Here is a cool and revealing chart presented by Robert Precter in a Business News Network interview. The chart shows that when you take out the devaluation of the dollar–facilitated by its split from the gold standard–the Dow is only worth about $500. That is basically where is was 80 years ago. So, in other words, if we still had gold money the Dow would be at 500 not 12,000. It just goes to show what a scam inflation is; it creates an illusion of growing wealth.
Here is Ellen Brown author of Web of Debt on the Peter Schiff show. Schiff and Brown are two people critical of the Federal Reserve system but with much different solutions. To Schiff government is the enemy and to Brown government is the savior. Brown doesn’t articulate her point all that well in this interview, but who could with a great talker like big mouth Peter? I’d personally put my money on Schiff’s solutions rather than Brown’s, but I’m a fan of science and the only way we’ll ever really know what works is through actual experimentation. But that never happens because for some reason ideology is all that matters in politics and economics, not science. Anyway, it’d be nice if Schiff studied people with opposing views to his more. I know Ellen Brown is quite familiar with Schiff’s whole take on things but he isn’t of hers, since he never read her book. I mean he was in the movie The Secret of Oz, which is more of an Ellen Brown take on the Federal Reserve system, and he claims he doesn’t know who Bill Still, the guy who made The Secret of Oz, is. Anyway, I like both these people but we’ll never know who is right without full scale experimentation.
Right now the bailout bubble is still rolling along with no end in clear sight. Yet, considering that the debt problem that solicited the bailout bubble hasn’t been fixed, it seems like the days of the bailout bubble are numbered. The bailout bubble started to burst during the summer of 2010, but then Bernanke started hinting that the next phase of the bailout bubble was coming with QE2. Since then markets have rallied and optimism has picked up. The NASDAQ is back to its 2007 highs and the CRB commodities index has surpassed its 2008 highs. Rising interest rates and rising oil prices are two things that could prick the bailout bubble in 2011. Anyway, we’ll see how much longer this house of cards can stay propped up before the next gust of wind. Here’s Gerald Celente’s take on 2011.
