・Money has 3 functions: 1) an exchange function, 2) a measure of value, and 3) a means of storing value (p4)
・The value of 1 dollar in 2010 fell from 1 dollar in 1913 to 0.045; conversely, 1 dollar in 1913 was worth 22 dollars or more now (p6)
・Historically, the rate of increase in the price of gold exceeds the inflation rate, and in almost all cases, there is a profit of 2.4 times or more from the inflation rate (p9)
・It has been 240 years since America was born, but there are only 3 times of sustained deflation, 1814-30, 1864-97, and 1929-33, during which time only gold prices rose, and there is a sign that it is likely to enter deflation for the fourth time since the collapse of the subprime loan bubble in 2008 (p15)
・When indexed starting from the long time ago of 1871 = 100, the real price of a product did not rise or fall in terms of trend for 140 years, in other words, the product is unsuitable for hedging inflation (p33)
・The more traditional financial products such as stocks, bonds, and commodities struggle, the more gold shines, and the ratio of gold to government bonds, which is a figure obtained by dividing the price of gold per troy ounce by the long-term bond price, came out within 3.5 times that of 1996-2004, and increased 11.3 times at the end of 2010 (p36)
・The recent rise in gold prices is nothing more than a reflection of the rapid increase in money supply by governments and central banks around the world (p52)
・The actual price of gold according to the Consumer Price Index is around 600 and has not reached the highest price of 900 even recently, when 1971 = 100 (p55)
・Japan was able to have enough money reserves to adopt the gold standard system because they won the Sino-Japanese War, received huge compensation, and received almost all of it in gold bullion or British pounds handed over to London, and gold reserves increased by 280 tons (p104)
・There are other examples where they won the war and obtained gold bullion as compensation; Prussia was superior to France in the Franco-Prussian War, England was superior to France in the Napoleonic Wars, etc. (p104)
・Immediately after 1929, when the equivalent of 1 dollar = 3 to 4 yen was thought to be an appropriate rate, it returned to the gold standard system at a high rate of 1 dollar = 2 yen, so a large outflow of gold (mostly America: 609 tons) occurred from Japan (p107)
Deflation itself has no effect of hindering economic growth, but in a world where the economy is controlled by de facto monopolies, when deflation occurs, extreme production restrictions are implemented and the economy shrinks (p132)
・The value of the US dollar has been about 1/9 in 63 years, and the gold-based price level has fallen by 60% or more, in other words, the value of gold has risen 1.6 to 1.7 times in the same 63 years (p187)
・National isolation in the Edo period (limited to Korea in Asia, limited to the Netherlands in Europe) worked well in an auspicious trade where Dutch ships procured cultural relics from China and India and supplied in the form of relay trade at a high price, and the difference was settled with gold and silver bullion, and when the Dutch naval power was strong, other ships were unable to enter (p203)
・No matter where you go in the world, if you want to buy gold now, you can only buy it at a price higher than the January 1980 level, but owners of Japanese yen can buy it at a much lower price, and since this is their strength, they should buy gold while the yen is appreciating (p208, 242)
Created 2011/7/18
