Thread by @wmiddelkoop

'the implication of physical gold inevitably revaluing to something like USD 55,000 per ounce is gravitational'

ingoldwetrust.report/wp-content/upl…

#longread

'It’s the 100-year life story of the US dollar reserve monetary and financial system (the $IMFS), now
afflicted with so grave an ailment that only time will tell if it will succumb or be left, at the very least, in a state of virtual absurdity. I predict it will succumb ..'

what happened in 1971 was essentially the collapse of the international monetary and financial system. The London Gold Pool was a last-ditch effort to control the free-market
price of gold in support of the Bretton Woods gold convertibility scheme, and that collapsed in 1968.

European central bankers apparently thought that keeping the price of gold under control was a necessary part of supporting the $IMFS until they could launch the
Euro..

And that’s how this new paper gold market helped support the US dollar and the US dollar system through the 1980s and 1990s. Eventually, the bullion banks were lending paper gold they created out of thin air to non-mine entities with no gold in the ground ..

Monetary inflation would eventually drive the perceived virtual wealth of US stocks ever higher. So high, in fact, that their percentage gains over price inflationary gains would be incredible ..

When a currency system comes to the end of its reserve use – I’m speaking politically – its domestic market will come to a point where it can no longer export ‘real price inflation’ in the format of ‘shipping its excess currency outside its borders’ ..

Now that the paper game is about to stop for the Dow, it will also cut off the leverage of gold bets. Just as the real game begins ..
This paper gold market will be cashed out at prices far below real bullion trading so as to inflate further the books of the Bullion Banks ..

The politics of wealth today is centered around gold bullion and only gold bullion: that is where the wealth and power will be manifest: this is where the gains will be! To bet on the rest of the hard market is to bet against the coming inflation making your asset whole ..

That almost sounds like it could have been written today, does it not? Well, that was one of FOA’s final posts in 2001, and while it may have taken 20 years to come to fruition, it was true all along ..

.. from here on out, we’re in uncharted territory. There is no road, no trailhead, no tracks; we are completely off the rails and careening out into the great unknown ..

.. if we compare China’s current Treasury holdings with their peak in November 2013, we see a reduction of USD 221bn, or 17% over the last seven years

As for the financial system, Q4 compressed into a single image basically looks like this. It’s one bubble after another, ending in a superbubble ..

The first one was the dotcom bubble, then the housing bubble which brought down the entire financial system, and finally the current everything bubble (everything except gold)...

“The whole world is a giant Ponzi scheme right now which is why we have global economic stagnation, deflation and mass frustration, and the real punchline is that it has
already reversed from expansion into contraction, and the attempted unwinding is already underway ..

What the world needs now is a grand liquidation of overinvested, overvalued, unprofitable economic assets… But that’s not going to happen through the nominal deflation the deflationists hope for. That would be like
unwinding a Ponzi scheme.

Sure, markets will collapse… but the Fed will
respond… Eventually, they will be printing and buying everything in sight, because, in the real world, in extremis, that is their only mandate...

We are, today, in uncharted territory. It’s the end of the
road. As I said, there is no more road, no trailhead, no tracks, we are completely off the rails and careening out into the great unknown ..

it’s like passing through a black hole and emerging in a different world on the other side – so much changes at once that the far side of the singularity is almost impossible to imagine. Almost impossible, not impossible.

Historically, gold does its job best at transition points... But every 40–50 years or so, it would have to be either repriced or it would jump in price due to
some sort of transition or crisis (e.g., 1934, the 1970s…).

It has never really worked well as an inflation hedge. Everyone assumes it should, but I think that is a flawed
premise, at least in the current system. It’s more of a transition hedge, or a singularity hedge!

So I think what we’ll get in the end has to be a kind of hyperinflationary price collapse, where the price of everything that’s in a bubble right now, which is just
about everything except gold, collapses in real terms but not necessarily in nominal terms. That’s “in the end”.

The current generations, the millennials and the zoomers, as they’re called, have been priced out of virtually everything. They cannot afford anything at current prices, so they will welcome the grand liquidation..

Prices of everything need to collapse in real terms, so these new generations can start participating in a real way, not just playing games with GameStop and cryptocurrencies from their mothers’ basements.

The collapse of the $IMFS will wake those new generations up, and then they’ll know what woke really means. The rebuilding of what the $IMFS destroyed will
take years, decades even, but such rebuilding periods are a time of high growth and “Happy Days”, like the 1950s ..

.. and the zoomers and millennials will enjoy that
period second-most (I think those of you with physical gold right now will enjoy it
the most ..

The $IMFS simply has not collapsed yet. I do not know when it will, but the things they are having to do to keep it going are getting more and more extreme at an accelerating pace.

So when the illusionary paper wealth of the $IMFS collapses, and the paper gold market halts redemptions and settles in cash, they will not need me to explain
Freegold to them. The physical gold is still there after the illusion is gone. It’s suddenly very valuable.

Every last ounce is already owned, and it does not need a
constant inflow of US dollars to maintain its price like Bitcoin does. That constant inflow of US dollars is what the government can block to crush Bitcoin. But physical gold is different ..

I think we are going to have a collapse, a reset, and a grand liquidation that will lead to a period of rebuilding, which will last perhaps decades. But it will not be the “Great Reset”
agenda of the World Economic Forum (WEF).

The collapse is going to include the collapse of such oversized, centralized thinking as the WEF, and the reset is going to usher in a more localized, resilient way of thinking.

The collapse will be a collapse of the US dollar system, the financial system, and the paper gold market, and the reset will include the repricing of physical gold

all quotes from 'My View of the Nixon Shock – Exclusive Interview with FOFOA'
ingoldwetrust.report/wp-content/upl…

thx to @RonStoeferle for publishing these deep insights, which are so in line with my Big Reset thesis.