Posts Tagged ‘gold’

“Give a man the secure possession of a bleak rock, and he will turn it into a garden; give him a nine years’ lease of a garden, and he will convert it into a desert. The magic of property turns sand into gold.” -Arthur Young

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“Americans feel squeezed because the cost of rent, medical insurance, and tuition – as well as other basic living expenses – is rising much faster than their wages. This creates very real problems for ordinary people.

By every measure – including stagnating wages and rising costs – things have been going downhill for the American middle class since the early 1970s. August 15, 1971, to be exact. This is the date President Nixon killed the last remnants of the gold standard. Since then, the dollar has been a pure fiat currency.

The rejection of sound money is the primary reason why inflation has eaten up wage growth since the early 1970s – and the primary reason why the cost of living has exploded.

Measured in gold, wages in the U.S. have fallen over 84% since 1971…. Priced in gold, the minimum wage has fallen 87% since 1968. Note that the federal minimum hourly wage was $1.60 in 1968. It’s $7.25 today, or 353% higher in dollar terms. But that $7.25 buys 87% less than $1.60 did back in 1968. That’s the story you won’t hear from the mainstream press.

Inflation follows a clear a pattern of corruption:  In a fiat currency system, the government will invariably print an ever-increasing amount of currency. This makes prices and the cost of living rise faster than wages. The average person feels the pain, but doesn’t understand what’s happening. More people support politicians who promise freebies. In order to pay for the ‘freebies,’ the government prints more money. This creates even more inflation, and the cycle repeats.”

-Nick Giambruno

Who Owes?

Posted: April 22, 2018 in Debt
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“The dollar (since going off the gold standard) an ‘I owe you nothing’.  The euro as a ‘Who owes you nothing’?  Cryptos can accurately be described as ‘You have no idea who owes you nothing’.” -Doug Casey

“Gold is the currency of kings, silver is the money of gentlemen, barter is the money of peasants, but debt is the money of slaves.”

—Norm Franz, Money and Wealth in the New Millennium

“Indeed, many would say that, without debt, the world couldn’t function. Debt has always existed and always will. However, in eras past, debt often played a much smaller role, and those eras were marked by greater progress and productivity.” -Jeff Thomas

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“Here’s a chart based on research from the Economic Policy Institute that describes the problem. As you can see, productivity in this country grew nearly 250% between 1948 and 2014, but median wages only grew 109%…You’ll also notice that the divergence begins around 1971… the year President Nixon removed the U.S. dollar from gold.

Why? Because paper money doesn’t transmit gains in productivity like real, sound money should.

In short, when the dollar was unlinked from gold, the government was granted the ability to create unlimited amounts of new money. But this money doesn’t flow to everyone equally. It is created in the banks, and then works its way through the financial system before eventually trickling down through the real economy. The result is that asset and consumer prices have risen far faster than wages.” -Justin Brill

My Daughter

Posted: September 14, 2017 in Thought for the Day
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At this point in life I believe this is what I will say to any potential suitor of my daughter.  “I treat my daughter like gold and she means the world to me, if you don’t have the same desire then the sooner you get out of her life the better. Get my drift.”

The U.S. national debt ($19.5 trillion) is:

  • Larger than the 500 largest American companies (S&P 500) combined ($19.1 trillion)
  • Larger than the total combined assets of the world’s top seven money managers ($18.9 trillion)
  • 25 times larger than the value of all oil exported globally in a year ($786 billion)
  • 155 times larger than the value of all gold mined in the world in a year ($125 billion)