On the other hand, gold has made a gain of 23% YTD
Precious Metals did not go up as much as the other sectors I posted - you just can't accept that can you? Your paltry 23% is no match for the much more massive returns of the computer algorithm trading various sectors - we are talking 3 and 4 digit percentage returns, not your measely 2 digit percentages - order of magnitude greater. Even Mogambo Guru who only harped gold and silver for the longest time has added OIL to his latest article:
321gold.com
I have been investing in various energy stocks for a very very long time, and also reading mogambo for a very very long time. Even HE has changed his one trick pony, but not you dear General. Admit you were wrong, there were far better investments than GOLD whose percentage returns were much greater. If I was in your shoes and had hoarded lots of gold, I also would want lots of other people to give me thier hard labor for it.
I am glad you bring up management fees and taxes however, this is one of Bogle's main points in being a diehard investor. Compounding over the years of those fees and expenses and taxes really eats away at your long term wealth - some here are discovering that with bread prices and capital gains. That is why I have a lot of vanguard funds/etf's with very low fees and that are very tax efficient. Even Bogle admits we have lost the "soul" of capitalism though and the system is tragically broken - he is very confident however we can restructure things to fix most of the corruption and get things back on track again without your gloom and doom predictions. He has been a major force in getting the specialists/market makers out of wall street and turning it all over to computers.
But now lets get back to your 23% return - again I keep trying to get you to see what you have 23% more of - 23% more green pieces of paper - and I query you time and time again - SO WHAT?
In the end you are ultimately hoping as is Mogambo in his most recent article that someone somewhere in a world panic will take your green papers or gold lumps in exchange for things you consume and need and that the gubbment or other thugs in power will LET you - currently they do - but you are talking TEOTWAWKI where rules change. Bread makers in zimbabwe are being jailed - no one is LETTING them eh?
My grandpa is rolling in his grave at your sillyness. You don't want to WORK or PRODUCE yourself, you want to hoard the labor/knowledge of other men and try to store it in green paper and golden lumps. Russ Winter talks about the extreme version of this person as MR. CREOSOTE - PIGMAN.
I remember my grandpa trading his moonshine for things from his agricultural buddies out in the boonies, things that the rich city slickers wanted to buy, and they had money and gold, but in those times, MONEY even GOLD MONEY was just an extra unnecessary step, grandpa wanted a chicken and the poultry guy wanted some moonshine, now why let jay chen city slicker come in and buy the chicken and eat a small piece of it, then take the gold coin or dollar bill over to my grandpa and buy the moonshine and then my grandpa take the gold coin over to jay and buy the chicken with the small piece missing - dont you get it? ALL MONEY, even GOLD MONEY just gets in the way at that point. It allows the worthless finance people to extract REAL products and services from WORKERS. The workers have been getting the shaft for awhile now though - as production has heavy taxes and you would think we would want to free that as much as possible and instead heavily tax consumption. PIG MEN would not like this though eh? AS they heavily consume and rarely produce.
An unnecessary person and extra step was involved in that transaction - it was during the depression in the USA.
When I was about 6 years old they played this economics cartoon at my school about early MONEY, back in the caveman days. There was this carpenter caveman, he built straw huts, he was bald. There was this barber caveman, he cut hair. The barber needed a house, but the carpenter would never need a haircut, so VOILA, money - a token to represent the LABOR of men was invented - it worked because there were people and services inbetween the barber and bald carpenter that could use both of their services. In times of plentiful resources and labor - money is needed and helps allocations - in chaotic times that you predict - money just gets in the way of men and thier true worth - a PIG MAN having zero skills other than clicking buttons on a mouse is going to be worthless in TEOTWAWKI - even if he has hoarded lots of green papers or shiny lumps of metal - but the man raising chickens or oranges or moonshine - he has WORTH. A man that can take a gun and frighten another man to be a SLAVE, he has no worth but he will have far more than the gold or money hoarder. Notice they are putting zimbabwe bread bakers in JAIL.
I understand your attachment to gold, you want to STORE the labor of men - because your back is getting old and tired and you don't want to raise poultry or make moonshine - but in times of crisis and chaos - ALL MONEY - even gold MONEY fail in being stores of the labor of men, because my grandpa and his poultry buddy busted their balls, and jay chen and his money just got in the way of their TRADE while he lounged around that pool in the nice london hotel. If what you predict comes to pass, I predict the violent agressive military types and the hard workers will be who have the nice things in life - the hoarders of money - even gold money - will not. In the time of Reset, all the hoarders of money and finances, of any kind are exposed for the worthless PIGMEN that they are, and the true WORKERS and PRODUCERS of our planet are RESET to thier true value. My grandpa would have thrown you off his property if you came on his farm wanting to BUY something with money and had nothing you produced that he wanted with your own blood sweat and tears - say an orange or a pig.
Take the bread baker in zimbabwe that wants a haircut, now the barber can involve jay chen and his money in whatever form, or he can just directly barter with the person that actually produces the good or service - I predict things will happen like in my grandpas day if your TEOTWAWKI comes - people will stop using money - even gold money and do far more direct trade. My grandpa told me no matter how much money or gold jay chen stored in his safe 1000 miles away, his moonshine recipe would always be something I could use to survive - hehe. Mish posts for whiskey and gunpowder - that is all you really need - whiskey and a pistol to keep theieves from stealing it - hehe. I dont believe your TEOTWAWKI is coming though, I believe 30 billion people in the future are going to be on some smart card or chip system for doing trade and the labor of thier backs will be stored in some heavily encrypted banking system with lots of computers and AI involved. Their labor is not going to be stored in shiny lumps of metal. |
