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Gold: 1980 vs Today

Tyler Durden's picture


When gold was undergoing its latest (and certainly not greatest) near-parabolic move last year, there were those pundits consistently calling for comparisons to 1980, and the subsequent gold crash. Yet even a simplistic analysis indicates that while in the 1980s gold was a hedge to runaway inflation, in the current deflationary regime, it is a hedge to central planner stupidity that will result as a response to runaway deflation. In other words, it is a hedge to what happens when the trillions in central bank reserves (at last check approaching 30% of world GDP). There is much more, and we have explained the nuances extensively previously, but for those who are only now contemplating the topic of gold for the first time, the following brief summary from futuremoneytrends.com captures the salient points. Far more importantly, it also focuses on a topic that so far has not seen much media focus: the quiet and pervasive expansion in bilateral currency agreements which are nothing short of a precursor to dropping the dollar entirely once enough backup linkages are in place: a situation which will likely crescendo soon courtesy of upcoming developments in Iran, discussed here previously

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Sun, 02/19/2012 - 00:50 | 2174337 trav7777
trav7777's picture

you have clearly lost your mind

Fri, 02/17/2012 - 22:27 | 2172148 AUD
AUD's picture

Deflation? Didn't you see the $1 billion government note the police just confiscated in Italy?

Fri, 02/17/2012 - 22:37 | 2172166 Conrad Murray
Conrad Murray's picture

Inflation? Deflation? Democrat? Republican?

Bullets and bullion, FTW

Fri, 02/17/2012 - 22:56 | 2172192 Long-John-Silver
Long-John-Silver's picture

Don't forget you need beans too.

Fri, 02/17/2012 - 23:00 | 2172199 Hulk
Hulk's picture

Not according to my wife...

Sat, 02/18/2012 - 01:12 | 2172379 tmosley
tmosley's picture

Cook with a potato.  You don't get gas.

The enzyme in beano was isolated from potatoes.

Sat, 02/18/2012 - 11:40 | 2172804 Zadok
Zadok's picture

Soak beans in clean water and whey 12 hours.  Necessary for digestion and proper absorbtion, side effect is very little gas.  


Long vertical farming and natural foods!

Best reference book behind the Bible is "Nourishing Traditions" by Salley Fallon.  

Sat, 02/18/2012 - 14:32 | 2173153 Hulk
Hulk's picture

I like the gas, it gives my wife something to complain about...

/major fucking sarc

Sat, 02/18/2012 - 17:59 | 2173672 HungrySeagull
HungrySeagull's picture

Wife and I had gas once after eating a meal in Arizona.

It took 4 states with all the windows and everything open half hanging out of the rig and all for it to dissipate.


Fri, 02/17/2012 - 22:46 | 2172181 Hman
Hman's picture

I see few banksters commenting on this blog, they are so detectable :)

I am going today to buy more Silver, just to revenge your comments with action.

Fri, 02/17/2012 - 22:28 | 2172150 SAT 800
SAT 800's picture

In the modern language; "It is sooo NOT 1980". That's really the base issue, here. It's not that something is different; everything is different. Everything is different in different ways; whole nother things are existing and goin'on that didn't even exist in 1980. It's just plain silly to even discuss 1980. Period.

Sat, 02/18/2012 - 03:00 | 2172467 Deo vindice
Deo vindice's picture

@SAT 800 - you are right. Very right. The price drivers of 1980 bear no relation to today. The sooner people understand that, the better decisions they can make.

Gold and silver are headed higher ... much higher.

But not for the reasons they soared in 1980.

Fri, 02/17/2012 - 22:37 | 2172161 non_anon
non_anon's picture

yes, I was alive in the 1980's, remembering Tom Brokaw or David Brinkley, on the morning news with the gold news, my parents were paying 19% interest on their $20k house, I will never forget the 70's.

Fri, 02/17/2012 - 23:05 | 2172206 HungrySeagull
HungrySeagull's picture

Those houses were bought and paid for with war labor or soldiery.

We cannot hope to see the young folks try to buy a home anymore.

Fri, 02/17/2012 - 23:12 | 2172220 Conrad Murray
Conrad Murray's picture

The young folks will just have to accept that the life-of-credit lie their socialist boomer parents lived is not reality. There are plenty of affordable houses in the rust belt. In Cleveland you can have your choice on nearly any block for under $50k(and most under $25k).

Is it glamorous? Will they be like their favorite "reality" TV star? No. But if that matters, they should be thrown off a cliff with their boomer parents anyhow.

Sat, 02/18/2012 - 00:34 | 2172340 HungrySeagull
HungrySeagull's picture

Well, I lived the 401k lie along with being exhorted to attend school and be loyal to a company long enough to retire etc etc.

All fantasy and a rude toss out into the gutter with two weeks pay from HR woke me up.

I did attend Money at high school and felt like the only kid who was interested with the material. The poor teacher suffered much abuse from everyone else bored to tears.

That is why I moved into metals. I lost 30 years and aim to get it back and then some.

I lead by example. Some young folks in school now will do well to do the same.

Sat, 02/18/2012 - 01:12 | 2172380 non_anon
non_anon's picture

oh yes, I'm draining my 401k, saying fuck you to TPTB, I about pulled the tirgger to buy a house in 1999, 100k loan, glad I didn't, now I'm in the ditch and say fuck it all! Good Day!

Sat, 02/18/2012 - 03:26 | 2172496 SHRAGS
SHRAGS's picture

Mescaline, your alkaloid of choice.

Fri, 02/17/2012 - 22:36 | 2172162 cristo
cristo's picture

this video was brought to you by the national inflation asossiationor NIA the kings of pump and dump .

Fri, 02/17/2012 - 23:18 | 2172234 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

That does not preclude the veracity found in this video!

Fri, 02/17/2012 - 22:37 | 2172163 Crawdaddy
Crawdaddy's picture

I was knee deep in 18yr old poon that year - rumble in the jungle babay. I think that asshole Vockler got credit for that too.

Fri, 02/17/2012 - 22:47 | 2172179 AgShaman
AgShaman's picture

Slewie is in charge of bringin' the Jethro Tull. (think bungle...not rumble)

My advice to you would've been to graduate from dry humping and get "balls deep" in some 'Poon-ani'

.....even if it's "Cross-Eyed Mary"

Fri, 02/17/2012 - 23:22 | 2172213 slewie the pi-rat
slewie the pi-rat's picture



Sat, 02/18/2012 - 00:26 | 2172334 Hulk
Hulk's picture

Me thinks you have met your match !!!

Cross eyed Mary, LOL !!!

Sat, 02/18/2012 - 00:45 | 2172342 David449420
David449420's picture

OH, No, No, No...  Jethro Tull?

Locomotive Breath

"No way to Slow Down"


(Turn it up)

Fri, 02/17/2012 - 23:17 | 2172233 francis_sawyer
francis_sawyer's picture

probably have to steer clear of Aqua Lung if you're going for the Poon-ani...

Fri, 02/17/2012 - 22:40 | 2172174 blindman
blindman's picture

"Gold's value is intrinsic: it is the only Absolute that humanity recognises; it is innate in all men.

Gold (and Silver) represent the confidence in governance or more correctly, those elite that have control of governance.

Gold never changes in value. Only confidences change and essentially, this change is brought about by the abuse and manipulation of values wrought by those elite of governance.

The expression/tools of governance are the fiat currencies. Today, they are all done. There is only one Universdal known to mankind: it is Gold and Silver bullion.

Humanity does not need yet another violent revolution as such makes things worse; we need an intellectual revolution - Une force tranquille.

The intellectual revolution has begun and its carrier is the Internet. It is the only tool that we, the unwashed have. Do not allow the Internet to be usurped by the elite incompetants and corrupt. You do not want to go here!

It is all about natural physics (physis) and Universal Principles and standards. But, we know of no Universal Standard.

Gold (and Silver) is a hedge to survive the impending Dark Age. The more that buy Gold and Silver (like the Chinese and Indians) the shorter the Dark Age - it will be demographically expressed!

Asians ("Gold Bugs"), make up ~3/4 of the global population.

Who is right?" pjb

How Usury Kills - an excellent x4 video set - here

” bodies without souls will,
with their judgments,
give us rules
teaching us
how to die well. ”
leonardo da vinci

Delusional Economics

Sat, 02/18/2012 - 11:49 | 2172820 Zadok
Zadok's picture

The days of judgement...they are a coming.  


Psa 15:5  He that putteth not out his money to usury, nor taketh reward against the innocent. He that doeth these things shall never be moved. 

Pro 28:8  He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor. 

Eze 18:12  Hath oppressed the poor and needy, hath spoiled by violence, hath not restored the pledge, and hath lifted up his eyes to the idols, hath committed abomination, 

Eze 18:13  Hath given forth upon usury, and hath taken increase: shall he then live? he shall not live: he hath done all these abominations; he shall surely die; his blood shall be upon him. 


Ohhh please, I would so like an intellectual awakening...

Ecc 9:13  This wisdom have I seen also under the sun, and it seemed great unto me: 

Ecc 9:14  There was a little city, and few men within it; and there came a great king against it, and besieged it, and built great bulwarks against it: 

Ecc 9:15  Now there was found in it a poor wise man, and he by his wisdom delivered the city; yet no man remembered that same poor man. 

Ecc 9:16  Then said I, Wisdom is better than strength: nevertheless the poor man's wisdom is despised, and his words are not heard. 

Ecc 9:17  The words of wise men are heard in quiet more than the cry of him that ruleth among fools. 

Ecc 9:18  Wisdom is better than weapons of war: but one sinner destroyeth much good. 

Fri, 02/17/2012 - 23:07 | 2172215 Mister Minsk
Mister Minsk's picture

Funeral preparations are currently being made for the Amerikan Dollar. The end is near my friends. What's in your wallet?

Fri, 02/17/2012 - 23:18 | 2172217 AssFire
AssFire's picture

To induce vomiting click the link.....


What if people call out for the "white vote"???? This is insanity plain and clear... in front of our eyes, yet still not one person in the room will make a move for fear of being called a racist.

This country is dead. Press the reset.

So tired of working hard for worthless currency, I'll just vomit over being so stupid for continuing the game myself....

I am blasting out BOTH ends and still more fuckin Fiat.

Fri, 02/17/2012 - 23:25 | 2172247 Conrad Murray
Conrad Murray's picture

African Americans for Obama? That's like White Americans for Genocide; it goes without saying.

Fri, 02/17/2012 - 23:40 | 2172276 AssFire
AssFire's picture

You promise to off LaToya when you get out; we can call the genocide thing even... (whatever the race)


Sat, 02/18/2012 - 00:41 | 2172347 geekgrrl
geekgrrl's picture

Exactly. White people have been voting for white presidents for so long now that you don't even have to say these things.

I'd just like to say I'm white and I'm not for genocide.

Sat, 02/18/2012 - 00:57 | 2172367 AssFire
Sat, 02/18/2012 - 10:39 | 2172756 blindman
blindman's picture

One Percent. Actually, Half of That
"Mitt Romney won the Maine Presidential Primary with 2,000 votes.
Not BY 2,000 votes. WITH 2,000 votes.
In a state with 1.3 million people, exactly 5,585 of them cared about the Republican nominee for President enough to bother to vote. In an open caucus, not limited to voters who had registered as a Republican. Even an unregistered voter could show up, register, and vote.
It wasn’t a case of bad weather. The weather forecast was that there was a chance of two to three inches of snow. Which never fell. And anyway, in Maine, two to three inches of snow is a light sprinkle.
The real winner of the 2012 Maine Republican Presidential Caucus was a French fellow named Je M’En Fou. (Translation: “I don’t give a damn.”) Mr. Fou got 99.5% of the vote. If Kim Jong Il were still alive, he would be jealous.
To show you how low this turnout was, when I ran for Congress in 2008, I got almost 100 times as many votes as Mitt Romney did on Saturday. In a congressional district half of the size of the State of Maine.
The Republicans must think that GOTV doesn’t mean Get Out The Vote, but rather Go Observe TeleVision.
The right wing has been a manservant to the One Percent for as long as I remember. In fact, a friend recently suggested to me that GOP actually stands for “Greedy One Percent.” But now, it seems, they can’t even get one percent to show up and vote." ...
Alan Grayson

Sat, 02/18/2012 - 02:00 | 2172422 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Conrad, there is no reason to bring Bill and Melinda Gates into this discussion.  Their African vaccination program is to help the blacks in Africa.  The fact that the vaccines contain sterilants and are often weaponized is just part of their program to spread love to their African friends.

Sun, 02/19/2012 - 00:07 | 2174284 trav7777
trav7777's picture

vaccinating africans will merely lead to mass starvation of them later.  they will not feed themselves nor can hold together a civilization.  Only western food aid and the remnants of the gifts of colonization sustain africa at present

Sun, 02/19/2012 - 00:05 | 2174282 trav7777
trav7777's picture

genocide?  What?  WTF are you blathering about

Sat, 02/18/2012 - 00:20 | 2172321 geekgrrl
geekgrrl's picture

You've got a point, although I think I heard the same exact speech from Clinton back in the '90s.

Anyway, I think you're over-reacting a bit. I am no Obama supporter in any way, but this doesn't really indicate the end of the world to me. I actually thought his sales pitch was pretty lame with that background soundtrack. Can't put my finger on it... maybe insincere... grandiose... an attempt to induce a strong feeling à la Steven Spielberg and his awful manipulative soundtracks.

Whoever wins: Obama, Romney, or someone else, it will be bad for most of us. The money masters will not permit political change to occur via elections. It's all a show.

Sat, 02/18/2012 - 01:54 | 2172415 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

"To induce vomiting click the link....."


I took your advice and it worked but this is gonna be an extremely difficult "weight loss program"!

Sun, 02/19/2012 - 00:07 | 2174288 trav7777
trav7777's picture

he wants to backpat blacks again for the rights whites fought so they could have?

Fri, 02/17/2012 - 23:09 | 2172218 Dermasolarapate...
Dermasolarapaterraphatrima's picture

Dow v GLD 1 year:





Fri, 02/17/2012 - 23:17 | 2172231 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Bueller?!  Bueller?!

Sat, 02/18/2012 - 08:36 | 2172662 GetZeeGold
GetZeeGold's picture




....and deeper we sank. Who could have seen this coming?





Sat, 02/18/2012 - 15:22 | 2173257 Snake
Snake's picture

boola, boola, boola!

Fri, 02/17/2012 - 23:14 | 2172222 Peter Pan
Peter Pan's picture

Gold's value does not rely on trust or confidence as fiat does. It is what it is and if after 5000 years of history people still don't understand its value as insurance and as a refuge between investments or ventures, then there is nothing we can do other than watch them suffer as the system goes from one shock to another. In another 5000 years gold still will be recognised as VALUE. Can anyone honestly believe that fiat from today will have any value whatsoever?

Fri, 02/17/2012 - 23:26 | 2172250 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Which would you rather hold in your hands "today", this circa 1980 babe laying in fiat or a roll of 1980 one ounce gold krugerrands?!

Sat, 02/18/2012 - 00:26 | 2172333 slewie the pi-rat
slewie the pi-rat's picture

shit, tuco, i had a one-night stand once and 11 years later, i was free again!

i call that slewie'sLastStand

"today"?   1980 babe? 

can you give me an easier one, please? 

Sat, 02/18/2012 - 01:37 | 2172397 EvlTheCat
EvlTheCat's picture

Irish Whiskey or a Billy Beer?

Sat, 02/18/2012 - 01:50 | 2172408 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Yes, I apologize Slewie!  That was too easy.  I should have knocked a couple decades off the babe's age and noted that she gives great head!


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