I read Alisdair MacLeod's latest post this morning on KingWorldNews and he makes yet another interesting case for gold, not against dollars or any other currency but against oil, particularly WTI or West Texas Intermediate. Macleod is well known for writing long, in depth articles full of facts to back up his claims. Not surprising because of his close ties to the Gold Anti-trust Action Committee (G.A.T.A.).
His latest post shows a chart comparing the U.S. dollar and gold against WTI. It's plainly obvious that from 1974 onward, the year the U.S.A. struck a deal with Saudi Arabia to accept only U.S. dollars as payment for their oil in exchange for military protection, the dollar price of oil begins to wildly fluctuate while the yellow line that tracks gold has remained so stable that the line barely moves up or down, going back even further, to the year 1950.
At time of writing, oil sits at just under $83 while gold is just above $1,900. Gold against the dollar has been on a steady rise and gained some $400 per ounce since December 2019, just before the Covid-19 pandemic hit. As for the dollar price of oil, I don't need to explain the inflationary prices we've been seeing at the pumps in the last year or so but priced in gold, oil and gasoline prices have barely budged.
(Courtesy www.kitco.com)
The U.S. dollar has rebounded slightly since hitting the lows of mid-July just below 100 and is now at 102.75 but where is it headed going forward? Last September, almost a year ago, the dollar was flying high and at one point surpassed 114 on the DXY. Since then though, it's actually a full 10 points down in 'value' and coincides with Federal Reserve policy. As you know, the FED has been aggressively raising rates for more than a year now. Except for a pause in June, the FED raised rates again in July and is now over 5%. The FED has toyed with interest rates since its inception more than 100 years ago but even more so since 1974!
This explains the wild fluctuations in the dollar price of oil. Also, since 1974 the U.S. Government has been on a wild money printing spree that has culminated into the massive debt bubble we have today to $32.694 Trillion and rising. The more they print, the weaker the dollar has / will become. Hence, the price of gold continues to rise against the fiat dollar which in turn explains why gold has remained so stable and constant against oil.
In just two weeks time, the BRICS+ countries will be holding a Pow Wow in South Africa and rumors are circulating that they'll announce plans for a new bloc currency, similar to the Euro except it will be commodity backed, a.k.a., with gold! If indeed this turns out to be the case, then it's fair game to expect gold prices to rise further while the dollar heads in the opposite direction.
If and WHEN the dollar falls, expect oil prices to rise and gasoline to get a lot more expensive. Or, you can snap up a few ounces of gold now (or better yet, silver) to offset rising fuel costs later on. This is what Alisdair Macleod has been suggesting all along. I recommend checking out his latest article here.
In many cases, people are working from home and no longer require large amounts of gasoline for their commutes to and from work, so high gas prices aren't affecting them as much but what of the majority that still commute to work? They are the ones who will be burdened with these high costs which in turn means far less disposable income.
As the 80's band The Fixx once sang, 'One thing leads to another' and I suspect big changes are on the way, on top of the changes we've all been forced to undergo these last couple of years. Neil Howe, co-author of the book, The Fourth Turning was recently interviewed by Wealthion's William Taggart and he didn't mince words. He states we are smack in the middle of a fourth turning and things are going to get uglier for a few more years yet before things turn for the better. If you don't understand the meaning of these 'turnings', then I strongly suggest checking out his fantastic interview here.
Peace and love to everyone!
I'm now also on Substack where I will soon begin new podcasts as well as post extra material.
Previous Posts:
Thief decides to rob wrong store.
Gold backed BRICS+ currency in the works?
Spent money is not saved money.
Tucker, Hunter and missing subs.
USA DEBT: $32 Trillion and counting...
San Francisco - Echoes of old Detroit
M2 money contraction + rate hike double lag effect
Silver's massive 237 million ounce deficit
Never before seen divergence between silver and gold.
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