Hat Trick Letter (Archive Edition) – Part 4: The Grand Divergence
Originally published: 2 December 2011
Original author: Dr. Jim Willie ("The Golden Jackass")
Navigation: Part 1 | Part 2 | Part 3 | Part 4
Editor's Note
This Archive Edition preserves the original article while improving readability through editorial headings, paragraph spacing and navigation. The author's views and arguments have been preserved.
Final Images with Messages
Historical Image Notice: The original publication included several images accompanying this section. Where reliable archived copies become available, they should be restored in future editions.
Drowning in liquidity, the masters of the American chapter of the Fascist Business Model have created a black hole in the form of a gigantic sinkhole. These images were used by the author as a metaphor for the consequences of excessive liquidity and monetary intervention.
The Fate of Fiat Currency
"Always keep in mind the true value of the US Dollar. It will revert to the innate value of every fiat currency in history."
The author argues that, regardless of efforts to defend it, the US Dollar will ultimately follow the historical path of every fiat currency.
Historical Image Notice: The original article concluded this section with an image of gold bullion symbolising enduring monetary value.
Grand Divergence Persists
The grand divergence is moving along apace. The physical gold market price lies above the paper gold market, while the physical silver market shows an even greater premium over paper contracts.
The author concludes that the divergence between physical and paper precious metals markets will continue widening until a significant failure occurs within the exchange system.
"The market always prevails, as societies and regimes come and go, even empires."
Previous Part: ← Part 3 – The Unintended Consequences
About the Original Author
Dr. Jim Willie, widely known as "The Golden Jackass", is an American financial analyst and publisher of the Hat Trick Letter. He became well known for his commentary on precious metals, monetary policy, sovereign debt, central banking and the international financial system.
His work frequently challenged mainstream economic opinion during and after the global financial crisis. Whether readers ultimately agree or disagree with his conclusions, his newsletters form an important historical record of alternative economic commentary from that period.
Readers interested in Dr. Willie's work can visit his official website:
This Archive Edition republishes the original article for historical and research purposes.
End of Archive Edition
Hat Trick Letter (Archive Edition)
Originally published: 2 December 2011
This Archive Edition forms part of From the Summit of the Moral High Ground, an ongoing project preserving historically significant articles, essays and commentary for research, historical reference and public discussion.
- Part 1 – The Money Printing Never Stopped
- Part 2 – The New Normal of Global QE
- Part 3 – The Unintended Consequences
- Part 4 – The Grand Divergence (Current)
Wow. You have even less of a glass half full outlook than me!
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