Yesterday’s (21.3.2024) announcement by Mr Powell (Fed), to maintain interest rates, but that, as he suggested, in time there is room for three interest rate reductions, followed by the launch of the price (in dollars) of gold. One will say “okay” expected as the interest rate reduction warns about a relative slip of the dollar. Yes, if our reasoning is limited to Wednesday’s “photo” and we leave out the euro. But if instead of the instant “light”, we choose to see the… video of the last four years and a few months, the resulting “image” is not… comfortable with the previous obvious explanation. Let’s watch the… video. We go to the fall of 2019, before the pandemic, before the war in Ukraine. It is autumn, and the Fed has expressed since the summer its intention to start tidying up the liquidity it had spread on the markets after 2008, increasing interest rates in principle. Similar intentions had begun to be discussed in the ECB. Somewhere there JP Morgan makes an interesting “game” in the US interbank market (she suddenly withdrew all of her deposits from the commercial banks), “freezing” all in the interbank and the Fed is forced to back completely by forgetting in time dt the intentions for tapering… So September 2019, in conditions where the Fed is obliged to ‘coltuba’, the dollar “costs” around EUR 0.91 as much as today. And by the end of 2019 it had become even cheaper, at a rate of just 0.81 euros! Then, when the dollar was pompous to the euro, the Gold pound of England, yes our well-known pound, with which the Greek saver “measures” the real values, cost to buy it from the Bank of Greece 372 euros. How much did she buy it herself? Just 309 euros, but that’s another story. A year later in late 2020, with the pandemic in full evolution and the dollar remaining low against the euro (0.81 euros), the Bank of Greece had increased the price of selling the gold pound to 421 euros. In other words, at the same rate of EUR/dollar last year the ‘gold pound’ had increased EUR 49! In order not to talk about it and get tired of it, the end of 2021 was even more expensive and went to 440 euros, the end of 2022 went to 467 euros and the end of 2023 hit 512 euros. And yesterday it was thrown after the Powell statements at 551 euros. Late 2019 – early 2024, the ‘gold pound’ was dropped from EUR 372 to EUR 551, i.e. an increase of EUR 179. And not to forget the dollar rate. The euro was the same, namely a dollar equal to EUR 0.91 and one wonders what the hell is going on. Why have the gold pound and gold been ejected to such a ‘high’ since dollar and euro are at the same rate? No technological discovery has in the meantime changed the “value” or utilitarian significance of gold. Since the ‘value’ of gold has not increased, but only its ‘price’, we must look for the cause of the change in the ‘measure’ – dollar/euro – we use to invoice its ‘value’. And once again the numbers (dollar-euro-to-gold parity, then and now) show that the impressive “slip” of the real value of the two currencies is the one that changes the current “price” of gold and gold pounds. The interesting thing is that by 15.8.1971, the gold ounce that today “costs” $2200, amounted (Breton Woods Agreement) to only $35. Hence the ‘value’ until then of the dollar. Today 54 years later, both the dollar and the euro, which appears to be ‘fixed’ connected to it, are almost 65 times lower and continue as the price of gold shows to be toppled without end… That is why the Central Banks, replacing dollar exchange reserves, are buying gold in a “natural” form like crazy in recent years, with China – which is the largest producer of gold – to buy only 2023 something more than 224 tons of gold… In other words, once again the Econoclastics “say”, does not increase the value of gold, but “falls” the value of the currencies with which it is invoiced.
The “dilution” dollar/euro launches the gold and the Central Banks find it difficult to keep control
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