The madness of gold is the opposite of Tiangang

The important thing to begin with is:

Everyone has to be prepared for the changes in the future, and the dollar rate hike cycle we see this time will be completely different from the past, and you and the people around you need to be prepared for the collapse of the world financial order, and we are about to witness the collapse of the times.

Because the madness of gold is only a façade.

The core is the collapse of the dollar order!

Everyone must understand this!

The current crazy gold market is an early warning of a larger financial crisis in the future.

Let me tell you why.

No matter how much gold is smeared in the academic articles of the American school, we must objectively and calmly realize that before human beings flew out of outer space to obtain the resources of the stars and seas, as the world's most stable and supply-sufficient precious metal materials with just enough liquidity, there are only two natural currencies in the world, namely: gold and silver.

The rest is a credit currency based on might.

The U.S. dollar, the world's largest and most credible credit currency, was born from gold and then betrayed gold (the collapse of the Bretton Woods system), and since then the U.S. dollar and gold have been in a reflective relationship.

That is, in the past few decades, all those involved in gold and exchange rate trading know a common sense: when the dollar rises, gold will fall, and when the dollar falls, gold will rise.

But since the beginning of 2018, that is, the beginning of the dollar's harvesting cycle, we can clearly see that gold has changed the shadow behavior pattern of the past decades, and has begun to turn against the sky!

In the case of a large-scale appreciation of the dollar, gold not only did not fall, but rose more ferociously than the dollar.

We must recognize the deep logic behind the reversal of gold in order to see the huge crisis lurking behind the gold price.

▲Gold (left) and US dollar (right) charts

Why did gold "rebel"?

In fact, it is a vote of no confidence in the credibility of the dollar by global investors and central banks, namely:

Hedge.

Relying on the strong national strength and military force of the United States, the US dollar has become the first safe-haven asset to surpass gold.

That's because people believe that with dollars in hand, they can definitely go through the cycle and buy anything.

When people are not confident in the future economy, we will not be inclined to continue to expand investment and production in the real and asset sectors.

After all, the devil knows if you can hear the sound of this money when it is smashed in?

Therefore, in the past, when the US dollar started the process of raising interest rates or began to appreciate sharply, everyone foresaw that either due to the interest rate hike, global liquidity would begin to tighten, or because of the appreciation of the US dollar, global trade costs and manufacturing costs would rise.

Therefore, the assets in hand, especially gold, which is also a safe-haven asset, will be converted into the US dollar with higher interest rates and faster appreciation, and then wait and see if the situation is calm or the situation is clear.

As the world's largest gold trading currency, the US dollar has naturally fallen all the way because of the reduction of US dollar liquidity.

However, when the US dollar begins to cut interest rates or depreciate reasonably, the opposite is true, and currency holders are more willing to invest actively in anticipation of abundant liquidity, which will support the price of gold in addition to boosting trade and assets.

But now!

The dollar is rising, and gold is soaring, what does this mean?

It shows that the 5% annualized commitment to US Treasury bonds and the safe-haven belief in the US dollar are no longer enough to attract funds to withdraw from the gold market to the US bond market

Among the two safe-haven assets of the US dollar and gold, a considerable part of the funds, even which can compete with the strength of the Fed's repatriation, believe that "gold is more reliable than the dollar".

This time, there are huge amounts of money that no longer trust the credibility of the dollar, or rather, the American order.

Or poke to the end in one sentence:

The dollar order is not "likely to collapse" or "about to collapse", but: it is collapsing!

The logic of gold hedging is actually very simple, and a thousand words fall into one sentence:

Gold in troubled times.

The reason why I used to believe that the dollar is stronger than gold is nothing more than three:

First: You are a strong country, I believe that you can keep up with inflation at the rate of growth and asset creation in the United States, and I believe that your federal revenues will be able to cover the arrears I lend you.

But what are you now?

Twenty years of deindustrialization, in addition to blowing bubbles is a good hand, you have borrowed money far faster than you can create assets?

Not only international funds, but even central banks of various countries are afraid of borrowing!

What does it really mean to have 34 approaching 35 trillion in debt now?

Who doesn't know except for the "high-level intellectuals" who have been washed by the American dream to the point of losing their basic cognitive abilities and shouting that "you don't have to repay your debts, you can always borrow new debts to pay off old debts"?

In fiscal year 2023, U.S. federal tax revenues totaled about $4.7 trillion, or 18% of total GDP. But $1 trillion in interest is spent every year.

In other words, the federal debt of the United States is now exactly 10 times its own disposable income.

If you pay off your debt with one-tenth of the federal revenue every year, you have to pay it back for 100 years!

And this debt is still skyrocketing in geometric form, if you want to maintain payment, you must continue to raise new debts, but the more you expand the debt, the greater the pressure to repay the debt, the longer the time to repay the principal and interest, the smaller the probability, and no one wants to continue to borrow him in September.

In fact, in the past decade, the Fed itself has become the largest buyer of U.S. bonds, printing money and repaying it by itself, which is not even borrowing, this is debt.

It can be said that the dollar system has objectively, deeply and completely degenerated into a Ponzi scheme.

Therefore, we can see that in addition to international funds, except for the helpless Bank of Japan, the rest of the central banks are carrying out the operation of clearing US bonds and buying gold.

Second: I believe you are strong enough.

The reason why I am still willing to play with you under this Ponzi scheme is not because I think your system is good, but because I believe that you are shameless enough and strong enough at the same time.

Even if you can't pay it, I believe you can rob enough assets from other countries to pay me off.

As the saying goes, "I hoard my guns when my neighbor hoards grain, and my neighbor is my granary", I believe that the way your Saxon gangsters behaved will not disappoint me.

That's why Blinken would brazenly say "you're not at the table, you're on the menu" in front of the world.

You think he is strongly advocating the hegemony of social Darwinism, but in fact he is giving in to the creditors and assuring them: don't worry, I will rob it, I promise that I will succeed in the robbery, and you will give me some more time to spill!

But what are the objective facts?

The guerrillas in the Middle East used slippers to swell Lao Mei's face, he didn't dare to do it, and the ancestral graves were all used to bounce you with depleted uranium!

Therefore, we can see that the more fierce the Middle East fights, the more gold rises, not only because of anxiety about the S3 season, but also because of the growing disappointment with the ability of the United States to pay by force.

Third: you can monopolize.

Another important reason why I am willing to take the dollar and abandon gold is that you have a currency monopoly, and some assets are not allowed to be bought in currencies other than the dollar.

For example, Iraq, Afghanistan, and Libya are not because the world can't buy oil except for the dollar, and other currencies, including gold?

One of these families said that they would settle in gold and the other in euros, but you dug up all the ancestral graves, and now the renminbi of the big eastern countries can also settle oil, and you didn't dare to do anything with others.

So much so that in the end, in addition to RMB and gold, even the rubles of the woolly bear can buy oil, so what do I want you to do with dollars?

In addition to oil, you used to make an agreement with the big Eastern countries to buy their high-quality assets such as Ali and Penguin, and you are not allowed to use RMB, only US dollars, but now you are not allowed to use US dollars to buy high-quality assets of Eastern countries, what do I want you to do????

Therefore, we will find that as long as you use the monetary logic of "the dollar is the spot ratio, and the dollar is the credibility" to understand the current economic situation, all the answers you get are wrong and cannot be explained.

However, if we look at it from a different perspective, we should consider whether the Almighty God can make a stone that cannot be done by himself, based on the fundamental principle of "the dollar is a god" of Western monetary theory.

When returning the divinity of the dollar from the theological height of blind worship to the scientific common sense that "it is a currency".

You'll find that everything falls into place.

It's as if the basic laws of mathematics were distorted to "1+1=3" for a certain period of time, then all strange things are not strange.

But when the basic law begins to return to the common sense of "1+1=2", if you still understand it with the once distorted theological concept, then you will not be able to explain why "2X3=6" in any way.

What we are facing now is not a simple superficial phenomenon change, but the most basic logic of world money and finance, from 1+1=3 to 1+1=2 process.

This will inevitably produce huge shocks and shocks that will subvert the world order, and all the current conflicts are the effects of this earthquake in the underlying structure.

How should we properly understand the possible future shocks?

How should we ordinary people adapt to this migration of the underlying structure?

What should we all do if we want to prepare?

……