Yet even if we print enough to keep the dollar from rising, it still causes our trade deficit to rise because of a net outflow of dollars, which causes us to lose jobs and profits in pretty much all sectors except the financial sector, which absolutely THRIVES on this "vicious circle".It is important to recognize that profit-taking and "wealth building (?!?!)" through the activities of financialization require NO involvement whatsoever of a middle class workforce. Today, a single person, even a non-organic algorithm, can be the primary cost and single operative of highly profitable financial market operations. With profits so high, and overhead so low, is it any wonder that the 1% exert influence and power to maintain the status quo (as long as possible)?
It is incorrect to view the present system's capacity to "transfer wealth" from the working classes to insider elites as a process of money being directly drawn out of middle class wallets. Rather, primary dealers and their direct beneficiaries (who trade profitably 364 days of the year) bypass economic value in the physical plane, eliminating middle class jobs and leaving that class without the purchasing power to fuel balanced economic growth.
Contrast the activities of emerging markets, as outlined in the previous post, and you will note that all these activities, from pipelines to railways to space exploration, energy research and development, medical and physical science development and so on ... all involve equity building real world (physical plane) developments which involve middle class workforce development, intellectual development across broad classes and true equity-based, balanced, economic development, with future development in the physical plane as its investment objective.
In the West, we sit back and calculate derived outcomes of these activities, based on our ability to manipulate them for profit. Nothing is created, cured, designed, developed, invented or built in the physical plane. No social economic wealth is created - the physical plane continues to be bypassed for quick and easy profiteering, benefiting a small elite (instead of society as a whole) as the social fabric is stretched bare.
It is stretched bare by enticing the "developed" middle classes into this economic function - to play against the house in rigged markets, to offset their declining physical plane earnings opportunities with the lure of "investing". With savings punished by negative interest rates, and further eroded by inflation, risk and debt are encouraged as the answer to net losses.
And this is why we pity the paperbugs, as they gloat greedily over their chosen path of betting on financial futures, instead of building true wealth, and true equity in the real world. They gloat over their easy winnings, and disparage the patience and resolve of the PGA. They comment in blogs extolling the virtues of the futures market, and the stupidity of holding a non-performing commodity, a useless relic of the past.
They are truly a huge part of the problem, as they beget the very system that enslaves them. And as their easy winnings gradually evaporate into net losses over time, they become silent for a while, and slowly resume their struggle to regain their position.
Still, we truly love them for the purpose they have fulfilled in extending the timeline of dollar unit hyperinflation/global propagation through the system's central and perpetual power source - human nature's unquenchable desire to achieve easy wealth. In that regard, the system's impetus is in fact a long position on itself, and a long position on a quality of human nature - greed - which has never allowed for social development, peace and harmony, equity and balance.
The short position we PGA's take on the system is both realistic and optimistic. We know that greed driven empires that hollow out middle classes and reward the failure of debt always collapse, and that these empires of debt, speculation and financialization always crumble, giving way to the rebirth of real world values, real world development, real world equity investment, and real world wealth.
We see the light at the end of the tunnel, and choose not to drive ourselves further into the darkness of "debt as wealth". We hold an equity position in a future where all classes contribute to a brighter tomorrow, with balanced, growing, developing. healthy economies. And we hold a long equity position in that future by HOLDING gold.