Thursday, February 7, 2013
7 Feb 2013
I plan to post more charts tomorrow. Silver seems to have broken down out of its short term upward channel. Gold sits on long term support and resistance lines.
"Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security but [also] at confidence in the equity of the existing distribution of wealth."
"...By combining a popular hatred of the class of entrepreneurs with the blow already given to social security by the violent and arbitrary disturbance of contract….governments are fast rendering impossible a continuance of the social and economic order of the nineteenth century."
-- John Maynard Keynes - The Economic Consequences of the Peace, 1919. pp. 235-248.
at 11:07 PM