Sunday, May 14, 2006

"Be Afraid of the Dollar, Not Gold"


[Thanks to bibleetnombres.online.fr for the image.]

These words have got to be one of the best statements I have read recently:

"This is where mainstream economics turns logic upside down. Instead of realizing that the inflation before the collapse of certain industries is the cause, mainstream economics uses econometrics to examine piles of data. The data itself becomes synonymous with the recession, as though nothing in the past helped cause the present circumstances. The recession caused itself. From this thought pattern, it then follows that to adjust those 'markers' of the recession is to provide the cure. If certain industries are collapsing and prices are falling, the government must inflate even faster, argue mainstream economists. It is akin to pushing the mercury in a thermometer down to cure a fever."

This guy gets it. Read the whole article, because he's got it right. I don't know about the price of gold in the near future, but the thinking of this "ordinary" gentleman is as good as any academic economist's ought to be.

Now, why aren't the perfessers on this track as well? Hubris, maybe? Belief that their macroeconomic or econometric voodoo is better than common sense?

PS Discloser: The author of these comments has some connection with a website of a 911 conspiracy theory group that I do not feel I can support without further research. I guess that just goes to show that common sense can be found in the most unusual places, and that you can't judge a cover by its book.

3 Comments:

Anonymous Mark Anderson said...

I see at this exact time gold is down $19. This is the dip, from which it will go back up. This is the time to get some bullion.

1:43 AM  
Anonymous Mark Anderson said...

Boy was I right. It's August 30, 2011, and I made the post about buying gold on the same day Katy posted a link to my commentary (i.e. when it was written).

4:32 PM  
Anonymous Mark Anderson said...

BTW, let me point out that the "connection" to a 9/11 site was links to Alex Jones' site from my site, NoAnthraxVaccine.net. And NoAnthraxVaccine.net was my site that I linked to from my WebCommentary.com bio in 2006.

This article of mine that I wrote in 2006 ended up on the very front and top of Kitco.com. That was a very proud day for me.

10:02 PM  

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