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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: shades who wrote (83735)7/17/2007 6:09:18 PM
From: bart13  Read Replies (1) of 110194
 

Hoover had 1.1 billion printed - but the banks would not lend it, customers would not borrow it, and so he gave up on that idea - so now beat up on me. My original statement still stands - HOOVER printed to the high heavens - but he could not CONTROL where the money flowed - is this not correct?? We can PRINT to the high heavens today - that does not mean GOLD will go to 10K an ounce


I dispute that $1.1B figure. In August 1929, base was about $6.1 billion and the high through March 1933 was about $6.9 billion.

Secondly, M3 dropped during the same period from about $55B to about $42 billion - about $13 billion. That's about 18 times as much as the base increase, and again is not exactly what I'd call printing to high heaven.
Bank credit dropped well over $30 billion, for what its worth.

As far as controlling or not controlling where the money goes when excess money is created, it's still inflation and will show up in most prices eventually. As far as whether gold goes to $2k or $5k or $10k per ounce, there are just plain too many factors and variables to assert with virtual certainty that it will or won't - just like it going back down to $500/oz.

Personally, I feel it will go over $3k/oz for many factual & historical reasons... and feel free to believe what you like.
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