You Feel Poorer Because You Are, Measured in Gold | Dominic Frisby

Measured in dollars, America keeps getting richer. Measured in gold, Dominic Frisby says it has been getting poorer for 50 years, with output per person down roughly 57% since 1975 by his math. “If you use gold, it tells the truth, but politicians don’t like the truth,” says the author of The Secret History of Gold.

Speaking with Kitco News anchor Jeremy Szafron at the New Orleans Investment Conference, the founder of The Flying Frisby sees gold treading water for a few more months before clearing $5,000 next year, much like the sideways stretch after 2006 that came before new highs in 2008. By the end of the decade, he targets $7,000 to $10,000. For now, oil is the trade he likes. He thinks crude could reach $150 “quite easily,” and he warns that $150 oil played an often overlooked role in the 2008 financial crisis.

Frisby says the era of cheap money is over for households and governments alike. The payment on his own mortgage nearly quadrupled, and next year Britain will spend as much on debt interest as on education, with long-term gilts at 6%, he says. He keeps as little as possible in sterling and warns that money in the bank isn’t really yours as Britain’s tax authority gai…