Category Money/wealth equals Power

Apr 24 2023

Panic of 1857 & Gold


Armstrong Economics Blog/Gold Re-Posted Apr 23, 2023 by Martin Armstrong

QUESTION: Didn’t you also buy gold bars from the SS Central America ship that was discovered? The gold bugs hate you and say you are bearish gold but you buy a lot of it.

All the best

JE

ANSWER: Oh yes. I tend to collect important relics from major economic events.  The sinking of that ship set off a financial panic in NYC because the banks were counting on that gold shipment. I did buy bars. There were some 30,000 pounds (13,600 kg) of gold and about 15 tons were recovered.

They are a piece of history. I would not melt them down.

Apr 24 2023

Central Bank Hoard of Gold


Armstrong Economics Blog/Gold Re-Posted Apr 23, 2023 by Martin Armstrong

It is very interesting that I just purchased a hoard of $20 liberties, all uncirculated like the day they came from the mint and all dated 1904. The source was a foreign central bank. They were going through their reserves and came across this exciting hoard. It just goes to show that sometimes being disorganized results in new discoveries and excitement all the time. This batch was 500. The fact that every coin has the same date demonstrates that it was indeed a reserve asset directly from the Philadelphia Mint.

Apr 20 2023

The Richest Man in the World


Armstrong Economics Blog/World Events Re-Posted Apr 20, 2023 by Martin Armstrong

Bernard Arnault has unseated Elon Musk and Jeff Bezos to become the richest man in the world. The CEO and chairman of LVMH Moet Hennessy Louis Vuitton is estimated to be worth $235.7 billion. That is more than the entire GDP of some countries. Musk is now in second place with a net worth of $180 billion. To put it into perspective, Arnault has more money than Jeff Bezos And Mark Zuckerberg combined who are worth $127 billion and $81.4 billion, respectively.

LVMH stock has soared around 42% in the past year alone, and it rose by 17% YoY in Q1. The company’s revenue reaches 79.18 billion euros in 2022, a 23% increase from 2021. This is another indicator that current economic conditions are not hurting the higher upper class as the rich have not slowed their spending on luxury goods amid this recession. LVMH owns numerous designer brands such as Louis Vuitton, Tiffany, TAG Heuer, Christian Dior, Celine, Moet & Chandon, Hennessy, and Sephora. Arnault personally owns 40% of LVMH and has a 90% stake in Christian Dior.

This perhaps makes Bernard Arnault the most powerful man in the world. Once you reach the billions, money ceases to be money and becomes a tool for power. It is not possible to spend that amount of money in one lifetime or even among numerous generations. Even if you are a millionaire, you are closer to being homeless than you are a billionaire. This is a very powerful position and we have seen countless billionaires attempt to alter society simply because they can. Arnault seems to keep a low profile compared to others in his bracket, but he possesses the power to change the world for better or worse on whim.