The Money Mystery Ch: 15

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Questions and Answers

What does William Simon compare the current financial situation to?

A vibrant economic recovery

An early warning symptom of a disease (correct)

A humanitarian crisis

A technical issue

What significant change occurred in the U.S. money supply from 1976 to four years later?

Decreased from $300 billion to $200 billion

Stayed the same at $300 billion

Increased from $300 billion to $400 billion (correct)

Increased from $300 billion to $1 trillion

What concern does Simon express about the political climate regarding financial issues?

Congress and press are actively addressing it

There is too much public discussion and awareness

The situation is improving significantly

There is a lack of awareness and discussion among the public (correct)

What does Simon consider more important than discussing deficits and budget balancing?

Understanding early warning symptoms of a larger issue Signup and view all the answers

What was Simon's emotional state regarding his time in office?

Frustrated and frightened Signup and view all the answers

What does Simon imply is lacking in America regarding the financial issues?

Counterforces mobilizing against the danger Signup and view all the answers

By how much did the money supply increase from 1976 to the current figure mentioned by Simon?

$900 billion Signup and view all the answers

What percentage of liquid assets does the author suggest owning in gold and silver coins?

10% Signup and view all the answers

What minimum investment is suggested before investing in precious metals through a Treasury Bill money market mutual fund?

$2500 Signup and view all the answers

Which type of bonds are suggested as protection against deflation?

U.S. Savings Bonds Signup and view all the answers

What historical event does the author reference as a potential outcome if mistakes are repeated by officials?

Panic of 1980 Signup and view all the answers

According to William Simon, what is one consequence of printing money carelessly?

Debasement of currency Signup and view all the answers

What does the author suggest one should do in their career or business?

Be flexible and ready to adapt Signup and view all the answers

What does the author believe will happen to precious metals if the economy experiences a panic?

They may triple or quadruple in value Signup and view all the answers

What does the author identify as a potential consequence of the collapse of civilization due to poor financial management?

Panic and chaos in society Signup and view all the answers

Study Notes

Planning Your Business and Investment Future

Own some gold and silver as an inflation hedge
Keep 10% of liquid assets in gold and silver coins as insurance
Invest in U.S. Savings Bonds as protection against deflation
Be flexible and adapt to changes in business and career

Early Warning Symptoms

U.S. Treasury Secretary William Simon gave testimony in 1976 about the dangers of excessive government spending and its impact on the economy
He emphasized the importance of balancing the budget and warned of the potential for economic collapse
Simon highlighted the lack of discussion and awareness about these issues and expressed concern about the future of the country
The U.S. money supply has increased significantly since Simon's testimony, rising from 300billionin1976to300 billion in 1976 to 300billionin1976to1.1 trillion today.
This rapid increase in the money supply could trigger a potential economic panic

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Description

This quiz focuses on key strategies for planning your business and investments, including asset diversification with gold and silver and understanding economic signals from the past. Explore early warning symptoms related to government spending and money supply changes that could impact your financial future.