QUESTION Mr. Armstrong, Your recommendation is reverse Warren Buffett informed shareholders in Could 2025.
“We wouldn’t wish to be proudly owning something that we thought was in a forex that was actually going to hell, and that’s the large factor we fear about with america forex,”
Would you touch upon that?
Jeb
ANSWER: Look, I don’t wish to criticize different analysts. Warren is a home participant. He seen the world via the old-world view that was taught at school about Random Walks, Amount of Cash, and Keynesian Economics. All of these theories have crumbled into mud. By that remark referencing the greenback, it’s form of outdated since there isn’t a different forex that’s the different.
The backing of the greenback has NEVER been gold or some commodity. That’s the idea from the previous days of a barter financial system – I’ll offer you a hen for potatoes. The true Wealth of a Nation is its individuals. It’s the productiveness, not how a lot it has in commodities. If that had been true, the Russia needs to be the monetary capital since they’re the richest nation on earth with an estimated $75 trillion in pure assets. Additional proof is that the 2 defeated nations had been Japan and Germany. However their individuals had been exceptionally industrious. They rose to the main financial system of their respective areas WITHOUT gold reserves.
What makes america the monetary capital and the most important financial system is (1) the liberty of our individuals to invent issues, (2) the anti-Marxist philosophy of a free market. We’ve got the most important CONSUMER-BASED financial system to which everybody else must promote their merchandise from Asia and Europe.
This why when Bretton Woods collapsed, they swore the greenback would collapse. It rose in worth. That’s once they needed to clarify why they had been flawed. They got here up the notion that the greenback was then backed by oil. However oil was at finest 6% of the world commerce. Germany and Japan needed to prise their merchandise in {dollars} to promote to the American client. It’s the PEOPLE who’re the backing of a forex – not a commodity. Take a look at South America. They can’t get off the bottom as a result of individuals like Lulu are actual communists and are nonetheless combating class-warfare. That’s what China and Russia realized – the thought of socialism and Marxism palms extra energy to authorities and now some bureaucrat will let you know when to plant a crop. That failed and their individuals don’t wish to give up their freedom.
The true worth of the inventory market declined into 1977 from the 1929 excessive all due to socialism. Huge Authorities was to regulate society, eradicate recessions and depressions, and that’s nonetheless what we’re right now taught on this Marxist CONFIDENCE sport. It was Milton Friedman who in 1970 who stood up and stated that the “Social Duty of Enterprise is to Enhance its Income.” The lecturers got here up with Stakeholder Economics in the course of the Nice Melancholy in 1932. That was NOT an unique thought of Klaus Schwab. The lecturers turned corporations into welfare organizations and also you see that the guide worth of corporations collapsed and bottomed lastly in 1977 after 48 years. The WEALTH OF A NATION will not be its commodities, however the productiveness of its individuals. The lecturers turned companies into welfare operations. That turned the takeover increase of the ’80s since you may purchase an organization, promote its belongings, and double or triple your cash.
