May 3, 2016
Gold Update by Thomas Beecham
The central banks are keeping things afloat until war comes. Front and center, the central banks need to keep the governments borrowing. That means the economies are potential casualties, as the primary objective is continued. This means low interest rates will continue. There will be no greek exits, etc.
That is their primary objective. I discussed previously that The USFed should have raised rates as far back as 2012. It is too late now, and the Fed is talking the USD down via domestic economic weakness. The USDX has been dropping and that has been planned by the central banks. There is no dollar collapse, and I think inflation has been picking up on the margin. This is one of the reasons why gold has been rising.
Gold is also rising as a result of things to come. What is coming? short term rate suppression is causing all sorts of asset price distortions. I do not see commodities rising as a result of a reflation trade. Looking at a chart, gold is just rising like any other blip on a screen. The alternative media is now parroting collapse, etc. agh....
This is one important thing to wrap our minds around. The central banks can keep this whole system on IV drip for years. Indefinitely. As long as the average consuming person accepts this system, it can last forever. The average person is unprincipled, thus they choose to have an unprincipled monetary system, a system that promises them free things.
These people who think of rising rates ruining things, like Martin Armstrong, do not understand the Conspiracy. The authors of blogs, like the one you mention do not see these things either. Many who think the Feds are letting gold rise gradually as a reflation trade are misguided. The Feds want gold to go away and want to sever its role as monetary metal.
In the late 70s gold was 35-50/oz. It is 1300 now. That is a good rate of return. I do not look at the high point of 1980 of 850. I look at average prices. Gold has been rising, and will continue to rise over time.
