This breaking news does little in affecting the future for gold bullion's bull market endgame.
Now having criticized repeatedly the Federal Reserve Chairman Jerome Powell for raising interest rates too sharply throughout 2018, US President Trump is again making monetary headlines.
The 45th POTUS is fresh from tweeting his intention to nominate a potential pro-Gold Standard advocate to the Fed’s board, Judy Shelton.
I am pleased to announce that it is my intention to nominate Judy Shelton, Ph. D., U.S. Executive Dir, European Bank of Reconstruction & Development to be on the board of the Federal Reserve....— Donald J. Trump (@realDonaldTrump) July 2, 2019
The derivative gold price discovery mechanism responded bullishly to the news driving the spot gold price above $1,430 fiat Federal Reserve notes.
Much of this rising spot gold price occurred during typically lightly traded Globex hours after the Comex had closed its highly fractionally reserved leveraged trading for today.
Gold bulls might celebrate the news pontificating that this is some sign following the G20 meeting in Japan, with new support to nominate Christine Lagarde to the NIRP addicted European Central Banking system, that some globally coordinated gold monetary restructuring is underway.
Perhaps so, but then again, maybe not. The IMF’s fiat currency based SDR is no match for bullion in terms of price stability or wealth preservation. We would argue the IMF SDR is like all other fiat currencies merely designed to garner purchasing power to the fiat currency issuers, not the mass of human beings who work long hard hours to earn the currencies in wages or regular payment.
Of little mainstream financial knowledge too, since the year 2014, there has been supra-national bank bail-in law signed on by the USA, European Union and about 18 other major nations of the G20.
All national appointees have agreed by law that bank account bail-ins, not bailouts will settle the next major bank crisis. If you bank with a G-SIB, you might want to figure out what that acronym means and what you might be able to do about it to better spread your personal and potential business risks inherent to this current G20 banking system (see page 3).
Anyone hoping to see lead politicians and significant central bank heads help to bolster their gold bullion investment values should note that historically they partner together. Often eventually overspending what they don’t honestly earn through taxation revenues choosing deficit spending instead. Ultimately they all end up debasing their fiat currencies over time. Bullion bulls better also consider the potential financial storm we are collectively facing, before wishing on exploding gold stars.
The largest financial historic powers that be often issue their devaluing fiat currencies until either there is an economic crisis so massive in shaking financial confidence that gold prices need a significant repricing higher in the debauched currency units (e.g., 1933-1934 US gold confiscation). Or there is some sort of revolution and political insurrection (e.g., French Revolution).
Or higher price inflation, investor fear, greed, and building speculation bids the rates of bullion so high that for example all the sovereign gold reserves of the United States ultimately get priced at and eventually above the M1 fiat US dollar issuance outstanding (e.g., see global 1980 gold price records).
Gold vs US dollar Cycle: Last 100 Years
Looking back in time, about every 50 years or so in US history, the US dollar price of gold gets repriced heavily upwards to account for fiat currency debasement.
Even today's wonky MMT cranks echoing delusions stemming from the Greenback vs. Gold era Civil War pricing battles, molest this belabored point.
When faith fails, people want their hard money back, and they go to gold bullion historically in stampedes at times.
So happens that all money is one derivative or another of outlasting physical precious metals. The central bank of central banks (BIS) illustrates that well below.
Perhaps this is one reason why central banks have been actively net buyers of gold bullion following the 2008 financial crisis.
Gold prices in the coming future will likely require much higher fiat US dollar bids, and likely too much higher than record gold 2011 prices even.
Indeed we are again headed towards a time where bad debts will get defaulted upon through further currency debasement, bankruptcies, and defaults of varying degrees (both public and private).
The fiat currency price for gold has been working exceptionally hard since the year 2000, to begin accounting for the current bubbles in various financial markets and especially in varying fiat currencies around the world.
Time and gold’s price will ultimately consider for those mentioned above regardless of which heads are in offices and or central banks trying to rig perceptions and the nexus points for ongoing commodity price discovery.
Ultimately this ongoing confidence game will be used up, people will start rushing for the doors.
Likely mass faith will break in some grand fashion, and gold will again have to account for the compounding lies and mistruths we have been collectively justifying for far too long.
Gold Revaluation Seeds Have Been Sown
Judy Shelton, Christine Lagarde, even the 45th US President himself, they or others like them will have much to say but ultimately less to do in the matter.
The ultimate gold bullion bull market asset bubble (as George Soros aptly referred to it in 2010), is more significant than all of these aforementioned institutions, human's strengths, and their shortcomings combined.
All you have to do is listen to Candidate Trump; he already told the voting US public on record the slippery underlying truths of the matter at hand.
And a delusional ongoing gold standard dream in this country which some might claim would potentially make America great again. But it would be, very hard to do cause according to the then Candidate Trump in 2017, "other places" have the gold.
Find Out Hard Data Clues as to "Who Has the Most Gold"
It is not confidence building nor a mere coincidence that multi-billion dollar bond trading house has already lobbed out a conservative $5,000 oz gold price tag for privately held gold bullion bidding by the Federal Reserve (to help induce further fiat currency debasement).
Unlike then Candidate Trump's erroneous year 2017 claim that we have to wait until the gold price does the "old crash-o". In fact, it is the exact historical opposite he and many of us are likely to witness instead.
Major questions of course remain. How we potentially get from here to likely there in the years, various gold revaluations, and further fallible human appointments to come.
Thanks for visiting us here at SD Bullion.