LOOK AT THIS SIMPLE GRAPH. It shows you the performance, since 1972, of the Swiss Franc (the best currency in the world), and gold.
The graph starts at the lower left at zero. Today, the number is approximately 13. THAT MEANS GOLD, OVER THE LAST 40 YEARS HAS INCREASED 1300%! That’s almost four doubles. That requires one double every 10 years. That requires a compounded average of 7.2% per year, for 40 years. And that includes a 20-year period of no growth.
NOW LOOK AT THE SECOND GRAPH. It is the increase of the money supply by the Federal Reserve. That is inflation. They are destroying the dollar right before your eyes and you don’t recognize it.
LOOK AT THE TREND (UP) SINCE 2008. A disaster! And Bernanke says the fed will keep interest rates at zero for the next three years. Yes, hyperinflation will be here in two years.
In the following article, by Dan Norcini, a startling fact emerges. The Fed purchased MORE bonds, since the first of the year, than the Treasury sold! I don’t know how that’s possible, but it’s not good. Are we really monetizing ALL of our debt? Still any dollar bulls our there? Yes, Wall Street is full of them.
According to the Miami Herald, real estate prices in the Miami area are rapidly moving up. Especially for high demand locations and upper crust units. Most of the money is coming from Latin America. Venezuela and Argentina are dealing with currency issues and currency controls. The wealthy want out. Currency controls and rising taxes in socialist countries (in France too) are causing an exodus amongst the well to do. The same could be said for many of the wealthy in the Socialist capital of the US, the state of California. The current administration has no problem with taxing the “rich” and they ARE implementing currency controls. It’s happening all over.
The problem (one of them) as I see it is that if you take more money from the “rich,” then they have less left to spend, which is felt in the economy. This does not encourage job creation. If you re-distribute the wealth, directing it to the largest voting block, those who have the greatest need, the money is not spent on job creation or wealth creation. In fact, a high percentage of the people receiving it don’t even pay taxes. My friend Jim says, “It’s like throwing it down a rat hole.” He is not insensitive, he is being realistic.
We need new jobs, new high paying jobs; not more welfare. But what do I know? I’m only a gold dealer.