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Cock O’ Doodle Doo: Chicken Little Government
Today, gold either goes to $106,354.73 an ounce to reflect its scarce supply relative to fiat assets, or derivative debts collapse to face productive economic reality. We make our choice and take our chance.
Assets are valued by the income they produce.
Heavy gold produces nothing but a hole in our pockets with more market risk than dollars. Gold quickly fell from $850 to $300 in 1980.
Don’t try getting gold coins through a metal detector or international mail or they may be confiscated or lost without proof of ownership or recovery.
Every recent flight to safety over the past year has been into dollars, not gold.
We are very concerned, based on Big4 Weekly Asset Allocation Reports showing more than 2 big money shorts on gold for every long, that Mr Market may become a bad Santa Claus for Gold Bugs.
Goldilocks, after a 20-year bear market from Jan 1980, made five times her money from 2000 to 2009. She now risks an air pocket bubble buying on dips here even with Trailing Sell Stops.
Blind faith rarely works with markets, money or politicians.
Neither Federal Reserve Notes, gold or government are God.
If we don’t know this, let’s learn these vital economic facts like the back of our hand:
GDP growth peaked in early 1984.
The dollar peaked in early 1985 and fell 86% relative to gold.
M-3 money supply growth peaked in early 2008.
Real inflation peaked at 13% in 2008.
Unemployment is currently at 22%; higher in Detroit.
http://www.shadowstats.com/alternate_data
When was the last time we saw or heard economic truth in government monopoly media? Economic wisdom is worth what we pay for it with hard-earned experience, productive income or savings.
