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Where has all the Money Gone?


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#1 linrom1

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Posted 20 June 2020 - 09:29 PM

 

How is it possible to "pump" gold 10 x while the price of wheat has barely doubled in over 50 years?


Edited by linrom1, 20 June 2020 - 09:36 PM.


#2 brucekeller

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Posted 21 June 2020 - 01:13 AM

Can't grow gold. Plus more people are cutting carbs and not eating as much bread compared to prior generations. 


Edited by brucekeller, 21 June 2020 - 01:13 AM.


#3 pdx5

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Posted 21 June 2020 - 07:38 AM

Can't grow gold. Plus more people are cutting carbs and not eating as much bread compared to prior generations. 

But you can eat bread and live. Can not eat gold. Gold is a relic from centuries ago when it was the main commodity to horde wealth.

Gold has very little practical use in 21st century. People do not even like gold teeth any more.


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#4 K Wave

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Posted 21 June 2020 - 08:35 AM

The Gold proposition is whether or not you think the Fed will be able to dial this back?

 

m2.png

 

If you go back to the beginning of the M2 data in 1959, Gold has tracked M2 quite closely over long periods of time. By that, I do not mean each little twist and turn, but eventually they usually meet.

 

If you go back toward the beginning with gold at 35, and M2 at 300, M2 is up about 60X since then, and Gold while lagging behind this current surge in M2, is up about 50X.


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#5 brucekeller

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Posted 21 June 2020 - 09:43 AM

 

Can't grow gold. Plus more people are cutting carbs and not eating as much bread compared to prior generations. 

But you can eat bread and live. Can not eat gold. Gold is a relic from centuries ago when it was the main commodity to horde wealth.

Gold has very little practical use in 21st century. People do not even like gold teeth any more.

 

Thankfully, food gets cheaper and cheaper with technological advances.  That's why our economic downturns aren't nearly as bad as back in the day. Also, again, demand is down for carbs. Wheat is all about carbs. 

https://www.npr.org/...ood-than-you-do


Edited by brucekeller, 21 June 2020 - 09:43 AM.


#6 pdx5

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Posted 21 June 2020 - 11:36 AM

 

 

Thankfully, food gets cheaper and cheaper with technological advances.  That's why our economic downturns aren't nearly as bad as back in the day. Also, again, demand is down for carbs. Wheat is all about carbs. 

https://www.npr.org/...ood-than-you-do

 

 

Yes! With the automation machinery in Farming, food is abundant. There are more fat people in the world today than at any other time since the apes descended from trees and evolved into humans. On the ground, they had to use brain to survive, and the brains became bigger. I was visiting a friend's parents in Iowa back in 1961. I was riding on their tractor with them which simply drove through grass fields, the machine cut the grass, tied it into bales with wires, and threw the bales on the cart behind. I had just arrived to US from India where my dad was also a farmer, and every farm task was done manually. I was blown away by the machines, to say the least.

 

And your M2 chart is an eye opener!  


Edited by pdx5, 21 June 2020 - 11:38 AM.

"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule