How do you know gold have values?
Because you CASH them out to pay for BK cheeseburgers, RIGHT?
Now, get thinking. In STRONG deflationary system, why would people set aside CASH to pay for non-necessities?
GLD can increase in price when CASH can be set aside and support its price just because it's an alternative investment and it made sense to diversify.
Suppose you say, NAY, this NOT going to be deflationary? HELICOPTER BEN says it so in HIS PAPER.
In a late night supper, Ben sat down with me and told me people should evaluate that in the context of 2001 economy.
YES, there was a MINOR deflation, and it WAS VERY BAD. Much much much worse than say, a small overinflation.
At the time, he would contend and I agree, houses were 10-20% below fair value. That would translate to 1-2T HELICOPTER DROP now, would it? So long as people were made aware with the government support such as Freddie and Fannie.
NOW, LISTEN HARD BECAUSE YOU'RE ON YOUR OWN AFTER THIS:
Were houses really up 10-20% after that, OR was it up more like 100-200%?
Ben closed the comment by saying he was indeed looking at a B-2 bomber strikes as opposed to a surgical Apache driveby he wanted to execute. And now he is just gonna have to do his best to minimize the damage as the economy DEFLATES.
That means no gold bar for you, no Potash, and you shouldn't think bartering with oil when the s* hits the fan.
Here's the song for you to enjoy while lovely gazing that hunk of Potash you put in the living room:
The right enemy
5 years ago