In a column of mine April 6 and 13, I posted an idea which is so simple as a way to get over this lockdown nonsense and total bother, that it should be obvious. I tried to get it on the air or in print, other than in my column, but failed, and therefore everywhere we go, everyone is wearing those silly face masks, limiting or prohibiting everything. Restaurants are closed, theatres are closed, churches and schools also, and the economy is non-existent. Those face masks do nothing but possibly contain a sneeze or cough, which no one ever does in public anyway, without covering it. What a waste, and these silly things we see every day wherever we go, do nothing. Why is something so simple and obvious as a magnet to detect a rise in temperature instantly, totally not thought of by seemingly anyone? I have no idea.
Now, we are going to insert into the U.S. system, or what remains of it, probably $4 trillion. Could it have been avoided? Of course, if the Chinese were honest and didn’t lie about everything. The virus would have never gotten out of Wuhan. Is the solution worse than the disease? I think so. Half of those who have the infection show no signs of it, and about the only fatalities are those in nursing homes, or those already sick, have diabetes, old age, or who have little disease resistance, due to smoking, alcoholism, drug use, STD, or what have you. Therefore, everyone suffers, not just those who might have a fatal dose, and who should be treated and isolated. Everyone is isolated, not the sick ones. The others of us might think we have the regular flu or a cold, which like the virus will go away automatically. Hundreds of millions are out of work, whole businesses are bankrupt, many will never re-open again, and my simple temperature testing idea might have saved the economy. One other thing while we are on the damage to our economy: As usual, the dopes in D.C. have made it undesirable for a recipient of help to go back to work. Why? Because the politicos in D.C. are rewarding the out of work, more in benefits than they would have received by going to work. Millions will just stay home and reap the rewards of not working. Dumb, dumb, dumb.
Stott’s Law is really quite simple as most really good things are, and it consists of twelve words. “THE MORE OF ANYTHING THERE IS, THE LESS THEY WILL BE WORTH.” This applies to everything. Antiques, water in the desert, cold in winter, or anything…literally. Model T Fords sold for $275 back in 1927. Millions were sold, and they were everywhere. Used ones sold for under $25, and they were so plentiful that they were crashed, pushed off cliffs, or made huge fun of in silent movies to the laughter of audiences, but could be used to plow fields, saw wood, or even converted into a snowmobile. Today, all but maybe a couple of hundred are long ago scrapped, and the remaining ones can go for $20,000. Cheap or good furniture, today sell for hundreds of times their original cost because most have long ago disappeared. Old bars, soda glasses, telephones, TV’s, radios, books, buildings, and you name it, are worth far more now, because they are scarce. Even old coins and paper money fetch a bundle to those who want to buy one.
Since the national debt will increase by probably $4 trillion, this means that $4 trillion will be inserted into the money supply. There will be more money in circulation, and it will automatically be worth less. This is known as inflation, and there nothing you or I can do to stop it. Protection is our only solution. The word inflation simply means something is inflated. A dictionary definition is, “An increase in the amount of money and credit, in relation to the amount of goods and services.” WW II was fought with credit and un-backed dollars, with the result that in 3 ½ years, prices of everything doubled. During the Revolutionary War, the continental dollar became worthless, due to unlimited printing, and the same with confederate and greenback dollars in the War Between the States. Our dollar has lost, in my lifetime, at least 80% of its purchasing power, and the end for it will be as in all other civilizations, worthlessness.
A railroad historical society I belong to, has announced that they are starting a restoration foundation, and are soliciting money for it. Withdrawals will only be in interest earned, and never the capital. I have offered to donate one ounce of gold, which as the dollar loses value, will retain its value, or in other words go up in dollar price as the dollar’s value goes down. No interest needed, as the value of the gold will far outperform any interest the foundation dollars may earn. I am not sure whether the board of directors will understand basic economics such as my offer, and it wouldn’t surprise me if they don’t. Years ago, I suggested that my pastor’s retirement be in gold rather than dollars, but the church would have none of it. 18 years later, they now know I was correct.
How does this affect you? With $4 trillion being added to the money supply, basic, dictionary defined, economics 101, inflation, will occur, and all prices will go up, including gold and silver. As prices go up in everything, just to purchase the same things, Stott’s Law will be demonstrated. The more dollars there are, the less they will be worth, and of course buy less. An ounce of gold has always bought a good men’s suit, and a couple of silver dimes have always bought a gallon of gas. They still and always will, because they are real money, not paper dollars backed by “The Full Faith and Credit or the Federal Government,” but are self-backed everywhere, in all nations, at all times, and under all circumstances. After WW I, the German Reichsmark went from a U.S. quarter before the war, to requiring a wheelbarrow full to buy a loaf of bread after the war. Can you imagine what an ounce of gold would have sold for then? I went to high school in D.C. on a streetcar and bus for a three-cent school ticket, and the regular fare was a dime with a weekly pass for a dollar. My last theatre was in Lansdowne, Pa. and the regular admission in 1964 was 75 cents. I raised I to a dollar for “Goldfinger.” An ounce of gold or silver is easily sold if you need dollars, but saving in dollars, even under your mattress, is simply foolish. The D.C. swamp has no concept of economics, or if they do, it is put aside to buy votes by promising more handouts from the federal trough by those who eat at it and vote. We have to use decreasing value dollars to buy what we need, but to save in them, is like having a house on Mediterranean, rather than a hotel on Boardwalk in Monopoly!
Don Stott
don@coloradogold.com