Economic DEFLATION is very bad Government Money, but during ECONOMIC deflationary periods, Gold and Silver hold their PURCHASING power – August 13, 2021,

Gold and Silver stocks are a fiat money play until proven otherwise, during an economic reset, the problems governments have is not acceptance of the new financial system locally, the problem is getting global acceptance.

Getting people to accept any form of money not backed by anything tangible is not an easy feat for Governments, because, during the transition period, people will look for price discovery and will often engage in unpredictable behavior.

Gold and Silver are predictable and a person needs to have something of value in order for any person to give up their Gold and Silver this is why prior to Fiat money, when money was either Gold and Silver and/or backed by Gold and Silver economies were often plagued by deflationary periods.

Now, if you look at history without bias, the common theme you’ll notice during deflationary economic periods is government overreach, as well as A LACK OF FINANCIAL EDUCATION! Franklin D. Roosevelt(FDR) has an example made owning Gold illegal, which was unconstitutional, HOWEVER, Hitler as well as Japan, turned what would have been a lame-duck presidency into FDR being viewed as some sort of hero.

Being that becoming an economics major revolves around studying theories, a lot of economic theologians will often point to America’s economic boom coming out of the war, ignored in all of this was the debt piling up, which was no longer allowed to deflate because via FDRs regulations of the Social Security and the Minimum wage Gold which at that period backed the U.S dollar found an ARTIFICAL bottom.

This was accelerating America’s problems, but luckily for America during that period it was entrenched in war after war, which oddly enough made Americans spend more, while at the same time made a lot of Americans more willing to accept being charged higher taxes.

Eventually, America went broke under Richard Nixon, however, the entire concept of Capitalism was still championed by America, therefore when American decided to ‘TEMPORARILY’ suspend the convertibility of U.S dollars to Gold the world although mostly upset, went along with the idea because after all, America still had the best economy.

Well, ending the Gold Standard allowed for the creation of bad policies, what people forget about Richard Nixon was his predecessor Lyndon B. Johnson.

Lyndon B. Johnson bankrupted America, Lyndon B. Johnson is created the modern Welfare State, people tend not to look back at the ENERGY of those times, remember that Lyndon B. Johnson replaced John F. Kennedy who spoke a good game, promising the normal government welfare to Democrat supporters but in practice, JFK was a womanizing moderate.

JFK actually didn’t do much except for botch the bay of pigs, it was Vice President turned President Lyndon B. Johnson who created the great society, from my vantage point I’d put Lyndon B. Johnson, Joe Biden, and Franklin D. Roosevelt in my low financial IQ presidents list.

But as per usual it was the Republican Richard Nixon who instead of leveling with the American people that America is broke, instead gave his Lyndon B. Johnson stamp of approval when he closed the Gold window. If you ever wonder why so many Conservatives do not trust Conservative politicans, it’s because when the pressures on most politicians are COWARDS, which is why you should like the politician who does the LEAST!

The best republican politician is one who goes into government cuts as much government waste as he can, waves to the people, and expects to be booted out of office in 4 years. I was very disappointed with Donald Trump as he had the personality to DRAIN THE SWAMP, but as per usual when the pressure was on, Donald Trump financed his enemies by demanding Jerome Powell keep interest rates low.

Economic deflation is merely a price reset, and to be honest, the only people who are bothered by it or the people who are UNWILLING to do their fair share. People love the welfare state, people want to get more out of the government than they put in and if they can get away with it, why shouldn’t they?

With Gold and Silver you’re not buying it with the intention of price appreciation because Gold and Silver ARE MONEY.

Why Gold and Silver has most to do with the experience most people have with they have it in their possession. Most people are unwilling to depart with Gold and Silver unless someone offers them something better for it.

This makes Gold and Silver a medium of exchange, WITHOUT GOVERNMENT. Meaning that with or without the existence of a government people will exchange goods and services for Gold and Silver because it holds it’s value.

Now, because Gold and Silver are aligned with FREE MARKET, it’s damn near impossible for any economists to pinpoint Gold and Silvers intrinsic value, because in market economy, everything depends on the circumstances.

Barter is supposed to encourage cooperation amongst people, these large corporations we see today, for the most part, are a creation of government because it’s easier for the government to get taxes from a large corporation than it is to get taxes from a VOTER!

I like to remind people that corporations for the most part collect INCOME TAXES for the government. Now, if you know anything about the tax code, you’d know that the government as constructed now would soon be bankrupt under a Gold standard.

But even under the fiat standard, the economy is deflating, because debt is supposed to be reserved for people who can multiply money. No responsible lender is going to lend money to a borrower incapable of repaying the loan, because private business people can go bankrupt and so can governments under a Gold Standard, however under a fiat standard ECONOMIC DEFLATION is hidden by price INFLATION. Economics is nothing complicated, it’s made complicated because the government wants to make sure people are IGNORANT to what’s happening.

Most politicians are crooks, you’ve heard of the crooked salesperson? well, a politician is nothing more than a salesperson with a fancy title, they tell you what you want to hear so you’ll buy into whatever they’re selling, which is often theft.

Fiat currencies usually fall to zero and when they do, if the population is still financially uneducated, you’ll have to make sure that you spend/invest your Gold and Silver wisely.

I leave you with this, spending and investing should be one and the same!😉

Interesting times ahead!