| Letters
to the editor from this week's Chronicle No. 317 - 5/23/2021 It is about time to leave the topic featured in these last two articles! Years of teaching experience taught me to move on, before boredom sets in and you lose people, forever! But a few more comments should be made before switching topics! We might give some thought to common sense applied to our current economic situation in the U.S. That will be the topics in the first two sections below. Then it might be profitable to examine additional comments by so called experts on the future of a crash, inflation, and maybe a coming big increase in the price of gold and silver. Finally will be added a suggestion suggesting a site where an interested reader might find additional information on the matters discussed. 1) Common sense topic #1! Coming big time inflation, commonly called HYPERINFLATION! Really no need to comment on it again! Back in RNR #308, it was documented here what the inflation rate today is in Venezuela, after only 50 years of that country's experiment with the same SOCIALISM we are experiencing today! Fifty years only to go from one of the highest incomes in S. America and even in the world, to a starving and struggling country today. I am not going to repeat the rates claimed both by Apple's Siri, and Google. Unbelievable! If you did not believe either, DO YOUR OWN RESEARCH! But all of us know it is here and is still coming big time. Fuel, food, you name it, in on the rise in our country and it will GET WORSE! 2) Common sense topic #2! Past RNR's have discussed at length where a good deal of the fault for our current situation lies! Bluntly, we have switched from an economy which relied for the most part on the efforts of individuals, called FREE ENTERPRISE, or even CAPITALISM, if one avoids the "Dog eat dog" type of "Get rich only" which characterizes much of our so called capitalism today. And the switch was made to dependency totally on government and big central banks, called for by the modern PIED PIPER John Maynard Keynes. A dab of real common sense tells anyone that that glorified modern economic theory DOES NOT WORK in the long run. Sure, by using MONETARY and FISCAL policy to "Step on the gas" when we are threatened with a recession, we have stayed free of certain threats of recession or depression in the past, but when it comes time to stop overheated and roaring economies by "Hitting the brakes," fear of voter retaliation causes the folks in control to avoid that remedy! So we have witnessed in the past, very low or "0" interest rates, continued stimulus packages by our vote seeking government, and a total abandonment of the "braking action" called for by Keynes himself. We are currently reaping the whirl wind, the obvious expectation when government and our FED keeps "Stepping on the gas!" (Maybe all it "Put the pedal to the metal!"), but finding it unwise to "Step on the brakes" with increased interest rates and slow down tactics! Following are a few comments on our economic future: "Tight financial conditions are coming...There is no end in sight for the trap our central bank is in. For without the massive purchases of the FED, our Treasury auctions would fail...private buyers would only show up after a super spike in yields (higher interest rates), but that would render our government insolvent...so the FED must continue to print money at a record pace, to keep asset bubbles from crashing...resulting in a reckless higher inflation" "We could soon be experiencing painful inflation a living costs go through the roof."-Both Market Update. "Central banks (Our FED) will devalue the dollar...and drive gold above $5000." "When gold goes up, silver prices rise too." "The silver gap as grown to 72 -1! Silver would have to jump to $50 to close the gap."-Both Mark Skousen. "I feel that silver is the best investment of all... when investment demand is added to industrial usage... we are going to run out of silver."-Ted Butler. (Contact Bill Collins at 651-216-2494 for a top rated investment and information company-Investment Rarities) Jake Wren |
|