#321 ·
I tend to look at things through an empirical, common-sense lens.
The only thing I actually take Ben Bernanke at his word on is that he won't allow money to deflate—given current monetary policy, that’s practically impossible. They're essentially forced to keep printing just by the way money is created now.
Is there any number too big for them? 15 trillion? 30? 50? 100? I doubt it. At the start, QE was officially set at $700 billion, but it turns out they quietly funneled trillions to banks and corporations globally to bail them out, which really just delayed their inevitable collapse.
The Federal Reserve is making the same mistake as the ECB—thinking they can print their way out of problems when history has proven a thousand times over that you can't. No economic issue has ever been solved simply by printing paper.
I’m not saying precious metals are the only good store of value, but for most people here, they are. For me, the ultimate assets are land with drinkable water and actual knowledge.
The Federal Reserve has clung to one last step to maintain the illusion of safety in Treasury bills—buying them themselves using money conjured out of thin air. If I'm not mistaken, the Federal Reserve already accounts for more than half of all Treasury bill buyers. Mathematically, that illusion has to burst; it’s just a matter of which major player finally shouts, "The Emperor has no clothes!" You can't pretend everything is fine forever. And honestly, you can forget about a semi-normal life in the USA if oil producers suddenly decide to stop accepting the dollar. Dammit, we already have 50 million people on food stamps, unemployment is hovering around 20%, and our industrial base has been gutted and moved to China... how are we supposed to maintain any semblance of normalcy with such minimal systemic changes? I don't see it happening.
Thinking "it doesn't suit anyone, so it won't happen" is just burying your head in the sand.
Besides, precious metals don't even track the money supply. Newly mined gold and silver have only increased by 1-2% annually over the last decade, while paper inflation sits at 9-10%.
Take M1, M2, or M3 and calculate what the price of gold in dollars should be to actually track the money supply—you know, if the dollar were 100% backed by gold.
The only thing I actually take Ben Bernanke at his word on is that he won't allow money to deflate—given current monetary policy, that’s practically impossible. They're essentially forced to keep printing just by the way money is created now.
Is there any number too big for them? 15 trillion? 30? 50? 100? I doubt it. At the start, QE was officially set at $700 billion, but it turns out they quietly funneled trillions to banks and corporations globally to bail them out, which really just delayed their inevitable collapse.
The Federal Reserve is making the same mistake as the ECB—thinking they can print their way out of problems when history has proven a thousand times over that you can't. No economic issue has ever been solved simply by printing paper.
I’m not saying precious metals are the only good store of value, but for most people here, they are. For me, the ultimate assets are land with drinkable water and actual knowledge.
The Federal Reserve has clung to one last step to maintain the illusion of safety in Treasury bills—buying them themselves using money conjured out of thin air. If I'm not mistaken, the Federal Reserve already accounts for more than half of all Treasury bill buyers. Mathematically, that illusion has to burst; it’s just a matter of which major player finally shouts, "The Emperor has no clothes!" You can't pretend everything is fine forever. And honestly, you can forget about a semi-normal life in the USA if oil producers suddenly decide to stop accepting the dollar. Dammit, we already have 50 million people on food stamps, unemployment is hovering around 20%, and our industrial base has been gutted and moved to China... how are we supposed to maintain any semblance of normalcy with such minimal systemic changes? I don't see it happening.
Thinking "it doesn't suit anyone, so it won't happen" is just burying your head in the sand.
Besides, precious metals don't even track the money supply. Newly mined gold and silver have only increased by 1-2% annually over the last decade, while paper inflation sits at 9-10%.
Take M1, M2, or M3 and calculate what the price of gold in dollars should be to actually track the money supply—you know, if the dollar were 100% backed by gold.
