Loan Modification

One once ounce of gold : one year's wage, One ounce of silver : one month's wage

By Implode-Explode Heavy Industries

Short and to the point. A powerful missive.

There is less than one ounce of gold per person on the planet, less than 1/4 ounce of silver. As the screw tightens, every scrap of paper will be thrown at gold and silver. But most of the gold and silver will be off of the market. No one will want bonds, so the central banks will print trillions to buy them all. But the bond market is just the tip of the spear. Paper money will be destroyed when people insist on payment in gold and silver. Only the demand for goods and services will bring gold and silver out of hiding. The price that I project, an ounce of gold for a year's wage, is near the all time historical high. These are unreasonably high prices if there is a functional credit system, but not in the absence of a credit system.

Full post as published by Mortgage Lender Implode-o-Meter on September 29, 2010 (boomark / email).