SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.29+0.6%Nov 7 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: energyplay who wrote (56794)10/23/2009 3:21:45 PM
From: Maurice Winn3 Recommendations  Read Replies (2) of 217587
 
There isn't going to be a gold culture. A few years ago we discussed this and at the time, I figured a total money replacement would mean something like $10,000 an ounce and a ridiculous gold hunt instead of doing something useful.

With inflation over the last few years, that figure is probably more like $20,000 now.

As in 1979 when the panic was on, gold spiked. That's happening again. It will be a spike. Currencies will be competitively diluted, devalued and debts destroyed like that, with interest rates zooming. But the currencies will carry on.

In NZ we did it through the 1970s, 1980s and 1990s. Things were then steady for a while but then people went stupid borrowing to make a profit on capital gains of houses. Now they are paying the price. They did that in the 1980s to get capital gains on shares and for 20 years remembered the pain. But a new generation came along and tried the same thing with houses. The house one was already done in the 1970s and early 1980s.

The outcome now will be the same. Those with borrowings will be sad. Those who loaned to them also. Interest rates will go up. Economic activity will painfully adjust as spendthrift borrow and hope ways are adjusted back to Virtuous Victorian Values.

Mqurice
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News