US economic slump is 8 years old

Fiat currency creates a lot of obfuscation. You pay taxes on profits when actually
there were none. It was all inflation. Did you know that 90% of all DOW index long term gains
actually comes from inflation? So, with that statistics, how about a 20% tax on all your gains?
You lost some. Well, not really, given the dividend, but that’s the only thing that saved you.

What is gold? Gold is honest money, not subject to excessive printing. Gold also shows the
true picture of economic malaise, since it subtracts the currency obfuscation from the picture,
such as the government (BLS) inflation statistics, also known to some as inflation lies.
No wonder all central bankers hate gold and try to suppress the price. It shows the true picture,
and the truth makes them look bad.

What does gold say? Let us see.

1) The Secular bear market for stocks started in 1999

DOW/gold ratio

2) Crude oil was not a bubble, but it was somewhat overpriced in 2008. It is currently fairly priced

Crude in gold

3) Home prices were in a bubble, but currently dropped to fair value

Case-Schiller home price index in gold

4) Home prices are fine long term

US median home price in gold

5) However, median income is not. Instead of prosperity, we had 50 years of stagnation.

US median income

6) USA has been in depression since 2001, and its Gross Domestic Product was halved in real terms.

US GDP in gold

7) US disposable income keeps dropping thanks to the currency depreciation and an economic depression.

US disposable income in gold

For more insight, see this wonderful web site:

Priced in gold

Sunday, November 15th, 2009 The global financial and economic crisis

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