Investors Have A Choice To Either Be A Victim Of The Death Spiral Of Debt Or Be A Gold And Gold Stock Bull
When I hear gold bulls say that they are worried about gold going up to $20k or higher, it makes me think that they are closet American exceptionalists that think the US dollar will be the world’s reserve currency for a very long time.
Whereas, I think it is inevitable due to the Death Spiral of Debt and unsustainable cost of servicing the debt. Gold going to those levels will mean the world is back on the Gold Standard which is the best thing that could happen to the global economy.
Going off the Gold Standard allowed the politicians (on the left and right) to spend like drunken sailors for decades with no restraint which caused the Death Spiral of Debt. Their unrestrained spending has now pushed the cost of servicing the debt to reach an unsustainable level and become the straw that will break the debt camel’s back.
Having the world’s reserve currency, gave them the ability to kick the debt crisis down the road for a long time using the printing press. What that did has destroyed the purchasing power of the world’s reserve currency for several decades.
Ultimately, the debt and fiat currency system is broken from the top to the bottom, which is why gold is trading at record highs against every fiat currency. Plus, gold surpassed the Euro in 2024 to become the second highest reserve held by central bankers and it is making inroads against the world’s reserve currency.
Gold reaching number 1 is a lot closer than most think, but it is heading in that direction much faster than even many gold bulls believe.
Really there are only two outcomes for the Death Spiral of Debt, one is default on the debt or the other is a return to the Gold Standard. The least painful is a return to the Gold Standard, the politicians in Washington and the Fed won’t like the bitter taste, but it is much more palatable than a default on the debt.
Investors have a choice, to either be a victim of the Death Spiral of Debt and constant devaluation of their purchasing power with fiat currencies or to become gold and gold stock bulls.
All the best,
Allan Barry Laboucan
