With inflation now rivaling what was seen in the 1970s, this is why you must own physical gold in this great inflation where money is being destroyed.
Eric King: “James, before we talk about the markets, tell me about your new book that has just been published.”
James Turk: “There are many reasons we need to own some physical gold and physical silver, Eric. An obvious one is that the precious metals preserve purchasing power over the long term.
That’s clear from this 7-decade chart showing the price of crude oil in three national currencies as well as gold.
THE METAL OF KINGS:
This Is Such An Important Chart Because It Clearly
Illustrates How Gold (RED LINE) Maintains
Its Purchasing Power Over Time
Energy is fundamental to the way we live, and when its price is measured in terms of gold, the price is essentially unchanged. The same can’t be said for national currencies, the purchasing power of which is constantly eroding. We call it inflation, and it is a manmade occurrence that results from central banks. I explain in “Money and Liberty” why nature’s money – which is gold – does not inflate.
There are also less obvious reasons to own physical gold and physical silver, and I delve into these too in my book. An important one is that liberty needs politically honest money, and only nature can provide that. In fact, nature provides everything humanity needs to advance, including money. Gold is natural money…
New interview from legend Doug Casey discussing gold, silver and
global chaos! To listen click here or on the image below.
“Inflate Or Die”
Back in the inflationary 1970s, a saying emerged to explain what was happening to the dollar — “Inflate or die.” It describes the nature of the currency and the banking system since the 1933 gold confiscation. It means that the system collapses without perpetual inflation, which got out of hand in the 1970s and started to run wild.
Volcker, The Great Inflation Slayer
When Paul Volcker was appointed chairman of the Federal Reserve in 1979, he kept raising interest rates to save the dollar and stop inflation from spinning out of control. But that course of action is not possible in today’s overleveraged economy. Total credit market debt has risen from $4.3 trillion when Volcker was appointed to $85.0 trillion today. At the same time the federal government’s debt has risen from $830 billion to $29 trillion.
So we need a new saying, and it is not pretty — “Inflation and regimentation.” Ever greater control of the economy is the only way to keep the dollar and banking system from collapsing. We already know about what is being called central bank “financial repression,” but more regimentation is coming. The anomalies appearing in various markets, like negative interest rates, is just one example of the results of regimentation.
But here’s the important part, Eric. A central bank policy of “inflation and regimentation” is not a long-term solution. We only have to look at the inflation and regimentation imposed by the Venezuelan government to realize that it solves nothing. What is worse, it eventually destroys the economy, markets, and disrupts society, which hinders the pursuit of happiness.”
Recent Volatility In Gold & Silver
Eric King: “Let’s turn to the markets and the precious metals in particular. We have seen some additional volatility in the gold market.”
James Turk: “The fundamentals driving gold higher have not changed, so my bullish view hasn’t changed. Inflation is not going to go away because the Federal Reserve and other central banks will keep perpetuating today’s flawed currency and banking system. As a former ECB head made clear, central banks will do ‘whatever it takes’ to keep their system going. Unfortunately, that means more regimentation, more market distortions, and more restrictions on what used to be free markets.
As we have seen so many times before, gold was hit last week as the December options expired. But current inflation and the inflationary outlook is no better this week than last. My strategy remains unchanged. Continue to accumulate physical gold and physical silver to make sure that you get across the valley with some liquidity intact. Gold and silver are money that you own. They do not have counterparty risk like all other financial assets. The precious metals offer absolute liquidity, which I think is going to become increasingly important in 2022.” To buy James Turk’s outstanding new book Money and Liberty which is such an important read because of the massive inflationary cycle we have now entered, here is the link for the ebook ($9.99) or for the paperback ($19.99) simply click on the links provided and it will take you directly to the purchase page.
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***ALSO JUST RELEASED: Why Has 675 Tonnes Of Gold Suddenly Disappeared? CLICK HERE.
***To listen to E.B. Tucker discuss the available physical gold disappearing and why he expects a big turnaround in the gold market CLICK HERE OR ON THE IMAGE BELOW.
***To listen to Alasdair Macleod discuss the available physical gold disappearing CLICK HERE OR ON THE IMAGE BELOW.
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