Anyone who is a little familiar with economics and finance knows that Gold and silver are currency, and paper money is bank notes, which play the role of replacing money in circulation in the financial system.
In the process of globalization coming to a climax, the vested interests of globalization have realized their vested interests through currency over-issuance and global trade, and at this Time it is necessary to cover up the real Inflation rate caused by currency over-issuance, and the means adopted include.
First, through various academic theories to conceal the fact that paper money is bank notes, the most typical method is to characterize paper money as credit money, which is a typical confusion, using the blindfold method.
Paper money has always been depreciating, for example, in 1913 the purchasing power of a dollar was 100, in 2019 the purchasing power of a dollar is only 3.87. It seems absurd that paper money with decreasing purchasing power is called credit money (credit means constant).
The real meaning of money is to carry credit in social Life, to facilitate economic and social development and stabilize people’s lives, or a tool for people to store their wealth. Credit is spread all over society, everywhere, and it has no center and has nothing to do with any person or organization.
However, today almost everyone has taken paper money as money, modifying the Perception of the majority of people in the whole world.
When the majority of people’s perception is modified, people will treat gold and silver as commodities, they will not use gold and silver to store wealth, the physical demand for gold and silver will decline, the physical gold and silver market will gradually form a demand-side market, there will be a physical surplus in the trading process, banks and other institutions do not have to worry about the need for physical delivery, they can use the advantage of capital to short, and thus suppress prices. Eventually, the price of gold and silver can be suppressed for a long time, and the real inflation rate expressed in gold and silver prices is concealed.
Second, in order to conceal the nature of the constant devaluation of paper money, it is also necessary to conceal the inflation rate expressed in terms of composite prices.
The true rate of inflation is masked by controlling the composition of the basket of goods for which inflation is calculated and the weight of each good. For example, over the past two decades, the CCP has struggled to drive paper money into the real estate sector through administrative means. At this point, in order to mask the inflation rate, housing prices were removed from the basket of commodities used to calculate inflation, embellishing the officially published inflation rate figures.
The reason for the above systematic cover-up is to carry out paper money over-issuance and thus redistribution of social wealth!
While the truth about the real inflation rate expressed in prices can be concealed for the time being, the real inflation rate expressed in gold and silver can no longer be concealed!
Although vested interests continue to instill in people the concept that paper money is money, this century has seen constant crises in the currencies of Venezuela and Russia, and even the paper money systems of their much appreciated star countries such as Brazil and Argentina have been on the verge of collapse, and people’s confidence in the paper money of many countries has begun to waver.
After the blow of the global pandemic of the Epidemic, the government indebtedness of the United States as the core of the European and American countries has skyrocketed, and the central banks have recklessly paid for the fiscal spending of the governments. People have clearly seen the truth of paper money, they are not at all to provide stable credit for social life, and the fiscal crisis and debt crisis of many countries led by the United States are coming fast, and the essence of the fiscal crisis and debt crisis is the paper money Crisis.
The people have woken up and are gradually seeing the truth. Therefore, since the second half of last year, there has been a shortage of gold and silver coins in the U.S. and Canada, and people are gradually abandoning paper money and holding gold and silver coins instead.
And silver is destined to be the vanguard in the process of returning the value of gold and silver! During the period of economic globalization, the amount of photographic film using silver shrank dramatically, while the accompanying silver production soared based on the opening of large-scale infrastructure in emerging market countries, making the supply and demand of silver seriously deteriorate. In such a period, financial institutions also maliciously made blank silver prices to cover up inflation, making the gold-silver ratio fall to below 1:100 at the lowest.
More than half of the annual silver production comes from associated silver production from lead and zinc mines and copper mines. For emerging market countries like the continent, the main raw materials for carrying out infrastructure activities – iron ore, oil, aluminum ore, copper, etc. – need to be imported in large quantities, and the opening of the internal circular economic model means stepping on the brake pads of infrastructure activities, which means a fall in silver supply. At the same time, silver demand in the photographic film sector has declined to the point of being dispensable, replaced by rapidly growing demand from emerging industries such as solar energy. This has brought about a fundamental improvement in the supply and demand situation for silver.
Scarcity is one of the characteristics that a currency must have. When the supply and demand of silver improves, it becomes scarce and its monetary properties will return at an accelerated pace, becoming the “protector” of people’s wealth along with gold.
The shortage of gold and silver coins is a fatal blow to those financial institutions that control the price of gold and silver through reckless shorting!
When there is a shortage of gold and silver coins, the relevant manufacturing enterprises will rush to buy gold and silver ingots in the futures market, and they will ask for physical delivery, but those reckless shorting financial institutions do not have enough physical goods in their hands for delivery, they can only close out their short contracts passively in the futures market, and gradually form a shorting effect together with those active buying!
This is actually the process of returning gold and silver to normal prices, the process of cutting off the black hands of those financial institutions that manipulate gold and silver prices.
Therefore, the future price of gold and silver is likely to come out of at least two rounds of upward trend.
The first round is the return of normal value.
Correction of the prices that have been wantonly suppressed by the financial institutions for many years in the past, it can also be said that the price of gold and silver reasonably reflects the real inflation rate in the past years. This is still only the first stage of the return to normal value of gold and silver.
The second round is with the deterioration of fiscal balance, the debt crisis is bound to come, which means that high inflation is unstoppable, and high inflation will drive gold and silver prices at least a round of increases (and possibly two or three rounds).
This is the time of awakening of the people, who are gradually seeing how the vested interests are over-issuing paper money by concealing the real inflation rate for a long time and hiding the real price of gold and silver in order to carry out the process of paper money over-issuance and thus the interests of the few by undermining the interests of the workers. This is also the revolution of gold and silver, the revolution of paper money! For they are merely bank notes! Their core use is the redistribution of social wealth through the devaluation of paper money. The return of the gold and silver king is now only the beginning.
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