What can I say? The guy is right. He’s right almost all of the time, and on this point he is especially right.
To the degree that they can, a few US states are seeking to shore up their finances. Specifically they are moving to make gold and silver legal tender (again). Texas is actually trying to “repatriate” its gold from the New York Federal Reserve. (We’ll see how that goes.)
Let’s do it up. Shoot, why stop at $900 per hour? Just declare prosperity and unicorns will descend from the heavens and poop happiness and we will all die with beatific smiles on our faces. Plus we’ll all have the very best healthcare the dollar can buy before we die. Doesn’t that make you feel good?
The economic tide continues to go out. Inflation continues to creep in. Meat prices are up. Real disposable incomes are down. People still want hamburgers. What is a frozen hamburger maker to do? Horse meat!
What was the best performing stock market in the world in 2008? Zimbabwe.
The stock market is not glittering even as it approaches a new high. Why?
Once one starts to understand metals, one starts to look at economics and finance in a new way. It’s not that gold is becoming more valuable, it’s that the dollar is becoming less valuable. This fundamental understanding is key when assessing what is really going on economically.
Poor mans gold is seeing lots of interest again.
* I gave this speech on April 15th, 2009, in Charlottesville, Virginia. I had forgotten about it, but stumbled across it again today. It deserves a post to ACC.