Financial Interlude: The tower has toppled

The trouble with being a genius and being able to predict the future is that no one believes you; well I chose to believe the Golden Jackass and as usual he has proven to be an accurate predictor of all things financial.

The true collapse of the previous monetary cycle began in 1971 when we moved from a golf standard, at that time gold cost £18 per ounce and yesterday hit an all time high of £1,245 per ounce.

Of course the value of the gold has not changed, only the value of the government debt. Because of general incompetence and self-serving corruption in the space of my lifetime the British government has robbed 98.55% of the value of every pound.

Why hold gold well if you can't see that putting a lump of gold in a safe is a far better method of retaining value than putting money in a bank then I don't know how I can explain it more simply.

But gold goes down as well as up?

The gap between 2013 and 2019 which saw gold held in a range (in US$ terms) for a period of 6 years required all the financial trickery and derivatives magic in the arsenals of both banks and governments; those last lines of defense have now fallen and the gold price will continue to blitzkrieg its way up to ever higher record highs in all currencies. Anglo-American control of the global financial system has been lost.

And so the next phase has begun, it is time to ride the roller coaster.

Bonds worth $15tn — roughly a quarter of the debt issued by governments and companies around the world — are currently trading with negative yields. That means prices are so high that investors are certain to get back less than they paid, via interest and principal, if they hold the bond to maturity.

Now you might wonder why someone would spend $1 today in the expectation of getting back 90 cents in ten years time, if you are not wondering you should be.

Who exactly is buying these bonds? Well you are.... I know you personally aren't buying these bonds, but your work pension fund is, your government pension is, your entire financial future is being evaporated away before your eyes and you are just too blind to be able to see it.