As the Fiat Dollar Continues to be Inflated Gold Remains the Ultimate Currency.

In this report I cover the early market action from London on Monday, May 21st, 2018. I look briefly at the precious metals, the stock market, the dollar and the bond market. The main movers this morning are the dollar and stocks. Both are moving higher as worries about the effects of a new Italian coalition government weigh on the euro.

With gold and silver being sold off I remind the viewers of how fiat currencies like the dollar or Federal Reserve Note are always inflated into oblivion. I look at an article posted on zerohedge that talks about how Goldman Sachs is warning about the fiscal situation in the U.S. and how, even under their best case scenario, they see budget deficits almost running out of control in the next decade.

I also look at an interesting article by Thorsten Polleit inwhich he notes that the stock market have been good to Warren Buffet over the last half century but that it does not necessarily mean that the fiat money system has been good to the general welfare. Mr Polleit notes that ultimately gold is the best currency and that provides insurance against fiat money debasement and remains as an ultimate form of liquidity even in an investment portfolio.

Goldman warning: https://www.zerohedge.com/news/2018-05-20/outlook-not-good-goldman-sees-us-dire-fiscal-straits-deficit-hits-2-trillion-10

Polleit article: https://www.zerohedge.com/news/2018-05-20/polleit-gold-should-be-viewed-money-not-investment