The "Universal Weimar Experience"
DriftingByTheStorm
Posts: 8,684
I got a link to this Miles Franklin investment PDF from an email buddy, and thought i would pass it on.
This 12 page report goes a LONG way towards explaining inflation, deflation, monetary phenomenon, what happened to the Weimar Republic, where WE are headed (globally, not just USA) and what one can expect the near future to bring.
NONE OF IT IS GOOD, i warn you,
but THIS IS THE KIND OF STUFF COMING FROM INTELLIGENT INVESTORS (like Peter Schiff, Jim Rogers, &c...)
If you feel like you don't have a firm grasp on WHAT INFLATION IS,
what it IS NOT, what DEFLATION is, and WHICH ONE WE ARE GOING TO BE EXPERIENCING SOON,
i really do recommend this little investment PDF.
Quote for the masses:
I agree with basically everything in this PDF, save maybe to argue the technicalities of WHEN excactly we will turn over from a sharp (yet relatively short) period of asset "deflation" (falling prices, NOT monetary deflation) in to a period of full on inflation (i honestly think prices could fall well in to the 3rd quarter, but gold is currently indicating that inflation COULD pick up sooner than later).
Anyhow.
Take it for what it's worth.
This 12 page report goes a LONG way towards explaining inflation, deflation, monetary phenomenon, what happened to the Weimar Republic, where WE are headed (globally, not just USA) and what one can expect the near future to bring.
NONE OF IT IS GOOD, i warn you,
but THIS IS THE KIND OF STUFF COMING FROM INTELLIGENT INVESTORS (like Peter Schiff, Jim Rogers, &c...)
If you feel like you don't have a firm grasp on WHAT INFLATION IS,
what it IS NOT, what DEFLATION is, and WHICH ONE WE ARE GOING TO BE EXPERIENCING SOON,
i really do recommend this little investment PDF.
Quote for the masses:
If you own tangible things —
diamonds, houses, land,
gold, silver — anything but
financial assets — you will
survive financially. If you
place your hope in stock and
bonds — you may end up
with something akin to a
Bernie Madoff experience.
I agree with basically everything in this PDF, save maybe to argue the technicalities of WHEN excactly we will turn over from a sharp (yet relatively short) period of asset "deflation" (falling prices, NOT monetary deflation) in to a period of full on inflation (i honestly think prices could fall well in to the 3rd quarter, but gold is currently indicating that inflation COULD pick up sooner than later).
Anyhow.
Take it for what it's worth.
If I was to smile and I held out my hand
If I opened it now would you not understand?
If I opened it now would you not understand?
Post edited by Unknown User on
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Comments
But I must admit the last page kind of spoiled the effect.
You know, "GOLD IS THE ONLY ANSWER! THE ECONOMY IS GOING TO HELL" for 10 pages, and then "We sell and buy gold, let us help you get rid of those dollars".... I mean, huh? Why are they trading their gold for dollars if it's such a lousy move? So it went from a moderately interesting read to a pretty overt sales pitch, based on a doubling of gold, which they are currently selling...
I suspect them for laying it on mighty thick (and emotional), although I suppose the figures they refer to are real.
I take it for what it is. A sales pitch.
Peace
Dan
"Every judgment teeters on the brink of error. To claim absolute knowledge is to become monstrous. Knowledge is an unending adventure at the edge of uncertainty." - Frank Herbert, Dune, 1965
It is quite obviously a sales pitch.
I didn't think it would take anyone 12 pages to realize they were selilng something.
However,
that being said,
everything in their write up is based on actual numbers and statistics,
and the reason i posted it was that a LOT of people on this board have argued with me using preconceived and INVALID assumptions about what "inflation" IS. Unfortunately, a LOT of people do NOT understand what inflation is, or how monetary economics works, and this pamphlet goes a long way towards explaining that.
And the reason they will sell you gold and take your dollars is because they are making money on the SPREAD, just like any good dealer on Wall St.
They might give you $850 an ounce for your gold, but they are going to sell it for $910, so they don't really worry about being stuck holding dollars in the short term.
If the system truly crashes outright, EVERYONE on the street is fucked, INCLUDING the gold dealers. But at least right NOW they stand to make some money (and YOU stand to SAVE your ass) assuming you get out of paper "assets" and in to tangible ones.
If I opened it now would you not understand?
As for my "investments", they dont go much further than paying down on our mortgage. I suppose that's considered a solid investment in these terms.
The current situation is precisely why I don't get freaky in any stock market investment plans, and apart from the roof over my head, don't borrow money for stuff. There's no such thing as a free lunch, although you won't hear that from any investment yuppies.
Peace
Dan
"Every judgment teeters on the brink of error. To claim absolute knowledge is to become monstrous. Knowledge is an unending adventure at the edge of uncertainty." - Frank Herbert, Dune, 1965