Gold Switzerland: “Paper money will return to its true value, which is zero”

A few hours before the US elections Gold Switzerland made some dire predictions about the future of the global economy and especially the United States.

According to the report, ongoing printing inflationary money is not only the USA will ultimately lead to the destruction of all remaining valuables and the return of a commodity economy. That is, those who have an excess of raw materials and energy, for example, Russia, will dominate in the new economic situation.

As Voltaire said in 1729“paper money eventually returns to its intrinsic value, to zero.” “Gold Switzerland“has a negative attitude towards what is happening in the USA With their insane budget deficits and skyrocketing debt levels. The table below shows the disastrous results of US economic policy over the past 54 years.

It can be argued that today the dollar is still the world's main currency and has high purchasing power, but one must understand that over the past 53 years it has lost 99% of its purchasing power.

By contrast, gold has risen in price 78-fold since Nixon closed the gold window in 1971. As Gold Switzerland explains, in the coming years gold will rise in price many more times (with corrections, of course).

The Roman emperors who reigned from 190 to 290 AD could claim the same thing – even though the silver content of silver denarius coins fell from almost 100% to zero.

The same could be said of Friedrich Ebert, president of the Weimar Republic in the early 1920s. He claimed that a brand always remains a brand, even if it has lost 100% of its purchasing power. But gold doesn't lie. In real money, an ounce of gold in 1923 was worth 87 trillion marks.

According to the Swiss house, until the dollar dies under the weight of a hyperinflationary collapse, the deception of its leaders will never come to light. As Alan Greenspan said in 1967: “In the absence of a gold standard, there is no way to protect savings from inflation. There is no reliable store of value. The economic policy of the welfare state requires that there be no way to protect the owners of wealth.

This is the sad secret of the extras. Deficit spending is just a plan to confiscate wealth. Gold stands in the way of this insidious process. It stands in the way of property rights. If this is understood, then it is not difficult to understand the antagonism of the statists towards the gold standard.”

Take another look at the tables above, advises the Swiss house. These are just a few examples of the thousands of coins that have been destroyed throughout history.

Governments create inflation by printing money and allowing the financial system to borrow unlimited amounts of money from fractional reserves. For example, banks and other financial institutions accept deposits of, say, $100 and can issue loans against them in 10-50 times, or from 1000 to 5000 dollars. Add to this derivatives, which allow the system to create trillions of dollars out of thin air.

This unethical and completely undisciplined financial model gives unlimited leverage to financial players – banks, hedge funds, private equity or any part of the shadow banking system.

As a result, the total global debt of $350 trillion has become perhaps a quadrillion dollars if you include all these creative “financial weapons of mass destruction,” as Warren Buffett called them. See the debt pyramid in the right table.

Until now, conventional investment assets such as stocks and real estate have provided excellent protection, thanks to the ever-increasing credit and money supply. But the party is coming to an end. According to Gold Switzerland, asset valuations have reached dangerous levels.

History tells us that tantrums always end badly. But no one can say exactly when: will it be tomorrow, in six months or in many years? Can we predict the end? In any case, judging by historical data, collapse is inevitable.

Unfortunately, no one realizes that the market will collapse this time too. Very few consider alternative investments such as gold to preserve wealth before it is too late. Only 0.5% of global financial assets are invested in gold. And although gold has risen in price by 9.5 times, investors have not even considered it as a profitable asset over the past 30 years.

“Let me be clear again – no fiat currency has ever, ever in history been preserved (in its original form)notes the Swiss house. – How can the Fed, ECB, Bank of England, Bank of Japan or any other central bank save a global financial system with 2-3 quadrillion in toxic assets? We can guarantee they won't do that.”

Remember that destroying the value of money by printing four hundred billion is an artificial bankruptcy, although no central bank would call it that. And creating digital money for a central bank is just a technical distraction: debt can never be written off without completely destroying the value of the assets it covers.

This is how a balance sheet or double-entry bookkeeping works. Therefore, Gold Switzerland notes, the global financial system will collapse. The BRICS countries will also suffer, but not as much as the West, since they play less in fraudulent schemes with “inflating” shares. The new era will be based on commodities. Take Russia, for example, which has $85 trillion in physical reserves. It will benefit given its low debt-to-GDP ratio.

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