Comparing the 1980s recession to this one?
 

I was just doing some research on the historic price of gold, I see that in the 1980's gold was 600-700 USD, this is what we have today.

Then looking at the recession, unemployment went up in 1980, inflation went up, key industries such as housing and automotive had a downturn, banks failed, it lasted for years and we can say that in 1983 everything started to recover.

After this, so, from 1985 until 2005 gold was at 300 to 400 USD.

Doesn't the 1980s recession look very similar to this one? I know everyone is saying that gold will double soon, but what about a scenario like the one in the 1980s were gold shot up and then came back down after the recession? I'm not asking anyone to look into the future and tell me the price of gold :original: but what is different with this recession compared to the 1980s one?
Is it the new world economy which didn't exist back then? Is it that they are printing so many USD that it will become worthless in the future?

any thoughts are appriciated

Re: Comparing the 1980s recession to this one?
 

In the 80's we were still a creditor nation. We're now a debtor nation. The biggest one I think. I think that's the biggest factor- when your economy is based on borrowing money to support your "habits" what happens when you become a credit risk? That's what we're seeing. On top of that, we've outsourced our manufacturing base. Our jobs are in China, Mexico, etc. as we've become a service consumer country. What happens when people can't borrow to consume and the jobs are in the service sector? Will everyone still *need* that cellphone? iPod? Weekly manicures? Dinner out or ordering in? New dishes for every season? Thousand dollar gifts for Christmas?

You would probably LOVE Peter Schiff. Imo, he's spot on regarding what's going on and why. There are TONS of youtubes- he has become a rather popular guy these days. :wink2: