It is no surprise that both commercial and central banks hate gold. Because gold reveals the total mismanagement of the economy and the deceitful actions that the bankers take. Once the paper gold market collapses, which is not far away, we will see the full extent of these malpractices which could easily be classified as fraudulent.

Paper money will soon be worth ZERO

It is not just central banks that print money. Commercial banks print many times more by leveraging their balance sheets up to 50 times, like Deutsche bank. If you include derivatives this leverage is exponentially greater for all banks. This money printing has totally destroyed the value of paper money in the last 100 years. The following graph confirms what Voltaire said in 1729: Paper money eventually returns to its intrinsic value – Zero.

As the chart shows, all major currencies have lost 97-99% against gold since 1913 so they have only 1-3% to go to become totally worthless and that will happen in the next 5 years or so. But we must remember that the 1-3% additional fall is 100% from here. This will be devastating for the world and the main beneficiary will be gold and also silver.

We are now in the acceleration phase of this race to the bottom of all currencies. The world saw major asset bubbles in stocks and property in the late 1980s which led to the 1987 crash in stocks and the property crash of the early 1990s. The master of gobbledygook Greenspan then started his trickery in 1990 and lowered short term rates from 8% to 0% in 2008 (aided by helicopter Ben at the end), creating another bubble in stocks. At the same time the biggest and fastest credit expansion in world history started. Global credit increased from $20 trillion in 1990 to around $230 trillion today. But that is just the beginning because the world will soon embark upon the biggest monetary expansion in history which will lead to printing presses and computers turning glowing hot. In a final and futile attempt to save the world's financial system, governments will embark on a QE programme in the 100s of trillion and probably quadrillions of dollars. The ensuing hyperinflation will end in a deflationary implosion of all the bubble assets including stocks, bonds and property.