of the source and purveyors of this nefarious debt-based system. Such an accomplishment would naturally revalue gold at a much higher price in US dollars. Without this fundamental change happening at some point MAGA is but a farce and a hoax.
The prescription for enduring the future from a financial perspective still stands, moving to honest money is the best means for safeguarding wealth, and gold stands alone in this pursuit. As for the course the US is on, the nation stands at a historic juncture and there is still some question as to which path will be taken. But despite the existence of multiple possibilities, certain outcomes will come to pass with each one, and in the matter related to financial survival, gold remains the paramount form of wealth preservation.
DISCLAIMER: The contents of this report are intended for informational purposes only. Any views or opinions expressed are solely those of the author and do not necessarily represent those of any company or organization associated with the Great Reset Opportunity Report and/or its author(s), either directly or indirectly. This report is not to be used as investment advice; therefore, views should be construed only as opinions and not advice. The Great Reset Opportunity Report and its author(s) do not act as a financial advisors or asset managers, and readers should consult with an independent financial advisor to determine what is appropriate for their specific situation.