Argument: Since 1975, when Americans again were legally allowed to own such things as gold bullion coins, the Dow Jones Industrial Average has generated a greater return on investment than gold.
Response: “This is an apples-to-oranges comparison. The composition of a one-ounce gold coin doesn’t change; it remains one ounce of gold. But the composition of the Dow has changed 24 times since 1975, with 24 out of 30 companies having declined in profitability or gone out of business, being replaced by other publicly traded firms. The price of gold has increased over 500 percent since 1975. Any comparison to the frequently re-juggled components of the Dow is invalid.
If nature abhors a vacuum, politics abhors complexity. There has been much discussion and some angst in the press lately about President Barack Obama’s supposed communication breakdown during the financial crisis. The breathless reports convey the impression that he has lost his communication skills altogether. One headline admonished: “Obama struggles as communicator.”
Watching the staple Sunday-morning television shows, you would have thought that the assembled pontificators had a sense of nostalgia for the days of the campaign, when they admitted to feeling “shivers” up their legs when they listened to him, or soaked up the crowds of 50,000 swaying happily to his moving speeches about change we can believe in.
“Watch out! You nearly broad sided that car!” My father yelled at me.
“Can’t you do anything right?”
Those words hurt worse than blows. I turned my head toward the elderly man in the seat beside me, daring me to challenge him. A lump rose in my throat as I averted my eyes. I wasn’t prepared for another battle.
“I saw the car, Dad. Please don’t yell at me when I’m driving.”
My voice was measured and steady, sounding far calmer than I really felt.
April 28, 2009 – Several major news stories broke last week that all should have sent the price of gold soaring. Gold did rise 5.3 percent, which did not reflect the importance of the developments.
There is a theme to the eight news items cited here. China has been buying large amounts of gold, it wants even more and the U.S. banking system is still in dire straits.
What this means is obvious, but if you are willing to dive in with me here, the details follow:
