Why Understanding Money is So Important
The spin that gold is money and fist does far more damage than you may suspect. The only way to get gold really through the 1980, which is $2300 adjusted for inflation, requires the majority to get behind it. They look at the facts. Gold declined for 19 years and it was still “fiat”. Gold is declining now and it is still “fiat”. Gold did not rise in proportion to the increase in money supply proving the theory of the quantity of money does not hold up. Gold was $700 in 2007 and money supply increase 375%. Gold should have been almost $2700.
The serious people do not want to hear about fiat, Fort Knox, or systemic manipulations. They are plain and simple – show me the money. So the more wild the stories, the LESS likely you will ever increase the choir and the gold promoters run the risk of causing the flock to lose a fortune and leave.
This is about the facts. Nothing more. When gold is ready, it will not rise all by itself. It must do so with the rest of the markets in line.
Real Estate – The Giant American Fraud
There is a huge difference between buying real estate in America and that in Europe or even Asia. The USA tells you to buy a home for your retirement. But nobody looks at the bottom line. Let’s say you buy a home with a $300,000 30-Year Mortgage. In interest at 4.75% you will pay just under $310,000. However, let’s say your taxes are $10,000 annually. You will pay $300,000 in property taxes. Now you sell your home and get $600,000. Did you double your money net of taxes?
Property taxes are the worst possible tax. They prevent you from retiring in the home you raised your family in because the taxes never end. States like New Jersey are then imposing an EXIT TAX. If you sell your home and go to Florida because you cannot afford the local taxes, they then want a penalty to leave.
You do not pay a cover charge to get in, but you cannot leave unless you pay them. The Feds do the same thing.
It’s all about Timing
COMMENT:
Hello Martin
This will be interesting - stock market UP / economy Down / bonds down / real estate Up / dollar Up Up / taxes Up / gold Down / civil unrest Up / weather cycle - unstable
Wow only a computer could generate this outcome...
ANSWER: Absolutely. The most interesting aspect of the markets that the computer has taught me is that capital (people) move not on the news, but on anticipation, and always each to his own. I mentioned before, and some questioned it, but real estate I said would start to rise when interest rates rose. Immediately some said I was nuts. But people hold back when they see rates declining. They do not rush in to buy. As soon as rates start to rise, they assume it will now cost more to wait so they rush out and buy. The average person is nowhere as stupid as the talking heads. You need RISING interest rate to get the ball rolling – not perpetually declining rates. Inflation will be on the horizon at last. We still have to get past this Eurozone crisis in September. Then capital will begin to make its decisions. Everything in due time – it is all about timing.