Monday Why do you need to hold Gold and/or silver? Ask someone living in the socialist paradise of Venezuela. For 1oz Gold they can buy a house (2oz for a really nice house). For 1oz silver they can buy 3 to 4 months’ worth of food. The narrator sniggers as he imagines how many houses he and his fellow ‘stackers’ will be able to buy when the economy of their … [Read more...]
Wednesday When a long-existing social order begins to crumble, then the old, who know what they are losing, seek to repair and save it, and the young, who don’t, seek to replace it. That generalizes the situation, but it is approximately true. What is galling (to those old enough to know what that word means), is that in the instance of the collapse of our existing … [Read more...]
China’s Great Leap Forward 2.1
Wednesday See 2.0 China is beginning to crack down on tax avoidance with some high-profile, well publicised, targets. This is designed to bring the masses into compliance with the tax code. If it works, it is the beginning of the end. There will be an immediate boost to government revenue, followed by a sharp decline next year. It is the wrong time (is there a right … [Read more...]
Capitalism Equals Wealth Creation – Socialism Equals Wealth Destruction
Monday Let’s not be too hard on the Venezuelan socialists. Yes, it’s been a disaster and has resulted in widespread hunger amongst the poor and untold deaths. But the people did originally vote for socialism, despite all the historical evidence for what would happen. Besides, Venezuela is a minor manifestation of the disease. From the national socialism of Hitler, Mao … [Read more...]
So Why Possess Gold and/or Silver?
Sunday Those who claim that the paper in your wallet/purse is worthless, are exaggerating the case. As long as it can still be exchanged for goods, then it obviously is not worthless. Let’s look at what the real problems are. Paper ‘money’, widely known as fiat, has a value that is very unstable. A long-term graph will show clearly the decline in value of all fiats. I … [Read more...]