Zimbabwe’s Gold Backed Currency Exposes The Mirage (Uncut) 03-09-2025

Zimbabwe’s Gold Backed Currency Exposes The Mirage

Do you know what the difference is between this $10 trillion Zimbabwe note and this $20 bill from a Monopoly set? Absolutely nothing! And that is the point. What happens when all confidence is lost in the currency? I’ve been tracking Zimbabwe since 2006 and this is the most current iteration so I got to update you on it. And the reason why it’s important to you is because this is what we have in our future.

So if you can see that, hmm, you can be in the right place at the right time with the right asset, meaning physical gold and physical silver. Okay, so Zimbabwe to maintain tight monetary policy stance to boost economic growth. Can I even say what garbage it is? But here is the month-on-month zig Zimbabwe gold because they want you to believe that it’s gold backed, which it’s not, but that’s what they’re saying.

And they’re showing it inflation rates. And oh, look at this area right here. Oh yeah, well hmm, that’s when they did the 44% overnight reset.

Yeah, it’s not working. And by the way, look at how the inflation is going up again. If it truly was back, then you’d be able to take the gold out of the system.

If you did not like what the government was doing, that’s what I’d be doing. I’d be getting my money into gold. I am, that’s not what I would do.

It’s what I have done, but I’ve done it because the U S dollar is no different than this $10 trillion Zimbabwean note, right? A note is a dead instrument. If a government says, aha, this is money. They can also say, aha, this is no longer money.

They can’t do that with gold or silver. So the zig was created back in May. The revaluation was in October and now we got the inflation again.

Hmm. Not very surprising given the base effects caused by the spike in in October, 2024 annual inflation is expected to be elevated from April, 2025 to September, 2024 before significantly moderate. Give me a break.

Would you please, all they’re trying to do is encourage the population to trust the government and this garbage. Do you trust them? No. And I don’t care if it’s in Zimbabwe, the U S Europe, wherever, take your pick, but the monetary position is designed to keep you in the system so they can rob you.

Well, get out of the system. It’s really simple because truthfully really trying to regain that confidence after confidence is lost is pretty close to impossible. So we’re watching this saga to see how it unfolds because this is coming to a theater near you.

This gives you a heads up. So what are they doing? Oh my goodness. They’re introducing higher denomination notes.

Why would they issue higher denomination notes? Because inflation there, the value of their currency is again, being inflated away. And this isn’t just happening in Zimbabwe. It’s happening all around the world.

Despite the RBZs efforts to stabilize the ZIG, the official exchange rate stood at approximately ZIG 26 to one U S dollar on January 13th, 2025. While the street rate remained significantly higher at around ZIG 40. So that’s almost twice the amount.

Retailers have also increasingly abandoned the fixed official rate, adjusting prices in U S dollars to mitigate potential losses from exchange rate fluctuations. You know, what really mitigates that physical gold, physical silver in your possession. So if you don’t have a sound money strategy today, then you need to call us today and get that in place.

And I’m telling you, we are very quickly running out of time. Once confidence is lost, it is almost impossible to get back. And what are they doing? They’re holding interest rates at 35% amid rising currency depreciation.

Why? Because they’re trying to get other outside those entities outside of Zimbabwe to invest in Zimbabwe. That’s why central banks raise rates, right? They raise rates because the only way to fight inflation is with deflation in the country itself. 35% you’re going to borrow money to spend on a business or to spend on anything.

The answer is no. So it slows down consumption in the country, but on a global basis, foreign central banks go, well, wow, that 35% is pretty darn attractive, but not, not because there’s no confidence in that currency. Despite the central bank’s efforts, inflation in both local and U S dollar terms surged in January driven by rising food prices and housing costs.

Hmm. Doesn’t that sound familiar? Inflation in Zig terms rose 3.7% to 10 and a half percent month on month. And of course we know that’s a lie, but, and jumped from two and a half percent to 14.6% in dollar terms over that same period.

So in Zig terms, it only went up 3.7% in dollar terms. It went up 14.6% and they’re trying to run away from the Zig from the Zimbabwe dollar into the U S dollar. Tell me what good it’s doing them.

None. And we’re going to see that because I, I show it to you all the time. Anyway, Zig has lost more than 43% of its value since its launch in April, 2024.

It is just a piece of paper. Actually, it’s not even a piece of paper because you can’t get it in any way in physical form. It is just a symbol, right? It is an intangible instrument.

The currency has continued to decline among my goodness, poor adoption by residents. They don’t trust the Zig. They don’t trust the government.

Do you trust the dollar? Do you trust those that are in charge of the dollar? I don’t. But then again, I’ve been following it on some level, my entire life. Zimbabwean new currency flops, killing dozens of businesses and hundreds of jobs.

Well, it’d be more jobs, but there aren’t too many people that are working in Zimbabwe. Zimbabwe’s desperate measures to keep its new currency stable are proving to be double edged, squeezing businesses to the point of closure and causing job losses. And in the mining sector, this is, remember, the Zig is supposed to be 40% backed by gold, but it’s not really backed because you can’t pull it out.

It is pegged, which is what they always do, which is what is true in the US and everywhere in the world. But mining companies, remember last week, I told you that they changed the rules. Here’s the headline.

Can miners survive another new 70% 4X retention policy that threatens the sector? And what that really means is that they are forcing payment in local currency, which is rapidly devaluing. And miners need to maintain, mining companies now require at least 80% of their foreign currency earnings to meet the increased demand for 4X, which is foreign exchange, and fund their operational requirements. But what I just showed you, they’re talking about keeping 20% in dollars, and you see the dollar is actually going down even faster than the local currency.

Of course, that’s because it’s all manipulation. But with new 70% threshold, miners are forced to give up 30% of their hard-earned 4X, a move that could significantly impact their ability to cover essential costs like electricity, equipment, and operational financing. The demand for 4X can lead to inflation resulting in miners losing their local currency portion to inflation.

But it’s any currency. As I just showed you, and I’m about to show you again, all of the currencies, the fiat money, it doesn’t really matter what it is that you’re looking at. They are all, their purchasing power value is all being inflated away.

And what is the result? Because this is going to happen here too. Zimbabwe, over a thousand job cuts off as retail sector crisis deepens. People don’t have money to shop.

Now I’m not saying 100% of the people, but 90% of their population is in abject poverty. I didn’t say 100% though. Who’s not in abject poverty? Those that own gold and silver.

That’s who’s not in abject poverty. Remember how Zimbabwe allowed the wealthy? Well, anybody could have bought it, but who could afford it? Just the wealthy to buy the physical gold coins. And now, I mean, I can’t find anything about what happened to them.

So it was putting those elites in a position to sustain their standard of living and sustain their purchasing power. This is how wealth transfer their way. The challenges in the retail sector started escalating in late 2023 and have been worsening over the past year until they deteriorated this year.

Wait, when did they do the new currency that was supposed to save them? May of 2024. Did it help? No, it did not. It never helps.

They just want you to think that this time is different. It’s never different. When they lose their jobs, what it means is that they are nose diving into poverty because it’s lack of income at the same time that prices are rising.

On average, this is globally on average, 80% of the population ends up in abject poverty. Why don’t you be the 20% or the 10% that’s in Zimbabwe? Same thing in Venezuela. 90% is in abject poverty.

10% is not. They own the gold. They own the silver.

They can now buy up other income producing assets at a bargain price because all of this real estate, all of this income producing property drops in value. Now empty shelves as Zimbabwe’s retailers prepare to shut down shops. It isn’t just that, but what it is is that they cannot replace the goods for what they were able to sell those goods for.

That’s why they prefer to do it to the US dollar because they think that it’s more stable, but it’s not. Maybe it is the best horse in the glue factory, but all of the currencies are in the glue factory. The problem is that there’s only one way to fight deflation and that’s with inflation.

That’s just with more and more of this until they inflate all of its value away. You better have gold and silver. I don’t know.

Well, let’s look at it because the Zimbabweans are using foreign exchange, US dollars. Here’s that October overnight reset. This is what overnight resets look like, people.

It doesn’t matter where you are in the world. I’ve shown it to you ad nauseum, but in one year, the ZIG to the US dollar, the US dollar was up over 90%. Not bad, but spot silver was up 99%.

So that’s better, isn’t it? That’s better. What about spot gold? Well, let’s see. Hmm.

That was up almost 128% during that same time period. What is really going to protect your purchasing power and your wealth and make sure that you have the right asset to have the wealth transfer your way? What a concept. It’s not rocket science.

It’s actually really simple. I don’t have to be an engineer to understand it. I just have to understand my history because a rising gold price is an indication of a failing currency.

This is the currency failing. This is the currency failing. And it’s also an indication of a looming crisis or an unfolding crisis.

And this is happening everywhere in the world. Spot gold, which doesn’t even reflect the true value of an ounce of gold. It is reflecting the manipulated spot price.

So if you think that this overnight increase that you can see, boom, straight up, if you think that that’s it, no, no, no. What happens is it will ultimately move to fundamental value, which in the US in terms of dollars is in excess of $40,000 an ounce. I know that sounds crazy.

But of course, if you went back to 1900 and this is a $20 gold piece, and you said to the people then that were using this as real money that, hey, you know, one of these days gold is going to be $3,000 an ounce. They go, you’re out of your mind. That would have sounded as insane to them as my sitting here and telling you $40,000.

And that’s not random. It’s based upon how money is created and supported. It’s based on this.

Become your own central bank, just like all the other global central banks are doing. This has the broadest base of functionality and the broadest base of buyers. This is your financial bazooka.

Get it done. And make sure that you watch our latest videos about the debt ceiling disaster that’s looming coming up in March. And we’re pretty close to there right now.

This is going to be a showdown to end all showdowns and will more than likely be the worst government shutdown ever. But we’re going to find out. We’ll know it March 14th.

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Bye-bye.