Monday, April 27, 2015

not another golden age

NOT ANOTHER GOLDEN AGE

The economy is not just about money. The economy has a huge infrastructure in place as a foundation. Trade is the lifeblood of any economy, and trade is what governments, militaries and warfare are all about. Boats and water ports and roads ( even in modern times with bulldozers and macadam they are insanely investment heavy-in more primitive times much more so ) and rail are all there for trade. Trade is the most important activity man is involved in. It is life itself, as almost no one is self-sufficient after a Stone Age level of existence is passed. We all need trade to survive. Bankers, on one level understand this, as they fund governments and war to achieve growth. Yet on the other hand they are far more fundamentally ignorant, since while they fund whatever profits them, and achieves growth, they refuse to see the need to fund long term infrastructure. The very basis of their existence. They fund what helps them grow, in other words, but refuse to fund their foundation. It has been repeated until no one pays attention, that ALL our infrastructure is decades past its shelf life and not being updated. One looks around, sees us still muddling through somehow, shrugs his shoulders and refuses to worry this state of affairs can’t continue indefinitely.

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But I don’t wish to repeat myself about our Oil Age infrastructure going to crap quickly. It isn’t actually such a bad thing, since once the petroleum runs out ( a process already way past started ) all our roads and bridges and dams and sewer systems couldn’t be run anyway. No, what I’d like to discuss now is the future of money. A gold and silver based economy needs an infrastructure just as a paper currency one does. Our current economy is actually oil based, which works much nicer in the short run since there is more oil than gold ( fun filled fact-half of ALL the gold ever mined everywhere came from South Africa [ what do you think the Boer War was all about? ] in the last few hundred years ). Long term, of course, it crashes and burns spectacularly since while gold sticks around, oil is burned up. But in the near future, we won’t have an infrastructure, nor will we have much silver or gold. In case you missed the news flash, artificially dampening the precious metal price helps the American Empire stay alive a bit longer, but it also sends most physical units of PM’s overseas to those with less sickly economies. Come post-apocalypse, we have no means of trade insofar as money. Gold and even silver will be far too scarce, even after massive population die-off, and will be quickly hoarded and NOT circulated. Barter will be the economy. Yet, barter allows only limited trade ( not to mention that in the absence of trade, governments are strictly local and can’t police trade routes- it is a chicken and egg issue ). Because we are trading gold for time, allowing foreigners to take the physical metal to prop up our Dollar ( even as our petro-dollar control declines ), trading gold for oil in a roundabout way ( I will wager anyone a jelly donut there is ZERO gold in Fort Knox or NYC ), come the collapse we will not have any functioning trade currency. Expect PM hyperinflation ( insanely high prices, PM payments only-like the instance of a dozen eggs selling for $20 in the California gold rush when that bought an ounce of gold ) almost immediately during the collapse as all metals are sucked into the few power dealers pockets, almost never to be seen again.

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8 comments:

  1. JC Morgan is buying all the silver too, apparently.

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    1. I wonder how much physical they can get. Industry demand is inelastic and the supply isn't increasing.

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  2. Just curious James? Have you had any problems there with regards to the open range laws; cattle messing with your property and the such?

    It also sounds as if you don't own the mineral rights to a lot of these properties? I guess someone can just come along and start excavating your property? I know that they have to compensate you, but it would kind of suck.

    Is it hilly there in Elko? I see that a lot of the land for sale in Nevada is flat and open; not a lot of places to hide.

    Sorry to be a pain in the butt, loyal minion here if it's any consolation :)

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    1. Cattle are far away, so no issues there. I could care less about mineral right issues. It is like public domain- if it happens I move, since my eggs are NOT all in one basket. Very few flat open spaces here- mostly a lot of low hills next to the mountains. If you are out of the city limits you are among hills. No PITA, I love my minions. :)

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    2. Thanks, that helps! Elko sounds much nicer than Winnemucca.

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    3. Although Winn. has about half the population of Elko. Just saying.

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    4. True James, and that's a bonus. But it doesn't sound like it's very hilly there? I found a city data thread that mentioned that due to the lack of hills, the winds there were atrocious. The main problem with the lack of hills for me is that the privacy factor is reduced considerably. You can be seen, and see others, for several miles distant with ease. And I am not very fond of having neighbours.

      The thread was actually pretty biased, and it sounded like many of the posters were arrogant elitist yuppies, that were of the opinion that practically all of Nevada sucks. I suppose rich folks can be picky that way.

      http://www.city-data.com/forum/nevada/1003674-winnemucca-questions.html

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    5. Of course you can see for miles. You are still out of site in the dips and far sides of small hills. Too many folks see no ag and hate Nevada. Ignoring what it does have.

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