I Love the Journal. Wall Street, that is, but Thursday’s front page headline said, “Inflation Eases.”
The lie is that inflation can be ‘cured’ or ‘eased,’ with high interest rates, because it will discourage mortgages, credit sales, and in general, commerce, and that inflation is caused by greedy grocers and retailers, who should be put in jail, as some would have it. Biden’s inflation, has been caused by incredible spending, handouts, debt cancelations, and many ways to increase the currency supply. Not by you and I, but by government and politicians, who increase the currency supply, thereby creating inflation. Remember “Stott’s Law,” “The more of anything there is, the less they will be worth.” This includes dollars.
The damned lie, is that inflation has ‘eased.’ The Journal said inflation is ‘easing,’ since stocks are at an all-time high. I don’t eat stocks. I don’t put stocks in my gas tank. I don’t pay my bill at Home Depot with stocks. I don’t use stocks to care for my yard. I don’t pay for parts for my 83 old pick-up with stocks. I don’t use stocks to write my column, pay my electric, gas, or water bill. I don’t pay for anything with stocks. We don’t go to restaurants, eat and tip with stocks. This web site is not billed in stocks. In my daily life, I am certain that inflation is still at close to 10%. The damned lie is that inflation has ‘eased.’ What percentage of Americans own stocks? I don’t know, but I’ll bet is way under 25%, and this a poor way to measure inflation.
Stocks, are a popular gamble for that under25%. They buy a stock, or one of the 800 ‘advisors,’ buys them for you, or advises you to buy them. If they’re such a wonderful gamble, why are there so many professional advisors who charge you a hefty amount to advise you, or buy and sell for you? Many people have made a lot of reportable money with stocks, but many people have lost their shirts too.
Wednesday’s Journal, told of a fellow who closed his IRA, took the money and bought a waterfront condo in Florida to make his retirement wonderful. He had no sooner settled in, when the condo’s board of directors, decided to improve the outfit’s electricity, water, landscape, and install a new roof. The cost, which of course he had to pay, was more than he paid for the retirement condo, so he had to sell it at a huge loss, and now he has no retirement and no place to live. Had he bought gold or silver, he could have stayed where he was and felt ever so happy with his no payments, no property tax, no social security number, no serial number, and an insurance policy, which will just sit there, going up in ever decreasing value dollars.
Why are gold and silver going up? Will they come down? I don’t know what will happen ten minutes from now, but if I had extra dollars, I would buy gold, because even if it goes down, unless they stop printing dollars, it will always go up, as will silver. The gold-silver ratio, has gone from 86 to 1, down to about 77 to 1, meaning that silver has gone up further than gold. Why wouldn’t I buy silver? Because I already have plenty, and every ounce of gold, is equal to 79 ounces of silver, price-wise, and that requires a lot of storage space. Everyone should have a couple hundred ounces of silver, to barter with eventually.
Are metals going up, because people are afraid of what’s going on now? Biden has started wars since has been in office, and I’ll guarantee you that if Trump had been president, the Russians would have never invaded Ukraine, and Hamas wouldn’t have done October 7th to Israel. Maybe they’re afraid that if Biden pulls out, and RFK runs, it would kill Trump’s election? No one knows, but buying insurance after the fire, car wreck, or illness, is too late. All four of us are here to protect you for 1%.
Maybe it’s because of a comparison I found in an old book. If a theatre has a thousand people in it, and fifty people suddenly leave, what would you do? Probably nothing, but if 300 suddenly left, what would you do? I think I’d leave. If occasionally, a couple hundred people bought gold and silver, would that have any influence on the thousands? Probably none, but if lots and lots of people began buying gold and silver, making the prices go up, what would you do? You decide, but I think that’s a possibility, with gold being over $2400, and silver $31.
One other thing I never thought of, till a piece in the Journal about some crooks stealing gold bars, obviously with serial numbers on them, which had been copied, and were used to catch them. Gold coins have no serial numbers, but gold bars do. Just a thought.
Don Stott – don@coloradogold.com 970-249-4646