With some volatility, the price of gold had tracked the national debt and the debt ceiling from 2000 through 2012. It doesn’t take a goldbug to figure out that if you increase your debt from $5.7 trillion to $16.7 trillion over 12 years by printing paper fiat dollars, those dollars will become worth less in relation to a scarce commodity that has functioned as money for over 2,000 years. The price increase of gold is simply a matter of supply and demand versus the USD.
But something unusual has happened in 2013. The national debt has continued to soar. Just because the government stopped counting on May 21 doesn’t mean it hasn’t continued to go up by $2.5 billion per day. Your government says the national debt stands at $16.747 trillion today, which is $48 billion higher than the official debt limit. In reality, the national debt has reached $17 trillion. By the time Obama leaves office it will be $20 trillion.
Despite the rhetoric in Washington DC, no one will be cutting anything. Obamacare will cost far more than any CBO projections. The economy is in recession, so tax receipts will be far lower than projections. We will surely fight another war or two between now and 2016.
So was the 12 year increase in gold prices that tracked our increase in debt just a coincidence? Does the 2013 disconnect prove that gold prices have no correlation to debt and dollar debasement? Or has there been a concerted effort by the Federal Reserve, the government and the Wall Street banks to suppress the price of gold artificially through the paper gold markets and use of derivatives? Do they know that the price of gold reveals their debasement scheme?
If you believe that artificial suppression will fail and that gold truly is correlated to the amount of debt being accumulated by your political leaders and money printing (QEternity) being done by Ben and his boys, then you will conclude that gold would be fairly valued at $1,800 per ounce today. It will be fairly valued at $2,200 per ounce by the end of Obama’s term.
Do you believe Bernanke and Wall Street will win this battle? Or do you believe the market will ultimately prevail?
LOL..cue one up for the Chatham Police Dep…
Stucky, Admin,
I want to be certain I understand. It’s OK for you to tell me to blow you, But now that I have exposed you to be a habitual masturbator, you want to meet me. I am assuming you want to kick my ass. As the result of your challenge, your ally Admin, probably because I have questioned his position, professes that you have gotten under my skin. This is terrific theater.
First, I am not within 150 of your location. But if I were I would not meet you. As mentioned in a prior post I have been engaged in the fighting sports since 1976 as a stand up fighter, and for the last six years as a ground fighter. Though I approach 63 and my physical capacity has declined, I function at a high level due to conditioning and the efficiency one gains from repeating the same neuro-motor athletic activity. I assist teaching standup and I spar with the head gear every two- three weeks. You probably never had head gear on your head. I roll (BJJ term for sparing) every week. Yes, I am in excellent physical condition. I have more than 40 years of experience, but I would not meet you. As mentioned previously, knowing how to fight, for those are grounded and mature individuals, makes it easy to avoid confrontational combat (as opposed to sport combat), especially when advance skills leave one ripe for a liability claim (me). Furthermore, is posting on a blog a reason to risk one’s life. Have you ever taken a shot to the head” Been knocked out or down? Have you ever broken an extremity or rib in sport, let alone the real deal? It does not sound like you have. You are willing to meet me because I reference your relationship with Mrs. Palm and risk that one of us will sustain serious injury or death (probably you). Despite all these sophomoric antics, you expect your posts to be taken seriously? Oh, that’s right. As Admin stated there are no rules so being taken seriously is not of concern.
Admin, I have never boasted of phenomenal returns. That is your distortion of my posts. I said I made more than I lost, which is hardly self aggrandizement, unless of course, Admin has lost more than he has made. In that case, I understand your rants. You respond to questioning with a chart to support your view, as though charts are meaningful when taken out of context. There are charts and stats to support standing on your head and drinking hot pepper juice as a cure for baldness. perhaps you can present these charts if baldness becomes a topic on TBP. When presented with an argument that runs contrary to your beliefs you go schoolyard. Yet, you accuse me of allowing Stuckey to get under my skin.
This has been great fun. I thought taking a time off to visit my granddaughter and her newborn was going to be 20% joy, 80% boredom. TBP has helped the idle time pass quickly. I cannot remember having pissed off anyone to this degree in a long time. In business, usually negotiation and compromise are the rule. Though I am no longer in an operational executive position, partial retirement, board responsibilities, and the social agenda of the two return next week. I will remain a reader of TBP whenever time permits, but probably not respond or participate in the scrum as frequently. Thanks for the ride.
We haven’t had a pompous ass of Tom’s stature in quite some time. It’s rare to find someone who can say in 5 paragraphs what could be said in one sentence. Make sure to keep us abreast of your model’s predictions and the important earth shattering decisions you make on your boards and social circuit.
Tom gazing into the mirror at himself.
So. we will keep this going until I am on the plane. OK.
Stucky, Imagine how embarrassing it would be to have your head handed to you by someone that’s old enough to be your father. If I knocked you out or choked you out, you got your ass whooped by an old man. If you got lucky and caught me with a Sunday punch (I assume you know nothing about punching let alone kicking), you beat an old man. There is no way you can come out a winner, which is a position you are used to assuming.
Admin, Your choice of a lion’s image is prophetic. You should stay at the university. Real life is full of lions and your thin skin makes you easy prey.
Tommy Boy is a tough guy from the REAL world. He ain’t one of those pansy university academics. He uses models and technical indicators to win his battles. He’s on boards. He mingles in social circles we can only dream about. But in the meantime, he seems to spend an inordinant amount of time on a two bit blog tooting his own horn.
Tom, just before rushing to catch his plane.
Tommy Accomplished is bored. Off to drink some tea.
i am still waiting for your wisdom tom…being a life long eagles fan, getting kicked in the groin for the last 40 years, i am patient for victory. do tell.