More things said about gold, silver and sound economics worth remembering in 2021!
Gold is a hedge on government authorities making poor economic choices. Inflation is usually the result of those poor decisions, but people confuse cause and effect here. Gold is a hedge on policy makers screwing up, and there has been a lot of screwing up in the last 20 years.
The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.
— Ernest Hemmingway
Notes on the Next War: A Serious Topical Letter
I think there is a question mark over the durability of any power that relies as heavily as the United States on importing capital and borrowing from abroad.
Fiat money will be a passing fad in the long-term history of money.
— Jim Reid
Governments lie; bankers lie; even auditors sometimes lie. Gold tells the truth.
— Lord Rees Mogg
We live in a technological golden age but in a monetary and fiscal dark age. While physicists discover the so-called God particle, governments print and borrow by the trillions. Science and technology may hurtle forward, but money and banking race backward.
- James Grant
Grant’s Interest Rate Observer
You can’t keep printing trillions of dollars without getting serious inflation. There’s no getting around it
The people making these decisions know that perfectly well. But thats the secret: They want inflation. In fact, they need inflation. Why? Because they’ve gotten rich from debt. That’s the real economy. Leverage is their entire business model. So for the finance class, inflation is the only way out of all that debt. When money is worthless, you owe less. Meanwhile, hard assets — like upscale real estate on Martha’s Vineyard — will be worth more.
So inflation may crush you, but it will make the people making the decisions richer. Everyone else — regular wage earners, people living on fixed income, every middle-class retiree in the country, anyone who bothered to live like a responsible person and save money — will be in serious trouble when inflation arrives.
That’s not speculation. It’s coming, and anyone who’s paying attention knows it’s coming.
- Tucker Carlson
The Golden Rule: He who has the gold makes the rules.
– Attributed to a 1967 Wizard of Id comic strip
I wish it were possible to obtain a single amendment to our Constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its Constitution; I mean an additional article, taking from the federal government the power of borrowing. I now deny their power of making paper money or anything else a legal tender. I know that to pay all proper expenses within the year, would, in case of war, be hard on us. But not so hard as ten wars instead of one.
– Thomas Jefferson
Letter to John Taylor
Good money is coined freedom.
The Fed took a dollar and eliminated 98% of its purchasing power and they’re doing that more rapidly than ever but it just hasn’t been fully discounted. When it is, gold is going to be much, much higher.