Showing posts from September 25, 2022

It's Time To Protect Yourself

 About 10 years ago, I bought 5 ounces of gold for about 6000 dollars. Today, gold closed at 1668 dollars an ounce. That means my 6000-dollar investment is now worth 8340 dollars. Did I make money? The answer, quite obviously, is no. For many years, I used to ask friends and family a simple question. Where does money come from?  Nobody knew the answer. I used to get all sorts of crazy answers. The U.S. Mint. The bank. My employer gives me checks. I don't know. When I told people that money was loaned into existence, they rarely ever asked me a follow up question. The topic just didn't appeal to them nor did they seem too interested in listening to any explanation from me. I'm ok with that.  In the early 70's, runaway inflation began in earnest. From 9% in '73, to 16% in '74, to a staggering 24% in 1975. That is a cumulative 49% rise in prices in 3 years. To be fair, those were the inflation rates for the UK. In the U.S. the dollar was the reserve currency, alleg