Posted on 10/11/2009 12:16:05 PM PDT by MaxCUA
We know that gold is soaring. And we know the dollar is slumping. But, did you know that year-to-date, while the S&P 500 is up 18% — a great showing, no doubt — gold is up even more? The precious metal is up 21%. In other words, measured in true, gold-backed purchasing power, stocks have really done nothing this year. Zip. It is most disappointing.
I try to be optimistic about better earnings, a stock-market rally, and economic recovery. And I’m sticking to my guns. But what we’re seeing right now is pretty darn close to what we witnessed in the 1970s — the rise in gold and inflation really cuts into the stock market. So what’s the way out?
maybe closer to the 1930s and our debt to GDP ratio is much worse.
I think the difference between the 30s and 70s is that we left the gold-standard in the 70s. Therefore, the value of the currency is due to the backing of the government, rather than the gold reserves. This is how things stand now. The value of the dollar is due to the backing of the federal government. This includes military power and debt.
Obama’s majestic and glorious portrait does not yet appear on any American bills or coins. Until it does, does anyone really think he gives a rat’s ass if the dollar tanks?
No we haven't gotten that far yet but it is coming.
GMA did it. If Obama is determined to make the US a 3rd world nation, he ought to go all the way and do that too.
Exactly the point. And the strategy’s genius.
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