Nice Clarity On What Many Of US Know and Believe
Not another piece about gold to the moon. Very cogent argument about the dollar going to zero. https://www.zerohedge.com/markets/could-dollar-price-gold-go-infinity
Not another piece about gold to the moon. Very cogent argument about the dollar going to zero. https://www.zerohedge.com/markets/could-dollar-price-gold-go-infinity
Hyperbole from Rickards won’t pass muster in reality, but he’s not completely wrong. The Pound didn’t go to worthlessness over a few years – it took many, many years, even a few decades.
A far better explanation of what’s likely to happen to our reserve currency is found here: http://www.myrmikan.com/pub/Myrmikan_Research_2020_07_13.pdf
Didn’t see any difference in what he is saying. Gold soaring. The dollar has been declining for decades, what’s your point?
Picking out a number ($15,000) without any historical evidence as to how that number might be achieved is so simple “a cave man could do it”. The Dollar is not going to zero in the next few years unless the Fed does what Oliver said: buy up ALL treasury bonds – lock, stock and barrel. That’s possible but unlikely.
The only real difference is the time factor: even the Pound didn’t drop 90% in the space of one year after 1945 when Britain was clearly bankrupted by WWII.
I like both Schiff (he was absolutely right about everything in 2006-07) and Rickards, but they would both have more credibility if they hadn’t been saying this from 2012 to 2015 as the price of gold was cut almost in half. That’s why following the weekly and monthly price patterns and trends can help one avoid a lot of unnecessary pain. And if gold really does go to “infinity” we’ll probably be better off holding MREs, whiskey and shotguns.
Was that last sentence a political one???
Possibly. If gold does go to “infinity” it would seem to imply total economic breakdown, as in Mad Max. If one had all their assets in food, liquor and weapons they could trade these indispensables for gold, which would then recover its greatest utility and value when a true measure of economic stability returned.
Neither one of them takes into account that when the bubble bursts all that “funny digital” money is going to evaporate, and fast. 90%+ markdowns on the value of debt. The FED prints digital money, not actual paper dollars. Hyperinflation only happens with paper money.
If your talking about the current currency whether paper or the electronic bits and bytes credited to accounts it is all part of the money supply and contributes to inflation. When they give you your direct deposit of pay, or ui or stimulus check you use it to buy goods and services. It still is inflationary even if it is not actual paper currency. If you were referring to the future when the FED issues a digital currency to replace cash, it is still fiat and still inflationary UNLESS they back it with gold or silver. If not it doesn’t change anything except give the govt. even more total control over your life.
I use inflation to mean the total of money and credit (net lending).
So when the 49ers found gold deposits in the Sierra, THAT was inflationary. ALSO.
Currency backed by gold doesn’t prevent inflation. It just changes the source (and variability of supply).
“Hyperinflation only happens with paper money”
Hah! We should be so lucky. Central banks have spent $23 trillion in the last decade, driving up the prices for all assets, and that was digital fiat units not currency. Care to invite them to make it $230 trillion?
Why would the bubble ever burst when they can literally do helicopter drops/print money?
The risk is all currency risk, not in the nominal dollar value of assets (which will likely all head to the moon).
Pedro I agree and disagree. I was also responding to AP’s ridiculous comment about hyperinflation only happening with paper money, we both agree that is nonsense. I disagree with you that if currency is truly backed by gold in the way it was for the early part of our history, you don’t really have inflation except for the amount of gold that could be produced in a given period of time. Yes if they use some small infintessimal amount of gold per currency unit then it really is just a sham to create the illusion of a hard currency and of course would still result in inflation and even hyperinflation if enough currency was produced.
Can you show me where we have had hyperinflation via digital money? Hyperinflation is prices rising 50% per month or more, accelerating.
Were do we have digital money as a country’s actual currency? I’m not referring to crytos which are a speculative vehicle but correct me if I’m wrong, what country has digital currency without also having actual paper currency? I believe the two or three examples in recent history would be Weimar Germany, Zimbabwe and Venezuela. None of which had digital currency because they didn’t posses the technology. Just because we haven’t had it yet you can’t say that you can’t have it with digital currency. If we and others keep printing either electronically or actual printing you get hyperinflation eventually. Do you think that by banning paper and switching to digital only that is going to allow countries to just make all the electronic money they want and it won’t have the same effect as paper?