Gold rate soon 50,000?
Sunday 18 October 2009
Gold over $ 1000 was a signal for other newcomers to the gold. Central to the price of gold is no longer correct, press brakes, only the increase. Systemtod because of capital flight has begun so long ago.
It was emphasized in this market commentary on several occasions that means a gold price of $ 1000 a kind of "threshold of death" for the international financial system. This was achieved a few weeks ago and last week clearly exceeded.
There are currently quoted gold at $ 1060 per ounce, silver at $ 17.70 per oz Meanwhile, more and more voices in the media to turn to the need for central banks to raise interest rates soon, and finish their "quantitative easing (printing money).
In fact, a new paper-bubble in the stock and bond markets up, which lives almost exclusively by superbilligem central bank credit. Then, the central bank's money, not in the real economy, the banks appear to be "too uncertain".
Such bubbles burst suddenly on credit with a mighty crash, when interest rates are raised, or else an accident happens. That will come, because then all of a sudden speculators have to get out of their papers and pay back the loans. If they do not even get it to banks for their margin calls. The courses are deeply crash.
Are in my article, "Where are your super-interest, Ben?" I explain the relationship between gold prices and interest rates: The year 2009 started with a dollar-gold price of 884.30 per oz Since then, there was an increase of 20 percent over nine months, extrapolated over a year were more than 26 percent.
So the Fed, the dollar interest rates would have to at least 26 percent raise to compensate for the devaluation of the dollar against gold.
This is a supplement for the interest tax, must pay the retail investors, as well as an ordinary contract for the further devaluation risk in the event of a dollar crash. Then we are slightly at 40 percent interest on all short-term money.
For longer-term money, such as government bonds, would still be paid, as there is the risk of default, about 50 percent. As 40 percent for short-term money instead of 0 percent today and 50 percent instead of 3.2 percent for ten-year Treasuries. For poorer credit quality even more. That brings the system to access the site.
In the Euro are the figures a little lower (15.4 per cent increase in gold-2009), as this has fallen to less gold, but again would be a "real interest" to trigger an immediate system collapse.
So these are the categories of interest that would have to offer us the NCBs with the super-monetary gold, to keep up with the return. For all currencies fall against gold. Since there is nothing behind their paper, they can only argue with interest. Like 1979-80, ran away as the price of gold. The interest had afterward.
Since those days seemed a chart that shows the real gold price in U.S. dollar over 300 years. It was not the official U.S. inflation given reason, but the real value, according to John Williams. Since it appears that the gold peak in January 1980 with the then $ 850 today would be measured by 7267 - in purchasing power. In silver, then today at $ 50 instead of $ 354.
Click here Google Translate
and scroll down to watch the following chart: Gold and silver over three centuries.
Taken by charging for the U.S. inflation has been the Shadow Government Statistics by John Williams. Be careful, the scale is logarithmic.
The mechanism was then the same as today: escaping from the paper, especially the dollar. The response of central banks will also have to be the same: higher interest rates. Back then it was 20 percent, today it is because of the higher credit risk have to be much more.
Even a few percent of the system no longer tolerate, without collapse. So it will collapse. The price of gold will go much higher than at that time, 50,000 dollars per ounce are possible.
Central banks can the price of gold is no longer correct, press brakes, only the increase. So more and more capital is going into gold, because nowhere else can you earn as much as safe. The Systemtod because of capital flight has begun so long ago.
Gold over $ 1000 was a signal for further entry into gold - an important signal.