Gold, The Great Reset: World Leaders Are Getting Ready To Reset The World Economy

Sep. 30, 2020 7:30 AM ETGDX, NUGT, DUST, UCO, GLD, IAU, PHYS, SGOL, UGL, DGP, GLL, DZZ, GLDI, OUNZ, DGL, DGZ, DGLD, UBG, QGLDX, PHYS:CA149 Comments

Summary

  • The biggest mistake the US made was when Nixon removed the dollar from the gold standard.
  • The dollar then became a fiat currency, like all the others, and the government could print as many dollars as it wanted when it wanted.
  • This meant that, over time, the dollar was worth less and less.
  • Since 1971, the US dollar has declined 98% compared to gold.
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In March gold hit $1450 after the collapse triggered by the collapse. It fell from $1,704 in just a matter of days in a massive correction. Even so, it discounted the damage that the pandemic was going to cause because the market reversed right away as the Fed announced record stimulus. The Fed leveraged about 10% of GDP to cover the potential losses in the market or about $20 trillion. This suggests the magnitude of the damage that the Fed was anticipating.

Courtesy: Ticker Tocker

Today, consumer spending is down a few percent and the Fed has only spent about $3 trillion. We believe that the economy is going to need far more stimulus than that amount when we see how much damage the pandemic has caused in the US and around the world.

All of the stimulus is going to cause massive inflation down the road. As the Fed prints more money, each dollar is worth less. Inflation has to occur, so assets that are based on the dollar will inflate, but will really be worth less. Gold is now an alternative currency, which has real value and is not just a piece of paper. The big money woke up and bought a huge amount of gold supply in just three days, which marked a V bottom reversal in March.

We trade gold because it has the volume to day, swing or long-term trade. It also allows you to trade futures, options, ETFs, stocks or indices. There are thousands of instruments under gold that you can use to design a customized portfolio. We use the Variable Changing Price Momentum Indicator (VC PMI) to design such portfolios.

The market got overheated at $2,089, it reverted right back down to the daily, weekly and monthly mean, which were all close together. Gold activated a short trigger

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Seeking Alpha reports are based on the VC PMI analysis of various markets and written by Scot Macdonald, PhD, who is the Director of Research for the Equity Management Academy. He has a doctorate from the University of Southern California with a focus on international political economy. He was a broker and analyst at the largest independent brokerage firm in the western United States for five years. He has researched, written and edited financial articles for more than a decade. He is the author of nine books, including research on decision making and the use of lessons from the past to make current decisions. For information on his books, please visit www.KerreraHousePress.com.

Disclosure: I am/we are long NUGT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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