/biz/ - Business & Finance

>>19703894

I immediately know that your chart has something wrong with it, because gold is shown as flat before 1933, yet it nearly doubled after the crash of '29. It is also meaningless to measure gold between '33 and '71, because it had an artificial peg then which was unrelated to its real price. Once the U. S. revealed that it was defrauding the world, and that the dollar wasn't as good as gold, gold went up 25x in value.

You have to consider when and why gold goes up. Notice the two periods on your chart -- the 70s and 80s, and the 00s. In both these periods, yields were going down and inflation was going up; here, gold vastly outperformed the stock market. You will notice that gold goes down after the mid-80s, when Volcker allows interest-rates to rise. We are going into a period of negative real yields again.

>>19703856

>Gold backed currency's fault

Not true. It was slighting gold that caused the problem. The Fed was responsible for the stock market bubble which crashed in '29. Murray Rothbard, in "Wall Street, Banks, and American Foreign Policy":

"The major fruit of the Norman-Strong collaboration was Strong’s being pressured to inflate money and credit in the U.S. throughout the 1920s, in order to keep England from losing gold to the U.S. from its inflationary policies. Britain’s predicament came from its insistence on going back to the gold standard after the war at the highly overvalued pre-war par for the pound, and then insisting on inflating rather than deflating to make its exports competitively priced in the world market. Hence, Britain needed to induce other countries, particularly the U.S., to inflate along with it. The Strong-Norman-Morgan connection did the job, setting the stage for the great financial collapse of 1929–1931."

It was also the Fed which prolonged the Great Depression. Look into the Little Depression of 1920-21, subsequent to the Spanish Flu. Because the government didn't intervene in that one, it was short-lived.

>>13093055
lmao just buy gold you idiots