““Gold, unlike all other commodities is a currency… and the major thrust in the demand for gold is not for jewelry. It is not for anything other than an escape from what is perceived to be a fiat money system, paper money that seems to be deteriorating.”
~ Alan Greenspan, 2011
Written by Bryan Lutz, Editor at Dollarcollapse.com:
We’ve been tumbling down the fiat rabbit hole for far too long.
Down, down, down…
Into a room with a little door with no way of escape.
Without drinking a little bottle of “we don’t know what,” there’s no way out.
Of course, the masses are fine inside the room…
Soaking in fiat money…
Watching markets rise…
Avoiding any inclination of a big loss on the horizon.
Yet, the loss is coming, eventually.
One can only sit in a room so long before having to engage with the real world – the essentials for life.
And fiat money is not an essential for life.
It exists, and you can use it according to those in our stone white buildings, but in the end fiat is an expanding bubble, waiting to pop.
Bankers try to make the room appear bigger with mirrors, by expanding the money supply and lowering interest rates, but in the end you still tumbled down the same rabbit hole, in the same, small room with the limitations of illusory powers of spectacular fireworks come and gone.
Here some the fire works…
CNBC reports:
Federal Reserve cuts interest rates by a quarter point
“The Federal Reserve approved its second consecutive interest rate cut Thursday, moving at a less aggressive pace than before but continuing its efforts to right-size monetary policy.
In a follow-up to September’s big half percentage point reduction, the Federal Open Market Committee lowered its benchmark overnight borrowing rate by a quarter percentage point, or 25 basis points, to a target range of 4.50%-4.75%.
The rate sets what banks charge each other for overnight lending but often influences consumer debt instruments such as mortgages, credit cards and auto loans.”
Every time the Fed lowers interest rates, markets tumble down the rabbit hole… fast.
Maybe a year from now, or less and you’ll see near zero percent interest rates again.
Bankers know the way out of the room, but are happy to stay…
They always allocate a bit into gold, and a bit more every time the Fed cuts rates.
Because hard assets like gold, real estate, land, art, some say Bitcoin, all protect against the reduction of your purchasing power.
These assets are all driven by inflationary periods like the one we are about to experience, again, over the next several years.
You can see what happens to the price of gold after every major rate cut in the past 25 years…
It goes up.
That is the basic premise for why Dave Skarica, Dollarcollapse.com’s Gold Prodigy, started his portfolio for DollarHedge Insider back in February.
He knew rate cuts were coming soon.
So, he invested in specific, undervalued(many of them still are) gold and silver stocks.
Not only to hedge against inflation, but to earn more than what can be earned by simply investing in the S&P 500.
That’s how well gold performs after rate cuts.
But, if you were to invest in gold and silver mining stocks, your gains are potentially much more – upwards of 153% to 328% increases…
These are realistic numbers for some stocks in the DollarHedge Insider portfolio right now.
And escape fiat Wonderland.
That is the basic premise for why Dave Skarica, Dollarcollapse.com’s Gold Prodigy, started his portfolio for DollarHedge Insider back in February.
He knew rate cuts were coming soon.
So, he invested in specific, undervalued(many of them still are) gold and silver stocks.
Not only to hedge against inflation, but to earn more than what can be earned by simply investing in the S&P 500.
That’s how well gold performs after rate cuts.
But, if you were to invest in gold and silver mining stocks, your gains are potentially much more – upwards of 153% to 328% increases…
These are realistic numbers for some stocks in the DollarHedge Insider portfolio right now.
And escape fiat Wonderland.
