While I’m not against investing in foreign currencies, it is not something that I advocate on a long term basis.  If you are going to buy foreign currencies, it should be for speculative purposes and for the short term.  It seems that a buy and hold is not the best strategy for holding foreign currencies, especially since there are none that are backed by gold or any other commodity.

I am an advocate of the permanent portfolio as described in Harry Browne’s book Fail Safe Investing.  Part of that portfolio consists of gold.  There is no place for foreign currencies.

There is a mutual fund (symbol: PRPFX) that is supposed to somewhat mimic the permanent portfolio.  However, the mutual fund changes the formula a little and puts a small percentage in silver and Swiss francs.  I think the big difference is that the mutual fund is actively managed.  If the Swiss central bank started creating new money like crazy, the mutual fund could change its position.

The permanent portfolio (not the mutual fund) is supposed to be an “investing for dummies” portfolio for those who don’t have the time, interest, or knowledge to actively manage their investments.  However, the permanent portfolio is also there for active traders who just want to keep a portion of their money safe and sound from the uncertainties in the world.

There are a couple of reasons that I suspect on why Harry Browne did not include any foreign currencies in the permanent portfolio setup.  First, as just mentioned, what if a particular central bank changed policy?  It would be easy to say that the yen and Swiss franc have been the best currencies due to a tighter monetary policy by their central banks.  But things can change over time and this would mean that the permanent portfolio would not be very permanent.

Second, all major currencies are fiat currencies.  They are not backed by gold or silver or anything else.  This means that there is virtually no limitation on central banks in creating more new money.  If you buy yen and the Japanese central bank is devaluing at a rate of 5% per year while the U.S. central bank is devaluing at a rate of 10% per year, you will still be losing money in yen.  You just won’t be losing as much as those who hold U.S. dollars.

Gold makes up 25% of the permanent portfolio.  This is your protection against inflation.  It makes it unnecessary to invest in foreign currencies.

There could be a few possible exceptions to this.  If you live in the U.S. and your income is all in U.S. dollars, then it would seem unnecessary to invest in foreign currencies as long as you have gold as an inflation hedge.  However, let’s say you do business in another country and buy a lot of goods from there.  Or let’s say that you are retired and you spend 4 months a year in another country.  In these special scenarios, it might be beneficial to hold a portion of your cash/ cash equivalents in the currency of this other country.

In conclusion, other than certain special situations, I see no need to own foreign currencies.  With that said, I am not against the idea for speculation for short-term gains.  Just remember that, at least as of right now, all of the major currencies in the world are fiat currencies.  That makes gold a better hedge against a depreciating currency, rather than another depreciating currency.

This is what an article on Bloomberg said gold should be worth now or at least is putting its “fair value” at $10,000.  Of course, the price of anything is determined by buyers and sellers in the market, but these scenarios drawn up are always interesting to look at.

If gold does go to $10,000 per ounce within the next few years, it either means that it is in major bubble territory or else we are on the verge of hyperinflation.  Let’s hope, even for those with substantial gold holdings, that the price doesn’t go this high.  If it does, that means that there is major trouble in the economy.

If gold goes to $10,000 in the next few years, then it will be especially important to pay attention to the Fed.  If the Fed does not show signs of tightening, then a complete collapse of the dollar really could be coming (which I predict is not likely).  If the Fed is tightening and allowing interest rates to rise as it did in the late 70’s and early 80’s, then we can expect a major correction/ depression to occur that will make 1981 and 1982 look mild.

We must also keep in mind that velocity will continue to play an important role in the dollar and gold.  If there is a perception that prices will continue to rise dramatically, then this will just make things worse as people try to dump their cash for hard assets.  Velocity is one area of economics where perception really does play an important role.

Gold has pulled back in recent days, going below $1,800 per ounce today.  Again, this is not surprising considering what it has done in the last few months and over the last 10 years.  This presents a potential buying opportunity for those who do not have substantial holdings in gold and gold related investments.  You never know which time will be the last train out.  For all we know, the next phase up could be the final blast to the moon.

I have said before that I don’t think we are in anything close to a bubble yet.  There are too many people advertising for you to sell your gold.  We need to get to a point where most of the commercials are telling you to buy gold before it is too late.

Maybe when we hear about coin flippers (as in house flippers), then we will know we are in gold bubble territory.

Although the focus of this blog is mostly on economics, politics, and investing, I do like to discuss real estate from time to time.  If you are in the right position, I think you should seriously consider getting into investing in residential real estate.

If you are broke, I wouldn’t recommend it.  I also wouldn’t recommend it if you move around a lot, although this situation could be overcome.

Some people say that they don’t want to be landlords.  It is understandable that some people don’t want to deal with finding tenants and collecting rent each month.  They also don’t want to deal with other problems that arise.  However, it is easy to find a company that will manage your property.  They will typically charge you an upfront fee to find renters for you (maybe a month’s rent) and then will charge you a fee each month to manage the property.  This might be about 10% of the rent.

Of course, you will have to pay for anything that needs to be fixed, but even here the management company can help you.  They may have a handyman who will do things for a reasonable price.  If there is something more expensive, then the management company will notify you to get your approval.

I said above that it helps if you are not moving around, but even if you are, you can still hire a management company.  I still think it is preferable to be close to your properties, but some people just don’t have this option.

It is important to have some extra money to make it easier to buy a property and to give you a cushion for any additional expenses, particularly if there is a month or two in which it is not rented.

If this is something that interests you, I would recommend buying something inexpensive, but in a decent area.  I would recommend something simple like a 3 bedroom/ 2 bathroom house.  You don’t want to buy too much house.  You will not recover the extra cost as the rent will only be slightly higher.

Also, be sure to lock in a fixed rate mortgage, unless you are paying cash.

You should only buy something if it will give you positive cash flow, not counting months where it is not rented or you have additional expense.  Overall, you don’t want to be digging a hole for yourself.  It should be something that will usually put extra money in your pocket each month.  If you can find such a place, it might be worth considering.

You don’t have to buy a whole neighborhood or apartment complex.  Just start with one house and see how it works.  You can always buy more later.

The Republican presidential candidates had another debate last night.  This one was in Tampa, Florida and it was hosted by CNN and the Tea Party.  The media is making a big deal about Mitt Romney and Rick Perry, as they are the proclaimed front runners.

Unfortunately for the establishment, Ron Paul keeps telling the truth and his poll numbers are showing him in third place and not going anywhere but up.

Rick Perry took a bit of a beating on the stage last night and deservedly so.  His executive order to vaccinate young girls is an outrage to anyone who believes in liberty.  Ron Paul also pointed out that taxes and spending went up in the last ten-plus years under Rick Perry.

It is good to hear the candidates continue to bash Ben Bernanke.  I’m not sure if one candidate would reappoint Bernanke as Fed chairman.  Bernanke is very unpopular and we can credit Ron Paul and his supporters for a big part of this.

I was thinking about Herman Cain’s so-called 9-9-9 tax plan.  He wants a 9% corporate tax, income tax, and national sales tax.  This is worse than the so-called Fair Tax.  At least the Fair Tax attempts to repeal the 16th Amendment and do away with the income tax.  With this latest plan from Cain, we would have an income tax and a sales tax.  And I’m sure there is no way that Congress would ever attempt to raise the rates on these in the future (this is sarcasm).  With Cain’s 9-9-9 plan, many middle class individuals would be paying far more in taxes, assuming that many deductions are done away with.  This is just one more example of how Cain is a statist.  I also get the feeling that he is not that bright.

Rick Santorum, once again, challenged Ron Paul on foreign policy.  Some of the audience booed Congressman Paul as he tried to explain that the terrorists don’t hate Americans for freedom but because of U.S. government foreign policy.  Unfortunately, this is going to be the roadblock for Ron Paul from getting the nomination.  He is absolutely correct in what he is saying and he should continue to say it, but there are too many militaristic Republicans who want more war and more foreign entanglements.

The good news is that Ron Paul continues to change minds.  This is reflecting in the polls, even if slightly.  Just think, every time Paul goes up one percentage point in the national polls, that means there are hundreds of thousands of more supporters than there were before.  Last night, he talked about shutting down the Departments of Education and Energy.  He also talked about letting young people opt out of Social Security.  These things can get people’s attention.  For some people, they might say, “how can he be so good on all of these issues and yet wrong on foreign policy?  Maybe I should examine his foreign policy more to see if he has a point.”

This is how minds are changed.  Ron Paul should just keep telling the truth and whatever happens, happens.  He will continue to convert more people to libertarianism and this will help save our future, even if we don’t have a President Ron Paul.

Last week, the Swiss central bank announced that it would put a cap on how high the Swiss franc could go in relation to the euro.  This drove the Swiss franc down over 10 cents in one day against the U.S. dollar.  This is unprecedented.  It is rare to see a currency move almost 10% in one day.  This is basically a formal devaluation.

The Swiss National Bank has only one way to ultimately put a ceiling on the franc.  The only way to do this is to create new money out of thin air.  This is unfortunate because the Swiss franc has been one of the most reliable currencies.  Even though it is no longer backed by any gold and is a fiat currency like the rest of them, there has always been this sense that the Swiss central bank is tighter with its monetary policy and less political.

Assuming this announcement works and the Swiss franc stays capped, then it would not surprise me to see the Bank of Japan try the same thing.  The yen is another fiat currency that has been more reliable in relation to the others and some are saying that the yen is appreciating too far and too fast.  It astounds me that the yen is as strong as it is, considering that the debt-to-GDP ratio of the Japanese government is over 200%.  This makes Greece look good.

The Japanese central bank has been able to maintain a relatively tight monetary policy because the moron investors keep buying Japanese government bonds for some reason.  With the massive debt that the Japanese government has run up, the rates on bonds there should be somewhere near the Greece level.  That is, the rates should be indicating a default is near.  Instead, rates in Japan are extremely low, despite a lack of buying from the central bank.  This means that private investors are funding this massive debt.

This move by the Swiss central bank is stupid, assuming that they weren’t being threatened with a nuke by the U.S. government or something crazy (although not that far fetched) like that.  Why does the Swiss government feel like they can’t let their currency appreciate?  Why is this the same with other governments?

Basically, these are a bunch of mercantilists making this decision.  Their excuse is that they cannot have too strong a currency or it will hurt their export sector.  But what about their import sector?  If you have a strong currency, you can import goods and services from other countries for cheaper prices than otherwise would have been the case.

Although weakening their currency might benefit the export sector, overall it will hurt the Swiss people more.  It means that people will have to pay more for goods and services.  The Swiss central bank will be devaluing their currency now like most of the other central banks around the world.

The U.S. dollar is losing its status as the reserve currency of the world.  I don’t think there is any other currency likely to take its place.  I think that either there will be no reserve currency or else a commodity or basket of commodities will serve this purpose.  Gold may become money again faster than we think.

Later this week, I will discuss my thoughts on investing in foreign currencies.

Tomorrow marks the 10th anniversary of the September 11, 2001 terrorist attacks.  As a libertarian, I have a lot of mixed feelings on the event and what has taken place since.

First, I don’t believe these attacks happened because America is free or America is a democracy (although America is not free and it is not supposed to be a democracy).  The reasons given by the terrorists have been consistent.  It is mainly due to U.S. foreign policy.  These attacks were revenge for U.S. wars, U.S. occupations, U.S. sanctions, U.S. aid to dictators, U.S. aid to Israel, and other related reasons.

Of course, all or most of the victims of September 11, 2001 had little to do with U.S. foreign policy.  These were innocent people.  It is the U.S. government responsible for foreign policy.  Although one could sympathize with people in the Middle East suffering the consequences of U.S. foreign policy, it is wrong of the terrorists to target innocent people, regardless of their lack of options.

Although, by the same token, it is wrong of Americans to want to hurt or kill anyone who was not directly responsible for the terrorist attacks.  You can call it collateral damage or anything you want, but it is still morally wrong to have people in Iraq, Afghanistan or anywhere else die because Americans are seeking revenge.  The terrorist acts should have been treated as criminal acts.  If a criminal runs into a building, you are not morally justified to blow up the whole building if there are innocent people inside.

Unfortunately, September 11, 2001 gave the U.S. government an excuse to vastly expand with war and infringements on civil liberties.  America is less free in 2011 because of it.  The good news is that more people are waking up to this, with much credit due to the internet and Ron Paul.

You will mostly hear patriotic rhetoric if you watch television tomorrow.  If you go on the internet, you will find other stories.  There is a movie being released tomorrow that discusses the falling of the towers. It is not being called a conspiracy theory movie, but that is basically what it is.

I also have mixed thoughts on the conspiracy theories.  Some of them really are way out there.  However, I have always been suspicious of how the twin towers fell.  They both fell, basically into their own footprint.  But to make the whole thing worse, is the falling of World Trade Center 7.  WTC 7 was a 47 story building.  While that is much smaller than the twin towers were and typical in Manhattan, a 47 story building would be considered a skyscraper in most cities.

WTC 7 fell at close to free fall speed.  Go on YouTube and watch a video if you haven’t seen it.  This building supposedly collapsed because of fired ignited from when the twin towers fell.  WTC 7 collapsed just after 5:00 in the afternoon of September 11, 2001.  It is only the third big building I know of to have ever collapsed like that due to a fire.  The first two happened that morning.

If WTC 7 fell due to explosives, which is what appears to have happened, then that leads to all kinds of questions.  It means the explosives had to have been planted before that morning.  It means that insiders knew an attack was going to happen.  It means that a few elites knew the attacks were coming and did nothing, allowing almost 3,000 people to die.

The only thing that makes me go the other way is that it is hard to believe that a few government elitists could pull off this whole thing.  The whole thing probably could have been done with just a couple of dozen people knowing.  While government as a whole is incompetent, certain individuals in government and connected to government can be intelligent enough to plan something like this.

Regardless, if WTC 7 was taken down by explosives, it leads to hundreds of more questions on what happened and who knew.

I don’t push this subject all that often, except for those who show interest.  The crazy thing is, even if people believed that the government was complicit in the 9/11 attacks, they still wouldn’t be libertarians.  That is another reason I don’t push the conspiracy theories all that often.  While I think it would help liberty in the sense that less people would be as trustful of their government, it still would be far from a victory for a libertarian agenda.

I know socialists/ leftists who believe in these conspiracies.  At the very least, they believe the U.S. government is fighting illegitimate wars and responsible for killing hundreds of thousands of people.  Yet, these same leftists want the government to provide our healthcare.  What?  So you think that the government starts wars and kills people, yet you want these same people that you call murderers to oversee the healthcare system in the name of helping the poor?  If you think there are a bunch of murderous thugs running DC, why would you want them running the healthcare system?  Do they all of a sudden become honest and genuine in what they say about helping the poor?

In conclusion, I would like to know what happened to WTC 7.  If I knew, it would probably lead to a bunch of other questions.  While exposing this would help the general public become more skeptical of government, it also won’t magically turn them into libertarians.  I do hope we eventually get answers though and I hope that Americans start withdrawing their consent to be governed.  The sooner the wars and occupations end, the safer we will become.

Obama delivered his speech to Congress this evening.  It is called a jobs plan, but it is more of a plan to keep unemployment where it is.  It was mostly typical Obama stuff, with more Keynesian economics.  However, there are a couple of bright spots with his proposal.

Obama is proposing to extend the tax cut on payroll taxes.  In fact, he is even proposing to lower it more.  This is good for anyone working as it will mean more money in their pocket.

As I have said in the past, if Obama really wants to help unemployment, he needs to lower the cost of labor for employers.  This means that it would be far more effective to have a payroll tax cut on the employer’s portion.  Well, Obama’s advisers must be reading my blog or the website of the Mises Institute.  He proposed this very thing tonight.  He is proposing to lower the employer’s portion of the payroll tax and to even eliminate the tax for wages in the form of raises and new hires.  If he really wanted to make this good, he would propose to make it permanent.

The overall plan he delivered was for about $450 billion.  The yearly deficit alone is $1.5 trillion, so even if his proposals were all good, this is not significant enough to make a big difference, particularly with unemployment.  If he came out with a plan to eliminate the entire deficit, then it would make a huge difference in the economy, freeing up capital for the voluntary sector.

Of course, Obama’s plan also consists of spending on schools and infrastructure and unemployment benefits.  It is typical Obama and Keynesian economics.  It will just do more damage to the economy in the form of misallocating capital.

Obama said that his plan will be paid for, but he was short on specifics, other than playing his typical class warfare.  He will continue to advocate taxing the rich more and it is unlikely that he will advocate anything in the way of significant spending cuts.

In conclusion, we should be happy about the tax cut portion of Obama’s proposal.  If it goes through, you should take your extra money and put it into gold or residential real estate (things that can’t be created out of thin air).  Obama’s proposal for a tax cut on the employer portion of payroll taxes may have a minimal positive effect on jobs.  Unfortunately, the rest of his garbage more than offsets any good from this.

There was a Republican presidential debate on MSNBC this evening and I thought I’d share a few comments about it.

It was Rick Perry’s first appearance in a presidential debate and he certainly got the most time.

I thought Ron Paul did a better job in this debate than in the last one, although that is just from my point of view.  While he didn’t get to speak a lot on foreign policy (which is where he did best the last time), I thought he did a good job of explaining his libertarian views.  He came across radical, yet reasonable.

I was happy to see that Paul finally went on the offensive a little.  He went after Rick Perry, particularly on his executive order to vaccinate young girls.  Congressman Paul got Governor Perry to essentially admit that he should not have done it through executive order.  A few of the other candidates also got their jabs in at Perry on this issue.  While Perry was strong on some issues (even though I don’t believe him), he also took a little beating from the other candidates.  Hopefully he is a little more well known now among Republican voters (and I don’t mean that in a positive way for him).

I would still like to see Congressman Paul challenge the other candidates, particularly Bachmann, on spending.  I want him to challenge her and the other candidates on how, specifically, they would balance the budget.  How would they cut $1.5 trillion out of the budget?  This could only be done by drastic cuts in either (or both) the military or so-called entitlement spending.

I also found it interesting that two candidates said they would get rid of Bernanke and Ron Paul wasn’t one of the candidates asked the question.  Bernanke took another black eye.  He was put in his position by Bush (with Senate approval) and yet most of the Republicans have turned against him.  This is unprecedented as the Federal Reserve is being partially blamed for some of the problems we have.

I don’t think Gingrich, Santorum, Huntsman, or Cain have any real chance at this point.  The race is down to Perry, Romney, Paul, and Bachmann and I’m not even sure about Bachmann.  Ron Paul is actually ahead of her in several national polls at this point.

One more thing to note: Isn’t it ironic that Rick Santorum called Ron Paul an isolationist when just about every other candidate besides Paul wants to build a giant fence on the entire southern border of the United States?

The interest rate on the two-year government bond for Greece has gone above 50%, as of this writing.  The rate on the one-year Greek bond is over 88%, as of this writing.  This is incredible.  This means that investors think a default is coming.

Usually interest rates are higher for the longer-term bonds.  When interest rates are higher for the shorter-term bonds, this is an inverted yield curve, which can often indicate a recession is coming.

In the case of Greece’s bonds, these rates are indicating an imminent default.  A lower rate for a two-year bond versus a one-year bond (at these levels) indicates that the probability of default is the highest within the next year.  With an interest rate of 88%, investors are counting on a default.  If I thought there was “only” a 10% chance of default, I would gladly drop some money down on a bond paying 88% interest.  But obviously with a rate like that, investors are betting there is a high chance of default and that, if it does come, it will be coming shortly.

While Greece does not have an overall rich population as compared to the United States, it is not a third-world country either.  This coming default (unless there is a major bailout) is significant.  And what makes this even more significant is that Greece has been a precursor for the other PIIGS (Portugal, Ireland, Italy, Greece, Spain).  If Italy and Spain end up anywhere near as bad as Greece, then there will be big ramifications.

The problem here is that a lot of this debt is owned by other countries and banks in other countries.  The banks in Europe have a lot of power, just as they do in the U.S. (which we saw with the bailouts in 2008).

From a libertarian standpoint, Greece should default.  There should be no bailouts.  Some complain that Greece would no longer be able to get loans, as if loaning out money at 88% interest is a good deal.  But really, that is the whole point.  If the Greek government can no longer borrow any money, it will either have to abandon the euro and print money like crazy or else it will have to dramatically cut its welfare state.  Hopefully it will choose the latter.

The bottom line is that the Greek government has been running up debt and making promises that couldn’t be kept.  They have tried to delay the inevitable and the interest rates on government bonds are indicating that there is no more delay possible.

At an 88% interest rate (who knows what it will be tomorrow), I wouldn’t recommend buying any Greek debt right now.  I believe a default is coming very shortly.  Hold on for a wild ride.  We could see the U.S. dollar get a boost from this.  It is harder to say what will happen with gold in the short term.

Since today is Labor Day, it is a great opportunity to talk about unemployment.  Back in March, I had a post discussing unemployment.  I said that in a truly free market system that unemployment would be close to zero.  I did acknowledge that it would not be zero because there will always be some people in between jobs and a very tiny percentage who are unable to work.

After my post, there were a couple of statists who commented.  The first person did not write much and did not write anything intelligent enough to respond to.  The second person wrote more and I thought I would respond, not to convince that person, but just for the benefit of everyone else.

In my original post I wrote that I would be willing to pay someone $1 a day to be my personal assistant.  The commenter wrote, “I would find this funny if you weren’t being so serious.”  Of course, he left out the part right after that where I said, “I’m sure someone else would be willing to pay someone at least $20 per day to be their assistant.”

This person obviously doesn’t understand a reductio ad absurdum.  I said “$1 a day” to make a point.  The point is that without a minimum wage, there would be jobs available.  I could use a reductio ad absurdum on the other end of the spectrum too.  If the minimum wage is so great and doesn’t cause unemployment, why not make the minimum wage $100 per hour or more?  Why be so stingy?

Next, the commenter says, “Abolishing the minimum wage and other ‘restrictions’ might create a few more jobs- but the jobs created will be paying very low wages and likely offer a lack of job security.”  So he concedes that abolishing the minimum wage “might” create a “few” more jobs.  These are just word games to put spin on the whole thing.  But to his point about the jobs being low wage, he would like us to forget about history.  19th century America, while not perfect, was more free market than virtually anywhere else in history.  During this time, real wages for Americans rose dramatically and Americans saw a dramatic increase in their standard of living.

Next, the commenter writes, “Unemployment benefits also would be abolished in a true Libertarian economy.”  Correction – government unemployment benefits would be abolished in a true libertarian economy.  In a free market, there is nothing to stop employers or outside insurers from offering unemployment insurance.

Next, the commenter says, “So what you would get is a situation where a bunch of people are forced to work hard for low wages.  They would have to work their butts off because they could be easily replaced and yet their wages may be so low they could be in poverty.”  First, nobody would be “forced” to work for low wages.  Nobody would be forced to do anything in a free market economy.  Right now, you are forced not to take a job at certain wages.  You might want to get a job right now for $7 per hour, but a voluntary contract between you and a potential employer cannot take place because you want to hold a gun to the employer’s head.  My scenario is not force.  Your scenario is force.  As for the latter part, you are again ignoring economics and history as real wages go up in a free market environment.

Next, the commenter says, “I also use the word ‘might’ create jobs- because you do not consider that existing jobs might simply lower wages instead, in order to increase the wages of employers.”  This is such a foolish comment.  If this were the case, why don’t all employers simply lower all wages right now to the minimum wage?

He concludes this post saying, “Yeah…. that sounds like a GREAT system you’ve thought up there.”  Oh, you mean like the system of the late 19th century that created the greatest growth in history?  How is your system working out right now with over 9% unemployment?

In a second post, the commenter is back.  He says, “Please point to a single real world example where this has been the case, to prove that your claims are backed by solid real world evidence.”  First, his request is not necessary to make my point.  All you have to do is study economics a little and use a little rational thought.  While it is impossible to find a real world example because there are no truly free markets, we can still see a correlation.  While there are not really unemployment statistics for 19th century America, it is reasonably well known that unemployment was not really an issue at that time.  And, of course, there were no government unemployment benefits or minimum wages.

For a more modern example, I think it is useful to look at Hong Kong.  Compared to the rest of the planet, Hong Kong has had a relatively free market economy.  From 1982 to 1997, the unemployment rate there averaged only 2.5%.  I think this shows a pretty good example of a relatively free market economy producing very low unemployment rates.

The commenter then says, “Can you please explain how ‘Labor laws cause unemployment’.”  This is exactly what I have already done.

To wrap up, the commenter writes, “Certainly in the UK, there has been no proven connection between the minimum wage and unemployment.  In fact, unemployment was much higher in the 1980’s under the ‘free market’ policies of Margaret Thatcher and went DOWN after the minimum wage was introduced.”  This is more leftist garbage.  The UK was anything but a free market in the 1980’s.  Just like Reagan, Thatcher spoke in favor of liberty, but the policies did not usually represent free markets.  This last sentence by the commenter was just a partisan attack on Thatcher without any specifics on her supposed free market policies.

In conclusion, it won’t matter what you say for some people.  They will never understand economics properly and they really don’t want to understand.  This is what we are dealing with.  Fortunately, I think the majority of people are more logical than this guy.