gold

Wages versus gold: A look at historical data

One of the most visible measures of the condition of working families is the price level of a day’s wages. So, we figured it might make sense to subject those wages to the same sort of analysis we used in the last post: the withering criticism of an ounce of gold.

Here is a chart of an average day’s wage since 1964, as presented by the Bureau of Labor Statistics:

 Average wages in dollars

Chart 1: Average day's wage in dollars (1964-2010) (Source: bls.gov)

As is befitting a labor force enjoying the prosperity of the freest, most productive, nation on the planet, we have seen our wages rising for the entire period from 1964 to 2010. Even through depressions as intense as that of the Great Stagflation (the first set of green and red bars) and the current Great Recession (the second set of green and red bars) the average day’s wage of American workers has never fallen year over year.

Unfortunately, things are not so rosy when the value of a day’s wage is measured by an ounce of gold:

Chart 2: Average day's wage in gold (1964-2010) (Source: bls.gov)

The biggest fraud that you haven't heard of

Fraud traditionally occurs behind closed doors. The larger the fraud, the more chances of its existence leaking out to the public. Only after the scheme has blown up does the news media report it.
Fraud has a short lifespan once it is subject to the harsh rays of sunlight. It is only a matter of time before the lies on which it is built come crumbling down.

Last week a massive case of fraud was exposed to the light, but because it hasn't imploded yet the mainstream news media isn't reporting it. In fact, the media seems to want to ignore the facts.
Why? Not because they question the facts, but simply because of the subject of the fraud - precious metals.

Golden Myths

I don't believe there is any investment, outside of a mania, that elicits more emotion, both positive and negative, than gold. People love it or hate it, there isn't much in between. It's because of these strong emotions that there is so many misconceptions about the yellow metal. Emotions tend to cloud normally reasonable minds to the point that they miss either opportunities or dangers.

Which brings us the current bull market in gold. What does gold hitting all-time record highs mean? To answer that you must brush away the myths and misunderstandings of what gold is and why someone would purchase it.
I am going to attempt to do that.

The Coming COMEX Default

The shear amount of information uncovered is staggering. Hopefully it will keep your interest.

Let me warm up here with a couple of interesting quotes.

"Gold was not selected arbitrarily by governments to be the monetary standard. Gold had developed for many centuries on the free market as the best money; as the commodity providing the most stable and desirable monetary medium."
Murray N. Rothbard

Why Gold and Why Now?

"If you don't trust gold, do you trust the logic of taking a beautiful pine tree, worth about $4,000 - $5,000, cutting it up, turning it into pulp and then paper, putting some ink on it and then calling it one billion dollars?"
Kenneth J. Gerbino

Ever wonder why banks and governments like a paper currency system? Why they fully embraced the Keynesian theory of deficit spending?

Where's the Gold?

JB Slear, a gold and silver broker based in Arizona specialises in helping high net worth clients take physical delivery of gold and silver futures contracts. He said "we're finding more restrictions being applied to overseas buyers, one Comex warehouse will not allow overseas deliveries."

Slear tells his clients that they may have to wait more than two weeks to take delivery as delays and complications in the process have become increasingly commonplace. In some cases this has fueled concern that stockpiles are running out.

The Golden Rule

"He who has the gold, makes the rules" ~Lyndon Forman

First it was millions, then billions and now trillions of dollars. The mind just becomes numb looking at all those zeros.

I heard an analogy the other day by Gerald Celente regarding just how much a trillion dollars is.
Gerald said. "If you were to spend One Million dollars a day, a day, since the time that Christ was born until today, you still would not have spent a trillion dollars."
So I did the math, and you know what? He was right. In fact you would not have spent 3/4 of a trillion dollars. Yet the Washington elite have decided they can do it in less than a year.

Why do I bring this up? My biggest fear that comes from this crises are the solutions put forth by Washington. I fear that in order to save Capitalism they will destroy the currency, and all those benefits that come from being the world’s reserve currency.

Pages