All this talk of cheap gold and silver has got me thinking about this post [note year... 2008]
Message 25042881
Seriously.
Printed money may stay out of circulation for a while during downturns, but only for a while. The politics will make sure it gets into the economy at some point.
The only way out of this mess is to allow wages to increase. There is not any other solution. The bankers shoved us into debt by allowing (deliberately pumping) property prices to increase etc, and naturally a balancing act has to occur. Fuk em if anyone thinks j6p has to pay for all this chit, j6p undoubtedly will suffer during the oncoming depression but the politicians are going to hear all about it. This not capitalism, it's called crooked fuks swindling people. It's one of the outcomes of a fiat currency run by crooked bankers and politicians.
It's a world economy now though. Money can flow anywhere in the world, and can come back in an instant. The more they screw with fiat dollars etc, the faster everyone will convert to gold no matter what the politicians want.
Governments may start using financial exchange controls? I hear some guys like Jim Rogers mention that, but they are not thinking about a modern economy imho. I will like to see how exchange controls work post the internet and the jet age. Black markets will mushroom into a jungle overnight. It would not stop gold from going to the moon either, in fact the opposite imho. Gold confiscation would be a joke for the same reasons. With modern markets, even if all the gold got confiscated, some other commodity will take on the same role, platinum for example. Governments would start losing control of their citizens after a while and the rich ones in particular, not a smart game to play at all.
I will be reading this blog for some ideas.
debtdeflation.com
-lol- see Switzer interview "The Dynamite Award". Greenspan and Bernanke are outright winners.
At the end of the day we still have derivatives and dark markets being played by crooks. Are people seriously going to allow their saving and pensions get tied up into all that crap?? How many times will this work "Oh, I'm sorry, there was a hidden derivative in that market and all your money has disappeared" or "Oh, I'm sorry, your money was tied up in USD's or (worse) GBP's and that currency is worth nothing these days". You can only Enron, Madoff, and WorldCom some of the people for some of the time.The only solution is disposable assets hidden in the mattress or whatever. That is the real pension plan imho. According to everyone who lives in China and India, those disposable assets to own are gold and silver. I am already a convert too so you can include at least one English guy, and probably most people of the Islamic faith.
Money as debt grows exponentially, and in spades recently. Wealth has not been growing exponentially except as an unsustainable bubble, this includes China by several observers. A collision of perceived values is inevitable (a mega revaluation). The bigger the mess, the faster gold and silver etc will appreciate imho.
Stocks and property etc will be nice investments once they have truly crashed, markets have some decent controls, and the jails are full of the real crooks, and when inflation has been allowed to let rip a little. It could be a while before all that has been fixed. |
