Thursday, 3 January 2013

UP or DOWN, it depends................from Rico

Looking at this chart of Gold vs. Fiat currencies for the past decade, probably the first thing one 'sees' is the double-digit 'rise' in the price of Gold in all currencies represented.
- That is exactly what all the Central Bankers want you to 'see' and that is how the public has been 'conditioned' to see things.

- An ounce of Gold remains an ounce of Gold. It is constant. Unlike fiat currency, it can not be debauched and debased, which is why the Keynesians (bankers and politicians alike) hate it so. It does not change like their funny money does. It cannot be 'gamed' by the crooks.

Look at it instead as 'this is the decline in the purchasing power of these currencies against the constant value of gold in the last decade."
- This is the amount of purchasing power LOST across fiat currencies in the past decade, and this is what you are NOT supposed to 'see' or 'think' because taking this view robs the Central Bankers of their power to rob you.

So, is the price of Gold UP, or is the value of Fiat money DOWN?
- In my view, holding Fiat for the past ten years has been a losing proposition and things are not about to change for Fiat. Got Gold yet?

No comments: