Veli Hopea
08-15-2003, 08:05 PM
Where do I begin...
I begin anyway.
Look at this graph:
<img src="http://www.earth-policy.org/Indicators/GWP.gif" alt="Gross World Product 1950-2001" border=0>
I just did not find better.
The Gross World Product grew fivefold 1950-1990.
Here is another graph:
<img src="http://www.solar.coppe.ufrj.br/Energy_world.gif" alt="World's Energy Consumption" border=0>
The world's energy consumption grew "only" 3.7 times 1950-1990. On the same period the Gross World Product grew fivefold. I suppose that improved efficiency explains the extra 1.3 which would be left unexplained otherwise.
So I have this theory that energy production and consumption are the cause and economic growth is the effect.
This one begins from 1960, but we don't actually need historical data so much in this case, because this is a prediction of World Oil Production, dated 1999:
<img src="http://www.mnforsustain.org/images/encircling%201.gif" alt="OPEC, and non-OPEC Oil production life cycles" border=0>
Richard C. Duncan and Walter Youngquist predicted that the world oil production would peak 2007. But Kenneth S. Deffeyes has said after the release (2001) of his book Hubbert's Peak that we are on the peak right now.
I have even more graphs here:
<img src="http://www.mskousen.com/Books/Articles/golden1chart1.GIF" alt="The World Stock of Gold" border=0>
Obviously on the period 1950-1990 The World Stock of Gold has only doubled, but also same time central banks have released their hold of much of the Gold Stocks. So the total sum of free circulating gold has tripled.
As we should all know, the true value ie. purchasing power of any currency depends on the real production of the total economy system and also on the amount of that currency. We have had and we still have many parallel currencies, but only few are truly backed on some real substance. A great amount of all existent so-called money is some kind of vapourizing and inflating paper money.
The purchasing power of gold has gained some extra value, because the amount of world gold has not followed the economic expansion, which has been fueled by oil.
What happens to the purchasing power of gold, if and when the world economy turns to long deep dive? If gold was the only existing money, the answer would be simple: Gold should dive along with the economy. But that will not be the case. There exists a weaker money, the paper money, which vastly outnumbers gold in circulation. So when the dung hits the big propeller, gold will not lose its value, because there are huge mountains of paper money burning first. People will lose their trust on loosely backed paper money and bullions rise. While people begin to realize the disappearing value of fiat currency, they will soon fall back on gold, because common sense tells them that there really is something in it.
I continue graphic. (I hope this works) The last one is an attached image that shows how the Purchasing Power of Gold grew about 1.5 times stronger 1950-1990.
I begin anyway.
Look at this graph:
<img src="http://www.earth-policy.org/Indicators/GWP.gif" alt="Gross World Product 1950-2001" border=0>
I just did not find better.
The Gross World Product grew fivefold 1950-1990.
Here is another graph:
<img src="http://www.solar.coppe.ufrj.br/Energy_world.gif" alt="World's Energy Consumption" border=0>
The world's energy consumption grew "only" 3.7 times 1950-1990. On the same period the Gross World Product grew fivefold. I suppose that improved efficiency explains the extra 1.3 which would be left unexplained otherwise.
So I have this theory that energy production and consumption are the cause and economic growth is the effect.
This one begins from 1960, but we don't actually need historical data so much in this case, because this is a prediction of World Oil Production, dated 1999:
<img src="http://www.mnforsustain.org/images/encircling%201.gif" alt="OPEC, and non-OPEC Oil production life cycles" border=0>
Richard C. Duncan and Walter Youngquist predicted that the world oil production would peak 2007. But Kenneth S. Deffeyes has said after the release (2001) of his book Hubbert's Peak that we are on the peak right now.
I have even more graphs here:
<img src="http://www.mskousen.com/Books/Articles/golden1chart1.GIF" alt="The World Stock of Gold" border=0>
Obviously on the period 1950-1990 The World Stock of Gold has only doubled, but also same time central banks have released their hold of much of the Gold Stocks. So the total sum of free circulating gold has tripled.
As we should all know, the true value ie. purchasing power of any currency depends on the real production of the total economy system and also on the amount of that currency. We have had and we still have many parallel currencies, but only few are truly backed on some real substance. A great amount of all existent so-called money is some kind of vapourizing and inflating paper money.
The purchasing power of gold has gained some extra value, because the amount of world gold has not followed the economic expansion, which has been fueled by oil.
What happens to the purchasing power of gold, if and when the world economy turns to long deep dive? If gold was the only existing money, the answer would be simple: Gold should dive along with the economy. But that will not be the case. There exists a weaker money, the paper money, which vastly outnumbers gold in circulation. So when the dung hits the big propeller, gold will not lose its value, because there are huge mountains of paper money burning first. People will lose their trust on loosely backed paper money and bullions rise. While people begin to realize the disappearing value of fiat currency, they will soon fall back on gold, because common sense tells them that there really is something in it.
I continue graphic. (I hope this works) The last one is an attached image that shows how the Purchasing Power of Gold grew about 1.5 times stronger 1950-1990.