Thursday 21 June 2012

From Andy's Rant today

What is a dollar worth? An oz is always an oz. :)


Back to gold, here's a chart of the CPI-adjusted gold price - depicting gold nearly 40% below its ALL-TIME high...
  
cpi adjusted gold price  
However, if the TRUE CPI was utilized - care of John Williams of Shadow Stats - the "adjusted" gold price would be closer to 75% below its 1980 highs, as is the case with the current Dow.  Of course, if the "apples-to-apples" Dow was utilized - including stocks deleted due to bankruptcy or nationalization (Eastman Kodak, General Motors, Citibank, and AIG) - the Dow's "adjusted decline" would be closer to 85%...
  
dow jones dec 99 - dec 2011  
In conclusion, you can see why the Fed is TERRIFIED of announcing a "new QE" initiative (which is probably why they'll couch it in "Fedspeak")...

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