Paper money eventually returns to its intrinsic value -- zero. - Voltaire (source)
Gold Continues Rally
Gold is way up in London before New York opens. Remember, gold doesn't go up or down, not really. Not in the long run. Since in 1909 a nice suit in New York would cost 1oz of gold, and a nice suit in New York today will cost one ounce of gold. It's the paper money that always goes to zero.
"You must unlearn what you have learned" - Yoda
True real capitalism can't exist with a paper monetary system based on debt. Ok, with a caveat, while at the same time having a stable population. Sure, it can "work" they will say with growing populations. Why do you think there are so many advertisements for immigration to the US and Canada? They say there are lots of jobs here. Are there? The only reason is for the banks to make profits, since eventually new people will get loans, mortgages, etc. With a stable population of people who own their houses, the paper system won't work.
Play the Board as it is
Somewhere I read in a blog about a boardgame champion on some kind of strategy game. His secret to success was that he played the board as it is, rather than how he wanted it to be, or thought it should be.
The way the board looks right now, is that the US dollar is continuing to go lower, and gold is continuing to go higher.
My bet is that inflation has to happen, if it doesn't, the US is bankrupt. I have been writing about this for years. Debt doesn't inflate. So if you have a lot of debt, then increase the money supply, cause inflation and the debt is easier to manage.
Waging War with a Credit Card
History Repeats Itself over and over, doesn't it. It's different this time! Is what they will all say. Pipelines are being run from the Caspian Sea. This oil is going to go to Western Nations. The Us wanted that oil before anyone else got it. Waging war with debt money, while at the same time expanding socialism in the home country, is a recipe for an empire to self destruct. I had this video from last week so I am leaving it here in case you missed it. Now, the US is going to try to keep things going as long as they can while at the same time expanding the money supply, causing inflation, and eroding savings. Sort of like... "Hey this doesn't seem to be working... so let's continue to do the same things, only try harder!"
There is a small thread of hope in all this. Republicans will win more seats. When they are in control of the Congress and Senate but not the White House they tend to act like real Republicans. Remember the 1990's? If so, that means less spending, less laws and perhaps a short term effect of a stronger dollar. Watch for this to coincide with charts It may be temporary, but a good trade. There is also the real risk of many things happening by Executive Orders, which would be, ahem, not good.
"You Have to Be Your Own Central Bank. You Cannot Trust
the Central Banks of Our Governments Anymore." - Marc Faber
http://www.youtube.com/watch?
No comments:
Post a Comment