Today's Stock Tip -- Buy Eggs
A colleague wondered what he might buy today and sell next year for profit.
I suggested eggs. The price rose 30 percent last year and should continue rising the next.
As the federales jack the price of corn via the ethanol scheme, financed with the deficit spending of a counterfeit fiat currency, anything produced from grain-fed beasts will rise in price.
He thought eggs impractical.
Then buy shares in gold mines, my friend, bearing in mind Twain's caution: A gold mine is a hole in the ground with a liar on top.
Then I commenced a lecture on another gold mine with liars on top: the stock market.
He wandered off, the ingrate.
Maybe it was my hammering the desk, leaping atop it and hollering till I was hoarse. Hard to say.
Calmer now, I offer the CliffsNotes version.
The Dow hit a record high. Wall Street and media erupted in dance and song.
Peter Schiff, president of Euro Pacific Capital, remained sober: "Measured against the rising dollar-denominated prices of just about everything else on the planet, the Dow has actually lost value over the past seven years. Measured against the truest benchmark, the price of gold, the record high for the Dow was set back in January of 2000 when its price equaled approximately 43 ounces of gold. Today it is only worth about 19 ounces."
This is where patriots of liberty get misty-eyed and wistful.
Schiff: "Consider that the record high for the Dow in 1929 of approximately 380 also equated to 19 ounces of gold. So despite all the hoopla and a 30-fold increase in stock prices, the Dow has actually gained no real value during the past 80 years. The entire rise from 380 to 13,000 has been an illusion made possible by the magic of inflation."
This is where patriots of freedom sharpen their swords.
I yield the floor to Schiff, who points out the Dow has generated dividends, "But it's not yields that Wall Street celebrates, it's prices."
Bravo, Mr. Schiff, bravo!
"Despite its recent eclipse of 13,000 the Dow now buys 30 percent fewer Euros than it did back in 2000 when it was priced at approximately 11,500. It also buys 35 percent fewer gallons of milk, 40 percent fewer bushels of corn or wheat, 65 percent fewer ounces of silver, 70 percent fewer barrels of oil, 80 percent fewer pounds of copper and 90 percent fewer pounds of uranium."
What about eggs, Mr. Schiff?
"Any way you measure it, the Dow is worth far less today than in January of 2000."
"What difference does it make if you have more dollars if the dollars themselves have less purchasing power?"
Well said, sir.
Inflation turns riches to rags. It flares up from a currency backed by nothing and torches all it touches.
It signals the proximity of the cheat. We cannot keep up with the Joneses when the Joneses print all the money they want.
A fiat currency condemns to the poorhouse those who put faith and credit in it — faith in a government that tricks its people as a con does his mark, credit to the liars on top who rob our labor and our liberty through the criminal act of creating money they did not earn.
Phil Lucas is executive editor of The News Herald in Panama City, Fla. Contact him at email@example.com. To find out more about Lucas and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.
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