Real earnings and productivity growth through the free market have been sacrificed for increasing asset prices measured in a dollar that is rapidly and constantly losing value.
Thank you for this excellent summation of the problems underlying the markets. Your statement that "the ability of a market to tolerate downturns with resilience is what underlies its true strength" is particularly poignant given that markets are simply people making exchanges. When people lose resilience because of coddling and government interference, they cease to be free and seek ever more government "help" in the face of any and every discomfort of life.
That's for sure. And some have become exceptionally effective at getting that help. They are the professional rent-seeker class, or what Rand called the "moochers and looters."
Real investors want to see markets completely disconnect from the state and Fed so that accurate price signals return. As of now, the capital markets (stock market, etc.) have much more to do with front-running certain monetary and fiscal policies than analyzing and valuing businesses, properties, etc.
It seems that front-running thus undermines the basic need to understand that in which one is investing--another problem you have discussed previously.
"There is no politically viable way out, only the hard road back to sound money and fiscal discipline where interest rates are set by the market, not a central bank – a likelihood on par with pigs flying." Well, maybe. The Sound Money Defense League is making great strides convincing state governments to take action to protect and expand our use of precious metals. States are highly competitive these days, and not only in lowering taxes and regulations, but embracing alternatives to the federal fiat dollar. Gold and Silver are in fact the only forms of money recognized by the U.S. Constitution. Transactions in silver rounds (1 oz. coin) are becoming more common, and are legally protected in most states. Not surprisingly, the market price for 1 oz. silver has increased by over 40% since January of this year. More importantly, the amount of gold or silver required to purchase every stock in the Dow continues its decline. The more the Fed does to prop up the fiat dollar, the more popular gold, silver and Bitcoin become as a means of exchange.
Good point. And I've seen some of the fruits of their labor (I think) recently, including the removal of taxation on gold and silver in many states. I own both, will continue to own more, and hope to see them used increasingly as money.
Correct. Sales taxes on metal are nearly extinct. Now the League is working on eliminating capital gains taxes for metals, and making progress. Here is a recent report:
But citizens do not have to wait. Start using silver for transactions now. Why not? It may not be accepted at most retail chains, but many small, private businesses are happy to take payment in silver or gold. Just ask.
Thank you for this excellent summation of the problems underlying the markets. Your statement that "the ability of a market to tolerate downturns with resilience is what underlies its true strength" is particularly poignant given that markets are simply people making exchanges. When people lose resilience because of coddling and government interference, they cease to be free and seek ever more government "help" in the face of any and every discomfort of life.
That's for sure. And some have become exceptionally effective at getting that help. They are the professional rent-seeker class, or what Rand called the "moochers and looters."
Real investors want to see markets completely disconnect from the state and Fed so that accurate price signals return. As of now, the capital markets (stock market, etc.) have much more to do with front-running certain monetary and fiscal policies than analyzing and valuing businesses, properties, etc.
It seems that front-running thus undermines the basic need to understand that in which one is investing--another problem you have discussed previously.
"There is no politically viable way out, only the hard road back to sound money and fiscal discipline where interest rates are set by the market, not a central bank – a likelihood on par with pigs flying." Well, maybe. The Sound Money Defense League is making great strides convincing state governments to take action to protect and expand our use of precious metals. States are highly competitive these days, and not only in lowering taxes and regulations, but embracing alternatives to the federal fiat dollar. Gold and Silver are in fact the only forms of money recognized by the U.S. Constitution. Transactions in silver rounds (1 oz. coin) are becoming more common, and are legally protected in most states. Not surprisingly, the market price for 1 oz. silver has increased by over 40% since January of this year. More importantly, the amount of gold or silver required to purchase every stock in the Dow continues its decline. The more the Fed does to prop up the fiat dollar, the more popular gold, silver and Bitcoin become as a means of exchange.
Good point. And I've seen some of the fruits of their labor (I think) recently, including the removal of taxation on gold and silver in many states. I own both, will continue to own more, and hope to see them used increasingly as money.
Correct. Sales taxes on metal are nearly extinct. Now the League is working on eliminating capital gains taxes for metals, and making progress. Here is a recent report:
https://www.soundmoneydefense.org/news/2024/10/09/sound-money-gains-major-ground-seven-state-victories-in-2024-000565
Their Index compares progress in all states:
https://www.soundmoneydefense.org/sound-money-index
But citizens do not have to wait. Start using silver for transactions now. Why not? It may not be accepted at most retail chains, but many small, private businesses are happy to take payment in silver or gold. Just ask.