Gold And Paper 1951

Gold And Paper 1951 – 2016

Mar 18, 2016Jeremy ParkinsonFinance0

——— Argentina: 1951 ———

= 117

Argentinian 5 Peso notes

*****

But after government meddling and central bank printing … 65 years later:

——— Argentina: 2016 ———

= 20,000,000,000,000,000

Argentinian 5 Peso notes

(After adjusting for the 10 trillion to one devaluations in the past 50 years.)

——— United States: 1951 ———

= 7

U.S. 5 Dollar notes

*****

But after government meddling and central bank printing … 65 years later

——— United States: 2016 ———

= 250

U.S. 5 Dollar notes

From Raymond Chandler in “The Long Goodbye:”

“There is no trap so deadly as the trap you set for yourself.” (Think deficit spending, central banking, QE, and “printing money.”)

Images that come to mind are:

Future Possibilities for dollars/euros/pounds/yen:

More debt, “money printing,” central bank desperation, currency devaluations, QE, and more of the same failed policies – will produce higher gold prices.

Inflationary blow-off and gold prices go astronomical in devalued currencies, as they have in many other countries in the past century.

Deflationary depression, tens or hundreds of $Trillions of debt defaults that make the 1930s look like a “walk in the park” by comparison to the “Greater Depression.” Gold prices are … unpredictable.

The dollar is gradually replaced by some other currency – a Special Drawing Right (IMF), a gold backed “something,” a digital currency, something new, or: