Posted on 04/17/2008 6:13:21 AM PDT by databoss
Wolf Wave and the Future
Income is collapsing, as is the sentiment of business and consumers throughout the G7. Inflation is in the PIPELINE and the policies necessary to address it are not being considered so it is set to skyrocket, signaling a coming wave of panicked policy responses by poorly prepared public servants who are being counseled by economically-illiterate IGNORAMUSES. What passes for wisdom and economic experience is actually politically correct GARBAGE and recipes for disaster. The solutions to these problems take YEARS to implement and become effective. I shudder every time I hear a leading WALL STREET or GOVERNMENT economist or public servant appear on CNBS.
For over 35 years now the printing press, aka fiat currency and credit creation, have substituted for fiscal policies of growth. Nothing is going to change now. The policies of capitalism and wealth creation passed away with Ronald Reagan and the retirement of Margaret Thatcher. Why is this so important? It is because TRUE capitalism is the definition of disinflation. Capitalism works to reduce inflation, and its underlying result is wealth creation and “more goods and services for less money. This creates SAVINGS and new, hardier competitors/providers replace inefficient established businesses. It is survival of the fittest as defined by Charles Darwin in describing NATURE and EVOLUTION....
(Excerpt) Read more at traderview.com ...
Oops. He mentioned Darwin in his article.
that’s all you can get from the article?
He should have bought some gold and/or silver back in 2000 when it was relatively cheap.
He can still buy $5 silver Canadian coins (selling for about $15 now) They stamp them out daily out of 1oz pure silver blanks.
He can also buy a 2 kilo gold Maple leaf stamped gold disc to keep in his safe for tough times, but those are a bit pricey for the average shmo. There are 32 oz wafers for those with cash flow problems. Like all things more physical, not on paper, order now before they become scarce.
available from the Canadian mint. American Gold and silver coinage is also available. An oz of silver or gold weights the same no matter where you buy it.
No, I got cash and its losing muh money all the time. Wanna trade?
You can’t base the economy of large nations on gold any more than you could run our transportation system on horses. The stuff is totally useless other than as electrical connectors and there are other options for electrical connectors. Actually... you could possibly make shotshell shot out of it with lead being outlawed for waterfowl. That makes two possible uses for it, I’d have a really hard time coming up with a third one.
All the more reason to turn some of it into something a bit harder. You should always have some coinage as part of your portfolio anyways.
teeth?
1960 USA was a small nation?
Seriously,
No, you can't run a nation on it, but when inflation devalues your nations currency, that gold in your safe is suddenly worth a lot more than a promissory note worth virtually nothing.
When hard times come, you are more worried about running your own house than you are running the nation.
Yes it is, but it' more a matter of tying things down "just in case". As i said (and did) the time to buy heavy into gold and silver was around 2000-01. But if you have a lot of cash it's still worth protecting it from rapid devaluation.
I read the article. Nothing but scare tactics. Call it the financial equivelant of global warming.
did you read the article?
so there is no truth in any of it?
A store of wealth.
Economics was a real bear in school, yes?
Gold has experienced a speculative peak as it has before but the trend line is steady and matches M3 pretty well. Read the charts with a 6 month moving average on them and you have a pretty accurate map of where the dollar has been and where it is going.
Maybe, but how often have we seen how traders react to fears and go on a selling spree? Inflation is the #1 'fear', real or not.
Reconstructed M3, the broadest measure of money and credit creation, is clocking in at over 17% growth; using the rule of 72, the United States is doubling the money in circulation every 4.23 YEARS just as a banana republic would do, and it is set to INCREASE. Does anybody suspect this may be inflationary?
Aside from an excess of all-caps words, a worthwhile read for those interested in money and the economy.
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