Gold and Paper 1951 – 2016

———   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:

From:  Pierre Lassonde:

“… very sure the five-year bear market for gold is over”  …  “gold could surge to $8,000 an ounce or even higher…”