Debt can’t grow faster than GDP for very much longer. Either they let inflation run hot. Or they default by suddenly devaluing the dollar. Our guess is they’ll do both. It won’t be the first time.
Good Friday essay Bill. My simple take away on this Friday morning in Michigan is, at 79, stay with a lot of gold, even though it's down 25% YTD, and a large pile of cash. I know the cash is play money but it is what we have to play with in the good old USA. I don't take chances with stocks anymore. Too much risk. BTW, a beautiful house, I hope it's one of your collection.
The Levelling occurs at the lowest common denominator, which is at or near nothing. Did Pol Pot and his associates go without? Did they make do? The fallacy of communism is that when everyone is "equal" and entitled to everything, nobody has anything. We never "learn" this lesson, because those who desire control don't want us to learn it. The rub comes when those who praised and supported the conversion and expected to be one of the In Crowd suddenly find themselves at the wall with guns pointed at them. Best always. PM
Very likely prediction, but doesnt take accounnt of war criminal ‘pootin’who is a born bully like ‘dollar trump’ only more clever & cunning. Whilst europe realises it cannot rely on $T and its citizens now realise the military are out of ammo, equipment and integrated command, whilst pootin’s economy is on a war footing. He can outlast any opposition, hack all communication networks (see yesterday’s trial run) and roll across a few more frontiers. $ trump has neutered NATO, gaining grifting time to build his family silver enough to buy a third term in office.
This is confirmed by the UK gov suggesting we stick up on bullybeef and water - ‘in case the power goes down’.
The last time Russia frightened them they had parish (village) councils conduct exercises on how to cope if an airliner bellyfloped in and they had no outside help or comunications. That was ‘cold war’ speak for enemy action!
All recent UK gov’s irrespective of party have depended on USA military protection & imported food whilst relying on China for most household goods (& now cars). Education, Health and Energy have likewise been neglected for all but the priviledged elite, whilst taxation is ever-more crushing on the middle classes.
One used to enter gov to ‘make a difference’ but now one enters parliament to ride the gravy train as long as possible.
My great-grandfather, Patrick O’Connell, escaped Ireland in 1854 at 11 years old. He came here to be a farm laborer. He saved his money and sent for his mother some years later. But I wonder, where can we escape to when our “potato crops” fail?
I wonder what direction America will take after the inevitable crash? Will a Pol Pot lead the way for us? Or another George Washington?
These are not the retirement years that I was envisioning.
I also agree that is a good essay. But one thing I have wondered about and never heard what I think is a good explanation. Why is gold the "master" investment and silver (or other equally rare precious metals) not considered the same. I'm a retired engineer and quite fairly well invested in silver and manfacturers that product products people need and not just "want". Silver is cheaper than gold to produce no matter the relative value of the paper money you use to keep score but is it because it takes less of the money to keep score? As a precious metal it is equally available and has the basic physical advantages of gold so both would seem to have the same relative value. The only difference I see is the bulk needed to store silver and gold in quantities of the same current paper money used to keep score
Good Friday essay Bill. My simple take away on this Friday morning in Michigan is, at 79, stay with a lot of gold, even though it's down 25% YTD, and a large pile of cash. I know the cash is play money but it is what we have to play with in the good old USA. I don't take chances with stocks anymore. Too much risk. BTW, a beautiful house, I hope it's one of your collection.
Jim Marshall
Levelling the population...
The Levelling occurs at the lowest common denominator, which is at or near nothing. Did Pol Pot and his associates go without? Did they make do? The fallacy of communism is that when everyone is "equal" and entitled to everything, nobody has anything. We never "learn" this lesson, because those who desire control don't want us to learn it. The rub comes when those who praised and supported the conversion and expected to be one of the In Crowd suddenly find themselves at the wall with guns pointed at them. Best always. PM
Very likely prediction, but doesnt take accounnt of war criminal ‘pootin’who is a born bully like ‘dollar trump’ only more clever & cunning. Whilst europe realises it cannot rely on $T and its citizens now realise the military are out of ammo, equipment and integrated command, whilst pootin’s economy is on a war footing. He can outlast any opposition, hack all communication networks (see yesterday’s trial run) and roll across a few more frontiers. $ trump has neutered NATO, gaining grifting time to build his family silver enough to buy a third term in office.
This is confirmed by the UK gov suggesting we stick up on bullybeef and water - ‘in case the power goes down’.
The last time Russia frightened them they had parish (village) councils conduct exercises on how to cope if an airliner bellyfloped in and they had no outside help or comunications. That was ‘cold war’ speak for enemy action!
All recent UK gov’s irrespective of party have depended on USA military protection & imported food whilst relying on China for most household goods (& now cars). Education, Health and Energy have likewise been neglected for all but the priviledged elite, whilst taxation is ever-more crushing on the middle classes.
One used to enter gov to ‘make a difference’ but now one enters parliament to ride the gravy train as long as possible.
Maybe $ trump is just mimicing us, only better?
My great-grandfather, Patrick O’Connell, escaped Ireland in 1854 at 11 years old. He came here to be a farm laborer. He saved his money and sent for his mother some years later. But I wonder, where can we escape to when our “potato crops” fail?
I wonder what direction America will take after the inevitable crash? Will a Pol Pot lead the way for us? Or another George Washington?
These are not the retirement years that I was envisioning.
"Debt can't grow faster than GDP for very much longer".
Why is it not possible to grow GDP faster than debt?
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Seems the doom and gloom could be avoided.
"We the People", or "Them the gov't" may choose not to.
But it could.
Man prints, God laughs.
What did Forrest Gump say, "stupid is and stupid does". The circle continues.
Jim Marshall
Roland Friestad
I also agree that is a good essay. But one thing I have wondered about and never heard what I think is a good explanation. Why is gold the "master" investment and silver (or other equally rare precious metals) not considered the same. I'm a retired engineer and quite fairly well invested in silver and manfacturers that product products people need and not just "want". Silver is cheaper than gold to produce no matter the relative value of the paper money you use to keep score but is it because it takes less of the money to keep score? As a precious metal it is equally available and has the basic physical advantages of gold so both would seem to have the same relative value. The only difference I see is the bulk needed to store silver and gold in quantities of the same current paper money used to keep score
How many readers believe we are headed for hyperinflation?
What do you think we need to buy/own to stay on the sidewalk?