Physical Gold, a Misery Index and Monetary Insanity

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Physical Gold, a Misery Index and Monetary Insanity

Physical Gold, a Misery Index and Monetary Insanity

In 1980 Ronald Reagan spoke about a Misery Index. An economist had combined a acceleration rate to a stagnation rate, called it a Misery Index, and used it to prove a amicable costs and mercantile problem for a center class.

Today a Misery Index is many smaller than in 1980, interjection to … intelligent mercantile management, economically essential financial process from a Federal Reserve, and correct domestic process from a White House. If we trust any of those, review no further.

Most people will determine that a Misery Index is many smaller now given a numbers have been gimmicked. Does anyone trust a few percent for acceleration or around 5% unemployment? Massage(torture) the numbers and a Misery Index declines, obligatory politicians are re-elected, while distant too many people sojourn out of work, earning many zero on their savings, and essential too many for food, clothing, drugs, medical care, college, travel and so on.

What we need for this decade, instead of a Misery Index, is an Insanity Index formed on measures than prove how out of balance, crazy, unsustainable, and dangerous a stream mercantile and financial universe has become. Consider a few examples:

  • Wall Street bonuses (in additional of bottom pay) average around $150,000 per chairman per year. Obviously some accept significantly some-more than average. Finance, trading, and “paper pushing” have turn impossibly profitable. Compare a normal Wall Street reward to a bottom annual salary for an E-5 U.S. troops soldier. See graph below.


  • The SNAP (food stamps) module has escalated from a cost of $15 billion in 1990 to about $74 billion in 2015. Measure a module costs in ounces of bullion any year and afterwards try to remonstrate yourself that 60 million ounces of bullion any year do not matter. See graph below. Gold is genuine and can’t be printed like many currencies. The module would “eat up” all a bullion in Fort Knox about any 3 years. Insane!

H-Stamps to gold

  • Student loan debt is coming $1.4 trillion, climbing rapidly, and has augmenting about 11.5% per year, ever year, given 2006. The tyro loan debt, totalled in gold, is over 1.1 billion ounces – about 8 times a bullion presumably stored in Fort Knox. See graph subsequent of tyro loan debt totalled in Fort Knox Gold Units – a 147,300,000 ounces of bullion that presumably are vaulted in Fort Knox.


  • National Debt (official usually – not including unfunded liabilities) now exceeds $19 trillion, and that debt has increased, and increased, and … augmenting about 9% per year, ever year, given 1971. The executive inhabitant debt of $19 trillion, totalled in gold, is about 15 billion ounces – around 100 times a apportion of bullion presumably stored in Fort Knox. In 1937 a Fort Knox bullion was an item and a inhabitant treasure. Today a U.S. supervision OWES that inhabitant value about 100 times … and has what to uncover for those expenditures and $19 trillion in debt? Insane!

My thoughts:

  • The normal Wall Street reward is about 5 times a annual salary of an E-5 soldier, and a ratio is increasing. Perhaps a economy overemphasizes a value of a Wall Street casino and paper money, and does not conclude a infantryman enough. Short tenure insanity!
  • The Food Stamps module is expensive. How crazy is using a module that spends a homogeneous of 60 million ounces of bullion any year when a ostensible sum bullion assets of a U.S. is about 260 million ounces, of that 147 million are presumably stored in Fort Knox? Insane!
  • Student loan debt is apparently out of control, augmenting rapidly, and might not be repaid unless a Fed and politicians amalgamate a dollar to nearby worthlessness. How violent is a module that almost increases a cost of a college education, creates increasingly unpayable debt, and saddles graduates with a abrasive debt bucket before they are employed?
  • National debt, over $19 Trillion, doubles any 8 years on average. Given a “spend, spend, spend” genius of a politicians, military, and desert programs, a inhabitant debt will substantially double even some-more fast in a subsequent dual decades. In turn numbers a debt will be $20 trillion by a finish of 2016. Can we suppose $80 trillion in debt by a year 2032 (two doubles in 16 years)? Borrow and spend might buy votes and troops conquests in a brief tenure though in a longer tenure design this stupidity to move apocalyptic consequences to a people, country, U.S. economy, and a world.

The Insanity Index:

An index could be combined – though what is a point? The United States mercantile and financial policies upheld “crazy” prolonged ago, and now are pulling deeper into stupidity with disastrous seductiveness rates, a fight on cash, out of hold Federal Reserve policy, violent debt, QE, rash necessity spending, and a “what could go wrong” attitude. Clearly a “paper game” has a singular life expectancy, Wall Street is due for a reset, supervision spending programs and grant skeleton are on life support, food stamps and tyro loans are dual of many programs aggressively pulling a U.S. supervision into penury – and a resolution is … disastrous seductiveness rates, some-more QE, and a fight on cash! Desperate and delusional!

Suppose a U.S. inhabitant debt in 2032 exceeds $80 trillion and a complement has not nonetheless imploded … what will be a satisfactory cost for an unit of bullion or an normal house? What will that 30 year T-bond we bought in 2016 be value in purchasing energy in 2032? What will be a purchasing energy of your saving comment or retirement comment or Social Security check? Debt, recklessness and delusional meditative do not buy groceries, shelter, and health, or emanate a colourful economy.

Bubbles always pop. Delusions can insist for years or decades, though they eventually pile-up on a hilly shores of reality. Gold and china were profitable 3,000 years before a initial executive bank and we contention they will be profitable 3,000 after a universe regains financial sanity.

Given a stupidity of unconstrained steal and spend programs, ever augmenting debt, overpriced holds and bonds, recklessness and delusions, and … so many some-more … have we built earthy bullion in credentials for a unavoidable consequences of all a above?




Courtesy: Gary Christenson – The Deviant Investor

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Federal Reserve , Food Stamps , Fort Knox , Gold and Silver , Inflation Rate , Insanity Index , Misery Index , National Debt , Physical Gold , Social Security , Student Loan Debt , Unemployment