History records countless examples of currency debasement: the steady reduction in a money's precious metal content or "backing" (principally gold or silver). The currency then depreciates.
Absent a very dire turn of events, it is hard to envision gold and silver returning as a circulating currency. People won’t part with their metal unless they are out of choices.
My hope is that in thinking the unthinkable now, as we face our own Fourth Turning, we can better prepare ourselves, our families, friends, and communities, to deal with it.
"We were only off by $200-billion in our last upward revision of the budget.” The Congressional Budget Office’s new estimate of the Biden shortfalls climbs again.
What bodes ill for China helps save America, but not enough to keep the US crash from coming. The yuan, which BRICS hoped to be foundational, is facing serious troubles.
The success of any fiat currency or real money substitute (in other words, anything other than gold itself as the medium of exchange) depends on its convertibility into gold on demand.
Now Moody’s is in a bad mood, downgrading a swath of 10 US minor-league banks overnight while also issuing a big threat that it may downgrade some of the majors.
If the ten-year yield is capped at around 4.33% again, and it likely will be, Oct 31 Halloween candy handouts could include some very sweet $2080 gold!
