Re: Now Dow is up 140, but it must go down. No Escaping Inflation
in response to
by
posted on
Jan 28, 2009 11:29AM
Creating value through Exploration and Development in the Sierra Madre of Mexico
Well, just goes to show you how bad I can be at short term market timing. Of course you should have already known this, because I woudn't have bought Kimber at 75 cents or 1.18 if I knew it was going here.
Nothing on earth can stop what will happen, however. I've seen it, and know it. Gold and silver will continue to rise. Maybe not today. Maybe not tomorrow, but they will rise. All is in place for this to happen.
I asked an associate today , "Wouldn't it be great if the government just put a million dollars into everyone's bank account?" "Sure," he replied. I'd pay off all my credit cards."
Amazing! No one can see what is happening. No one can see how that would literally destroy everything our ancestors have worked for.
Such is the power of irrational money creation. "Sure," I said, "You could pay off your credit cards, then you could go to the gas station and fill up your tank for $2,000." It's the age old problem. Destroying the future to "live it up" today.
If we could just see the US dollar as the stock certificate for the USA, it would all make more sense. What if you had a company and did a stock offering and got cash? Well, you run your business poorly, so soon you need more cash, so you just print more stock. The people who get the new stock, don't care. They're getting a piece of something right? They're getting 1/200 a share in the company. But what about the old investors who thought they were getting 1/100 a share in the company. What do they say? They don't say anything, because you don't tell them. And they don't check. And the TRUST you. What happens thirty years later when they show up with their stock certificate and you give them a paper clip in exchange? That's all their 1/10000000000000 share of the company is worth now. That's inflation. That happens. Stock movement forecasts don't work, but like gravity, inflation works. Always, always, always, always, always. There is no escaping it, so don't try. And don't try to follow those who do. Bull