Two 3/30/24 Wall Street Journal article gold statements worth noting

A gold article in today’s WSJ makes two statements that I need to address.

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Second column in the article says that stocks “offer some intrinsic inflation protection” because business can raise prices and benefit from growth of the real economy.

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Total Bulls***! When a nation gets hyperinflation, the federal government immediately passes what I call the Five Bad Laws: capital controls, price controls, rationing, anti-hoarding laws, and financial repression laws.

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Sports fans, publicly-traded companies are not going to be matching inflation rates with price increases during hyperinflation because of price controls.

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Duh.

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And growth of the real economy. Are you kidding me? Capital controls prohibit possession of bullion gold or foreign currency in the US. If you have any, you will be ordered to sell it to the US Federal Reserve at a below-market price. Don’t believe me? https://en.wikipedia.org/wiki/Executive_Order_6102 What are people going to use for money if the US dollar is hyperinflated and gold and other currencies are illegal. They have to barter jewelry and guns and musical instruments and so on.

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The combination of hyperinflation and price controls will empty all store shelves and keep them empty for the duration. Rationing and anti-hoarding laws will be superfluous. Your ration coupon will not put anything on the empty store shelves. Financial repression laws force you to put any savings into low-interest-rate bank accounts.

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These are not conditions that lead to real growth in the economy.

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Double duh.

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See Venezuela in recent years. https://en.wikipedia.org/wiki/Hyperinflation_in_Venezuela....

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The other item in the WSJ article is that UBS (Union Bank of Switzerland) published a report saying that central banks around the world recently increased their gold holdings, probably by trading US dollars for them because they fear the US dollar is going to hyperinflate.

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