GOLDBUG: Gold prevents theft by the politicians

Monday, November 16, 2015

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

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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.

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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.

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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.


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

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

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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

Gold Remains Money
By Alasdair Macleod GoldMoney
September 19, 2015

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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.


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

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

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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.

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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.


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

Friday, August 14, 2015

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

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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.”

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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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GOLDBUG: Gold is on sale!

Wednesday, July 29, 2015

Gold Hits 5-1/2 Year Low, Set for Worst Week Since October
Published July 24, 2015

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Gold has been hurt this year by expectations that the Federal Reserve is on track to raise interest rates for the first time in nearly a decade, boosting the opportunity cost of holding non-yielding bullion while lifting the dollar.

“In the short term, investor sentiment is what actually moves prices,” Capital Economics analyst Simona Gambarini said. “It’s now likely that the Fed will hike rates this year, most likely in September … (and) investors are already showing that in their positioning. They’re becoming more bearish on gold.”

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Gold is on sale!

Do you think the FED is ever going to be able to raise rates until after then next Presidential election? If then! If a D wins, it’s more of the same deficit, debt, and welfare spending. If an R wins, then the economy might have a chance to to stage a real recovery. Only if one of the “crazies” — Rand Paul, Carly Florin, Scott Walker, or maybe Ted Cruz — wins.

One thing is for sure, the Gooferment can’t print any more gold.

And, unless you think the Chinese and Russians are crazy, explain their accumulation.

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GOLD: Gold and Armageddon

Sunday, July 5, 2015

Gold Shrugs Off Armageddon
13 JUL 1, 2015 9:00 AM EDT
By Barry Ritholtz

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This was the week Greece inched closest to chaos, as a bank holiday and a technical default caused markets around the world to erupt in turmoil. They recovered somewhat Tuesday, and futures looked stronger Wednesday morning, but on Monday, the NASDAQ Composite Index lost 2.4 percent, the Standard & Poor’s 500 Index lost 2.09 percent and the Dow Jones Industrial Average fell 1.95 percent. Volatility exploded, as the Chicago Board Options Exchange Volatility Index surged 35 percent, its biggest increase in two years, to 18.85.

*** and ***

Regardless, gold seems to going nowhere fast. Feel free to send me an e-mail explaining how wrong and stupid I am. I have an archive of all the messages warning me that gold would teach me a lesson in humility. “You’ll see” these e-mails smugly assure me, “your comeuppance will be here any day now.” My plan was to respond to each on its fifth-year anniversary with a chart showing the performance of gold versus all other asset classes and the details of how much money has been lost.

*** end quote ***

I’d never call anyone names.

And, I’m a gold bug. But most of my money is in the “casino”.

One has to think, that the Greeks stuffing euros under their mattress to avoid confiscation and the Swiss fund managers wanting to take physical possession of their Swiss francs to avoid negative interest rates, there is some merit in keeping small amounts of bullion coins at home as a hedge.

The “prepper” movement always says: “Store water, beans, bandaids, bullets, and bullion. Two is one; one is none.”

When you see the political corruption of Crony Capitalism, the large proportion of folks permanently on the dole, and the expansion of the welfare / warfare state, you must see that the balloon has to pop eventually.

Eventually, like the Little Red Hen in the children’s story, the makers will stop making and what do the takers take then?

I don’t know when the music will stop, but one best have a chair then.

And, I am POSITIVE that there is manipulation in the markets.

That being said, I’m content to average in to gold if they are selling it at a discount. As long as I take delivery. 

Ya ain’t gonna Corzine me. 


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