Trophic Cascade…

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Source: Michael J. Ballanger for Streetwise Reports 01/07/2019

Precious metals expert Michael Ballanger discusses the broad markets, Fed action and precious metals.

Unarguably, the finest piece of work that I have ever seen on the state of the global financial world—ever—is the one recently created and presented by Grant Williams of RealVisionTV entitled “Cry Wolf.” I was watching it last evening for the fifth time with my better half (who was watching it for the first time) and despite the fact that as bright and insightful as she is, I could and would not expect her to grasp concepts such as “Exter’s Inverse Pyramid” or the definition of a “trophic cascade” but when I glanced over to gauge her reaction to what might have been fairly glutinous material, to my delight she was glued to the screen as the history of her favorite form of metal unfolded in Grant’s purely brilliant display of 5,000 years of human folly, greed, and insanity.

The coup de grâce was the ending of the piece where Grant draws a phenomenal analogy between the role of the Grey Wolf in controlling the uncontested overpopulation by the deer and elk of Yellowstone National Park and the role of gold in controlling the uncontested overpopulation by the “money-changers” in global economics. The term “apex predator” is wonderfully applied to gold and the Grey Wolf in that there is no natural predator to keep wolves in check just there are no counterparties to the role and control of gold.

When you look at Exter’s Inverse Pyramid, you are looking at a ranking of all assets from the top to the bottom of the risk slope so it is of interest that in the upper half of risk we find none other than real estate, where the city of Vancouver recently reported a 40% drop in residential home sales for December on the heels of a 42.5% drop in November. Prices are down 8–10% in Vancouver and Toronto as the marginal (foreign) has finally been legislated away as depositories for expatriated Chinese capital. Even New York City has seen a 14% decline in sales with an accompanying 4% drop in prices so the world of asset inflation in the saddle of unbridled money-printing and credit creation has come to a resounding and screeching halt—or has it? After Friday’s Federal Reserve Lovefest with Janet Yellen and Jerome Powell all sending out dovish signals, perhaps the December rout has altered policy.

Back to the title of this missive, “Cry Wolf” offers the proposition that a return to the gold standard would create a “trophic cascade” of sorts in the financial world. That is to say, an ecological event in which there exists an “apex predator” at the top of the food chain whose re-introduction (as in the case of the Grey Wolf to Yellowstone) to an ecological system triggers a massive metamorphosis of that system. …read more

Source:: The Gold Report