/biz/ - Business & Finance

>>21659591

In the 70s and 80s, gold was actually the asset-bubble, which is why I mentioned its collapse from $850 to $200. By the time Volcker allowed yields to rise, the Dow was in the gutter. Adjusted for inflation, it reached an extreme low not seen since 1949; although, when we don't adjust for inflation, it falsely appears to have been going sideways for a decade. People were exiting the dollar and dollar-denominated stocks, and entering gold, in anticipation of a hyper-inflationary collapse. The same thing will happen this time; if yields stay low, we'll see a crash of the stock market in "real" terms, but not, as in the crash of 1929, in nominal terms. At any rate, Volcker was able to avert that dollar crisis by allowing yields to rise. At the present time, gold, silver, and mining-stocks, are vastly undervalued, and stocks and real-estate are vastly overvalued, so it is the latter things which have everything to lose, and the former things which have everything to gain.

>>21659591

In the 70s and 80s, gold was actually the asset-bubble, which is why I mentioned its collapse from $850 to $200. The Dow was in the gutter. Adjusted for inflation, it reached an extreme low not reached since 1949; although, when we don't adjust for inflation, it falsely appears to have been going sideways. People were exiting the dollar and dollar-denominated stocks, and entering gold, in anticipation of a hyper-inflationary collapse. The same thing will happen this time; if yields stay low, we'll see a crash of the stock market in "real" terms, but not, as in the crash of 1929, in nominal terms. At any rate, Volcker was able to avert a dollar crisis by allowing yields to rise. At the present time, gold, silver, and mining-stocks, are vastly undervalued, and stocks and real-estate are vastly overvalued, so it is the latter things which have everything to lose, and the former things which have everything to gain.