Sunday, January 24, 2010
a) The 1970's.
b) The Great Depression.
c) The 1830's.
d) The dawn of recorded human history.
Correct Answer: D
Even the historic price crash from the Bank of England's South Sea Bubble was complete by 1725 and prices rose slightly from 1720-1730.
The beginning of SBUS retribution against Americans in 1836 (a direct fractal equivalent to today's Federal Reserve fiasco) took markets down, but only to even between 1830 and 1840 because the central bank's inflationary surge into 1836 was irrationally steep. The net change from 1830-40 was approximately 0%. Prices continued to plunge deeply into 1842 as Biddle's BoE-spinoff tried to rape America after Andrew Jackson kicked him back to England. But without central bank looting, the US economy quickly surged on true fundamentals, and was iron horse strong by 1850 as the Industrial Revolution took root.
The 1930-40 Dow dropped a whopping 40%, but the Fed only stole 58% of the dollar's buying power as measured by the rise in the gold price. Net charge to Americans: a WWII-inducing 65% loss.
2000-2010 took a 15% price plunk on top of a momma-better-start-working -77% dollar pancake, also measured by gold priced in dollars. Net charge to Americans: a brutal 81% loss.
And that's after kicking out 10 of 30 Dow components between 2000 and 2010 for poor performance.
Our previous decade's steep spike in gold price indicates that the great majority of America's 2000-10 loss was exported to the private, multi-national Federal Reserve bank. Physical wealth exported. Worthless paper imported. In other words, let me steal 90% of your stuff and I will append a zero to your currency prices so your "net worth" doesn't change.
What will 2010-2020-2030 bring? Too bad we can't ask Andrew Jackson. Bernanke Biddle already has the king's bank in hot water.
Posted by fdralloveragain at 6:04 AM