Source: What Is That Whistling Sound
India’s attempt at demonetization of larger bills to curb tax evasion seems doomed to failure.
Cash businesses are now under severe stress as the government’s tax grab tightens in the world’s second most populous nation.
One interesting side effect the disappearance of 86% of the nation’s currency in circulation had on the price of gold. The shrinkage of cash negatively impacted the price internationally.
The timing of this coincides with the election of Donald Trump as president of the United States.
Further, we are aware of a large player in the gold market dumping at least 8 metric tonnes of gold within a few hours of Trump being elected. The net result has been a drop in the price of gold by $80 an ounce to the $1220 range.
Perhaps the most interesting take away from these events are the coordination within a short timeframe to bring down the price of gold compared to sketchy fiat currencies.
This suggests that the big government socialists are becoming desperate in their bid to control the world economy, fiat currencies, and ultimately you and me.
In their minds, a free market must not be allowed to take root. A free market would evolve into freedom for citizens and loss of control for the ultra wealthy globalists and their big government servants.
It is notable that despite their best efforts, gold has only fallen about 6%. To us this suggests that the fiat currency system is unraveling as people begin to lose faith in governments and their garbage currencies and bonds backed by thin air.