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Archive for February, 2013

Silly comment about fiat money and the gold standard

February 13, 2013 Leave a comment

At the end of Peter Schiff’s excellent presentation a weasel asks the obvious but naive question: If all countries are off the gold standard, then even if we go back on it, won’t we just all go back to fiat money eventually anyway?

I ask another question:

Given all fiat systems have had lifespans of around 50 years (or less) and given ours has had a lifespan of 40 years already, how long is it before we return to gold by default?  And given all fiat systems have returned to gold or silver anyway following hyperinflation, what’s to say this doesn’t happen again?

In other words, money goes in cycles.  No trust, a return to gold.  Trust, a return to fiat money.

We have no trust.  Trust is breaking down.

So we will return to gold.

Simple.

Devalued currency, devalued food

February 11, 2013 Leave a comment

How many times have I been screaming that devaulation in currencies and debasement of the monetary unit logically leads to devaluation of the food chain and debasement of our farming base?

How many?

Well, now Europe reaps the whirlwind.  Horsemeat in burgers, horsemeat throughout the food chain.

Of course.  Why not?

It’s just like water in milk.

And debased QE.  And depreciated currencies.

It’s all the same.

Trust is shot throughout the economy.  Desperate people doing desperate things to try to keep supply up when no one (no one) can supply with these kinds of low prices destroying the incentive to produce real food.

Those few who go to five star restaurants can be assured of their red meat.

The rest of us must be content with horse and rat meat.  Eventually.

Why isn’t she dead?

February 8, 2013 Leave a comment

Conspiracy theorist tells truth.  Strange.  People like her end up dead.  Why isn’t she already?

Stockmarket blues

February 5, 2013 Leave a comment

OK I missed the recent run up in stocks but I’m on the train now, waiting to get off when it runs off the rails.

Why?  Simple.

Earnings are flat – or down.  This “run up” is purely about increasing the P/E multiple across the world.  That means stocks are simply more expensive?  Why?  Because money printing and zero interest rates have allowed banks and speculators to still make money off 2% dividend yield.

But that can’t last forever.  20% returns on stocks when earnings are flat or growing at 2% ain’t gonna keep happening short of hyperinflation.

The stockmarket is like a boxer boxing Mike Tyson.  They dance around.  But eventually reality hits them on the head.  The world is Greece.  That’s the king hit.

I was right to recommend shorting Apple.  I will be right on stocks collapsing again medium term (in real terms, against gold).  When?  Probably next year.

Hyperinflation is happening … in bonds!

February 4, 2013 Leave a comment