Today is “FLAG DAY.” Please fly your flag and be proud to be an American!
I admit it. I read the Journal (Wall Street) pretty thoroughly, and I don’t own a share of stock. Why? Because it is factual, well researched, conservative, and covers everything I need to know about current goings on, both in America and overseas. It has accurately reported what I have said will happen, and that is what the Biden Presidency and assorted secretaries and bureaucrats have accomplished, proving why it is wise to save surplus assets in metals, rather than in banks or other assorted nonsense. A long-time customer of mine, who reads these columns, is a chiropractor, retired, as is my wife, who also is one, came by yesterday, and we chewed the fat for a wile and he said that his last purchase from me, has at least increased in price at least 30%, and he is pleased of course.
One of the world’s largest banks is the Credit Suisse. Who has just lost $5.5 billion of its depositor’s money. How? By loaning a hedge fund many tens of billions. You know what a hedge fund is, don’t you? It is a fund established by a know it all, who thinks he or she is smarter than the rest of us, and can predict what the market will do, and with your money, charging for its services of course. Many hedge funds have worked well for their investors. But Bill Hwang’s didn’t. He set his sights on one particular stock, borrowed, leveraged to the hilt, and it all went down. A paragraph from the long article reads: “What went wrong? A preliminary conclusion is emerging. Credit Suisse’s creaky risk-management system didn’t do their job.” No point is elaborating, because the entire paper wealth, stock, bond, risk, hedge fund, money management industry, is totally based on guesswork. Billions in wages and fees are paid for the guesswork of a few.
You buy gold and silver, which are historic actual money for thousands of years, and are valuable with no guesswork, no yearly fees, no government or hedge fund predictions or political influence, other than to watch it go up in dollar prices, with no guesswork at all. Metals go up as does everything else in ‘inflation,’ whereas the paper money always goes down in value, so why save in it?
In section two of the Journal about which I speak, the headline is “Traders Bet on Return of $100 Oil.” Of course! Biden has made America import oil, and under Trump, we exported it. Biden has stopped all oil exploration and drilling on so called ‘Federal Lands,” (which the federal has no title or deed to), which laid off thousands of employees, truckers, railroad employees, and the whole industry. So, of course gasoline now goes for about $3.25 here in Colorado, I can only imagine what it is in the home of fruits and nuts…California. This is known as ‘inflation,’ caused by an increase in the money supply, which has happened because of the huge amount of money placed into the system by Biden’s wasteful spending. The front page of the Journal has this headline: “Commodity Prices Skyrocket, Adding to Inflation Fears.” ‘Elementary my dear Watson,’ if you’re old enough to remember Sherlock Holmes.
An Editorial’s headline reads; “Latinos Bid Democrats ‘Adios.’” It points out that Latinos have always had a great work ethic, and that Trump’s campaign appealed to them, causing them to vote more than ever for Republicans.
Enough of that. From a column I wrote on July 16, 2004 about the French Revolution and its money. It’s a long column, but briefly, the French had assignats for money. A paragraph from the column. “As a result of the revolution, in 1795, a new type of moderate government was formed, called the “Directorate.” The assignats became virtually worthless by 1796, so many had been printed. They were worth 1% of their original value. Inflation had become run-away, thanks to the printing press assignats. Inflation wasn’t stopped until May 21st, 1797, when all paper money was declared void.”
The same thing has happened here, but over a much longer period . The dollar lost half of its value in 3 1/2 years, during WW II, which was fought with paper money. When I began doing business in precious metals in November of 1977, I was selling Krugerrands for $250, and today, they’re about $2,000. That’s a rise of 800%, or about 18% a year. I still have a few $250 Krugs I suppose. They just sit there in my safe, along with other things, and I can sell them any time I wish for their current price. The $250 ones look exactly like the new ones.
-Don Stott
don@coloradogold.com