HOME PRICES, FEDERAL RESERVE CREATED INFLATION & GOLD EXPLAINED IN ONE CHART

The Federal Reserve is responsible for the economic collapse headed our way. The chart below shows the result of their manipulations over the last three decades. Gold reveals their handy work. That is why Bernanke and his minions despise gold and use their Wall Street bank co-conspirators to try and supress the price of gold. Charts like this one show they are failing. Now for the worst part. We are currently near the 1980 low. Interest rates were 18%. Gold went parabolic and then fell for twenty years. Home prices bottomed and went up for the next twenty five years. Ben is printing $3.7 billion per day of new debt. Home prices are still being propped up by banks and the government. Real inflation is running at 10%. Interest rates are 0%. There is no doubt in my mind that we will take out the 1980 low and it will only take 70 ounces of gold to buy a median priced home within the next two years. Book it Dano.

Severely depressed real estate prices continue to be a concern for investors. For some perspective on the magnitude of the decline in home prices, today’s chart presents the median single-family home price divided by the price of one ounce of gold. This results in the home / gold ratio or the cost of the median single-family home in ounces of gold. For example, it currently takes a relatively low 105 ounces of gold to buy the median single-family home. This is dramatically less than the 601 ounces it took back in 2001. When priced in gold, the median single-family home is down over 80% from its 2001 peak, remains well within the confines of a six-year accelerated downtrend and remains very near its 1980 trough.

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