GlobalWealth
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Gold and paper currency generally move opposite one another. Meaning as the dollar drops in value, gold goes up and visa versa. This isn't always the case, but overall this is how it works.
A better way to look at it is like the other post about the price of houses in gold ounces. How much did a house cost in gold ounces 50 years ago, 25, 10, or 5. You can do the same comparison for oil, land, stock market valuations, or nearly any other asset class. Gold is a store of wealth. As inflation increases, asset prices go up (there is usually a lag to this though). Keep in mind, inflation is when money supply outpaces productivity. Price inflation follows, but it isn't the same thing.
As for studying economics, I personally think every human being on the planet should study economics. Economics is basically the study of motivation. It isn't just about money. By understanding basic economic principles like supply/demand, money supply, velocity of money, and various macro conditions, you will gain a perspective in your business and investing activities that most people don't really bother learning.
Honestly, I don't even want to get into the subject of our economic problems right now. It is a huge subject and rife with political pitfalls. My problem is that I love this subject and could discuss it all day. But then I don't do anything else productive, so I need to leave it alone. You really need to start reading some books about economics to gain the perspective and formulate your own ideas.
A couple of economic books I would recommend are "The World is Flat" by Friedman and "Freakonomics" by Levitt. Both books are pretty entertaining and teach with stories. You could also start looking up works by various economists like Adam Smith, David Ricardo, Ludwig von Mises, Friedrich Hayek, and a few others.
To answer your question, 'how bad is it', I would say 9-10 truthfully. However, with that said, I always look for the positive and wherever there chaos, there is opportunity. IMO, there is entirely too much govt influence in many countries around the world and this causes major market inefficiencies. But for someone who understands economics and is willing to take action, there are always huge opportunities where there are inefficiencies.
For example, in August, I am going to look at some apartment buildings in the US. Due to the RE market problems (govt influence IMO), prices are very low. I am seeing very nice apartment buildings with 10%+ cap rates. Some as high as 15%. This is abnormally high. There is going to be a huge amount of wealth created over the next 5-10 years. I intend to participate.
A better way to look at it is like the other post about the price of houses in gold ounces. How much did a house cost in gold ounces 50 years ago, 25, 10, or 5. You can do the same comparison for oil, land, stock market valuations, or nearly any other asset class. Gold is a store of wealth. As inflation increases, asset prices go up (there is usually a lag to this though). Keep in mind, inflation is when money supply outpaces productivity. Price inflation follows, but it isn't the same thing.
As for studying economics, I personally think every human being on the planet should study economics. Economics is basically the study of motivation. It isn't just about money. By understanding basic economic principles like supply/demand, money supply, velocity of money, and various macro conditions, you will gain a perspective in your business and investing activities that most people don't really bother learning.
Honestly, I don't even want to get into the subject of our economic problems right now. It is a huge subject and rife with political pitfalls. My problem is that I love this subject and could discuss it all day. But then I don't do anything else productive, so I need to leave it alone. You really need to start reading some books about economics to gain the perspective and formulate your own ideas.
A couple of economic books I would recommend are "The World is Flat" by Friedman and "Freakonomics" by Levitt. Both books are pretty entertaining and teach with stories. You could also start looking up works by various economists like Adam Smith, David Ricardo, Ludwig von Mises, Friedrich Hayek, and a few others.
To answer your question, 'how bad is it', I would say 9-10 truthfully. However, with that said, I always look for the positive and wherever there chaos, there is opportunity. IMO, there is entirely too much govt influence in many countries around the world and this causes major market inefficiencies. But for someone who understands economics and is willing to take action, there are always huge opportunities where there are inefficiencies.
For example, in August, I am going to look at some apartment buildings in the US. Due to the RE market problems (govt influence IMO), prices are very low. I am seeing very nice apartment buildings with 10%+ cap rates. Some as high as 15%. This is abnormally high. There is going to be a huge amount of wealth created over the next 5-10 years. I intend to participate.
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