Gold reaches 88 Million Bolivas per OZ in Venezuela
We have all watched in horror at the calamity of hyperinflation consuming Venezuela. The climb began in early 2017, but as all hyperinflation's act at first it was a mild escalation, barely noticeable. However now like in Zimbabwe, Germany and many other countries before, it is now a full blown hyperinflation where the value or worth of their currency is virtually zero.
This is not isolated and will begin (if it has not already), in many countries around the world... even in the UNITED STATES OF AMERICA (written in capitol letters as the corporate take over and its corporate laws demand... just like your name on your passport, our country and even our persons have become owned corporation...but I digress). The inflation has so far been controlled the banks using the two tools to create inflation; printing money and lowering interest rates to zero or negative. This was to give the impression of real growth (especially after the near miss of global collapse in 2008).
They use it as inflation gives people the illusion that they are better off (Stock Market Escalation), while it makes them poorer and destroys the value of their savings.
The current Venezuela price chart
US Track Record
Not just the US has a historical precedence of Gold confiscation, where once it was collected they bumped the price from $20.67 per oz to $33.00 per oz... may I remind you to look at the price today (hyperinflation is upon us already people), making the hoarding or holding of it illegal. A bit more history shows that in 1971, President Nixon took the US off the Gold standard (partial standard of Breton Woods Agreement), but not until it was "Demonetized" was it made legal to own again in 1974 by President Gerald Ford.
Now at a controlled price of $1,350.00 (today's level) people see it as normal, but the inflation and confiscation of value began it 1913 as is now speeding up considerably.
But this time there will be no confiscation
Why... well that is because they have 3 major problems that would occur of which they can not cope with.
First
The probability of finding people to relinquish their Gold (remember, those that own it do so from mistrust of the government and banks) as they will not do so willingly. And if no one but governments have Gold, of what value will it be to control or coerce it's people.
Second
Hiding Gold is easy and the Black Market will always arise for it's use. Let's face it going door to door on their city budgets is prohibitive,that's even if you knew whereto go and who had some. Then there is the problem of finding it in the home.... yes many will have some in safes,but how many have it buried outside in a garden, under a tree or other such landmark? Ho many have it in remote vaults outside the country? these are but a few of the infinite number of hurdles they would face... so sorry Charlie, nothing to gain here.
Third
And most important,is if they do confiscate (best case scenario,they pay you an escalated market value), where will people turn? Bitcoin and the Cryptos will surge in price and further damage their already mortally wounded system... it will hasten their loss of control, power and lead to their own demise. Yes they will of course raise the price dramatically after a confiscation, but it will pale in comparison to Bitcoins rise. Even if you could not buy Bitcoin online anymore, the Black Market would turn immediately to Bitcoin as the trade of choice.
Bitcoin is the open Pandora's Box
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Image Credit: skoroprazdnik