Thursday, November 22, 2012


$ 1,600 per ounce. Goldberg wondered if he has to speak now or at $1650. But remembered that he was so astonished at $1500. There is no perfect solutions. Even the largest investor could not only earn profits nor be optimal every time. In fact, the pursuit of optimal profit was one of the poisons that makes the majority of investors losers. The timing of entry and exit on the market was what most investors never understood. Such a theory of moments was completely incompatible with the idea of optimal profit. Any reasonable way out of the market, in most cases, would occur before the maximum price, i.e. would provide bunches. Something the greed of the masses hardly accepts so finally masses usually lose. So Goldberg decided to postpone no more. He called the Executive Director of the Fund for investment in gold derivatives and told him to sell everything. And quickly.
-But Mr. Goldberg, it is possible to lose. Gold is on the rise, it can still continue rising. Now is not the time to sell. - replied the director.
-Sell, and also announce publicly that it will be done before you start selling. Write that I think the gold has risen too much, and soon there will be a twist. So sell.
-Sir, this will cause an atomic explosion on the market. At least we can sell secretly and slowly to avoid a crash in prices. It will anyway become publicly known, because The Securities Commission is observing us. But let it be known then. Once we have sold.
-Sell, and announce soon ...
-Mr. Goldberg, I manage your fund and I must warn you that I do not accept this logic. If we now announce that we will sell, then later we will be selling at a lower price.
-Sell, if you fear of legal consequences, I will give my instruction in written form...
-No, no need, we are working together for years. It will be done ...
As soon as the line closed, Goldberg dialed another number. It was so secret that even the one who was on the other side did not know it. In fact, this number did not provide a phone line, but simply through several automatic redirects through subsequent phones it evoked a final phone. The one on the other side did not answer. Instead, he turned on the computer, connected it to one of the free wireless networks around, activated a 4096 bit encryption and waited. After a while the screen showed Goldberg - also connected through a free network, as one of the factors of choosing the location of his office was the existence of much free wireless networks provided by third parties.
-I started selling derivatives. - Goldberg said - I will announce it publicly. As the price falls to 1550 buy. Only with immediate delivery.
-Yes, Mr. Goldberg. However, you can pay less for futures. Delivery after a month or two is also acceptable, even in the light of organizational risks.
-No! Only immediate delivery in the vault. Today I will increase your credit line. As soon as I receive the money from selling the paper-gold, I will give them as guarantees to banks to get you financed.
-Yes, Mr. Goldberg.
They gathered all - the whole family. All three generations. Here was the old grandfather David, his three sons - Aaron, Moshe and Shimon, the daughter Rosa, grandchildren, husbands and wives ... all. They wondered why the old man called them without a specific occasion, but the respect to the family was great, and no one could afford not to come. And generally David was a wealthy man and his children understood that they have to respect him for not to lose what they will deserve one day. Thus, despite their troubles, and very tense days lately - because of general social instability, all has come. Aaron left a few unfinished cars in the workshop in order to travel 500 km to the house of his father. Moshe interrupted his vacation in Mexico. And Shimon canceled a meeting of the Board of Directors of his own software company to come. David's request was almost a law. Guessing why is this meeting, some assumptions were that it will be announced the will of David. He was still healthy and only 75, but very wealthy people, just in any case, had prepared a will. But when they came, and saw no lawyers or notaries present, questions resumed ...
-Hello, all. - David said, smiling from his seat at the head of the large family table. - Good to see you altogether, which is rare ...
-And, we enjoy ... - Several voices tangled ...
-Probably you wonder why I called you. I will not torture you long. However, let us first of all appreciate the fact that we are together, and see each other in this wonderful day ...
-Really beautiful ... - Again, few voices tangled ...
Meanwhile, the wife of David - Granny Shulamit, brought the soup and began to spill in the dishes.
-I gathered you today - my family, to let you know what I will do with most of my fortune, which one day will go to all of you... And also to ask you to do the same.
I think, my children, that we are in time before the next big crisis of humanity. Such as the French Revolution, the Russian Revolution, the depression of 1929, world wars, fascism ... This time, I hope it will not come an extreme fate of great human cost. But I think as economic turmoil and losses, the situation will be similar. So I decided to convert into gold almost everything I own - without the basics needed for everyday life. Gold is what our nation has tested as the only sure guarantee in uncertain times ... - finished the old David.
For a few moments there was almost a shocking confusion, but then Simon, who was the most successful in the business from his sons, was first to return his thoughts:
-All-in gold? This is extreme, dad. Gold does not make business today. We are not in the times of great-grandfather Moshe ... - said the son.
Grandfather Moshe was the most successful member of the family, and remembered throughout the history. Large silk merchant and later a partner in the bank. He lived in the mid 19th century, and amassed an enormous fortune, which of course was measured in gold coins because it was the money then. But now gold was not used for money.
-You're right, Simon. Gold does not make business. With it you can not buy and sell anything, no one takes it as money. It is an ever-forgotten relic of the past. At the time of new finance and the new economy, where money does not even have paper and are even electronic, gold is just a part of the history of the business. But I'm not talking about business. I am talking about self-preservation. Granted there will be large economic earthquakes. So my goal is to keep our wealth for the times after that. This is what I mean. Gold guarantees storage of a great value in a small package and is guaranteed against fraud and financial manipulation. So I think so ...
-Dad, there are really problems in economy worldwide. But business has not disappeared. - said Simon - Here we had problems, but now again we have customers and orders increase. We are gaining better.
-Never in crisis, Shimon, business stops entirely. People should eat something, live somewhere, do something. This does not prevent the crisis to broke and swept everything. You profit, but have you asked yourself if the money you get have the same value as before? Because I think the big money printing that politicians create, already makes money cheaper. Your business is having an up impulse, but the salaries of your people, and your profits will buy fewer goods. This is a crisis. Now with your profits you can buy less gold, because it is constantly rising. And gold is the harbinger of inflation. And inflation - it is a symbol of the social catastrophe. Devaluation of everything and disappearance of basic life support ... - finished philosophically grandfather.
In conversation the daughter entered:
-We - Jews have always appreciated and respected gold. The principle of one-third of the capital to be always in gold, we've invented. In recent times there are many assets, but every Jew still owns some gold. But, Dad, everything in gold seems excessive. Really all you mean? Shares, the house in Paris, farmland, bonds, apartments for rent? Everything? - Rosa asked.
-Yes, everything dear children. All is to be sold out and to be turned into gold. I'll just leave this house, and part of my pension savings. Everything else in gold, and deposited in a vault in Switzerland. Total will weight around two hundred pounds. I will order to be in smaller bars to make it easier to divide it one day ...
-Dad - Shimon said again - Will you really convert 4 million dollars, and even more, only in gold?
-Yes, Simon, this is what I will do ...
Again there was silence. When Shimon - the pride of the family, the smartest of all, and most successful, could not come up against David, the other had nothing to say.
David continued:
-Of course, I could do all this without telling you. The main reason for calling all of you here, is if I can advise you to do the same. Free money or other assets, everything you have, to go into gold, and place it in Switzerland.
-It's a little too much, Daddy ... - Shimon said - I can not sell out the business and fire the people to have cash, and turn it into gold.
-Yes, It is the same with me. - joined Aaron. - I have a lot of equipment, loans, working capital, parts, the service as a mere property has closed a lot of money in itself. To turn into gold, I will have to close the business or sell it.
-Yes, I understand that it is difficult. - David said - But our times are very difficult, and the problems come from there, not from me, and my idea. I would advise you what you have saved out of business and all different other inputs, whatever you can - to turn into gold. Keep your business, but with minimal investments, do not contribute much resources into it. I understand that for me it is easier - for years my wealth is in passive form, and turning it into gold, is just a conversion from one passive form to another. And you are young and you have to work, to move the world, to move the life, everything ... But listen to your father, where you can... - finished the wise old man.
The soup was great, everyone was satisfied. The meeting ended in general family talks. In the next few days some money - provided mainly by women in the family, came to David, to convert it into gold. Does this mean that women are really the true keeper of the Jewish tradition, David wondered? Or just women generally are more calculative and pragmatic ...
-So you go to the square? - Isaac asked his son.
-Yes, today will be the largest rally. Blow them. - seventeen old Joseph answered. - The time for a change is now ...
-I will not stop you, my son, but I have to help you in thinking. Protest against what?
-Against Slavery, Dad. With what you have reconciled. Against high property prices, high rents, prices, lack of jobs. We want education, health, future ...
-What am I have reconciled with, Joseph? I have a ten thousand dollar salary, we live in the capital, live in the country of the Jews, that we have only dreamed for thousands of years, my children goes to school and does well, your mom is beautiful ... This is not a slavery.
-You do not understand, Dad? Don't you see what happened? How do I buy a house, rent, be independent? Everything is super expensive. The jobs disappear. You are doing well feeding all of us, we're fine. But look at the future. What should I do?
-You're 17 years old, Joseph. Just learn, invest in knowledge. If you want, get to work - can earn some money yourself. Here in my company they recruit trainees. Do what does any responsible young man. And soon you will see how the life begins to go well. The work and the effort changes the life, makes the future. Not protests in the middle of Jerusalem. Even in Jerusalem protests do nothing ...
-This way, you are talking - like the old generation. But we - the young, think otherwise. And I'm not alone. Today we will have 400 000 people on the square. 400000 can not be wrong ...
-The number of supporters does not determine the correctness of something, son. The Nazis bemused tens of millions of people. Were  they right?
-We are not Nazis. We are fighting for the good ...
-And, against whom you fight?
-Against Government, rents, prices ...
-How, son, the government can answer to 400 000 people who want something?
-I do not know, Dad, there is no easy answer. But I'm sure something must be done ...
-Listen, my son, with these protests you even prevent the government to do something. The government has no resources of its own. It collects taxes from us - workers and spends it for any purpose. Imagine that all employees jump to protest and ask for something. Then where will the government get the money from, as those that have to be taxed are the same that are protesting - we - ourselves? The denial, son, denial of personal responsibility to move forward by yourself, and instead transfer this responsibility to virtual structures - such as the government, is the way to problems. Now there is a crisis - that is, but look at the past and see the reason for it. The reason is the government - not just ours. Pressured by various professional groups, it continually gives to them something. But as it has no revenue so it borrows. Now the whole system collapses. No more loans. Many that are dependent on the government should lose what they received from it. I.e. Government should do the opposite of what you will protest. It should limit the giving and increase the collecting to balance the sheet. And not vice versa ...
-All my friends will be there, I can not stay away ...
-It is the instinct of the crowd ... - said the father.
-I can not stay away ... - Joseph said and left.
Isaac wondered whether such a talk was conducted in other homes. The situation was not critical. Israel was a civilized country, and the police in Jerusalem was well-mannered. No protest could go to an excess, as in neighboring Arab countries. But every parent had to work more on the awareness of young people, because by their actions they contributed to destabilization.
During the day came news that the renowned global investor - billionaire Goldberg, is selling his gold investments. The price of gold fell by about 5%. Isaak used the cheaper moment to sell his existing U.S. bonds and convert the savings into gold.
Three months later:
"... Today, the gold hit a new record high of $ 1,900 an ounce. Forecasts predict more growth because market volatility fuels fears, and investors are insuring by gold and Swiss assets. The Franc appreciated significantly - runs parallel with the gold. Analysts remind the fundamental mistake made by billionaire Goldberg, who had sold all his gold three months ago, declaring that its price will fall. His loss since then is measured at several billion dollars. This example demonstrates that even the greatest minds of finance sometimes make mistakes, commented the U.S. professor Saksan - Advisor of the East National Bank. The Bank was among the buyers of the sold by Goldberg gold bonds. The professor confirmed that the institution's forecast is for growth of gold and will continue to invest in such instruments ... "
Four months later:
"... Today, the U.S. Federal Reserve, considering the extremely low inflation and low economic growth, decided to hold a new round of monetary easing. The size will be $ 1 trillion. The Fed Chairman said that all speculators arguing that printing money and inflation is ahead, are defeated by objective facts - despite the few previous easings, the inflation is below 1%, while the economy struggles with a lack of funds ... "
"... With regard to the new program of quantitative easing in the economy, the Association against printing money wants to state a few facts:
1.The size of the program is about 70% the size of the federal deficit over the next 12 months. About this share of the national debt up to now has been purchased by the Fed, i.e. by newly printed money.
2.The statistics of U.S. inflation is constantly changing its formulas and is currently is not including the goods that go more expensive first - especially food and fuel.
3.The price of gold is rising, and historically it has proved itself as an accurate measure and a harbinger of the inflation ... "
"... Today, market observers said the European Central Bank is likely to again intervene on the market of Spanish and Italian bonds. After the interest increase in the morning, there was a sharp decline due to possible large purchases of bonds. Probably this is the intervention of the ECB ... "
Five months later:
"... Today, German Chancellor and the French President said that there was no future for the opponents of the Euro. Both governments will defend it to the last. To finance the salvation new taxes will be imposed on bankers. It will also be created a new financial management position in the European Union supported by a strong administration. No bankruptcy of any Member State will be allowed, even at the cost of unlimited aid, including interventions from the European Central Bank. The ECB, unlike in other times, said no objections ... "
+ ... A few days later:
"... Today, the German Chancellor said that markets can not blackmail the government and the government will not go "on the whistle" of the market ..."
"... In Switzerland, protests erupted among the industrialists against the high price of the Franc. Highly threatened are the export and the tourism. Swiss central bank is under pressure and has initiated several interventions, but with a temporary success. Spokesman for the bank said that it is unacceptable the behavior of speculators that artificially increase the franc against the euro and this way damage the Swiss economy. Despite of these statements, the investors' interest continues to pump franc us, as this currency is as a more "liquid" alternative to gold ... "
Six months later:
"... After months of battles with the appreciation of the franc, the Swiss central bank took the revolutionary decision to devalue it by about 8 percent and fix it to the euro. Historically, this phenomenon is rare. At a time when the market pressure is to increase the exchange rate, the central bank lowers it and introduces almost a fixed rate ... "
- ... Do you think it is a good idea to attack the Swiss franc? A lot of money can be done? - Asked Goldberg's brother, as the three were gathered to discuss the family business.
-We will make paper money. - said the father.
-Nothing will stop us from converting them into gold later. - said the brother.
-I do not know if it's worth. - Gave his own opinion Goldberg - we are now in the most powerful position - pure physical gold stored in a vault. To attack the franc we will have to turn the gold into paper money. It is unclear how much time will be able to resist the Central Bank. It is possible at the end we have a profit measured in dollars or Euros, but in the meantime gold has risen more.
-The situation is appropriate. - Continued brother. - So funny currency structure I have never seen. Artificially depreciated currency, which will be defended by unlimited printing. And against it millions of investors seeking francs.
-The fact that the crowd of investors is looking francs would be in favor of the attack. Will help. - said the father.
- Really, the Swiss situation is like some kind of dam of water to which the water is constantly growing. It is possible to break down defenses and dramatically to raise the cost of franc. But I do not know if it's worth. - Goldberg said. - Perhaps we will achieve just another business victory to feed our ego. Without much pure financial effect, measured in gold.
-There is another thing to consider - fixing the franc and its partial devaluation, in fact helps us. It topples the confidence of one of the alternatives to gold. So people will look for more gold and our stocks are going up. - Said the father.
-I agree with that. If we crash the fixed rate of the Franc in fact will create competition for gold. It may lead to a slower appreciation in the future. Adding the risk of gold shockingly to rise while we are at paper money position, I don't think it is worth.
-Obviously, you both prevail. - Said the brother. - Then we can think of more ways to win - investing in gold through loans. These ridiculously low rates suggest such a thing.
-The Loans in inflating money are advantageous. - Said the father. - But too much loans can force us at some point to sell gold in an unprofitable moment. We must think carefully how much loans to take and what a leverage over our net assets is acceptable.
-That's my job, I will look into it... - finished Goldberg.
-You were right, Dad. -  Simon said David when the old man picked up the phone.
-Certainly, 20% rise in gold a few months is impressive, but that in itself, is not sufficient to determine if I am right or not. My predictions are long-term, and cover not only the gold market. - David replied.
-Actually, I am not talking only about the price of gold. I better monitored my own business, overall environment, colleagues' mood. I do not really go in a clear direction. We are going somewhere, but it is not clear where. - Said the son.
-I am glad you felt it, son. We really won some profit measured in paper money, as a result of this rising the price of gold. But that's not the point. I want to preserve ourselves for later. When things get better again and we restart working hard.
-I will do whatever I can to add something to our gold reserves. I have many things that I can not monetize. I will save and preserve what I can. But I will not close my business.
-Yes, many people are working there, and gain knowledge of the job. The company is not important. The people are important. Help them. But beyond that, save in gold all that you can.
-Yes, Dad ...
-The situation is getting worse. New protests will have. - Joseph said, but did not seem very keen this time.
-You are going? - Isaac asked.
-Probably yes. All my friends will be there. We must remain united ...
-You look not very convinced, however ...
-I'm tired, Dad. After so many meetings and enthusiasm, the energy thrown, so enthusiasm of young people. And nothing.
-In fact, with these protests you can achieve only "nothing". Your best success can be to remove the Government from power and another one to come. It will again not meet your demands.
-There are such expectations among the protesters. - the son agreed.
-We are a democracy, Joseph. This is the answer to any serious discontent. Government resigns and this way wins time for the next government. In this cases, democracy works well. Manages to quell riots by big enough victims - those of the rulers themselves.
-When I think really if the prime minister resigns, then the energy of the protest will be over. Although a resignation solves nothing, the protest will end.
-It's time to start growing up, Joseph. I can see that happening ...
-Somehow, I can not put up that so much energy for so young and strong people can do nothing.
-The energy of youth drives the world, son. But it must be in the right direction. This energy must be put into learning and working, rather than in protests. Let me tell you where all the problems come from...
It is not your fault, we are guilty and those before us. We messed up the structure of society. We have created a country that cares about too many things, and persuaded ourselves, and also you - the young, that that's correct. And now you protest against the state, although it can not do anything.
To meet the demands of each and of everyone the state has imposed huge taxes, which are huge, even where they are lowest. This is not enough, and the state borrows. But since loans are too much and there is no one to give them, the state itself began to give them - through monetary emission. At the time of the gold money that would not be possible, but at the time of the paper money is possible. This money is being poured on the market and cause permanent appreciation of everything.
But it is not only that problem. The Greatest invention of financing through monetary emission, and not by savings has become sweet for many businesses. The state began to provide loans for the business at a funny low interest. This led to the bubbling of many prices. Inflation, son, that's all ..
You protest against high housing prices. But what makes them high? The government ? No. At least not directly.
Prices are high because the price of housing is no longer the price in money, but the mortgage payment in the bank. Pouring piles of cheap money on the property market led to rising prices. A property purchases are now only by loans. It is inconceivable to buy with savings as ever was. We buy only with credit. Whoever with the low interest provides a manageable monthly payment. That, son, is an absurd. You either live on rent, or live on something similar to that, called "monthly credit payment". But it is so - cheap printed money distorted the market, created a bubble... And it is the same with the whole economy.
You are right to protest against this. But not against the government. The government should reject all protests and start the opposite - to educate the public that the government should not be responsible for everything. It should stop the administrative money and artificial interests and cleanse the economy of bubbles.
It's very, very painful and will cause more protests. But this is the way ... - finished the father.
The Son paused, then said:
-I have a lot more to learn. I'll go to the protests for not to leave my friends. But I'll also start looking for a job. Will you help me with the trainees positions in your company?
-Of course ...
One month later:
"... The U.S. president formally asked The Congress for $ 300 billion for awakening the shrinking economy. This is just a month after The Congress barely passed a savings plan of $100 billion per year. The President, however, reassured that he will save the money for the new expenses from "other" costs ... "
"... Several EU countries have refused to give support for debt-ridden countries. Germany and France, backed by the ECB, said money will have for everyone. ECB is ready to buy every possible state bond in the name of saving the euro ... "
"... The gold reserves of the Bank of China reached a record size. The Peoples Republic now has the second largest gold reserves after the United States ..."
Six months later:
"... Today gold reached a record price of $ 2,500 an ounce. This was the background of the meeting of G-8, called to discuss the inflation the gold bubble. There are forecasts that special measures will be taken against the gold speculators who undermine global economy and sow distrust in government currencies ... "
Seven months later:
"... The Third largest fund trading with gold derivatives - East National Bank, declared bankruptcy. Having a large number of customers who wanted delivery of physical gold, and as gold refineries were not prepared to meet the demand, the fund management applied for a protection under Bankruptcy Act of the United States ... "
Eight months later:
"... For the first time in history that the gold market is split into two parts with two different gold prices. Once it became clear that for the majority of the gold derivatives can not be provided a real gold, the price dropped dramatically. In derivatives, the price of gold is about ten times lower than in physical delivery. The real gold id approaching $ 3,000 an ounce ... "
One year later:
"... Today, the U.S. President issued a decree prohibiting the ownership of gold by individuals and companies. The Decree copied almost analogous Roosevelt decree of 1933. Citizens are obliged in 3 months time to sell their gold to the government at a fixed price of $ 3,000 an ounce. The decree is a direct consequence of the resolution of the Security Council of the UN, which outlawed the gold speculators and allowed any action against them. Similar legislation has recently released the presidents of Russia and France, similar bills are viewed in Japan and throughout the European Union... "
"... The Association against printing money reminded that in the case of the previous decree prohibiting the possession of gold, after it has bought by force the people's gold, the government has raised its price by 75% ..."
1 year and 6 months later:
"... The black market price of gold reached 10 thousand dollars an ounce. U.S. government, in alliance with other leading governments of the world, maintains a firm a price of $ 5,000 per ounce. The gold is being sold only to buyers who have the right to own gold ... "
"... The Association against printing money called for cancelling the prohibition on the possession of gold by individuals. She pointed out that the official market is absurd, because it consists only of governments and central banks that in fact trade nothing... ".
"... A referendum in Switzerland, with 95% majority decided the country to leave the international agreement that restricts the trade with gold. Immediately after the announcement of results, resigned the governor of the Central Bank. The new governor announced the introduction of a gold standard for national currency ... "
1 year and 7 months later:
"... The Security Council of the United Nations imposed a full economic embargo on Switzerland. Military Forces of France are located on the border of the confederation with a mandate to intervene if the country continues to legalize the black market of gold ..."
"... In an unprecedented demarche, The chairman of the Democratic People's Republic of Korea declared that any attempted for a military aggression against Switzerland will face a hard response of the Republic with all available military means. Comrade Kim said he is ready to deploy nuclear missiles in the Confederacy. The White House commented that Pyongyang is trying to defend its gold deposits in Switzerland and that such selfishness is unacceptable, compared with global economic interests. Nevertheless, the U.S. will not send troops to North Korea ... From Switzerland announced that though it may seem strange to be supported by the DPRK in the case they will accept any assistance to counter the global tyranny of stupidity that have obsessed the Great Powers. As a sign of gratitude to the responsible behavior of Comrade Kim, Switzerland decided to allocate 5 billion francs to support the North Korean economy ... "
"... The price of gold on the exchange in Berne reached 20 thousand dollars an ounce. Black markets worldwide are approximately 5% range around this level ..."
2 years later:
"... Today suddenly the famous billionaire Goldberg called for a "complete turnaround" in global financial policy. He said the crackdown on gold can not stop galloping inflation, and the only way out is through the laws of the market. Goldberg also announced that intends to run for a president of the United States ... "
2 years and 6 months later:
"... China and Russia lifted bans on gold trading. An amnesty was declared for all convicted under laws against gold. Exchanges in Moscow and Shanghai were officially affiliated with the one in Berne. EU, USA and Japan opposed such a policy and announced that after all the damage that caused the world's gold speculators such amnesties are blasphemy ... "
3 years later:
"... Billionaire Goldberg was elected president of the United States with a huge lead over the incumbent President. This happens as the price of gold in Berne is 50 000 dollars an ounce. Immediately after the election, a group of congressmen introduced a bill to repeal the law against gold and to liberalize the market. Seeing the change in the U.S., EU and Japan announced an U-turn in policy... "
3 years and a few months later:
"... The new U.S. president has sworn. In his first speech Mr. Goldberg announced the introduction of the gold standard. Given the significant devaluation of the dollar it is considered the first in the history of U.S. monetary reform. It is expected "new dollars" to be  absolutely equal in value to the dollar before the first attacks on gold. Being known that the first major attack on gold was Roosevelt's decree of 1933, this means that if implemented the reform, the new dollar will be linked to gold at the price of 20 new dollars for one ounce. Compared to current market prices, this means that one new dollar will be equal to approximately 2,500 old dollars ... "
-Well, is it time to sell? - Asked the brother.
-Obviously, it is time. - Goldberg answers - but only for new dollars ...
-Well we have done this time. - Father praised the results.
-Yes, in the history of our family, it will come as a great success and a lesson for our successors. - Goldberg said.
-The story of our family is the true history of the world. - philosophically the father concluded.
-One hundred and twenty million dollars! This is the price of wisdom, Dad. - Shimon said.
-In fact, they cost just as much as 4 million previously. In new dollars they will be even less. - The father smiled.
-However, the family has achieved a unique success. And if we measure the value of money not only to gold, but to other commodities we actually have become richer.
-Yes, I saw that house in Paris, we can buy it back at a twice lower relative price. We can buy two houses. Obviously inflation has cleared some imbalances in economy, regulated prices and the housing bubble.
-So it is in many other sites. In fact, your fortune has increased.
-You will have what to quarrel for soon... - ironically said the father.
-I hope, however, this will not happen. Not because we much love you, but because you proved that you know how to multiply money ... - added to the irony son.
-What happened, Dad? The world fell apart. - Joseph said.
-We should be happy that it did not come to war. Now this is a new beginning. - Isaac said.
-However, this inflation, the chaos - it destroys everything - incomes, savings, businesses.
-Not quite everything. I saved some of our savings. I have converted them into gold. Now we have a family reserve. - Said the father.
-Yes, this is part of the ancient wisdom of our people. But do not ask me more. You are young for this. Now you have to learn, as before, and continue doing well with your internship.
-Even if we have our own security, inflation destroyed the society. People impoverished. The Companies went wrong in their relationships. Nothing is the same.
-Actually, my son, the inflation just cleared too much of crap one that we lived in. Property prices compared to earnings will now be much different. Interests will be other. There will be more work, because the state will be different and will not be an obstacle to business. Yes, we went through a catharsis, and all lost something. But actually we lost only our artificial standard that we had before that with not much working.
-Interestingly, Dad, that in all these inflation and chaos there were no protest against them. The men were shocked.
-That, son, is an unique lucky that happened. We could have a civil war, or Arabs to fight again with us. Crises often led to wars and bloodshed. This is the chance that maybe God gave us. He helped us in the middle of folly not to make a new shit.
-Let us thank God for the end of all this ...
-And do not forget what God tells us - with work to earn our wealth ...
-The greatest wisdom that has left to us ... - concluded the boy.
-You are obviously growing, son ... - the father concluded.

Sept 7th 2011
Dobri Bozhilov

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