At first glance, the title to this commentary seems facile, especially to those readers in higher income brackets. The reality, however, is that “investing in food” is a risk-free means of generating an annual return on one’s investment that would likely exceed the return one could earn on almost any other investment – despite the fact that nearly all other asset classes carry significant risks.
Part I of this series provided what (for some) is a revelation: the absurd, $5 face-value on our legal tender, minted silver coins is not some totally arbitrary anomaly. Rather, it was a part of the strategy of the One Bank to pretend that its fraudulent paper currencies were not (and are not) losing value at a catastrophic rate.
One of the “mysteries” of our modern (i.e. fraudulent) precious metals markets is explaining the face-value of our gold and silver minted coins, meaning relating their nominal price to their actual value. The face-value on U.S./Canadian silver 1-oz coins is $5, and the face-value for our 1-oz gold coins is $50. For those investors (including this analyst) who began using precious metals as a vehicle for wealth-protection at a relatively late date; the face-value of these coins seems totally arbitrary.
For many years; one of the standard lines of the Corporate media in its anti-precious metals propaganda was that “gold generates no income” (i.e. interest payments) in comparison to the dubious paper currencies of our “fiat currency” monetary system. Of course that feeble argument ignored the fact that (in the real world) our paper currencies were losing value at the rate of roughly 10% per year (the real rate of inflation), meaning that real interest rates on all Western paper were already deeply negative.
Regular readers are well aware of an unresolved problem/issue which has permeated these commentaries for (especially) the past three years: the lack of any rational or objective means for pricing assets, most notably precious metals themselves. There are two enormous obstacles facing any analyst, in attempting to resolve this issue.
Unsustainable. Self-destructive. Readers have heard these terms again and again over the past 6+ years. They accurately encompass the status of our societies/economies (unsustainable), and the process by which we are governed (self-destruction). But what happens after the “unsustainable” cannot be sustained for one more day/hour/minute? What happens after the banksters whom are destroying our economies succeed?
For the past quarter century; the most effective “stimulus” for the U.S. economy has been a fall in gasoline prices. This is no great surprise, given that the United States had been the most gas-guzzling nation on the planet – and by a wide margin. But times have changed!
“Tax the wealthy.” While it’s gradually, grudgingly becoming a more-popular refrain in our ultra-unequal societies, it falls far short of ranking as any sort of brilliant insight. Instead, it belongs under the category of “nothing could be more obvious” for a multitude of reasons, but three stand out.