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Good work Tyler et al....
Alexander the Great, tutored by Aristotle, perhaps the richest and most powerful man in the world before the
age of 33, was interred in a gold sarcophagus and solid
gold casket filled with honey and transported by
a solid gold chariot to a solid gold mausoleum in
Memphis. It did not take long for various Ptolemy successors to steal the gold and move the body to Alexandria to put it on display under glass, with gold thefts every time it was moved or displayed.
Practically every war included the surreptitious
movement of gold from the vanquished to the conquerors,
providing stories of Chinese, Indian, Mesopotamian, Egyptian, Israel, Knights Templar, Arabic, Spanish, French, Revolutionary, Civil War, Philippines, Nazi, Korean, Vietnamese and Iraqi gold hoards accompanying inflation.
Since gold is ultimate money and power, is it any
surprise Mercantilist Bankers and Treasurers tried for
many thousands of years to get or control it?
China, the leading surplus nation, gold producer and fastest growing exporter, is only the latest in the
past 5000 yearsm bringing the cycle to conclusion.
Like the Chinese Olympics economic crash last Fall, the controlled Chinese economy may not survive the 6 October 60th Commemoration of Mao Communists coming to Power in 1949.
We currently think the biggest golden rain surprise of
all to johnny come lately gold bugs may be that gold goes down in deflations while scarce dollars go up.
Only if/when we see crisp new large bills in circulation with soaring interest rates might this change. Has anyone wondered why the Gold Eagle OZ has a $50 denomination and the official price of gold is still 42.22?
Would it be interesting and perhaps unexpected to see such severe deflation from the collapse of the debt empire that gold head south toward the Gold Eagle or Official Perice.
"We currently think the biggest golden rain surprise of
all to johnny come lately gold bugs may be that gold goes down in deflations while scarce dollars go up.
Would it be interesting and perhaps unexpected to see such severe deflation from the collapse of the debt empire that gold head south toward the Gold Eagle or Official Perice."
Ridiculous. Severe deflation will be met with severe inflation. Gold at $50? Smoke another one.
The public has lost confidence in the banking elite and political class to defend their rights or to preserve their purchasing power.
They view fiat currency as an instrument whereby their labour is extracted from them. They endure this inflation and its drips'n'drabs while an economy expands and so long as it is a miniscule "tax". But when TPTB have repeatedly shown no respect for an individuals right to preserve his estate from swift, arbitrary, and large expropriations via fiscal and monetary policy, they refuse to hold that which erodes their wallet and lifestyle.
The fragility and instability of the financial system has led to leadership showing open contempt for its citizens. We are tolerated to the extent that we submit to their caprice, and to the extent that we quietly endure their predations. The dollar, the sovereign bonds, the equity markets all have broken the boundaries which should define their natures. They have been appropriated to further the ends of the state, and none demonstrate adherence to the underlying laws which SHOULD govern them. They have become a law unto themselves; and playthings of self-appointed wizards.
The capital markets have been prostituted to the whims of power and cannot be relied upon to fundamentally reflect the rational expectations of economic behaviour. The bond markets which should fail, or have interest offerings find their equilibrium through free exchange, do not. They have too become playthings. And the currency, most of all, cannot be held with any confidence. Men realize that moment to moment, the paper scrip can be universally devalued. It cannot be held overnight anymore than the superspeculative stock traders dare.
GOLD however is independent and (except at the margins) is beyond the reach of the idle predator class.
It will allow one to manage one's estate without the constant fear of state intervention and probable state seizure of the stored dead works of past years.
Money and Inflation 1930's
To provide an estimate of inflation we have given a guide to the value of $100 US Dollars for the first year in the decade to the equivalent in todays money
If you have $100 Converted from 1930 to 2005 it would be equivalent to $1204.42 today
In 1930 average new house cost $7,145.00 and by 1939 was $3,800.00
In 1930 the average income per year was $1,970.00 and by 1939 was $1,730.00
In 1930 a gallon of gas was 10 cents and by 1939 was 10 cents
In 1930 the average cost of new car was $640.00 and by 1939 was $700.00
A few more prices from the 30's and how much things cost
Firestone Tyre 1932 from $3.69
Single Vision Glasses 1938 $3.85
Complete Modern 10 piece bedroom Suite $79.85
Steak 1938 1LB 20 cents
New Emerson Bedroom Radio 1938 $9.95
Shaefer Pens 1933 from $3.35
Plymouth Roadking Car 1938 $685
Emmerson 5 tube bedroom radio $9.95
Howard Deluxe Quality silk lined hat $2.85
Chevrolet 1935 Master Deluxe
New Master De luxe Chevrolet with improved master blue flame engine, pressure steam oiling , cable brakes and shock proof steering $560
Example of a house for sale
1934 Stucco Bungalow Oakland
California 5 room stucco bungalow , breakfast room , separate garage, delightful location $3,750
Mens Shirt $2.50 Ohio 1932
Ladies Wool Flannel Robes $3.95 Nebraska 1934
Ladies Winter Coats $16.00 Indiana 1937
Mens Quality Overcoats $15.00 Indiana 1937
Ladies Oxfords Shoes $2.44 Indiana 1937
Mens Slacks $3.98 Indiana 1937
Womens silk hose 49 cents Ohio 1933
Boys overcoat wool 8.69-11.98/each From $ New Jersey
Boys pants and breeches, corderoy From $1.98 New Jersey
Boys school suit, From $7.94 New Jersey
Girls hose (tights), woolen, From $25 cents per pair New Jersey
Men s shirt, Arrow, From $1.45 New Jersey
Men s sport coat, /each From $19.98 New Jersey
Women s dress shoes, From $3.45 New Jersey
Women s suit, 2 pieces, From $6.98 New Jersey
Mens Sox 10 cents ohio 1933
Ladies Sandals 98 cents Maryland 1939
Boys and Girls Underwear 49 cents Maryland 1935
Mens 2 Piece Suit Double breasted $19.75 New York 1935
Howard Deluxe Quality silk lined hat $2.85 New York 1935
Sheeplined Moccasins 79 cents Ohio 1935
Fancy Broadcloth Pajamas $1.89 Indiana 1937
Mens Lined Gloves 98 cents ohio 1935
How much electrical goods and appliances cost in the 30's
Electric Toaster $9.95 New York 1932
Electrolux gas Refrigerator $144.50 North Carolina 1939
Westinghouse Cleaner with attachment kit $39.95 North Carolina 1939
Westinghouse Wringer washing machine $59.95 North Carolina 1939
Tappan Gas Range $69.95 North Carolina 1939
Emmerson 5 tube bedroom radio $9.95 Ohio 1938
Philco Auto Radio $24.95 Ohio 1938
Electric Flat Iron $1.49 North Carolina 1935
Electric Movie Projector $3.95 North Carolina 1935
Kelvinator Washer Wringer Price $54.95
Tappan Gas Range With glass door which allows you to see your cooking , split oven and flexo speed baking $109.75
New GE Thrifty Six
Fridge Six Cubic Feet all steel cabinet stainless steel super freezer $149.75
With built in Ariel Tuning system with ultra high fidelity and able to pick up stations from countries around the world and Police, Air, and shipping $188.00
How much food and groceries cost in the 30's
Shoulder of Ohio Spring lamb 17 cents per pound Ohio 1932
Sliced Baked Ham 39 cents per pound Ohio 1932
Dozen Eggs 18 Cents Ohio 1932
Coconut Macaroons 27 cents per pound Ohio 1932
Bananas 19 cents for 4 Pounds Ohio 1932
Peanut Butter 23 cents QT Ohio 1932
Bran Flakes 10 cents Maryland 1939
Jumbo Sliced Loaf of Bread 5 cents Maryland 1939
Spinach 5 cents a pound Maryland 1939
Clifton Toilet Tissue 9 cents for 2 rolls Ohio 1932
Camay Soap 6 cents bar Ohio 1932
Cod Liver Oil 44 cents pint Wisconsin 1933
Tooth paste 27 cents Wisconsin 1933
Lux Laundry Soap 22 cents Indiana 1935
Suntan Oil 25 cents Pennsylvania 1938
Talcum Powder 13 cents Maryland 1939
Noxzema Medicated Cream for Pimples 49 cents Texas 1935
Applesauce 20 cents for 3 cans New Jersey
Bacon, 38 cents per pound New Jersey
Bread, white, 8 cents per loaf New Jersey
Ham, 27 cents can New Jersey
Ketchup, 9 cents New Jersey
Lettuce, iceberg, 7 cents head New Jersey
Potatoes, 18 cents for 10 pounds New Jersey
Sugar, 49 cents for 10 pounds New Jersey
Soap, Lifebuoy, 17 cents for 3 bars New Jersey
Sugar $1.25 per 25LB Sack Ohio 1932
Pork and Beans 5 cents can Ohio 1932
Oranges 14 for 25 cents Ohio 1932
Chuck Roast 15 cents per pound Ohio 1932
White Potatoes 19 cents for 10LBs Ohio 1932
Heinz Beans 13 cents for 25oz can Ohio 1932
Spring Chickens 20 cents per pound Ohio 1932
Wieners 8 cents per pound Ohio 1932
Best Steak 22 cents per pound Ohio 1935
Pure lard 15 cents per pound Wisconsin 1935
Hot Cross Buns 16 Cents per dozen Texas 1939
Campbells Tomato Soup 4 cans for 25 cents Indiana 1937
Oranges 2 dozen 25 cents Indiana 1937
Kellogs Corn Flakes 3 Pkgs 25 cents Indiana 1937
Mixed Nuts 19 Cents per pound Indiana 1937
Pork Loin Roast 15 cents per pound Indiana 1937
Channel Cat Fish 28 cents per pound Missouri 1938
Fresh Peas 4 cents per pound Maryland 1939
Cabbage 3 cents per pound Maryland 1939
Sharp Wisconsin Cheese 23 cents per pound Maryland 1939
Theft via inflation????
Wow! Thanks for posting this! :)
Yeah, but a Laptop would have run a couple-three billion back then. Look how cheap they are now.
I agree with most of your numbers but back then gold was 25 dollars per ounce. Today it is 40 Times that. Mulitply everything by 50 and you will see why the middle class is being wiped out.
Well..... Even if it goes back to what you predict.. let's see what one could purchase with this gold back then...
$1000 as the true, free floating price of gold? Ha! Priceless.
Its all in how you frame it. some might be as bold as to say the price of gold should be higher, but some are keeping it lower to mask the devaluation of the dollar through inflation.
Suppose the above is true re CB's keeping gold at bay (it is) what would the price of gold be then, priced in Us fiat currency? hmmmmm.
today seems appropriate to shamelessly plug my magnum opus...
Gold and Systemic Crisis!
I think someone was out just to prove this implied correlation wrong today. This was an 'Everything Goes Up' day. Dollar, equities, bonds, commodities (mostly). Seems like something is missing though... oh yes, volume.
That'll teach everyone not to go against the market just on a dollar rally? Let me know when every last bear is shaken out of their hedges; it must be getting close.
Why didn't Joe Hagan break this story?
Cause he gives anon blowjobs (known as Joe Blow) in Goldman Sacks urinals and calls it journalism?
STUNNING.... But not surprising
It is the key to understanding everything.
Keep up the great work.
I hear helicopters,.......Fed helicopters.
proof, the best method to separate oneself from morons .... * applause in the background *
Excellent work Tyler. The real conspiracy, as it is turning out, is that we have a free market in Gold (or anything else these days).
Well put. That summerrizes it all.
summerrize - ha, hello larry
exactly - a real tin foil hat conspiracy since Dec 23, 1913
So this is why we will never return to a gold standard and monetary stability!
Forgot to sign in.
So this is why we will NEVER have a gold standard again and a chance to return to monetary stability!
"saddest is that the United States no longer pursues strategic goals that are in the best interest of the majority of its citizens, but merely manipulates other, less powerful nations into a servile existence that only provides gain to a very limited subset of the American financial oligarchy. It is time for the Fed's unprecedented control over affairs, both global and domestic, to end."
Amen, if you are a Freedom loving American.
""saddest is that the United States no longer pursues strategic goals that are in the best interest of the majority of its citizens, but merely manipulates other, less powerful nations into a servile existence that only provides gain to a very limited subset of the American financial oligarchy. It is time for the Fed's unprecedented control over affairs, both global and domestic, to end."
Amen, if you are a Freedom loving American."
The Communist countries have been saying that about us for sixty years only the called it "Western Imperialism."
One could say, "Yeah but, would you rather live in their country or ours." Considering the exploitation the west has done in the east for almost 200 years, it's not surprising they are where they are. Nature balances things out. Before long we will be known as the "Yellow man's burden."
or in some cases, "yellow woman's burden"
that's seriously deep mate
been reading some lao tzu i see
Governing a great nation is like cooking a small fish - too much handling will spoil it.
CHAPTER XVII THE PURITY OF THE CURRENT. In the Age of Gold, the people were not conscious of their rulers; in the Age of Silver, they loved them, with songs; in the Age of Brass, they feared them; in the Age of Iron, they despised them. As the rulers lost confidence, so also did the people lose confidence in them.
CHAPTER XVIII THE DECAY OF MANNERS. When men abandoned the Way of the Tao, benevolence and justice became necessary. Then also was need of wisdom and cunning, and all fell into illusion. When harmony ceased to prevail in the six spheres it was needful to govern them by manifesting Sons. When the kingdoms and races became confused, loyal ministers had to appear
CHAPTER XIX RETURNING TO THE PURITY OF THE CURRENT. If we forgot our statesmanship and our wisdom, it would be an hundred times better for the people. If we forgot our benevolence and our justice, they would become again like sons, folk of good will. If we forget our machines and our business, there would be no knavery. These new methods despised the olden Way, inventing fine names to disguise their baneness. But simplicity in the doing of the will of every man would put an end to vain ambitions and desires.
Lao Tzu - translated by Aleister Crowley
Wonderful work. Sadly, I find it possible that this too will be glossed over (thus only further preserving the conspiracy theory) and status quo will march on. It will end one day in a heaping pile of shit, but what will it take to rip it from the tentacles of the vampire squid? (Shanky asks as we march on the road to fascism).
Why the F is the markets up today? in 30 minutes it made up for the losses of the entire last week basically.
Do you really have to ask this question, in a thread about government manipulation none the less?
everyone tells me its a jewish holiday again today. apparently there is some historical pattern that works most of the time where you sell on the friday of the holiday and boy on the monday. i dont know. but all i see is volume as light as a feather and a market absolutely ready to rally. then in addition you have the technical level that it bounced of (1040), which was to be expected. i was long during the asian session, but didnt think we would break 1055. went short at 1061. let's see how this one goes.
A tip of my tinfoil hat to you Tyler! Nice work.
I don't remember the "secret agreements in writing" part of any of my many econ classes.
UK switched a pile of Gold for EURO's.
Doesn't that say something about relevance Gold these days?
no; but it says something about blatant retardation of the UKs financial minister ...
Cheeky, discover any transfinite numbers lately? ;) I watched Pi the other day...
ask martin armstrong
LOL; no; i have chosen sanity instead :D. No, i was doing something in meta-logic and that kept me captivated for some time. I also watched Pi a week or so ago. Terrible movie; WTF was he searching for; a stock market equivalent of the Riemann hypothesis, distribution of random averages, deterministic equation of elements of a dynamic space.
no, 11=2 ( mod 3 )
... currently prime minister ...
Gordon Brown stole it from the British public to sell the the GS exec right after they shorted it into the ground.
Nice work if you can get it. Gordon did it with barely a whimper from the UK citizens.
Yeah - Browns Bottom has Two Cheeks
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