Discussion about Gold and Precious Metals with an anon

[Anonymous No.15994886]

>>15993687
>at first euro will devalue BIG against all currencies, this will start a worldwide bullrun on dollar (maybe chf too) killing your exports. this will be the deflationary shock.

why will this cause a deflationary shock?
>after a period of time the dollars will flow back into the market causing high inflation and the FED wont have any other choice than raising interest rates.


what do you mean by '' the dollar will re-enter the market ''? Could you explain it better for a noob? Furthermore, why should the Fed subsequently raise interest rates?

[Anonymous No.15995168]

>>15994886
when (not if) the euro fails it will cause panic and fear not just in europe. so people will convert whatever fiat they own into dollars. so dollar will be short and increase BIG in value compared to other currencies. why are people doing this, well because dollar is still the anchor currency, accepted worldwide, in short adoption.

nobody wants to spend their dollars because they gain in value (deflation) until well they dont anymore. thats the point when all the dollars will be spend together with the new dollars that have been printed to fight deflation. it will flip from deflation into high inflation.

inflation always needs to look like its under control, the moment people loose trust its over, thats why the FED has no other choice but to raise interest rates even in an already collapsing economy.

thats why it will be an depression, no tools to fight it, low trust in fiat

[Anonymous No.15995398]

bumping because i go home now.

also they will go into dollar because its a safe heaven just like gold

[Anonymous No.15995980]

>>15995168
>when (not if) the euro fails it will cause panic and fear not just in europe. so people will convert whatever fiat they own into dollars. so dollar will be short and increase BIG in value compared to other currencies. why are people doing this, well because dollar is still the anchor currency, accepted worldwide, in short adoption.
you are assuming that the euro fails. Why?
I also don't understand why the euro fails and people should put their savings in the dollar. Why not just put them in gold?
>nobody wants to spend their dollars because they gain in value (deflation) until well they dont anymore. thats the point when all the dollars will be spend together with the new dollars that have been printed to fight deflation. it will flip from deflation into high inflation.
"No one wants to spend his dollars until they don't" ... that means they want to spend it all of a sudden?
>inflation always needs to look like its under control, the moment people loose trust its over, thats why the FED has no other choice but to raise interest rates even in an already collapsing economy.
but isn't he doing it right now? FED isn't raising QE right now?

[Anonymous No.15996216]

>>15995980
i am at home now, different ID.

the euro fails because it's too weak for germany and too strong for south europe. this causes stress in the system (big topic, just google euro critics for a deeper dive). this stress needs to be released (euro fail) or eased (germany pays for everything).

> why not gold
people will buy gold BUT the reason for gold to have value is scarcity. physical gold is already short, you just wont get any anymore and everyone who holds papergold will request real gold. price will explode BUT not in dollar value

> "No one wants to spend his dollars until they don't" ... that means they want to spend it all of a sudden?

during deflation dollar gains value, which means you can buy more stuff with the same amount of money one week later. Would you go and spend all of your money if you knew you could buy more next week?

deflation is the worst thing because it kills the economy that's why the FED will take action. usually they lower interest rates and do QE. the problem is they did that for a long time now already. it doesn't work so good anymore. so most likely the FED will try something else (https://www.linkedin.com/pulse/its-time-look-more-carefully-monetary-policy-3-mp3-modern-ray-dalio?trk=portfolio_article-card_title))

we will then come to the point when deflation stops, and this is important because people who didnt spend their dollars in expectations to buy more later, will spend their dollars now.
when everybody does it it will cause inflation, a lot of inflation.

then the FED has to act again and usually they increase the interest rates to keep inflation low or at least manageable.

[Anonymous No.15996289]

>>15996216

Adding on to this, once the real inflation hits the Fed won’t be able to raise interest rates as that would cause all of the over leveraged corporates to likely default considering their enormous liabilities at the moment. The USD and the Fed is truly at its endgame at the moment.

[Anonymous No.15996833]

>>15996216
thank you not for these resources

[Anonymous No.15997074]

>>15996216
>price will explode BUT not in dollar value
because the dollar will explode in parallel with gold?
so in which currency one should sell the gold to?

[Anonymous No.15997129]

>>15996216
>we will then come to the point when deflation stops, and this is important because people who didnt spend their dollars in expectations to buy more later, will spend their dollars now.
when everybody does it it will cause inflation, a lot of inflation.

then the FED has to act again and usually they increase the interest rates to keep inflation low or at least manageable

so can you go on infinitely in this inflation and deflation printing money cycle?
So gold not good to buy?

[Anonymous No.15997261]

utah goldbacks will become the new world reserve currency