“The foundation of our entire financial system – and really the economic system – is based on being in a bubble”
Rising prices are not “inflation.” They are the evidence that the money supply has been inflated at a rate in excess of the marginal wealth output of an economic system. Real GPD since 2008 has been negligible but the money printing has been at times parabolic. It’s not that the value of the goods being purchased are rising in value, it’s that the value of currency used to purchase the goods is declining. Since 1971, the US dollar has lost 99% of its value vs gold, evidenced by the fact that it took $35 to buy an ounce of gold in 1971, it now takes $1800.
Rob Kientz (GoldSilver Pros) invited me discuss the Fed money printing, inflation, the stock market and the precious metals sector:
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Now is a great time to put together your list of favorite mining stocks to own as the precious metals sector emerges from the 11-month downtrend/pullback/consolidation. The next move will be powerful and take most market participants by surprise. The mining stocks are once again historically cheap. At some point this year I will be raising the subscription price, though existing subscribers will be grandfathered at the current monthly rate. If you would like some ideas for invedsting in mining stocks, take a look at my Mining Stock Journal.