Dedollarization

Over the last 100 years, governments and central bankers have made the investment markets into a casino with only winners which primarily have been the bankers themselves.

If countries are unable to obtain dollars for their Central Bank reserves, they will have to look for a substitute. And the only substitute will have to be GOLD.

Why should we ever listen to any of these self-important central bankers. They are consistently inaccurate in their forecasts and policies. Their timing is always wrong as they are always behind the curve.

Some investors who bought gold and silver around the highs in 2011-12 might be impatient. But if they realised that they are holding the best insurance that money can buy against all the coming problems in Pandora’s Box, they should feel extremely content.

Russian Central Bank gold reserves rise to 1,857 tons in january, passing People’s Bank of China’s 1,843 ton gold hoard.

2018 is likely to be the year when the 2007-9 crisis returns with a vengeance. But this time it will be a lot more serious. Central banks will panic and print money at a level never seen before in history leading to collapsing currencies and hyperinflation.

We are now in the final phase of manic euphoria. Within the next 6 to 18 months the euphoria will turn into dysphoria as 100 years of economic mismanagement and manipulation come to an end.

We have now reached a stage when the explosion in money supply will have a major influence on the real economy. The inevitable consequences of the totally irresponsible mismanagement of the economy that I have been forecasting for quite some time are now starting to take effect.

U.S. prosecutors on Monday announced that they had settled charges against three European banking giants, HSBC, UBS and Deutsche Bank, for manipulating the markets for precious metals, including gold and silver, and filed charges against eight people, including some of their former traders.

The key message of this update is that gold is getting closer and closer to breaking out of a giant Head-and-Shoulders base pattern that started to form back in the middle of 2013 and to point out that it won’t be stopped from doing so by any minor short-term reaction.