media dissolves value

Media will sex things up at the expense of the truth, i.e. misleading investors into thinking returns are better than they really are.

It’s odd to me media is never bonded. A bond makes production liable. Instead we shelter media thoroughly. We will war for their right to lie when what we do not trust is a greater danger.

Sensationalism sells.

Why does this happen? Well, for one thing, a lot of journalists are innumerate and a lot don’t know much about history.

But for another, darker reason: it’s an easy story.

Gold price at record high. Nope.
In inflation-adjusted dollars, it’s 65% short of true 1980 peak.

The actual gold record was 30 years ago when the price hit $2,318.

Gold is at a record only if you fail to adjust for inflation. And you should almost always adjust for inflation.

Otherwise, you end up with a series of meaningless records — Gold reaches record high! Oil reaches record high! Lettuce reaches record high!

Still distracting gumming as far as I’m concerned. Dollars chase gold when too little in the economy is better. And that’s the task.

Jim Grant speaking on gold price: “the reciprocal of trust in the dollar”.

Why not aluminum, another metal that will not go away? That’s a light bet on the reciprocal of weight.

Bumped into this wonderful comment at Illusion of Prosperity:

Can we unfleece sheep?”