{"id":33775,"date":"2018-04-26T18:32:55","date_gmt":"2018-04-26T23:32:55","guid":{"rendered":"http:\/\/olduvai.ca\/?p=33775"},"modified":"2018-04-26T18:36:04","modified_gmt":"2018-04-26T23:36:04","slug":"canada-has-no-gold-but-a-mountain-of-debt-things-will-end-badly","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=33775","title":{"rendered":"Canada has NO Gold but a Mountain of Debt\u2026 Things Will End Badly"},"content":{"rendered":"
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Canada has NO Gold but a Mountain of Debt\u2026 Things Will End Badly<\/a><\/h3>\n<\/div>\n
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While other central banks have been busy increasing their gold reserves, Canada sold off all its gold reserves in 2016.<\/a> The Bank of Canada ranks last globally out of 100 major central banks.<\/div>\n<\/div>\n<\/div>\n<\/header>\n
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There is precedence in a central bank selling off its gold, and it didn\u2019t work out very well. In 1999,<\/a> when the price of gold was low at $282.40 an ounce, the United Kingdom sold half of its gold reserves, worth approximately $6.5 billion. The sale raised $3.5 billion. By 2007, the price of gold had risen to $675.00 an ounce, and the UK had lost more than \u00a32 billion. This financial disaster, known as Brown\u2019s Bottom, did not work out well. And Canada appears to be following in its footsteps.<\/p>\n

With many uncertainties globally, Canada\u2019s gold sale could have serious consequences.<\/p>\n

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Fed signaling interest rate hikes = \"\u2714\"
\nFed shrinking balance sheet = \"\u2714\"
\nNational debt rising rapidly = \"\u2714\"
\nHousehold debt rising = \"\u2714\"
\nWeak growth = \"\u2714\"
\nRising inflation = \"\u2714\"
\nGeopolitical risks = \"\u2714\"<\/p>\n

But hey, things\u00a0are going to be fine…<\/p>\n

According to Canada\u2019s senior Finance Department economis<\/a>t Morneau, the reason for the gold sale was the cost involved in storing the gold and the fact that gold offers a poor return. That seems like strange logic since gold has outperformed the S&P 500 since 2000. The price of gold went from $35.00 an ounce in 1967 to over $1,300 today.<\/p>\n

As former Federal Reserve chairman Alan Greenspan has said:<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Canada has NO Gold but a Mountain of Debt\u2026 Things Will End Badly While other central banks have been busy increasing their gold reserves, Canada sold off all its gold reserves in 2016. The Bank of Canada ranks last globally out of 100 major central banks. There is precedence in a central bank selling off […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18902,942,103,124,195,374,1865,18792,1226],"class_list":["post-33775","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alex-deluce","tag-bank-of-canada","tag-canada","tag-central-banks","tag-debt","tag-gold","tag-gold-reserves","tag-gold-telegraph","tag-reserves"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33775","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33775"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33775\/revisions"}],"predecessor-version":[{"id":33777,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/33775\/revisions\/33777"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33775"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33775"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33775"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}