“The more of anything there is, the less they will be worth.” This applies to just about anything. Even water. In the Eastern U.S., where it rains anywhere from 40 to 60 inches a year, water is cheap, and usually no one has to water their lawns or irrigate their fields. In the Western U.S., known as ‘high desert,’ where I live, we have maybe ten inches of rain a year, and I get $300 a month water bills for keeping my large yard green. ‘The more of anything there is (water), the less they will be worth.’ I love our 300 days of sunshine and low humidity, but we have to pay for it. Stott’s law in effect, with simple water.
If you love antiques, why are they expensive? Because they haven’t been made for a hundred years or more. Duplicates, made to look exactly like real ones, are a tenth the price of a real antique, because they can be made as the market demands, and the same with original paintings, antique autos, and hundred-year-old homes. If wheat, oil, or any item in common use, becomes in short supply, the price goes up. Stott’s Law, in effect.
Currently, and as long as history can be found, gold and silver have been desirable, and come from ores difficult to find. The western U.S. and western movies, are full of gold discoveries, train robberies, gold dust, and crimes, mostly involving gold and silver. After the ore is discovered, there are several processes which must be used to make the metals beautiful and desirable. After the ore is mined, it must be milled, smelted, manufactured, and distributed, none of which are cheap. Gold or silver in ore is so minute, that the metals rarely can be seen with the naked eye. A piece of gold ore, which has a visible trace of the metal, is known as “high grade,” and is valuable and collectible. If, suddenly, massive amounts of gold and silver ore were discovered, their prices would go down, because they would be plentiful, which will never happen, believe me. Currently, there is no shortage of silver, but our Silver Buffalos, are four months behind, because the mint cannot produce them any faster, even working 24/7, as they are doing. The “Buffys,” as I call them, are very reasonably priced over the spot price, but U.S. Silver Eagles, are not delayed. Why? Because they are made by Union workers at the U.S. Mint, in West Point New York, and naturally, government does nothing efficiently or cheaply. The Silver Eagles, are about $16 over spot, and the Buffys about $4 or less over spot. “Spot,” is the price paid for the ore as it comes from the mine.
Inflation
Inflation harms us all, and its cause is all very simple. The cause of inflation is “Stott’s Law,” which says that the more of anything there is, the less they will be worth, and that includes the U.S. dollar.
A quick review of history, shows us that WW I, was lost by Germany, and no-where else in history, even now, has the loser of a war, been forced to pay for the damage they caused. In WW II, the Japs and Germans lost, and were not forced to pay for the damages they caused. In no other war in history, as far as I can determine, were the losers in forced to pay for the damage they caused, and I am certain that Putin will not be forced to pay for the billions of dollars in damage he has caused in Ukraine. The Germans lost, they were broke, and the only recourse they had, was to turn on the presses, and pay with printed reichsmarks. The German Reichsmark, went from a U.S., silver quarter, to literally requiring a wheelbarrow full, to buy a loaf of bread. Solvent, wealthy Rhodesia, became Zimbabwe, and the money went to zero. The presses rolled.
According to the TV shows, the Biden Administration has spent $9 trillion in the year and a half it has been in existence, and if he succeeds in refunding student loans, that will add another trillion to the handouts. Also, according to the media, Jerome Powell, head of the Federal Reserve, (which happens to be un-constitutional), is ‘fighting’ inflation, by raising the interest rate, now four times. His absurd ‘logic,’ is that by raising interest rates, fewer dollars will be spent, and this will lower the inflation rate. Never in history, has there ever been a larger, more deliberate lie, foisted upon the public, and spread around the world.
As I have written, the dictionary defines inflation, as “An increase in the money supply.” All very simple, and proof of the legitimacy of “Stott’s Law.” If the more of anything there is, (dollars), the less they will be worth, and presto, you have inflation, commonly known as high prices. I’ve mentioned many times the nickel Cokes, ten cent trolley fares, and nickel Hershey bars, as proof of how far down our dollar has gone, thanks to inflation, caused by ‘an increase in the money supply.’ From where did all these dollars come? Not exactly like it was in Germany after WWI, but of the same effect. Biden, his Democrats, and admittedly a few Republicans, have voted for endless handouts from the public treasury, foolish spending, plus increases in government size. When checks are written for the handouts, the money supply is increased, and we have inflation. Biden and Democrats, with not a single Republican vote, passed the nonsensical ‘inflation reducing bill,’ which only increased inflation, as it cost billions, which sum went into the money supply.
The U.S. Debt Clock, points out that the money supply in the year 2000 was $4,900,000,000,000 and now, it is $21,500,000,000,000. Jerome Powell has a degree in politics, and is a lawyer. I have no degree in anything, but I can read a dictionary, and easily see that it makes sense. This is why I wrote “Stott’s Law in 1980, and why it wasn’t done before is a mystery, it is so simple. A marvelous, explanatory book titled, “The Creature From Jekyll Island,” is a must read for everyone who is concerned with inflation and the fraud known as the Federal Reserve. According the book, the first “fiat” (fake) money occurred from 1690 to 1764, when the colonists started printing money, and quickly, there wasn’t ‘enough’ money to go around, so the presses printed more. Within a few years, the inflation was 800% in in Connecticut, 1000% in Massachusetts, and 2300% in Rhode Island. It became worthless. Then we come to 1775, when the money supply was $12 million. $19 million in 1776, $64 million in 1778, $125 million in 1779, and by the end of 1779, the ‘Continental’ was worth less than a penny, and it ceased to exist. The expression, “Not worth a continental,” originates from that currency debacle.
Alexander Hamilton, created the first and second central banks, (Federal Reserves), which were chock full of fraud and corruption, caused huge inflation, and were finally vetoed out of existence by Andrew Jackson. Aaron Burr, executed Hamilton in a duel, one of the best things anyone could do for the benefit of the young United States of America. Hamilton does not deserve a Broadway musical about his traitorous life. Ron Paul, says of The Creature from Jekyll Island, “A superb analysis. Be prepared for one heck of a journey through time and mind.”
How to stop inflation? Stop the federal government from taking in four trillion and spending almost twice as much. Credit cards and mortgages produce dollars out of thin air, as does the Fed, but these are paid monthly, and eventually in full, so they add to the money supply, only briefly, and when paid, that is returned. The Federal Government endlessly spends, and never repays. The dollar, like every un-backed fiat money in history, always has ended in zero value, and it has already lost 95% in American dollars. That’s why you should never save in U.S. dollars.
Our Earth seems to always believe any silly, stupid fallacy which comes along, such as the ‘ozone cloud,’ which has always been in existence, but in 1976, scientists ‘discovered’ that cloud with a hole it, could cause earth warming, and more of the Sun’s rays to penetrate the earth. They also discovered that Freon 12 was having a bad effect on that cloud. The ‘scientific’ solution to their imaginary ‘problem, was to by law, make every refrigeration unit on earth a ‘possible threat to the earth,’ and every refrigeration unit must be evacuated, and re-filled with R134. It cost trillions to change every refrigeration system on earth, and the cloud is still there. Ozone, believe it or not, is .00006% of the air we breathe. Now, it is ‘climate change,’ which is absurd. The climate is not changing. There are thousands of true scientists who say so, but their signed statements are never seen on the media. Trillions are being spent to close coal mines, stop drilling for gas and oil, get rid of wonderful CO2, and build wind turbines and solar collectors, most being made in China. Oh! You mean the wind doesn’t blow sometimes? You mean the sun doesn’t shine occasionally, mainly at night? You mean electric cars sometimes explode, and fire departments have a terrible time extinguishing one? Suppose I want to go more than 300 miles in one? We’re all being sucked into fake alarms propagated by fake or delusional ‘scientists,’ and it is bankrupting the entire earth.
Does Powell’s Federal Reserve have the answers to inflation, by raising interest rates, thereby killing the real estate industry, and sales of any product bought with a credit card? Want to fix inflation? Stop the endless government spending. Neither you nor I can do that, so we just have to protect ourselves from it, by not saving in depreciating dollars.
Don Stott -don@coloradogold.com, or 970-249-4646 for conversation