Be Ready: It’s GAME OVER For Gold & Silver – Lynette Zang | Gold Silver Price Prediction
I talk about currency life cycles all the time because there are typical repeatable patterns around that and so we are now entering and actually we we started entering it in 2015 a different phase in the currency’s life so let me just take this through through to you because in the beginning gold was pegged it was a 20th of an ounce to one dollar but it was
Pegged on a one-to-one ratio then when they brought in and legalized the federal reserve that shifted from a one to one to a 2.4 to 1 which means that the federal reserve could now print 2.4 dollars for every 20th of an ounce of gold held in deep storage in 1933 that peg shifted again to a four to one and of course they took away a citizen’s ability to convert
Dollars back into gold now the reason why this is significant and we’re going to come back to this because this is such an important concept for you guys to understand is that as long as we run a gold standard and the citizens had the right to redeem dollar bills well doesn’t matter what it is really dollar bills for gold it it put the power in the hands of the
Public because any government if you didn’t like what they were doing you just went into the bank with one of these and walked out with one of these oops where’s that camera with one of those and so that created restrictions around a government what a government could do all right well once the public could no longer do that well then the world as you know we
Went into world war ii etc and in bretton woods like i said earlier the world agreed to peg their currencies to the us dollar that was pegged two gold at a 35 an ounce price but of course that didn’t last very long in 1971 and actually as we went into as the u.s went into the vietnam war those pegs were breaking because we were printing a lot more money inflating
Shipping out inflation to the global economies and so those pegs broke and at that point governments could no longer convert their dollars into gold either of course there was there was not that much gold left in the system at that point actually less in the u.s than prior to the confiscation in 33. this was a bit of a problem and that de-pegging where all the
Currencies were free-floating lasted until early 2000. now you can see that this is a relative performance chart between the us dollar and the euro dollar and they absolute or the euro and they absolutely mirror each other and in the early mid 2000s emerging currencies then pegged themselves either to the us dollar or the euro so that’s why today there’s such a
Big problem with those emerging markets that are pegged to the euro or even pegged to the dollar either one because as we keep hearing about such a strong dollar that has an impact because in order to maintain the peg you have to sell or buy reserves to maintain that peg that that connection exactly or within a narrow range to either the dollar or the euro well
In 2015 things started to break down pegs started to break down with the swiss surprise where they were pegged to the euro and they kept promising that it was the most important thing the most important peg they were going to remain that peg and then all of a sudden they didn’t we’re going to talk a little bit more about that in a little bit and now we’re hearing
Recently where mexico is thinking about de-pegging from the dollar from the us dollar so even though it’s been a few years in between really what the currencies what actually the globe learned and particularly central banks is that when it comes down to it it’s every central bank for itself and the us has been guiding people and getting really really ticked off
And you ask me how long this can last it can last until confidence in the system central banks governments and the currency is gone and right now we are actually set sitting at the lowest consumer confidence level like since they started tracking it ever 1980 it was actually when it was not even as low as this so we are getting to that point 1980 was the kickoff
Of the debt-based system 70s and 80s was the kickoff now we are at the end this is not a good place to be unless you have protection real money that’s what has withstood the test of time so what you really need to know is that we are in the late stage while i can’t tell you it’s it’s tuesday morning at 8 35 it very well could be the world is very fragile as we’re
Hearing from everybody the imf the beis even goodness gracious even jamie diamond who says will be with it in a recession within the next six to nine months is going to be worse than a recession will the fed pivot because that’s all about that confidence and that credibility we’re at the end and i really hope that you can see that and we know that because the
World reserves shrink by a trillion in record drawn down to attempt to defend and maintain those pegs so what happens when they go out of reserves you know the u.s i mean advanced economies can print more money right but emerging markets they have a little bit of a challenge with that so central banks dip into reverse reserves to defend their currencies or really
To defend that peg that’s a big huge problem it is a canary in the coal mine look at this drawdown the biggest since they started tracking it in 2003 by a mile can you see how this is at the end that’s what this is telling you that’s what this is indicating that’s why you can’t procrastinate that’s a choice and it puts you in jeopardy because the whole system
Is breaking down and and the foundation are the treasuries and the pegs cracks are showing up and those red flags will come at an increasing pace which they are i can hardly keep up with everything that’s happening so you need to understand that when they can no longer support these pegs they have to make that choice to break them okay if it’s just one place at
A time well you know it’s violent and there are companies that will no longer exist and they’re repeat there are people that will feel a lot of pain but we can probably as a whole in the whole world probably deal with that but what happens if a lot of pegs break at once that’ll topple the system no doubt i mean obvious seriously no doubt and what about saudi
Arabia hmm they’re considering accepting yuan instead of dollars for chinese oil isn’t that interesting considering the fact that what enabled the u.s to retain its position as the world reserve currency that forced the whole world to buy oil with dollars that’s shifting big time now here are some of the major currencies that are pegged fixed to the us dollar
And where the stars are these are oil producing countries in the middle east and of course russia is the plus in the opec plus i don’t know what do you think what if all of those countries that said they would only accept dollars for oil that’s why they pegged to the dollar because then they could guarantee their income and the stability of their currency
What if they all depend at the same time can you wrap your brain around that because why would anybody want to count on the us dollar as the world reserve currency didn’t have now this hyperinflation that’s coming it’s going to be likely it’s going to be horrendous all over the world but it’s likely to be the worst in the u.s because we’ve had such an advantage
For so long and we’re losing that but in our arrogance seriously u.s delivers angry rebuke of massive opec plus production cut and it could backfire for saudi arabia guess what it could backfire for the u.s as well
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Be Ready: It’s GAME OVER For Gold & Silver – Lynette Zang | Gold Silver Price Prediction By Smart Money
