- Morgage backed securities were also mathematically or theoretically sound then we have seen how that ended up when they have started to issue NINJA loans and deal with the corruption of the rating agencies
- or LTCM led by Nobel Prize-winning economists and renowned Wall Street traders.
With Gold the goal is simple : tamme his price and avoid at all cost that a lot of people, especially in the western countries " go physical ".
That has been achieved through several means :
1. Correlations which are based on a narrative.
The proponents will speak about "opportunity cost" vs. the real yield of the US 10 year TBonds. According to this narrative, at the moment, the price of gold is overvalued and so gold should be sold and sent back into his cage. Its what several Banks wrote..
- I do not believe that the index used to calculate the real yield of the TBond is correct but has just been designed to tamme the price of gold. Per instance if we use the shadowstats.com index of prices the US 10y TBond will give a negative real yield and so gold should be bought instead!
- Zoltan wrote about the strategies that should be used by the Fed. In short, get inflation growing at an higher higher than the economy to devaluate the debt. That imply negative real rates which could explain why Gross said recently " stay away from TBonds"!
Its about a possible new decentralised monetary eco-system.
It is indeed a new concept in terms of an international currency anchored in gold (40%) and BRICS+ currencies (60%). It is neither crypto nor stablecoin – as it’s shown.
I do not know how many currencies they will pour in the system but it could end up with some countries in need to buy gold whatever the correlations!
- it is close to what the National CB of the EU have been doing. To have in their vaults a quantity of gold same for all the members in proportion to their GDP. Then when the politicians will decide they will be ready to reprice gold they have at an higher price : 3000$, 5000$? Correlations? I forget, the Euro System is bankrupt!
2. Beside these narratives " Peter Hambro. BIS, Central Banks Are Rigging Gold Market Using Bullion Banks' Paper Gold"
Peter had been working for a Bullion Bank for years...
Zoltan wrote also that for years the Banks got the implicit guaranty [ from the CB ] that gold will NEVER be used again as mean of payment. If gold come back what will happen then to the 250-300 Trillions $ of gold paper issued by the Banks vs. 16 Trillions of gold above ground?
IMO we are living in hinging times, many things can change. Accordingly it is very dangerous to stick with manipulated correlations.
PS. What about a correlation between the US TBonds and what was called "L'emprunt Russe"? Will the TBonds end the same way ? When the Bolsheviks came to power (1917), Russia decided not to repay this loan. The result was that many French people could used it only to cover their toilet's walls...😂😱
IMO correlations work until they dont..
- Morgage backed securities were also mathematically or theoretically sound then we have seen how that ended up when they have started to issue NINJA loans and deal with the corruption of the rating agencies
- or LTCM led by Nobel Prize-winning economists and renowned Wall Street traders.
With Gold the goal is simple : tamme his price and avoid at all cost that a lot of people, especially in the western countries " go physical ".
That has been achieved through several means :
1. Correlations which are based on a narrative.
The proponents will speak about "opportunity cost" vs. the real yield of the US 10 year TBonds. According to this narrative, at the moment, the price of gold is overvalued and so gold should be sold and sent back into his cage. Its what several Banks wrote..
- I do not believe that the index used to calculate the real yield of the TBond is correct but has just been designed to tamme the price of gold. Per instance if we use the shadowstats.com index of prices the US 10y TBond will give a negative real yield and so gold should be bought instead!
- Zoltan wrote about the strategies that should be used by the Fed. In short, get inflation growing at an higher higher than the economy to devaluate the debt. That imply negative real rates which could explain why Gross said recently " stay away from TBonds"!
- I suggest this link. https://www.zerohedge.com/geopolitical/escobar-de-dollarization-bombshell-coming-brics-decentralized-monetary-ecosystem
Its about a possible new decentralised monetary eco-system.
It is indeed a new concept in terms of an international currency anchored in gold (40%) and BRICS+ currencies (60%). It is neither crypto nor stablecoin – as it’s shown.
I do not know how many currencies they will pour in the system but it could end up with some countries in need to buy gold whatever the correlations!
- it is close to what the National CB of the EU have been doing. To have in their vaults a quantity of gold same for all the members in proportion to their GDP. Then when the politicians will decide they will be ready to reprice gold they have at an higher price : 3000$, 5000$? Correlations? I forget, the Euro System is bankrupt!
2. Beside these narratives " Peter Hambro. BIS, Central Banks Are Rigging Gold Market Using Bullion Banks' Paper Gold"
https://www.zerohedge.com/markets/peter-hambro-bis-central-banks-are-rigging-gold-market-using-bullion-banks-paper-gold
Peter had been working for a Bullion Bank for years...
Zoltan wrote also that for years the Banks got the implicit guaranty [ from the CB ] that gold will NEVER be used again as mean of payment. If gold come back what will happen then to the 250-300 Trillions $ of gold paper issued by the Banks vs. 16 Trillions of gold above ground?
IMO we are living in hinging times, many things can change. Accordingly it is very dangerous to stick with manipulated correlations.
PS. What about a correlation between the US TBonds and what was called "L'emprunt Russe"? Will the TBonds end the same way ? When the Bolsheviks came to power (1917), Russia decided not to repay this loan. The result was that many French people could used it only to cover their toilet's walls...😂😱
HOW about the value of gold is rising , and the dollar s value is decreasing short simple and sweet .
THE NO CLOTHES DOLLAR will be fully exposed if the GOLD OIL TRADE IS AGAIN EXCEPTED GLOBALLY