by Chris Marcus, Miles Franklin:
GLOBAL ROYAL FAMILIES:
- Royal families have ruled Great Britain for centuries. They control massive wealth and exercise considerable influence in global affairs.
- The Dutch royal family is less visible.
- King Donald and Queen Melania are influential, but not royals.
- Prince William of Gates, Prince Jeffery of Amazonia, and Prince Elon of Teslovakia are new members of pretend royal families – “Tech Royalty.”
- Queen Hillary and King William of Clintonia are pretend royalty, but we aren’t going there…
- Other pretend royalty are Prince Barack and Princess Michelle from Obamanoya, and several Prince Georges from the Duchy of Bushington. Their days as pretend royalty are fading.
Royals come and go. We celebrate their lives, observe their departure from public life, and move on to another distraction.
The life cycles of Chairpersons of the Federal Reserve resemble royals. For a few years they are closely watched, every word is analyzed, and they are treated as royalty—because they control the flow of fiat currency units. But after they have implemented destructive monetary policies, make a mess of the global economy, loaned $trillions to Wall Street, and crushed retirees and “Main Street” businesses, they give $100,000 speeches, write books for $millions, and fade into oblivion.
But there is no point discussing the occasional successes and many failures of our political and monetary pretend royalty. Nor are we interested in American “Royalty” or the billionaires of “Tech Royalty.”
The true financial royalty—King Gold and Queen Silver—are far more important, even though they create fewer headlines in the controlled media.
- Gold and silver have been financial royalty for millennia, unlike royal families.
- Gold can be cast into a crown that lasts for centuries. In contrast, real and pretend royalty may persist for decades, but most come and go quickly.
- Gold retains its beauty forever. The appeal of royalty fades, is defaced by scandals, diminished by corruption, and is quickly degraded.
- Gold retains its value, is universally recognized, and appreciated everywhere. Central banks buy gold but seldom discuss its value. The Fed is adamant its currency is valuable, even though they create dollars by the trillions, and each dollar is backed by nothing tangible. Most of our pretend royalty are praised in the media but will fade into oblivion long before gold loses its shine.
- Presidents come and go. Central bankers rise and fall. Pretend royalty, like comets, shine briefly, and disappear. Gold keeps its beauty and value. Silver retains its purchasing power and has thousands of industrial uses. Former Presidents and government leaders, especially corrupt ones, fade into oblivion.
- Gold persists. Silver lasts. Dollars devalue. All fiat currencies revert to their intrinsic value—zero. The only royals that survive the test of time are gold and silver.
- Fifty years ago, a dollar purchased 1/40th of an ounce of gold.
- Today, a dollar purchases 1/2000th of an ounce of gold.
- The devaluation of the dollar has accelerated since 2008. Assume it takes thirty years, not fifty, to similarly devalue. In that case a dollar in 2050 will purchase 1/100,000th of an ounce of gold.
- That means the price of gold in 2050 would be $100,000 per ounce.
- Crazy, right?
But the Fed created over $3 trillion of new fiat dollars (from nothing) in the last year. Was that crazy? Is a national debt of $27 trillion crazy? Are financially supported riots crazy? How can COVID-19 be spread by Trump rallies but not by BLM demonstrations and riots (per CNN)? Crazy?
The economic shutdown devastated middle America, destroyed over 100,000 businesses, forced 50,000,000 workers to file for unemployment, and yet three “Princes” of “Tech Royalty” gained hundreds of billions in wealth. Crazy?
BACK TO BASICS:
- Dollars are created with few restrictions, because of fractional reserve banking and central banking.
2. Dollar creation will persist because it benefits the political and financial elite.
3. Extra dollars (debts of the Fed) in circulation, as indicated by rapidly increasing debt, devalue existing dollars. Hence prices for stocks, commodities, medical care, political payoffs, gold, and silver rise.
4. Prices can rise too far, too fast, and then crash. Remember silver in 1979-80, Japanese real estate in 1990, Internet stocks in 2000, real estate in 2007, crude oil in 2008, and FAANG stocks in 2019-2020.
5. Prices rise as dollars are devalued, because too many dollars have been created. A dollar crisis is coming.