Was there any 'debasement trade' back then? What was the narrative?
Well that was 10 years after world trade center, so yes people were starting to talk about debasement. At the time of 9/11 gold was like $270/oz and by 2011 it climbed to $1500/oz. Basically our handling of the war on terror caused immense debasement (for its time). And during this time people would reference the value of the gold backed dollar (during the Wild West era) and point to that as evidence of severe debasement.
>>62234973The narrative was they handed out a ton of free cash to businesses and homeowners during the worst recession since the great depression so when things finally started to recover 3 years later inflation took off like crazyIt wasn't just gold. Everything went up
>>62234973>'debasement' is the fundemental principle of the western economic system. If they tell you its a barbarous relic, you know its real money
I was buying a lot of scrap under the table and running it down to the exchange every week on a set margin, and for a few months it got to the point where I couldn't buy from anyone because everyone was suddenly buying speculatively over spot and I wasn't willing to do that. When it was $38 there were guys paying $40 and etc right into the teeth of the top. People were hoarding wheat pennies and buying copper bullion. Not a lot of people, but more than a few. I saw more fever for base metal scrap then precious metals. The record prices were just starting to wake normies up to PM's. But they were buying it from TV gold dealer ads on Fox news lol. I've bought gold coins from people who sourced from those companies and they paid a 100% markup over the gold content.
>>62234973I have dealt gold since 2007, making my bones in pawn. I went in for myself in 2010. No one knew what anything was worth. No one was familiar with any terminology or ratios. People didn't even know about resources like coinflation until it caught on around 2009. The same cash flow effect which happened during covid happened in the 2008 crisis, where the government printing signalled the debasement, and people went out and bid up gold and silver after an initial sell off in 08'. Silver, when i started buying, was around $8-9, and gold was in a post 08' collapse price of about $800. By the time i found out about LCS buying, the price of a 10oz bar was about $120-125. I even have the recipt some place. Anyway, the upshot of the realestate collapse was that all the people who had money got to slurp real estate. Lots of boomers got in on apartment rehabs, and multifamily dwelling rentals, but at the same time, because the money came from the top, and NOT as an instant cash transfer to the poor, ah la covid lockdowns, the money needed to slurp working class homes and cheap rentals had to come from banks or private lenders. While the bargains lasted, about 2008-2013, a 3 bedroom in a mid range home in a non-ghetto working area could be had for 65-80k. A friend of mine used to invest in these, but getting the money to buy one still required a bank loan, money was tight for the common man, and $3-4 gas hurt at the pump. Blacks were always complaining about gas being high. The interest rates were something like 7%, the morgage foreclosures kept the housing in bank hands while jump starting the speculation that drove everything up in the first place. The big housing price increase was still in 20'-21', because new cash was able to filter up from the public. It seems like most of the homes from the 08' crash became rental housing, because the rates didn't allow enough extra margin to bid up the asset prices until covid mad money.
>>62237944where I live the banks flat out weren't lending money. Not to individuals and not to businesses. People bought foreclosures, but the terms were cash on the barrel head and banks were NOT handing out mortgages to anyone. I think it was probably 10 or 11 before a normal person could get a mortgage again in my town, and even then it was a lot harder.
Lurking this based thread. >>62237944Good intel, how do you forsee this time being different
