The Circus Is In Town

A three ring circus is performing – to entertain and impoverish the western world.

Ring # 1:     The Euro tragedy is “extending and pretending” into a Greek drama.

Ring # 2:     Iraq 3.0 is in beta test mode based on weapons of mass propaganda.

Ring # 3:     The conflict in Ukraine is performing flips followed by flops.

Aiding and abetting the circus acts are the global fiat currencies – the dollars, euros, yen, rubles, and what-have-you currencies that central banks print in excess to create the illusion of wealth and solvency.  We have our devaluing fiat currencies or we can invest in a safety net – gold.  It should be an easy choice!

Devaluing fiat currencies:    zimbabwe1

 

Choose real money:      

2006_AE_Gold_Bullion_Hi-Res_Obv

 

To help choose between devaluing currencies and real money, examine these log scale graphs and find their common elements.

P-USgovt

P-SNAP

O-gold 40yr

All three graphs show: 

  1. Long-term well established trends
  2. Exponential increases over 30+ years
  3. The likely future.

The official US gold hoard is supposedly 260,000,000 ounces which represents about $300 billion dollars in current value.  The SNAP program spends that much in about four years.  The US government spends that much in less than 30 days.  I fully expect US government expenses will increase and I fully expect China, Russia and India will accumulate as much gold bullion as possible at these inexpensive prices.

  • How can gold prices remain low when US government expenses and debt increase exponentially, thereby causing the dollar to devalue?
  • Will the next recession and war decrease expenses and debt?
  • Will Asia dump their gold in return for fiat dollars, euros, or yen?

CONCLUSIONS:

  • The US government has consistently increased its expenses from 1980 as shown and since 1913, not shown.
  • SNAP (food stamp) program costs increased erratically and inevitably. This program alone consumes the entire official US gold hoard every four years.  Really?
  • Gold prices have increased erratically and exponentially since 1971. Given the exponentially increasing government debt and ongoing military adventures, gold prices will inevitably reflect the declining value of fiat currencies and rally much higher.

 

Gary Christenson

The Deviant Investor

 

 

9 thoughts on “The Circus Is In Town

  1. We tend to forget history even if we were ever taught the unedited version.
    As an example, during the middle ages, the serfs earned the equivalent of 1 pound British Sterling per year.
    Yeppers, 1 ounce a month or 1 pennyweight a day in silver.
    It was like that for most of recorded history.

    In the USA in 1900, the average wage was $59/month for 60 hour weeks.
    Average is NOT minimum wage.
    In the 50’s, my mother made $200/month as a Licensed Practical Nurse/receptionist.

    Forget about gold as operative money, that title goes to silver and barter.
    Gold was for BIG, BIG deals.

    And forget everything you know about valuing money in terms of currency.
    Money is valued in terms of “what’cha gonna give me for this Mercury dime?”
    Currency is only what is the current medium of exchange for satisfying tax assessments.
    Everyone has a tax assessment, ergo the need to acquire the required medium to satisfy said assessment.

    If it is really money, it doesn’t take the force of government to enforce its usage.
    Real money is respected everywhere.
    “What’s in your wallet?”

    But don’t believe anything I say.
    I am not responsible for you.
    Do your own due diligence.
    Exercise your critical thinking skills.


  2. DI
    Thanks for the information. All right on! Here is my 2 cents worth. Don’t discount a Black Swan and believe me there are any number of them in the making and flying around right now. Stay the course with gold and silver.
    Every time gold and silver drop, I buy more.


  3. An excellent article! Bravo!! What happened to the real silver and gold coins when the government started to replace the metal content of the same denominational coins? Why did many entrepreneurs and others in the old days bite coins that they were to receive as part of a transaction for the sale?

    Regards,

    Ed Wals


  4. Mr. Christenson, I fear that if there is ever an audit of the United States gold reserves that “Mother Hubbard’s cupboard” was not just a fairy tale. I have no doubts that paper precious metals are the same as our fiat currency, a promise and fraud. If currencies worldwide are ever backed by gold again, wealth would have to be measured in grams and grains rather than ounces. At some point the fecal matter is bound to intersect with the air handling device, I just hope my “stack” is large enough to hide behind.


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