Inflation rates spiked to 4.7% in February 2021 highest
since the 4.4% recorded in January 2019. It is also the 5th straight
monthly increase, and follows the 4.2% inflation rate in January 2021. A year
ago, in February 2020, the rate of increase in the prices of goods was only at
2.6 %.
Inflation Rate:
2017 - 2.85 %
2018 - 5.21 %
2019 - 2.48 %
2020 - 2.44%
In the Philippines the volatility of inflation rate was been
caused by factors such as disturbances in agricultural food supply or movements
in international oil prices. Such knowledge is important in the formulation of
economic policy, particularly monetary policy which respond mainly to broad-based
pressure on prices. There is time to prepare for monetary form since we need to
end the inflation.
Since if we observed the law of economics there is no
indication that only gold can be used as money in a free society. But the
matter shows that gold served as the principal medium of exchange.
Fiat currency standard
Dollar is now manage the fiat currency ushered in even
greater inflation, economic turmoil and set the stage for total loss of
confidence in the dollar. The task is not difficult, if we ignore –for once—the
political pressure from the special interest whose demands are fulfilled
through inflation of the money supply. Inflation whether for the benefit of big
companies, bankers, monopoly wages, transfer payments or political careers must
be ended.
Inflation often leads to prices and wage controls which
destroy the pricing system, the planning mechanism of the free economy. The only
reason they could promote inflation would be destroy freedom.
Beginning
in 2010, central banks around the world turned from being net sellers of gold
to net buyers of gold. In 2019, official sector activity declined 1 percent
from the year prior, with central banks adding 650.3 tonnes. This is slightly
lower than 2018 when banks purchased 656.2 tonnes – the second highest level
this century, according to the World Gold Council (WGC).
The top 10 central banks with the largest gold reserves have remained mostly unchanged for the last few years. The United States holds the number one spot with over 8,000 tonnes of gold in its vaults – nearly as much as the next three countries combined.
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| Reference: https://www.usfunds.com/investor-library/frank-talk-a-ceo-blog-by-frank-holmes/top-10-countries-with-largest-gold-reserves/#.YG0WtegzZPY |
15 central
banks made net purchases of one tonne or more in 2019, highlighting the
continued demand for bullion globally. Turkey was the number one buyer – adding
159 tonnes to reserves. Poland made the single largest purchase for the year
when it bought 94.9 tonnes in June.
WGC notes that central banks bought 5,019 tonnes in the last decade, which more than offsets the 4,426 tonnes of net sales from 2000 to 2009. Gold reserves are now only 12 percent below the all-time high of 38,491 tonnes in 1966.
Everyone who believes in freedom must work diligently for
sound money, fully redeemable. Nothing else is compatible with the humanitarian
goals of peace and prosperity. –Cong. Ron Paul
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