Wednesday 13 March 2013

Cash is Trash, but..................from Rico

Cash IS Trash, but some cash is trashier than others. This Merk 2012 chart of currency (fiat) returns vs. the US Dollar makes the point nicely. - Gold and the Norwegian Kroner stand out as performers, but everyone else here did OK compared to the greenback....except the Japanese Yen. In comparison, this Agora chart of Central Bank balance sheets and the price of Gold should drive the 'trash' point home for you. - Since there is no sign of them stoppng the fiat money printing presses anytime soon (I think they are 'trapped' in the print-to-eternity cycle at this point and will only stop when they have to because the system has collapsed upon itself), this not only argues that (paper fiat) cash IS trash, but it is becoming increasingly trashy and worthless while Gold bullion looks like it will continue it's rise for a long time to come.

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