Now gold is going to return as money It's just a matter of time we are living Through the ultimate fiat currency Experiment and we can see where that has Gone on us to a world of never-ending Inflation and mistrust now if we look Through history civilizations before us Know that true money has always been Gold the ancient Chinese use gold the Romans paid people and gold coins and America's founding fathers recognize Goal as money as well it was even Written into the U.S Constitution where Gold and silver were legal tender but we Have yet of course I begin to invent it With our money it wasn't always that way Now gold actually started out as money Directly doing the classical goal Standard and that persisted all the way To 1971 through the bretonwood system Where the dollar was packed to gold now I wanted to take a look at the life Cycle of money it shows us a timeline of How money starts out as free market Money that has total trust money that Answers to no one and doesn't require The backing of any governor government But we moved into the fiat currency era The moment Nixon broke the gold standard In 71 and for decades trust started to Erode now if I had to guess where we are Right now we are most likely at stage Six where confidence is being lost and We are seeing currencies across the
World collapsing and we are one step Away where countries start to choose Free market money again to transact with Each other and by that I mean buying and Selling in gold now when we talk about Collapse it goes beyond just the value Of money eroding yes inflation is the Biggest reason why there's no more Confidence in money but it goes deeper Than that I want us to look back at the Last nine months of this Global currency Crisis now countries all across the World are getting their currencies Devalued against the dollar we are Seeing many of them literally crash to Hell and it doesn't matter if you're a Developed country or an emerging economy The Japanese yen is cratering the euro Is below dollar parity and the Turkish Lira is already in the toilet this Currency devaluation is causing Inflation to saw supply shortages to Happen and bond markets on the verge of Collapse what we have is a global fiat Currency confidence crisis because the Whole world is still tied to the dollar Many countries either mercy of U.S Monetary policy if the Federal Reserve Decides to hike rates or print money Your local currency is going to be Impacted it's going to be affected There's no escaping it and right now the FED is tightening and many currencies Are depreciating and they can import
Less stuff because everything is priced In dollars there's a global dollar shock Happening and hold on to this thought Because this is one of the most Fundamental reasons why gold will come Back as money sooner or later confidence As a whole is lost and the world needs a Neutral Arbiter to bring back trust to The financial system and let's talk About the value of money we can see that Ever since the gold standard was broken In 71 we we have been in a world of Eternal inflation except for 2008 Inflation has been around three to four Percent over the past 50 years with Multiple spikes in the 70s and 2022. we Are living through an inflation hell Right now and it's going to stay high For many months to come and we need to Understand why this is happening we are Living in a world of boom and bus Cycles Every 15 to 20 years we Face an economic Crisis because money has been weaponized To save the economy and the markets time And time again there's no more free Markets nowadays we can see this Happening all across the world economies Especially in the west no longer have The stomach to ride through the tough Times and let the free markets rebalance And readjust there's always an Intervention around the corner now the UK bond market bailout is the perfect Example and we all know what happened
Born yield started to rise because of Rate hikes and the British Pension funds Were on the brink of a Colette thanks to Average and the bank of England had to Step in to bail them out pledging to Spend 65 billion pounds to buy up UK Bonds now this is debt monetization also Known as money printing which is Inflationary we can see inflation in the UK has smashed past 10 and a big part of It is higher commodity prices for sure But the money printing they just did is Going to keep inflation high this is Additional money circulating in a system And even today as rates are going up There are still countries like Japan Keeping rates low and printing money to Prevent their bond market from Collapsing and this is why the money Printing games won't end yes the United States is hiking rates but it's likely They were pivot and start printing money If their bond market also starts to Crack the bond market controls Everything in the economy and we can see The 10-year treasury yield is almost Four percent and the higher this goes The closer it is to pushing the bond Market towards a crime says if we take a Look at a bond Benchmark we can see that Companies are forced to borrow at crazy High rates the U.S corporate debt yields Almost six percent just a year ago it Was at 2.1 percent that's triple the
Borrowing cost and if your Triple C Rated company looking to raise money you Might as well forget it your bond yields Will have to be over 16 and this is why When push comes to shove the U.S Government will likely step in to rescue The bond market in order to save the Economy as a whole money will be printed And the dollar will get the value even Further the damage will be done to the Currency because between a total Economic Armageddon or inflation down The road which do you think they will Choose and this is why gold is a more Reliable store of value it can't be the Base or printed from thin air and let's Talk about the counterparty risk of Money today now the most obvious is the Financial counterparty risk of the Currencies issuer so for example people If you're holding a bunch of euros and The ECB decides to suddenly print up Trillions of Euros the Euro will Suddenly get devalued against other Currencies especially the dollar your Purchasing power will evaporate you are The mercy of the ECB but let's also talk About the more dangerous counterparty Risk that countries face today which is Economic sanctions so we all know what Happened to Russia after they invaded Ukraine the U.S imposed a ton of Sanctions on them in fact Russia is the Most sanctioned country in the world
Today now the lease is very long and Includes everything from seizing money From Russian billionaires to Banning Transactions on Swift but a bigger Sanctioned hit I would say is freezing Over 300 billion of Russian Central Bank Assets Now these are assets held in the United States and within their financial System and whether you agree the Sanctions or not I leave it to you but Let's deal with the facts because of This move many countries are Increasingly aware of the day changes of Holding your money outside of the Country and that's why we saw Russia in A mad scramble to quickly diversify Their oil and gas revenues outside of The dollar for example they started Selling their guests to China for the Yuan but just because it's the Chinese Yuan doesn't mean that zero counterparty Risks as well Anything Could Happen China could very well go crazy with Their monetary policy and start Devaluing the Yuan by printing money as Well and this is why fiscal gold could Very well come back as a medium of Exchange or an instrument for trade yes It is a physical commodity that needs to Be shipped and its price can fluctuate In the sport markets we all understand That but it's better than having Fiat Currencies that eventually lose value Thanks to inflation it is guaranteed
Over a long period of time to lose Purchasing power plus you don't need to Worry if a particular Central Bank Decides to go crazy if their monetary Policy right and unless you store your Goal reserves elsewhere overseas it Can't get frozen or sanctioned away There's zero counterparty risks to worry About but a big shout out to our sponsor Today private internet access we all Know the importance of keeping some Money outside of the banking system Especially in Gold we want privacy for Our wealth and you should be treating Your data the same way now online Browsing isn't as safe as it used to be With all types of hackers and scams out There you need to be protected guys you Don't want your identity stolen and any Of your financial accounts compromise And this is why having a VPN is so Useful it keeps your data and activity Confidential away from the hackers and The great thing is that Pia is Completely web-based you can download it On your phone through their app or to Your desktop and you can get started in Fact you can use it for up to 10 devices At a time including your phone desktop And tablet now Pia they have world-class Servers that covers over 83 countries Including each and every state it in the United States and if I'm accessing my Trading and stock market accounts I want
To make sure that no one is watching me And that my details are completely Private and you can get started with Private internet access with a 82 Percent discount using the link in the Description below plus you also enjoy Three months for free just for being an Awesome subscriber to this channel so Check them out and get protected today Now don't get me wrong the majority of Transactions will still be in Fiat Currencies it is impossible for gold to Replace all Fiat trade because it is Simply more convenient but there's Likely going to be a place for Nations To start using gold as a medium of Exchange to settle the trade of goods And services is definitely possible now Firstly trading in gold is logically Feasible countries can directly use gold To buy Commodities and products it's Basically going to be the same process As a country importing physical gold From another Nation the goal is Transported via play in or shipping Vessel nothing fancy and the process is Simple the seller ships their commodity To you maybe it's oil maybe it's wheat And then the buyer ships the goal in Return at the same time or depending on The agreement is basically a form of Bilateral trade now secondly countries Can easily acquire gold to build a Stockpile to trade today there are many
Outlets to buy gold from you can buy Gold from the comex in New York or the Local London Market in the UK in the East you can buy gold from a Shanghai Gold exchange in China and let's say you Don't want to deal with any country Nations can also buy go directly from The IMF but it's going to be a little Trickier because you need an 85 super Majority vote from the IMF executive Board and that means you definitely need The support of the United States which Has 16.5 percent of the voting power but Either way if a country can't mind their Own goal they can always buy it from the Various superpowers depending on their Preference if your NATO country you can Get it from the US if you're part of Bricks you can get it from China or even The new gold exchange in India so there Isn't a problem here now definitely There will be certain countries that Will benefit from this Arrangement more Than others countries that have huge Goal reserves and those that produce Tons of gold will be the big Winners However it's no different that countries That are blessed with huge oil reserves Like the United States Saudi Arabia and Russia so if we look at the gold Reserves we can see that countries with The biggest reserves are the U.S Germany Russia and China now obviously we know The numbers are just what they
Officially declare but it does shows us Who is most likely to benefit but taking A look at the biggest gold producers we Can immediately see that the top dogs Will be China Russia and Australia they Produce over 300 tons of gold each year And this is significant because once Goal starts being used in bilateral Trade no matter how small you'll be a Wake-up call to the rest of the world People will start realizing that gold is More than just a store of value that you Bury under the ground this will help to Revalue the price of gold and I'm not Going to give a price prediction guys I'm not Clairvoyant but it will be Higher so if you're holding gold you'll Benefit as well and personally I've been Buying gold for close to 10 years and It's all about having money outside of The banking system just in case we hit Into runaway inflation to me it is the Ultimate credit default swap against the Federal Reserve and the global monetary System as a whole because I know one Thing for sure sooner or later the boys At the Federal Reserve they're gonna Lower rates and start printing money Again if it's five years from now maybe It's a year from now but there's always A chance that they might lose control And kick us into a hyper inflation hell Where inflation just goes above 20 or Even 30 percent easily then we'll see a
Match scramble towards true stores of Value because no one can last through That level of currency devaluation Without a panic inflation today is Almost at 10 now I believe eventually Gold will come back as money at least in Some parts of the world not as physical Bars that we carry around but a gold Back currency and if a country wants to Do it it'd probably be China or Russia Countries that don't own the reserve Currency but have tremendous incentive To challenge it however that is probably The final step it might be even linked To a new digital currency but before That happens we will need to see Countries start trading with gold first And getting used to it as money I Believe sooner or later Nations will use Gold as a medium of exchange to settle Trades and transactions with each other Because it eliminates the two biggest Risks of modern money currency Devaluation and counterparty risk Countries won't need to place any trust In Gold because it just is goal is Simply the physical embodiment of trust So let me know what you think in the Comments below will go come back as Money especially in bilateral trade are You buying more gold today let me know In the comments below stay safe be sure To smash the like button and subscribe As we navigate through these crazy times
