Deflation-stealth in '08 shows face in '10
- Thread starter deadbroke
- Start date
And crude oil was $10 per barrel in 1998. Gas cost about $1 per gallon. Do yourself a favor and create a basket of goods and then do some research on what things cost just a decade ago.
And I don't want to hear that b.s. argument that asset inflation is good, as if that justifies the neverending money pump. It's important to remember that just because some baby boomer's house that he bought in 1996 has gone up 5x it's value, that just prices out the next generation from buying that house OR burdens them with an enormous debt load to buy an overpriced "asset".
Deadbroke,
Are you propossing storing cash with local banks (i.e with high reserve to debt ratios) or do you mean hard cash stored in safety deposit boxes, or even buried somewhere like your garden?
As an aside, does anyone have a gold price chart that covers the 1920's and 1930's? I would like to know how gold performed during the great depression.
Doctor, I outlined this clearly in my TA thread (elsewhere too), but since you're a healer, her's a repeat of the gist of the drive ...
You've got to have some money in the banks - they got us hooked on looking after our money for a fee. So this phoney "convenience" is sooo built into the HERD's brain that they think its normal.
Do NOT use safety Deposit boxes at banks or elsewhere. They will be shut-down willy-nilly when the shit hits the fan.
I keep 6k with me at all times for immediate "fck you" money, and several stashes of cash at places/locations I cannot reveal + other holdings in countries that might escape the onslaught - in short, creative "thoughting" of SAFETY and IMMEDIACY of el capital.
If you give this sort of stuff some thought, ideas will swarm in, but the problem is that people have abdicated power to the BANKS so all creative thought was stymied thereafter.
Instead of creativity of the first kind, the HERD opted for creativity of the 2nd kind, aka the worst kind aka CREDIT aka Crucifix-shun
A cigarette is a pinch of tobacco, wrapped in paper, fire at one end, fool at the other.
Banks are an idea backed by confidence, facades/mirages at one end, fools at the other.
Gold price = $20 flat from 1920-1933. AFTER the Depression (which ended in 1932) Gold shot up north to $33 in one month.
That's just fine, but far more revealing that the above is examining Dow Jones priced in ounces of Gold and to do this NOT selectively but rather thru' the entire available history ... see next
For myself but the Doctor is welcome too - ET's band of idiots are also welcome but do I give a fck if they get it or not? Not a single flyin fck.
Dow versus Gold tells the story in soooo many ways, one could write a book on this composite index that would make any FA anal-yst bow before a TA man with head at waist height perenially.
see chart ... and revel in it as the dead and broke one studies it deeper and deeper
There is a concept that I want you to be aware of in the markets - it is called the Law of Alternation - works like a charm even down to the levels of "living under a rock" like most here with their 1-5 min. chart timeframe.
Dow versus Gold tells the story in soooo many ways, one could write a book on this composite index that would make any FA anal-yst bow before a TA man with head at waist height perenially.
see chart ... and revel in it as the dead and broke one studies it deeper and deeper
There is a concept that I want you to be aware of in the markets - it is called the Law of Alternation - works like a charm even down to the levels of "living under a rock" like most here with their 1-5 min. chart timeframe.
NOMINAL Dow (Dow priced in USD) ALWAYS follows the REAL DOW (Dow priced in Gold) sooner or later.
In 1929-32 Great Depression CRASH it followed instantly.
In 1966-82 it went sideways down in an exasperating nerve wracking never ending 17-yr going nowhere syndrome that just about killed everyone 4 times - while the REAL DOW crashed in a vertical dive.
So, from the above we gather that one cannot be sure whether we will get a total vertical dive in the Nominal Dow or the exasperating sideways down consolidation for 17-yrs?
But here is where the Law of Alternation comes in and offers guidance in terms of "the probabilities"
That the REAL Dow is crashing is self-evident. That the Nominal Dow CRASHED and is in recovery mode is also self-evident.
Applying all of the above theory thru' practical observation therefore leads me to believe that ..
Nominal Dow will either go sideways down for 17 or more years OR CRASH vertically vituperously and ingnominiously.
Invoking the Law of Alternation I'd go with the vertical CRASH.
God, do I love it so!!!!
In 1929-32 Great Depression CRASH it followed instantly.
In 1966-82 it went sideways down in an exasperating nerve wracking never ending 17-yr going nowhere syndrome that just about killed everyone 4 times - while the REAL DOW crashed in a vertical dive.
So, from the above we gather that one cannot be sure whether we will get a total vertical dive in the Nominal Dow or the exasperating sideways down consolidation for 17-yrs?
But here is where the Law of Alternation comes in and offers guidance in terms of "the probabilities"
That the REAL Dow is crashing is self-evident. That the Nominal Dow CRASHED and is in recovery mode is also self-evident.
Applying all of the above theory thru' practical observation therefore leads me to believe that ..
Nominal Dow will either go sideways down for 17 or more years OR CRASH vertically vituperously and ingnominiously.
Invoking the Law of Alternation I'd go with the vertical CRASH.
God, do I love it so!!!!