Chapter 87 8. Gold and Yang Finger

In the recent period, international oil prices have skyrocketed. The London︱Wall Street axis has all said that it is the fault of China’s economic development. It is nothing more than to provoke the world’s dissatisfaction with China. fact.As a result, the rumors were self-defeating. For the mid-term elections, a satellite was released that discovered a huge oil field overnight.This is exactly the same as in 1973 when they planned to increase the price of oil by 400% to stimulate the demand for dollars, and at the same time blamed the oil embargo on the Middle East countries for the soaring oil price.

Due to the unavoidable nature of the dollar flood, the nuclear issue in the Middle East will heat up again soon, and the Iranian war will eventually be unavoidable. Whether it is Israel or the United States, it will provoke Iran to block Hormuz with mines or missiles. The strait cuts off two-thirds of the world's oil channels, so the price of oil will easily hit the $100 mark, and the world's demand for dollars will increase again. This time the culprit is Iran.As long as the world does not have unhealthy associations with the issuance of US dollars, it will be fine. Since gold was under house arrest in the 1970s, the world's stock market and commodity market have shown an inverse relationship.The 1970s, when the commodity market was extremely hot, was also a decade when the securities market performed extremely poorly.The 18-year bull market in the securities market that began in the early 1980s represented an era of bearishness in the commodity market.Since 2001, the commodity market has started a bullish journey. At the same time, the stock market, bond market, real estate, and financial derivative markets have also grown rapidly.On the surface, it is the appreciation of US dollar assets, but in fact it is caused by the explosive expansion of debt US dollars. All debts must pay interest. Increased capacity of one of the water tanks can absorb the excess dollars, and now, when all the water tanks are filled with flooded dollars, they will overflow.

The question is where can I find such a large water tank?So the geniuses on Wall Street began to talk about the concept of unlimited capacity in the financial derivatives market.They continue to launch hundreds of new financial products, not only using their brains on currency, bonds, commodities, stock indexes, credit, interest rates, etc., but also creating new gadgets like weather gambling in a whimsical way. In theory, they can put dollar labels on the good and bad of every day in the next year and sell them on the market. They can also put every hour of every day in the next 100 years, even every minute of earthquakes and volcanoes in the world. Disasters, floods, droughts, insect plagues, influenza, traffic accidents, weddings and funerals are all made into financial derivative products, which are traded in the financial market at real prices.In this sense, the financial derivatives market is indeed unlimited.It’s just that this kind of argument sounds a bit like when the IT bubble was at its peak in 1999, Wall Street analysts vowed to assign an IP address to every grain of sand on the earth. I was also worried that there was too much money in the world and there were no good projects to invest in, so someone proposed to drain the water of the Red Sea to see how many gold and silver treasures were buried under the sea when the Egyptian Pharaoh chased Moses and the Jews.

When people have high fever to this temperature, the financial turmoil is already close at hand. Gold, the currency that has been demonized for a long time and systematically as a barbaric relic, is like a wise man who has experienced many vicissitudes and hardships. He is not eager to publicize, he just looks on.If the husband does not fight, the world cannot compete with him.Slandering, ridiculing, suppressing, cursing, and satirizing, when the false currency emperor tried all means, gold was still shining golden, while the strong US dollar had already become the end of its strength. The people finally saw some way.

In fact, in the minds of Chinese people, there has never been a lack of intuition about real wealth.People call the activities related to money finance, the places where wealth is stored are called banks, and the real things are real gold and silver.When the people of the world once again realize that the essence of debt currency is nothing more than an IOU + promise, the so-called dollar wealth is just a super exaggerated IOU and an infinite promise of wealth. These debt IOUs have always depreciated forever, and the speed of depreciation Depends on how greedy the people who print them are.The general public who don't understand finance at all will eventually use their intuition and common sense to choose Noah's Ark︱gold and silver to store the wealth created by their hard work.International bankers armed to the teeth with financial derivatives will eventually encounter the vast ocean of people's war.

The stubborn and rising gold price will ruthlessly push up the long-term debt interest rate in the United States, because international bankers have sold tens of trillions of dollars of interest rate insurance contracts to the financial market to ensure that long-term interest rates will not rise. In a situation where gold prices are forced higher, international bankers will be exposed to extreme risks created by their own greed. The first to be punctured by the continuous rise of gold will be the super bubble of $74 trillion (only the data reported by U.S. commercial banks) that is the wave of the financial derivatives market ︱ interest rate exchange.There are only three funds in hand.The situation of the 5% GSEs will be in jeopardy, the sudden and violent surge in the price of gold, the fluctuations in interest rates of government bonds will be extremely violent and concentrated, and the fragile defense line of GSE interest rate hedging will be broken first. Short-term bonds will be completely illiquid in a few hours at most a few days, and JP Morgan Chase, the super player in the financial derivatives market and gold derivatives market, is in trouble, trying to suppress the price of gold and long-term interest rates trader.

The financial derivatives market, which was the first to collapse, will generate an unprecedented liquidity panic. When the panic-stricken investors all over the world try to sell all kinds of insurance contracts in their hands for cash, all the growth bases of these derivatives: currencies, bonds, commodities, oil, and stocks will be destroyed. At the same time, they are shocked by electricity, and a larger liquidity panic will break out in the international financial market.In order to save the hopelessly ruined financial market, the Federal Reserve is bound to issue additional dollars like the Yellow River bursting its banks to fight floods and rescue disasters. When tens of trillions of newly issued dollars rush towards the world economic system like a tsunami, the world economy will fall into chaos.

Just over thirty years after international bankers conspired to abolish gold currency, the United States has overdrawn 80% of the world's savings.To this day, the United States must continue to absorb two billion dollars of savings from people all over the world every day to keep the perpetual motion machine of the United States running. The increase in debt and interest in the United States has far exceeded the growth capacity of the world economy.When the excess savings of real money in all countries are drained, that is when the world's finances collapse.The arrival of this day is actually not a question of whether it will happen, but a question of when and how it will happen.

Confidence is the fatal root of the seemingly gigantic dollar bubble system, and gold is a positive finger that hits this vital point.