Evaporation, as an 8th grade science student can tell you, is a cooling process. In dry climates, homes and businesses use ’evap coolers,’ which evaporate water, causing filtered cool air to enter a building, forcing hot air out through a partially open window. When other things evaporate, such as dollars, the result may not be as desirable as water in an evaporative cooler. Such as maybe when $50 million is evaporated a-la-Bernie Madoff’s Ponzi scheme, stock market crashes, and other frauds committed by ’financial advisors,’ sometimes innocently and other times with intentions of robbery. $7 trillion evaporated with the 2000 market crash.
To be a licensed financial advisor, stock broker, or other dealer in paper financial items, it is necessary to do a lot of study, and take stiff tests to show your alacrity. However, passing tests, doesn’t guarantee morality or honesty. In this latest hand wringing episode, the founder of the NASDAQ, and one time president of it, managed to glom tens of millions of bucks out of the more wealthy of America’s business moguls. In order to participate in this investment fakement, a minimum of a million smackers was required, thus screening out us small timers. Thankfully, the million minimum requirement, saved a lot of fools, who would have gladly rushed in where angels should have feared to tread. Several multi-millionaires are now penniless, thanks to Bernie, who is free on bail, having violated but one small law, while taking thousands to the cleaners.
It’s an old story. Used car salesmen telling an innocent gullible, that a car was only driven to church on Sundays by a little old lady, a salesman telling of a lifetime guarantee, tosspots vowing never to drink again, smokers swearing that this is their last cigarette, or wayward husbands insisting on a platonic relationship with the office steno, perhaps. All promises in any field, must be taken with caution and logic. If it sounds too good to be true, it usually is.
Some bubbles, as in the heated tulip bubble of several hundred years ago, the stock market bubble of 2000, or housing bubble we are now witnessing, can usually be predicted. The 1980 gold and silver bubble was predictable, and I urged people not to buy gold when it got to $700, realizing that it was a bubble. I predicted this housing bubble long before it happened, and the stock market crash of 2000 also, and if you go to ’archives’ at the top of this web site, where you will find over 800 of my past columns, you can prove it for yourself.
The dollar bubble, which we are now at the beginning of, is certain to bring on hyper-inflation, and with ever more certainty. More frequently, news casters are saying that ’print more money,’ is where scrip will come from to pay for these absurd programs and bailouts, but failing to tell the rest of the story, which is that they will buy less. We all want security, and people everywhere grasp at every security straw coming down the pike. Few realize that gold and silver can never disappear if held in one’s home, safe, or other secure place of hiding. Gold and silver can never go to zero, will always be beautiful, desirable, and an ultimate place of safety.
Yet, ask anyone on the street if they have any gold, or if they think gold is a safe place to put their dollars, and they will look at you with an absent, brain dead, look. “Huh?” “Buy gold?” “What for?” Oh no! They’d rather invest in a Bernie Madoff type of scam. All they can think of are dollars. Gold, to their programmed brains, are for jewelry only, and not safe, secure, ages old, true money, in which to safely store surplus assets. It’s dollars, dollars, dollars, and dollars without end, in most craniums. No one realizes that you can’t buy a loaf of bread with a stock certificate, any more than you can buy a loaf of bread with an ounce of gold or silver. It is necessary to sell the stock, gold, or silver, in order to buy the loaf of bread, and it’s a lot simpler to sell an ounce of gold or silver than it is to sell a stock!
Want a prediction? Here’s one. Gold will regain it’s $1,000 per ounce previous high, and march higher as each month passes, with occasional corrections, which are normal. Silver will eventually re-gain its 16 to 1 ratio with gold, which means it will go higher in scrip, percentage wise, over the years. Will gold and silver be more valuable, since they will cost more? Of course not! When I was a kid, I could buy a gallon of gasoline for twenty cents, a new tire for $9.95, a new car for $700, a beautiful home for under $10,000, and ride the trolley for a dime, with three tokens for a quarter. The gas is still the same gas, is not worth more, and neither is the home, or tire. THE MONEY HAS GONE DOWN, while the stuff you buy with money remains the same. To secure your economic future, you need to GET OUT OF DOLLARS, and not trust some charlatan with your dollars on the premise of giving you a ten percent return. With our current inflation rate, which is certain to increase, a 10% return isn’t near enough. You need to take your dollars, and buy a tangible thing, which as the dollar ’goes down,’ the tangible thing, will ’go up,’ even though it is the exact same tangible thing.
It’s all so extremely SIMPLE, that a third grader can understand it, but 99.9% of the world’s brainwashed dim bulbs, don’t get it. For their sake, try to educate them for their own benefit, will you? Gold and silver happen to be easily bought, sold, stored, and are historic, real, tangible MONEY, which have always had value, and have never gone to zero. They are not dependent on financial wizardry, government backing, or licensed advisors. Just please use your head for something other than a hat rack, and protect yourself.