Gold v Dow v Theories


COMMENT: I simply needed to remark in your “Countless Propaganda Behind the Greenback.” I attended your 2011 WEC in Philadelphia. I purchased the inventory market utilizing the Dow shares when it was 12,500. Gold was about 1600 and your forecast that the excessive was in place was amazingly appropriate because it fell to just about 1000 after that.

You’ve gotten opened my eyes to the actual which means of Adam Smith and the wealth of a nation is the productive capability not this archaic view of commodity-based cash. I do know mates who even misplaced their marriages over gold.

A few of us goldbugs do hear.

Thanks a lot.


REPLY: The wealth of a nation is its folks and their productive capability. Russia is the wealthiest nation in uncooked supplies, it doesn’t make them the #1 financial system. Germany has saved its old-world financial mannequin of export which can also be a throwback to the olden days.  Germany has been obsessive about the Amount Principle of Cash due to the hyperinflation they completely misunderstood. In consequence, they maintain their taxes very excessive and the German individuals are among the many poorest in Europe regardless of the actual fact they’re the #1 financial system within the EU.

It’s not simply the goldbugs who’ve misplaced, however these theories have screwed up the world financial system. The central banks make use of them to stimulate or suppress our demand, which has additionally failed. Now we have had adverse rates of interest within the EU since 2014 and financial decline. They’ve elevated the cash provide with NO impression on inflation in any respect post-2008. The inflation wave now could be ONLY due to the lockdowns and shortages. It isn’t DEMAND pushed and the greenback is rising, so it’s nothing to do with these outdated theories.

It doesn’t matter. There are individuals who will struggle what I say till the top. On the shut of January 1980, the euro equal was 12285 and on the shut of January 2022, it was 11236 so the greenback has risen not declined. Gold was $653 on the shut of January 1980 and $1796 on the shut of January 2022 which was a achieve of about 175%. Crude oil closed in January 1980 at $20.18 and in January 2022 it was $88.15 which was a few 340% achieve. Wheat for a similar interval was up 65%. However the Dow Jones Industrial Index was 875 on the shut of January 1980 and 35,131 on the shut of January 2022 posting a achieve of 3914%.

Details imply nothing to the diehards any greater than information imply something to the local weather change zealots. Will gold rise? Sure! Does it have a spot in a single’s portfolio? Sure. Silver cash could also be higher for small transactions when there is no such thing as a energy. However what is going to occur is that governments, in a determined act of self-survival, will shut down communications, seize the web, and search to oppress the folks earlier than the federal government falls in the long run. The German Hyperinflation had nothing to do with the amount of cash. In December 1922, the federal government seized 10% of everybody’s wealth and issued bonds that they defaulted on. That “compelled mortgage” started the hyperinflation. Individuals saved tangible property something however money – cash, stamps, artwork, actual property. That’s what 2032 is all about. We get to revamp a brand new authorities from the bottom up.

The Democrats claiming that Blacks are too poor and too silly to have ID to vote is all about creating pretend votes to allow them to win. Even in Mexico to vote everybody has a voter ID with a photograph and a fingerprint with a hologram to stop forgery. So Mexicans are smarter folks than American blacks? You can’t journey with out an ID. You possibly can’t say gee, I’m poor and black, however I have to get on this airplane even when I’ve no ID. That is all complete BS and it’s a determined act by the Democrats to rig the sport to make sure they will stuff the packing containers with fictitious individuals who vote for a dwelling and possibly don’t exist in any other case. I’ve blacks who work for me and it’s a matter of legislation they too will need to have a SS# so the federal government will get their taxes from them.




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