Economics 101 - Miners holding well!
Inflation 101: Inflation is an increase in the amount of unbacked currency in circulation resulting in a increase in prices (price inflation). The world would have us believe that price inflation is inflation. Have you ever wondered why they would do this? If price inflation is the culprit, then consumers can be blamed for spending too much, workers can be blamed for demanding higher salaries, and businesses can be blamed for charging too much. All this confusion and false finger pointing is directed away from the cause of inflation. Think about it from the perspective of the correct historical definition. Who can increase the supply of unbacked paper currency? Only the fractional banking systems and the governments. The currency can also be inflated by easy credit and low interest rates. They never accept the blame for anything, so always point the finger at the citizens. Reminds me of Adam pointing the finger at Eve, and Eve pointing the finger at Satan. We never want to accept the blame for errors or sin.
Since President Nixon removed the last link between the dollar and gold on August 15, 1971, we have had wave after wave of inflation. Until about 1980, gold and silver were the beneficiaries of the inflation as gold went pushed 900 per ounce and residential housing prices went up a good deal due to fancy, cheap financing. In the mid 1980s the foreclosures on houses were up to several thousand a month in Bexar County Texas as many were walking away from houses as the inflated prices began to burst. More recently, we had the excess paper dollars chasing the Dot Com businesses, then residential houses, and now commodities. These were all inflationary generated bubbles which eventually burst. With each burst, citizens lost value, but the "solution" by central banks and governments is always, more inflation.
They operate under Keynesian Economic theory and seem to never learn. Thus, today, the banks and governments are flooding the world with paper currencies which are worth less each day. I suggest that this time the result will be different. First, it is world wide. Second, the dollar has been the reserve currency of the world since WWII, and it has dropped so far in purchasing power that China and Russia are pushing for a new world reserve currency. Thus, the dollar seems destined to lose its advantage of being the reserve currency of the world. Third, for America, we have abandoned our manufacturing industry to the other nations of the world. This time it is vastly different for us if for no other reason. No nation has long existed as a managed economy.
The free market, capitalistic system is far superior. Even the early settlers in America found that out through terrible experience. Under the charter for Jamestown, all produce was to be communal property and distributed to each as each had need. Those who were industrious learned that there were many freeloaders who sat back and enjoyed the labor of the industrious. The colony almost starved to death. Many did die, because there was less and less produce. The system was changed and each family was allotted their own land for raising food. The food supply increased some 10 fold almost immediately and the colony was saved. The same situation was demonstrated in the USSR until each family was allowed to have a garden of their own and the nation was saved from starvation. History has revealed the superiority of the free market, capitalistic system time and time again. But governments tend to give capitalism a bad name and always jump in to regulate, tax, and intervene into the market place and the lives of citizens to the ruination of the nation.
Yes, this time it is different as America is moving rapidly toward total socialism or communism. Perhaps, it will be fascism. It is playing out in this direction at present unless the Lord intervenes to raise up statesmen to replace the self-serving politicians of the day.
Let's look at the markets today. Look at the "free market" action! NOT! That is flagrant intervention by the boyz of the bullion banks at the opening of the NY market to our detriment.
There was some earlier action over night in the silver trading.
To some extent the intervention has spilled over into the miners. We should be thankful that the miners are remaining comfortably above the 50 day moving average which seems to be a resistance line which may not be crossed any time soon.
Here are some of our miners: AUY 9.14; DROOY 7.95; HL 2.82; HMY 10.73; SLW 8.55, and VGZ 1.75. Gold is 935.10 down 2.20 and silver is 13.90 up 0.06.
Rest in the fact that God is in control and working all things for the eventual good of His people. Let's pray that He will raise up statesmen in time to save our nation which was founded amidst a people who respected the word of God. And by many who served King Jesus.
Best to each, Doug
Since President Nixon removed the last link between the dollar and gold on August 15, 1971, we have had wave after wave of inflation. Until about 1980, gold and silver were the beneficiaries of the inflation as gold went pushed 900 per ounce and residential housing prices went up a good deal due to fancy, cheap financing. In the mid 1980s the foreclosures on houses were up to several thousand a month in Bexar County Texas as many were walking away from houses as the inflated prices began to burst. More recently, we had the excess paper dollars chasing the Dot Com businesses, then residential houses, and now commodities. These were all inflationary generated bubbles which eventually burst. With each burst, citizens lost value, but the "solution" by central banks and governments is always, more inflation.
They operate under Keynesian Economic theory and seem to never learn. Thus, today, the banks and governments are flooding the world with paper currencies which are worth less each day. I suggest that this time the result will be different. First, it is world wide. Second, the dollar has been the reserve currency of the world since WWII, and it has dropped so far in purchasing power that China and Russia are pushing for a new world reserve currency. Thus, the dollar seems destined to lose its advantage of being the reserve currency of the world. Third, for America, we have abandoned our manufacturing industry to the other nations of the world. This time it is vastly different for us if for no other reason. No nation has long existed as a managed economy.
The free market, capitalistic system is far superior. Even the early settlers in America found that out through terrible experience. Under the charter for Jamestown, all produce was to be communal property and distributed to each as each had need. Those who were industrious learned that there were many freeloaders who sat back and enjoyed the labor of the industrious. The colony almost starved to death. Many did die, because there was less and less produce. The system was changed and each family was allotted their own land for raising food. The food supply increased some 10 fold almost immediately and the colony was saved. The same situation was demonstrated in the USSR until each family was allowed to have a garden of their own and the nation was saved from starvation. History has revealed the superiority of the free market, capitalistic system time and time again. But governments tend to give capitalism a bad name and always jump in to regulate, tax, and intervene into the market place and the lives of citizens to the ruination of the nation.
Yes, this time it is different as America is moving rapidly toward total socialism or communism. Perhaps, it will be fascism. It is playing out in this direction at present unless the Lord intervenes to raise up statesmen to replace the self-serving politicians of the day.
Let's look at the markets today. Look at the "free market" action! NOT! That is flagrant intervention by the boyz of the bullion banks at the opening of the NY market to our detriment.
There was some earlier action over night in the silver trading.
To some extent the intervention has spilled over into the miners. We should be thankful that the miners are remaining comfortably above the 50 day moving average which seems to be a resistance line which may not be crossed any time soon.
Here are some of our miners: AUY 9.14; DROOY 7.95; HL 2.82; HMY 10.73; SLW 8.55, and VGZ 1.75. Gold is 935.10 down 2.20 and silver is 13.90 up 0.06.Rest in the fact that God is in control and working all things for the eventual good of His people. Let's pray that He will raise up statesmen in time to save our nation which was founded amidst a people who respected the word of God. And by many who served King Jesus.
Best to each, Doug
posted by Doug @ 7:54 AM
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