Doomsday Postponed? – Top 9 Theories Behind Gold Proven False
The report put out by MINING.COM on the top 9 stories that drove gold have proven to be false, is a very interesting read that people should take to heart. The real driving forces behind gold will be the top at the upcoming Cycles of War – Gold – Sovereign Debt Crisis on March 21st. Suffice it to say, I have endured the arrows of so many who have argued with me that I am wrong and the dollar will collapse and only gold will survive. I feel sorry for these people who have been sold nonsense that historically has never proven to be correct even once.
I bought all those fundamentals in 1971 and made a lot of money as gold rallied to nearly $200 from $35. All my European friends and the Swiss bankers I knew all were anticipating Gold would soar to $500 for Americans were going to be able to buy it for the first time in 1975. I was in the field. I did not see anyone lining up and had gotten not a single call. But Europeans swore Americans would be mortgaging their homes to buy gold just as they say today about China and India. I sold became I was hugely profitable and I did not see what they saw. Gold crashed falling back to about $100. Gold collapsed by about 50% and I noticed, like today, the fundamentals had not changed. Money was now fiat but gold still declined. The budget deficits were rising. All the same stories existed then as they do today and during the 19 year decline from 1980. ONLY A FOOL will continually argue they are still right and refuse to look at the facts. That decline opened my eyes and I the realized that the rally into 1974 when I was buying on that fundamental news that seemed to make sense. was dumb luck.
That really inspired me to try to figure out what makes everything really tick. Gold had fallen into January 1970 BELOW $35 the official Gold Standard price on the open market that was also no supposed to happen, The rally from there was 59 months into December 1974 just before Gold became legal for Americans in 1975. When Americans were not breaking down the doors to buy gold, the decline unfolded for 20 months before it was over. That fundamental got everyone heated in Europe just as they were convinced Indian and Chinese housewives will over power the NY financial marketplace. Gold then rallied into January 21st, 1980 on the same fundamentals again and everyone just overlooked the 20 month decline. Subsequently, gold fell for 19 years with the very same fundamentals still in place. Obviously, all the argument I have heard meant nothing as we can see again today. So the question becomes – do you want the truth – or do you want to be lied to with someone creating visions of sugar plumbs dancing in your head and a world where you will be the rich and everyone else is broke?
I have been harping on the simple fact that these fundamentals are fools as is the common saying behind the curtain. Fiat is just nonsense because money need not be tangible for its role is purely as a medium of exchange – not as a store of value. It truly is John Law’s paradox of water & diamonds. Water is very valuable and life will not exist without it. Yet, it will not serve as a medium of exchange where diamonds are valuable but have no real would use for the average person (industrial diamonds excluded). It has never been fiat – it has always been purely confidence. There is no empirical evidence that money need be backed by anything. I have continually warned that Empires die by Deflation – not Hyperinflation that is reserved for revolutionary or fringe economics people do not trust. Then there was the spinning story of the Chinese PAGE market that would be a 10 ounce 90 day contract and it will be in China’s currency – the renminbi. This story that became wildly bullish that magically positions would now gravitate to China from COMEX and London because of the lack of title was nothing but gibberish – pure sophistry.
It is time to understand the real driving forces behind gold. Stop being sold a bill of goods for when it is REALLY the time to buy, you will not act because you already heard it all before.
Government Creates Crime Waves?
COMMENT: Marty:
Your blog on prostitution has created quite a stir. I agree with you while I would prefer the profession did not exist, making it an underground affair makes it worse. I watched the movie Taken several years ago, a truly heartbreaking movie.
What I really enjoyed was the graph of homicide with government initiatives implemented at the bottom of the cycle.
L
RESPONSE: I agree it would be nice if girls did not even voluntarily enter the sex-trade. But we have to be practical and understand like markets, they cannot only go up. There is always two sides to a coin. But the correlations are interesting. If you legalized drugs, you would cut off the funding of gangs and then perhaps “some” will find it more profitable to get a job.
I spoke at length with two old Mafia guys. They told me as kids, the looked up to the Mafia during World War I was like a Robin Hood marking sure the people had enough food. They were looked up to in the neighborhood and the two young boys wanted to be respected like them. It was Prohibition that funded the Mafia. It is interesting, but no matter what you do, you make it illegal, and you suddenly create a profitable industry and it will grow. If something is legal, then competition enters and drives down the price. This is why they unions that began over working conditions then winning that battle, converted themselves into confrontational organizations demand evermore money for the same work and they then created their own demise..
It is getting bad in Southern Europe with abductions. I was shocked at the marrying of girls and then selling them into the sex-trade that was becoming widespread in the Balkans. But the correlations cannot be denied. If the sex-trade was not so profitable, then it would fade into history, Look at gambling. They are now legalizing it in many places because the STATE can make a profit. It is always just follow the money.
It certainly seems from the data we review of all countries, the same trend emerges. Making something illegal attached a TAX-FREE status to it and makes it profitable. As crazy as it sounds, make prostitution legal, which will drive the price down, make the profession less attractive, and you will end the abduction trade. The numbers are the numbers. At least then it will be reduced to voluntary, which we will never stop any more than some women will marry just for money or status or men will marry to get a trophy wife..A politician selling his vote to the highest bidder is still a form of prostitution regardless of the field.
Cities Are Reviving Debtor’s Prison Because they Are Broke
The latest trend in this entire saga of the Sovereign Debt Crisis, is that because of fiscal mismanagement, government always turns against the people to sustain their existence. Now they are imprisoning people who cannot pay a fine. This is why we really have no free society. They get to do whatever they can justify in their mind and we have spend money to defend the Constitution.
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