In recent days, the stock markets of various countries have plummeted across the board, the futures markets have plummeted across the board, and the U.S. dollar index has risen. Only gold has risen sharply against the U.S. dollar, from the correction low of $737 per ounce on September 11. It rebounded back to the $910/ounce level at the time of writing. These market signals imply that the international financial crisis has entered the third stage.

This round of the largest financial crisis since 1929 will develop through three stages. The main performance of the market in each stage is as follows: The first stage is the financial derivatives crisis, marked by the collapse of subprime real estate mortgage-backed securities and related derivatives. Many financial institutions were affected by this and suffered serious losses or even bankruptcy. The second stage is the crisis of U.S. dollar assets. The bursting of the financial derivatives bubble has severely shrunk the liquidity of U.S. dollars, resulting in a severe shortage of U.S. dollars and leading to a decline in the prices of various U.S. dollar assets. Its main feature is that the stock market has plummeted, and the real economy has been affected. , commodities also turned from bull to bear. In the third stage, the U.S. dollar liquidity crisis evolved into a liquidity crisis in various countries around the world, that is, the U.S. dollar crisis evolved into a comprehensive banknote credit crisis. Its main feature is that countries cut interest rates to increase liquidity to solve the financial crisis caused by excess liquidity, that is, they cut interest rates when inflation rises, and the banknotes of various countries have deeper "negative interest rates." Its main market characteristic is that gold stands out, getting rid of the "gravity" of the commodity attributes of various commodities, getting rid of the "gravity" of various credit currencies, and rising alone... In the later stages of this stage of development, the price of gold It may rise to astonishing proportions. Then it will enter the reconstruction stage of the new global monetary and financial system with gold as the core.

If you look at it from the perspective of gold alone, there are three stages in the brewing and evolution of the financial crisis: first, the US dollar "prisoner" period of gold, that is, the US dollar effectively suppresses gold, and the US dollar that is freed from the constraints of gold is issued indiscriminately; The innovation of financial derivatives is extremely prosperous and crazy, and the price of gold is suppressed; secondly, the currency competition is during which gold acts as a "referee", that is, the euro begins to challenge the U.S. dollar. The competition between the two powers requires a referee, and it can only be gold, so the price of gold begins to rise, and with At the same time, the U.S. dollar debt crisis gradually exploded and expanded; in the third stage, gold's "return of the king" stage, that is, both the U.S. dollar and the euro were hurt, and neither was able to restrain gold. Gold became the last safe haven in the financial crisis, and the price of gold rose at an alarming rate...

Personally, I believe that now is the beginning of the third stage of the financial crisis, and also the beginning of the return of the king of the third stage of gold. On the return of the King of Gold, the heads of banknotes in various countries will conspire to jointly attack gold, and gold is likely to be beaten badly. But they will find that knocking down gold does not even rule out the possibility of shutting down the gold market for a time. Their banknotes will be like kites with broken strings, and the ratio relationship will be very disordered. Because when they lose the unified value reference of gold, they will inevitably secretly print their currencies, compete to depreciate, and pass on the crisis to beggar-thy-neighbor, which can only make international finance more turbulent. At that time, they will have no choice but to proactively or passively ask for gold to clean up the mess, rely on gold to stand high and look far away, regroup the global commercial and economic value, and then build a new system. At that point in time, it was the day when the golden "monetary monarch" was re-crowned.