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One
should remember that gold, though it does not generate income, is the only asset which is both real and liquid. Most assets
are either one or the other. Houses are real enough, but cannot be sold overnight; shares are liquid enough – as are
bank notes – but neither has a real value. With all paper assets, one may be left with nothing at all.
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In the 1970s, the OPEC nations
sent their huge $US revenues back to the US. The New York money-center banks took this money and lent it to Brazil, Argentina,
Mexico, Columbia, Uruguay, Paraguay et al.
Today, the OPEC nations take their oil revenues and Asia, Europe and the rest take their trade surpluses and send it
right back to the US. But the US doesn’t send it anywhere. The US literally CONSUMES it.
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