Gold Trading Boot Camp: How to Master the Basics and Become a Successful Commodities Investor

APPENDIX

Precious Metals: A Secular-Macro Overview

The following is a reproduction of a Power Point presentation made by the author in August 2006.

 

Global capital, savings, income, labor, and wealth imbalances have been intensifying for DECADES, at least since Nixon removed the USD from the Gold Standard, amid widening U.S. deficits. The global economy has become incestuously codependent on the U.S. consumer.

U.S. net exports: monthly since 1947

Source: Chart courtesy of Economagic, LLC. All rights reserved.

Foreign investors, particularly Central Banks have accumulated TRILLIONS of U.S. Treasury debt and USD reserves.

Total U.S. federal debt held by foreign investors in billions of dollars: monthly since 1970

Source: Chart courtesy of Economagic, LLC. All rights reserved.

Fiscal “reflation” has been an integral part of the “debasement” of the dollar, as rabid government spending has resulted in historic fiscal deficits.

Federal government expenditures: quarterly change at annual rate since 1950

Source: Chart courtesy of Economagic, LLC. All rights reserved.

The U.S. Federal Reserve has been complicit in the dollar’s debasement, by expanding their own balance sheet at an historic ...