Friday, May 22, 2009

Gold and Silver Are The Serious Bull Markets of This Decade and the Next

Gold and silver have had positive gains priced in virtually all government fiat tokens, every year, since the start of their bull markets around 2000-2001. This is the time period that the general equities markets in the US topped out.

Below is a chart of the Dow priced in gold:



Money, currencies and government fiat tokens have a unit of measure of value (unit of account) as one of their essential characteristics. They are like measuring sticks, like a yard stick. Governments keep chopping off a small part of their measuring stick but still refer to it as the original stick, still refer to is as a full yard when in fact their yard stick is not as long as a real yard. It keeps getting shorter. If you are not aware how their game is played, you might believe that you are making gains by investing in general equities when in reality you are taking losses over a period of years.

Looking at how fast the US government and the Fed are creating fiat tokens (US dollars) out of thin air,



it pays to measure your gains with something more related to reality like gold or silver, the classic measuring sticks for the last 5,000 years or so.

What the Dow priced in gold is saying is that despite nominal gains in the Dow, real gains are negative. This has been going on for about 8 years and still most people in the Anglo Saxon world are clueless as to what the real state of / value of their savings are, and, still have no interest in gold and silver. Truly amazing. Government schools have done a superb job of dumbing down their citizen units which is the whole point to government schools.

What is reality? Most in the Anglo Saxon world are not interested and will pay an awful price for not caring in return for a promise from their government to be taken care of. The wiping out of what is left of the middle class in the US is one example of price to be paid.


Gee! Why would the TPTB (the powers that be) do that? Because...

"People of privilege will always risk their complete destruction rather than surrender any material part of their advantage."
-- John Kenneth Galbraith


The combination of the US Treasury and the Fed have created extra dollars and made payments, extra guarantees and extra future promises of payments of over 13 trillion dollars in less than a year. Heck, M3b is a little over 14 trillion dollars. Eventually, this is a baked into the cake roughly 50% future devaluation of the US dollar. And, it looks like this is just for starters.

Not to worry too much (some worry is justified as a really high gold price means some bad things are going to happen on the ground) for those already properly positioned. "There is no rush like a gold rush". Gold looks like it is a month or two away from heading on up into new high territory.

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