QUESTION: Mr. Armstrong;
Your timing has been incredible. It is becoming clear that your forecasts are time and price which are separate. You have opened my eyes to a whole new way to observing the world. Do you think gold will still reach $5,000 after 2016?
Thanks so much
RB
ANSWER: Yes. But as I have stated before, $5,000 is the extreme maximum target – not the minimum. I do not see even technically any possibility of $30,000 or some other outrageous forecast. Reaching even $5,000 will not be easy and we have to be concerned that they could simply declare gold to be illegal as they did in 1934. Government would not necessarily travel door to door to confiscate gold. They would more likely than not employ the same tactic as in the past – just outlaw transactions in gold to avoid taxes which might even include BitCoin. That would be the way they set the stage for confiscating anything that is avoiding taxation which they now call money laundering with up to 20 years in prison. This is now all about them – not you. They will never print their way out for their benefactors would not lend them money under that scenario. Hedge funds demand Draconian measures that a deflationary as they are doing to Puerto Rico and Argentina. They do not care that society will not function under austerity – they want their profits.
Such schemes against tax-avoidance would not be merely a target against gold alone. It would be against anything taking place in a tax-exempt atmosphere. This posture on their part would have the effect of shutting down gold futures. However, that would really screw the mines for they would be unable to hedge and if gold were illegal, then who buys the gold? So there would be a lot of problems making gold illegal. That does not put it past these people trying some sort of scheme. However, this reflects the problems we face as government act irrationally trying to maintain control and power rather than reform. This is the meltdown phase of governments for they cannot look at the long-term. There is no way out of this mess without a full blown restructure. But that is a loss of power and they will never willingly do such a thing. They will kick and scream all the way.
