Hedge funds slash bullish wagers on gold before war jitters
Speculators have reduced net-long positions by 3.6%.
Veteran investor Robert Fitzwilson says the fiat money schemes set in motion by the world’s leading economies are destined to end in “tragedy and collapse.”
In an interview with King World News Fitzwilson, the founder of The Portola Group, casts his gaze upon the monetary history of the early modern era and describes in detail the hyperinflation which afflicted France just prior to the French Revolution – an outcome which was a direct consequence of the imposition of a fiat money regime.
Fitzwilson notes that the most shocking aspect of the hyperinflation which France suffered towards the end of the 18th century was the fact that it was preceded by a similar episode only 70 years prior, instigated by the notorious Scottish financier John Laws.
According to Fitzwilson France’s monetary authorities failed to heed the lessons of recent history and engaged in prolific money printing to alleviate the country’s onerous debt burden.
The country was flooded with paper currency. The value of the currency dropped precipitously. In an amazing display of ignorance and propaganda, the government attributed the declining value of the currency to a failure to print more paper money.
Fitzwilson feels the parallels between France of the late 18th century and the global economy’s current predicament are undeniable, ruefully speculating that “this oft-repeated story is simply part of the cycle of human existence.”
The veteran investor’s conclusion is that investments such as gold and silver provide the only sure safeguards of value in what could be turbulent times, stating frankly that “as investors, the only realistic high ground is in real assets.”
