Economic Collapse

Comments: This is a funny list of events to look for to pinpoint the next peak in the gold price. My favorite one is “Jim Sinclair is chosen ‘Man of the Year’ by Time magazine”. Sinclair accurately pinpointed the last top of the gold price in 1980 at 850 USD/Oz.
I tag this one as “financial humor” not only because its funny but because I believe there will never be a new top in the gold price. What I mean is that gold will regain its status as money and will not be priced in any amount of paper money. Or, another way of putting it, is that paper assets will be backed by gold once again. In a hyper-inflation environment gold cannot be bought with any amount of fiat paper. This is the difference between “price” and “purchasing power”. As the old saying goes: “Gold will buy you land, silver will buy you bread”. Thats a hint of the future I and many other see coming our way. Enjoy the read…
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“You cannot establish security on borrowed money.”
- William J. H. Boetcker

Read article here: http://www.financialpost.com/story.html?id=2044137#ixzz0SgSjCBPx

Gold has long been regarded as the ultimate store of value, which is why it’s so popular among the paranoid and the pessimistic. The problem (and it has been a problem as long as there have been gold bugs) with that idea is practical: Once you’ve bought the stuff, how do you get it back to your house without mishap?

Thanks to Bank of Nova Scotia, people who are so negative about the state of the world that they won’t even go outside will now have an easier time buying bullion.

Scotia is launching a new site Tuesday that will let customers purchase gold online and have it delivered to their home.

On a personal note: I don’t consider myself paranoid nor pessimistic. Quite the contrary. If you see a hurricane coming, you are not paranoid if you build your self a shelter. I’d be pessimistic about the future if I didn’t know what was coming. To share what I know and have a dialogue with my readers is the sole purpose of this blog. The world we build together after the storm has passed will be a world of sunshine.

I love information design. A picture is worth a thousand words. This puts things into perspecive. How much is a “billion”? How much is a “trillion”? How do we use our money? If we were to be visited by an extra-terrestial intelligence and they saw how we organised our economy and how we choose to spend our wealth, how intelligent do you think they would think we are? Click the image to zoom.