GOLDBUG: Germany Repatriate 200 Tons

Monday, February 1, 2016

https://www.lewrockwell.com/2016/01/no_author/germans-mistrust-fed/

Uncertain Times Sees Germany Repatriate 200 Tonnes Of Gold Bullion
By Mark O’Byrne
GoldCore
January 29, 2016

*** begin quote ***

The Bundesbank’s repatriation of 200 tonnes of gold bullion reaffirms the fact that central banks today still view gold as a vital safe haven reserve currency and monetary asset. It also indicates a lack of trust between central banks and specifically with the Federal Reserve, whose gold reserves have not been audited in over 50 years and many have doubts about the integrity of those reserves.

*** end quote ***

I got my gold. Do you?

Do you trust the Gooferment, politicians, or bureaucrats?

I don’t!

Why do you?

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GOLDBUG: Gooferment prevents us from making wise economic decisions

Wednesday, December 23, 2015

http://news.goldseek.com/GoldSeek/1450365360.php

A Free Market in Interest Rates

*** begin quote ***

Under gold, the saver always has a choice. If he likes the rate of interest, he can deposit his gold coin. If not, he can withdraw it. By withdrawing, he forces the bank to sell an asset. That in turn ticks down the price of the bond, which is the same as ticking up the rate of interest. His preference has real teeth, and that’s an essential corrective mechanism.

Unfortunately, the government removed gold from the monetary system. Now you can own it, but your choices have no effect on interest. If you buy gold, then you get out of the banking system. However, the seller takes your place, getting rid of his gold and thereby taking your place in the banking system. The dollars and gold merely swap owners, with no effect on interest rates.

The Fed has kicked savers to the curb, along with gold. Now the dollar is considered to be money. And what is it, exactly? The dollar is the Fed’s IOU. If you have dollars, then you are funding the Fed. You—along with billions of others around the globe—are empowering the Fed. It can lend at any rate it wishes, because it has a seemingly unlimited credit line. The Fed is lending your wealth to profligate borrowers who use it for nonproductive purposes—and that’s putting it mildly.

*** end quote ***

One of the essential truths that I’ve learned from the Austrian School of Economics is the concept of “malinvestment”. As I understand it, because there is no free market interest rate to evaluate the value of future purchases with, people make decisions that they would not have if they knew the actual correct market set rate of interest. This brings on the boom and bust cycle that we are all too familiar with.

Essentially the interest rate is set politically. 

By the way, I am sure by complete accident, the very low interest rate makes it easy for the Gooferment to carry a large debt. Last estimate, I read was the current 18T+ national debt and the guesstimated 200T+ in unfunded liabilities is what our posterity will have to deal with!

Of course, this is unpayable.

So, the Gooferment will “default” on this debt by further inflating the money supply and rob all the holders of dollars of their purchasing power. Look at any of the charts of a dollar’s purchasing power and see it go to near zero. I’ve ranted about this before citing anecdotally my sainted Father-In-Law’s fifty dollar bill that he kept in his wallet (i.e., when he put it in it work house and feed his family for a month and when he died his daughters didn’t realize what had been lost), the three silver dimes for a gallon of gas in 1963 that could buy two gallons today (i.e., loss of purchasing power), and — my personal favorite — the Smithsonian exhibit of the French gold Franc over the time of the French Kings (i.e., from hockey puck to shirt button).

With a gold standard, there is a finite limit to the amount of credit available. And, like any scarce resource in a truly free market system, the invisible hand of that market will establish the time value of money. That will allocate credit to those people who will pay the most for it. Some people will have their projects funded; others not. 

What we fail to understand is that these resource usage decisions are “the Great Calculator” that takes all our wants, needs, and desires as input and “rations stuff” to maximize satisfaction.

Too hard to understand?

Try it this way. If the cost of interest is more than you can afford, then you’ll change your wants.

Argh!

The Gooferment, by the mechanism of the The Federal Reserve Bank, — a misnomer. IT ain’t “federal”. It reserves nothing. And, it ain’t a “bank”. It is a private cartel of the elite banks run for their benefit and that of the entrenched politicians. — is robbing us of our wealth and the dikw (i.e., data, information, knowledge, wisdom) to make wise economic decisions.

Argh!

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GOLDBUG: Gold prevents theft by the politicians

Monday, November 16, 2015

http://tomwoods.com/podcast/ep-529-leftist-site-attacks-gold-standard-heres-our-smackdown/

Ep. 529 Leftist Site Attacks Gold Standard; Here’s Our Smackdown
9th November 2015
Tom Woods

*** begin quote ***

ThinkProgress, the heresy-hunting thought-control site, lashed out at Ted Cruz last week for advocating some kind of tie between the dollar and gold. Cruz himself is not the issue; the issue is how terrible their article was. Their article is the bologna; the Tom Woods Show is the slicer.

About the Guests

Joseph T. Salerno is academic vice president of the Mises Institute, a professor of economics at Pace University, and the John V. Denson II Professor of Economics at Auburn University.

Jeffrey M. Herbener is chairman of the department of economics at Grove City College and associate editor of the Quarterly Journal of Austrian Economics.

*** and ***

SALERNO: Yeah, that’s true, absolutely. In the 19th century, prices from 1800 or so toabout 1896 fell by about 20%. In other words, $1 bought roughly 20% more in 1896 than it did in 1800, whereas if you compare the timespan that the Fed was in existence from 1914 until today, our dollar’s worth about 4 cents. So in other words, the value of the dollar has declined by over 95%, and it has nothing to do with — that is, the 19th century performance — had nothing to do with the fact that the dollar was tied to a”shiny metal” and that the value was real; it’s simply that the gold standard restrained the number of dollars that politicians could print.

*** end quote ***

I think the essential point, of a “gold standard” or any “sound money”, is the restraint it put on the banksters to dilute the value of money. At least the Kings and Princes of old had to “clip” the gold and silver out of the coins. 

I came to this epiphany when I saw a Smithsonian exhibit of the French franc over time. IT started as a “hockey puck” of gold and wound up as a “very very thin shirt button” of gold. Argh! That’s when the light bulb went off. All I could think at the time was William Jennings Bryan saying “I will not help to crucify mankind upon a cross of gold.” We should have stuck with gold!

I can’t imagine what America would be like if we didn’t have the FED (The Federal Reserve Bank is a misnomer. IT ain’t “federal”. It reserves nothing. And, it ain’t a “bank”. It is a private cartel of the elite banks run for their benefit and that of the entrenched politicians.) which allowed the welfare / warfare state to silently rob the people of their wealth. Argh!

Now try to lock the proverbial barn door.

The FED’s “zero interest rate” policy for the last eight years (?) is a double disaster — (1) without interest rates to filter “bad” capital projects, all sorts of mistakes are being made; AND (2) the poor old senior citizen on a fixed income have had their wealth destroyed.

Argh!

Hope there is a special circle of Hell for these people.

Good job by Woods, Salerno, and Herbener to knock this out of the “park”.

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GOLDBUG: China acts like gold is NOT a “barbarous relic”

Tuesday, November 10, 2015

https://www.newsmax.com/Finance/StreetTalk/china-gold-tons-metal/2015/11/07/id/701062/

China Probably Raised Gold Hoard Again by Adding 14 Tons
Saturday, 07 Nov 2015 12:52 PM

 *** begin quote ***

China probably boosted central-bank gold holdings yet again in October, raising them by about 14 metric tons, as it seeks to diversify its foreign exchange reserves.

The value of gold assets was $63.26 billion at the end of last month from $61.19 billion at end-September, according to data on the People’s Bank of China website released Saturday. That works out to 55.38 million troy ounces or about 1,722.5 tons, based on the London Bullion Market Association afternoon price auction on Oct. 30, Bloomberg calculations show. The stash was 54.93 million ounces a month earlier.

China ended six years of mystery in July over how much gold it’s hoarding as it seeks to spur greater global use of its currency and pushes for the yuan to be included in the International Monetary Fund’s Special Drawing Rights basket.

Efforts to promote the yuan have boosted speculation the government is stockpiling gold as part of a plan to diversify its $3.53 trillion in foreign-exchange reserves.

*** end quote ***

Unless you think that the Chinese are “dumb” — according to the Keynesian economists — gold is more valuable than fiat currencies.

Silver and gold were money long ago — prior to the 1932 in the USA — thanks FDR — and probably will be again. 

When the <synonym for excrement> hits the proverbial fan, how will you protect your wealth. 

Real estate can be taxed to death. Savings are ravaged by inflation and zero interest rates. Technology is eliminating unskilled labor at $15 per hour. And outsourcing is killing white collar and high paying blue collar work. Also, just in case there’s anything left, HB1 visas are allowing foreigners to replace American workers.

Trump is tapping into the anger and frustration of “We, The Sheeple”.

And, the Chinese are “diversifying” out of US Treasury debt and into gold.

What should you do? I know what I’m doing.

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GOLDBUG: Gold preserves value

Tuesday, September 22, 2015

https://www.lewrockwell.com/2015/09/alasdair-macleod/is-gold-still-money/

Gold Remains Money
By Alasdair Macleod GoldMoney
September 19, 2015

*** begin quote ***

Government currencies come and go while human values endure. The adaptability of the human race will allow it to continue to use whatever is most convenient for day-to-day transactions. But the days of ordinary people in the welfare states blindly accepting fiat currencies as valid for storing the product of their labour, however temporary, are probably drawing to a close. The impossibility of our debt obligations, including the net present value of future welfare commitments, is catching up with us, and the requirement to debase these obligations is becoming paramount.

*** end quote ***

There is NO way to preserve value but in gold.

Argh!

The FED is the essence of the King debasing the currency and stealing for the people.

The Federal Reserve Bank is a misnomer. IT ain’t “federal”. It reserves nothing. And, it ain’t a “bank”. It is a private cartel of the elite banks run for their benefit and that of the entrenched politicians.

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GOLD: Could “confiscation” happen again?

Monday, September 7, 2015

https://www.lewrockwell.com/2015/09/no_author/will-the-feds-confiscate-gold-again/

Will Uncle Sam Confiscate Gold Again?
By Mark O’Byrne
GoldCore
September 5, 2015

*** begin quote ***

Investors suffered financial losses in recent weeks as stocks globally came under pressure in August and had their worst month in the last three years.

In one of the most volatile trading periods since the global financial crisis, August saw a massive $5.7 trillion erased from the value of stocks worldwide. No major stock market was left unscathed and the risk of financial and economic contagion became evident again.

There are growing concerns internationally that in the event of another Wall Street or global stock market crash and a new systemic crisis – a Eurozone debt crisis or another Lehman Brothers collapse – there could be enforced bank closures or extended bank holidays in the EU and U.S. as seen in Greece recently.

*** end quote ***

It’s not hard to imagine that in another “meltdown”, “market panic”, or “credit squeeze”, that the political class would use that opportunity to radically takeover the economy.

It would not be hard for “the authorities” to implement their plan for taking the trillions in IRAs / 401Ks / 403Bs / 457s by strong-arming the 2200 or so “custodians” into turning them over. Perhaps, for that, sometimes mentioned “enhanced social security benefit”?

While they are seizing the gold and precious metals — if they can find them — they will probably take the guns too.

Be interesting to see how that works out for them. 

“And how we burned in the camps later, thinking: What would things have been like if every Security operative, when he went out at night to make an arrest, had been uncertain whether he would return alive and had to say good-bye to his family? Or if, during periods of mass arrests, as for example in Leningrad, when they arrested a quarter of the entire city, people had not simply sat there in their lairs, paling with terror at every bang of the downstairs door and at every step on the staircase, but had understood they had nothing left to lose and had boldly set up in the downstairs hall an ambush of half a dozen people with axes, hammers, pokers, or whatever else was at hand? . . .” — Alexander Solzhenitsyn

I don’t think any type of door to door seizure will work out to well for the “boots on the ground”.

But then again, “We, The Sheeple” have gone along before.

Argh!

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GOLDBUG: What do you have that can’t be “inflated” away?

Friday, August 14, 2015

https://www.lewrockwell.com/2015/08/pater-tenebrarum/the-asset-the-state-loves-to-hate/

Gold and the Grave Dancers
By Pater Tenebrarum
Acting Man
August 3, 2015

*** begin quote ***

Greenspan:

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”

*** end quote ***

Gold is the poor man’s friend. The “Sovereign” (i.e., the Federal Reserve System counterfeiters, Congress debt and deficits,the politicians, bureaucrats) can’t fool you out of it. 

FDR “recalled” it. And the American Sheeple of the day obeyed. Argh!

Gold may fluctuate up and down when priced in fiat (i.e., it’s valuable because the Gooferment says it is) currency. 

But “we” all know that because it’s scarce, it’s valuable. 

And, like a work of art, beachfront property, land, and such tangibles, the Gooferment can’t print any more of it.

That’s why I’m a Gold bug. 

What do you have that can’t be “inflated” away?

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