An example of it is this - you can’t fix the value of money to gold and allow everything else to float at the same time, which was the idea championed by John Maynard Keynes, the British economist and Cambridge university professor who looked like an NFL coach about to be fired.
To his credit, late in life he admitted that it was all a mistake.
Today there is an army of advisors telling you to buy gold because it will go up a lot, like to the moon very soon, 20K an ounce at least. The real question is – where will everything else be?
A Porsche 911 was about $28,000 back in the 80’s, $25,000 if you got a deal, and real estate was a fraction of what it is now. Gold’s price rise didn’t outnumber the other assets in the slightest.
Meaning, the gold promoters don’t understand the concept of money.
Well, I do, and I have put a lot of work into understanding it. Money is a mental concept, has very little to do with what’s backing it up.
Now, skipping forward, the government’s management of this covid crisis is like “Dumb and Dumber” movie, and it really bothers me.
“What’s going on?”
“We don’t really know”
Which is the worst possible answer.
“We shut down the economy just in case.”
Sure, ruin people’s lifes some more.
The money hoarding by the population is the problem that makes inflation impossible, which is crucial to get the governments debts go away, so the question is this – how do you move the money back to the banks?
The government wants it in the banking system, so they can keep making loans and multiply it causing inflation. The commercial banks multiply money, that's how inflation happens.
Answer is – go all digital, way easier to control the flow of capital.
Inflation is what everyone wants, we just can’t get it. Reason being – people would spend now if they think that the prices are going up. Do you see this trend around you? Are the car deals going up or down?
Switching pace, dr. Fauci of the Center of disease (CDC) “fame” just asked Americans to cancel Christmas. He said, “…it’s just one of those things you’re going to have to accept.” He wants all Americans to “painfully” isolate.
First, not just no. But “HELL NO.” This is America. This is a free country. If we want to celebrate Christmas, we will. If we want to go to church, we will. If we want to spend the holidays with our children. we will. We’re adults. We make our own decisions. This isn’t a Nanny State. It’s not the old Soviet Union. It’s not Nazi Germany. We don’t need government bureaucrats telling us what to do, how to live our lifes, or how to spend the holidays.
Second, Fauci is a typical Ivy League egghead. Too smart for your own good. You have IQ, but clearly no common sense.
The thing that would be proper is that the governments should advise the public about the health thread and suggest ways to keep safe. But the clerks have no business in closing firms and imposing lockdowns.
It makes me miss simpler times,
Like, back in the day I was boxing hard in this police club in a city in the west of Poland, and I would show up beaten up after Friday’s evening fights and my wife would say -“you look like shit.”
“You should see the other guys.”
Tom Kubiak is the author of The Traveler