Friday, August 21, 2009

If you have dollars, you’d better get rid of them...

The price of diamonds is artificially kept high by the company that has the monopoly of them, by producing scarcity on the market.
South African mines have a huge quantity of them.
If ALL was on the market the price would slum.
The opposite is the case of Gold.
Its price is soaring because the demand is superior to the supply and the quantity is always the same.

That is why the conversion of the dollar is highly superior to its real value.
The only way to protect the value of the dollars held by savers, theoretically, is to withdraw the stimulus money before inflation sends prices soaring.
Washington’s printing presses work overtime; instead of pulling the plug, they turned up the speed.
The politicians are responding to their voters’ demands. One campaign donor wants to keep his business alive. Another wants to keep his job. Still another promises the feds high paying jobs on Wall Street, after their term in Washington is over. Millions of others – more than enough to turn an election – want free pills and mortgage subsidies and so forth.
What very few want is to protect foreign dollar-holders.
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