Unclear on the Concept
A friend sent me this Kiyosaki article earlier this week.
Kiyosaki is confused about some things. He opens with this:
Most of us are aware of the sacrificial slaughter of Bear Sterns.
Then he continues with this, in the very next sentence:
Some people call it a bailout, but I call it a handout…
This blatant contradiction doesn’t bode well for the rest of Kiyosaki’s article, which includes this Nuremberg lob:
The Fed was doing its job…
Kiyosaki comes apart with this:
The rise in the price of gold is a sign that capitalism has stumbled.
This is like saying that basic arithmetic has stumbled. Capitalism, like basic arithmetic, isn’t an active thing. It’s a concept. It can’t “stumble”. Kiyosaki’s statement is wrong. The fact is that capitalism has been demonstrated once again, by the rising price of gold, to be valid, despite Bernanke’s attempt to avoid basic concepts.
When your unit of measurement shrinks, the number of your units that you’re using to quantify other things has to get bigger.
The price of gold is rising because the unit of measure, the dollar, is getting smaller, because the Federal Reserve printed more dollars.
Tags: federal reserve, gold, inflation, kiyosaki