Friday The illogic of the Gold bugs, with their insistence that Gold is measured by paper debt notes, meant that they were blindsided by the fall in the price of Gold subsequent to the US presidential election. Only two things were necessary to know what was coming: 1 That Gold is the measure of value, currencies included, not the measured, and 2 … [Read more...]
The Sage of Szombathely
Sunday For almost seventeen years the world has lived with the threat of the imminent collapse of the paper debt notes system. It has been a fascinating period in humanity’s history. I spent part of the time in the US and part in Europe, just observing the process in the primary spheres of western civilisation. Sure, there have been debt collapses before, with the … [Read more...]
Currency Collapse
Currencies are borrowed into existence by selling bonds, but the value of the currencies is derived from, and determined by, Gold. Today, the value of 1300 US dollar is about one ounce (480 grains). Tomorrow it may cost 500 grains to buy the same 1300 US dollars, or maybe the value will have dropped to 420 grains. Gold establishes the value of each and every currency by … [Read more...]
Be Careful What You Wish For
The ‘price of Gold’ mob are baying – lurching from one bullish article to another with an expectantly rising euphoria. Is this finally it? Are Gold and silver about to go to da moon? I hate to be the harbinger of reality, but Gold is going nowhere. What they are really hoping for is a fiat currency crash. Yes, I agree that this is their fate unless changes are … [Read more...]
Gold and Paper Bugs
For extended periods reality can be smothered by the crowd’s perception of it. In the areas of money, two major misperceptions offer a speculative prediction. The first misperception concerns those with unshakeable faith in the centrally planned system of paper debt notes. They have no awareness of honest money and regard the US$ as the premier investment vehicle. They … [Read more...]