Gold: The economic damage has been to the system and the U.S. dollar

SeekingAlpha/Equity Management Academy/10-8-2020

“Whoever wins in November will inherit this economic disaster that we are living through. Businesses are closing, unemployment is high, and the economy has been devastated. Unless we get clear policies to address the damaged economy, the entire system is in grave danger. To survive, the system now needs endless amounts of stimulus. We do not know how much, but each time we get stimulus, such as in 2007 and then this year, it helps for a time, and then the system stumbles again. The $3 trillion this year did not fix the system, which is still struggling mightily. When the last batch of aid runs out, we are going to see a tsunami of unemployment, evictions and bankruptcies on top of a probably pandemic spike as the weather turns cold and people remain indoors more with other people. In such troubled times, remember that gold is a tier 1 asset. You can borrow up to 90% against it in many cases. Only currencies can be used as a tier 1 asset, which makes gold a currency. Gold has been a currency for thousands of years.“

USAGOLD note:  Gold’s stature as a tier 1 asset comes not only the result of an official edict but also because of its acceptance globally as the ultimate asset of last resort – the final means of payment against which all other currencies, including the US dollar, are measured.

The post Gold: The economic damage has been to the system and the U.S. dollar first appeared on Today’s top gold news and opinion.