GOLD: Cash is not a “store of value”

Sunday, October 13, 2013

http://news.yahoo.com/ap-impact-families-hoard-cash-5-yrs-crisis-042042926.html

AP IMPACT: Families hoard cash 5 yrs after crisis

Associated Press BERNARD CONDON 3 hours ago

*** begin quote ***

NEW YORK (AP) — Five years after U.S. investment bank Lehman Brothers collapsed, triggering a global financial crisis and shattering confidence worldwide, families in major countries around the world are still hunkered down, too spooked and distrustful to take chances with their money.

An Associated Press analysis of households in the 10 biggest economies shows that families continue to spend cautiously and have pulled hundreds of billions of dollars out of stocks, cut borrowing for the first time in decades and poured money into savings and bonds that offer puny interest payments, often too low to keep up with inflation.

“It doesn’t take very much to destroy confidence, but it takes an awful lot to build it back,” says Ian Bright, senior economist at ING, a global bank based in Amsterdam. “The attitude toward risk is permanently reset.”

A flight to safety on such a global scale is unprecedented since the end of World War II.

The implications are huge: Shunning debt and spending less can be good for one family’s finances. When hundreds of millions do it together, it can starve the global economy.

Weak growth around the world means wages in the United States, which aren’t keeping up with inflation, will continue to rise slowly. Record unemployment in parts of Europe, higher than 35 percent among youth in several countries, won’t fall quickly. Another wave of Chinese, Brazilians and Indians rising into the middle class, as hundreds of millions did during the boom years last decade, is unlikely.

*** end quote ***

“Money is a matter of functions four, a medium, a measure, a standard, a store.” He repeated that four times like poetry. “Six Characters in Money: Portable – Durable – Divisible – Uniformity – Limited Supply – Acceptability.” — CHURCH 10●19●62 (Vol 1) 978-0-557-08387-9 page 110

Sorry, but “cash” isn’t money these days. While it is a “medium of exchange” and “measure”, it fails as a “standard” or “store”.

And maybe if it fails “standard”, it may be failing “measure”.

OK, it does serve as a “medium of exchange”. 

But that’s it.

Note that in disasters and civil unrest, there is no exchange.

And, the TEOTWAWKI (The End Of The World As We Know It) preppers point out you can eat money. But you can make an expensive fire and poor quality toilet paper out of it.

Let’s tackle “standard” next. What is a “dollar”? It’s got no measure. It’s purchasing power decreases year over year due to inflation. An ounce, a gallon, a meter — they don’t change.

Back to “measure”, a 100 is still a 100. But it’s like baseball and football records. How do we measure if every year they change the definition of distance?

And cash is certainly not a “store”. The “rats” are eating the “seed corn” of value.

Argh!

I suggest the preppers’ mantra — beans, bullets, bandaids, and then bullion!

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POLITICAL: the Rosa Parks of alternative money

Thursday, October 10, 2013

http://dailyreckoning.com/the-domestic-terrorist-you-can-call-a-hero/

Daily Reckoning
The “Domestic Terrorist” You Can Call a Hero
Jeffrey Tucker
Posted Sep 10, 2013.

*** begin quote ***

I dreamed I saw Bernard von NotHaus, alive as you or me.

Said I, “But Bernard, you’ve been jailed two years.”

“I never was,” said he.

Bernard has been the called the Rosa Parks of the alternative money movement. More than 10 years ago, he had this idea that he would make his own money — not the fake stuff we are used to, but the real stuff made of actual silver. He called his currency the Liberty Dollar (and why not, since there is no trademark on the word dollar?).

The feds raided him in in 2006. In 2007, the government outright stole 2 tons of coins from him, many of them featuring an image of Ron Paul, plus 500 silver coins and 50 gold coins. They threw him in jail and dragged his name through the mud many times.

He was later convicted of making counterfeit coins — an ironic conviction given that he was making silver coins to compete with official coins made out of scrap metal. That conviction was in March 2011, fully 2½ years ago. The government labeled him a “domestic terrorist.” Yet — and this is what amazed me — he still hasn’t been sentenced. He walks around as free as you or me.

*** end quote ***

It’s all about keeping the Sheeple sleeping.

I bought Liberty Dollars.

As a hedge.

The two silver discs are a little tarnished, but retain their value.

I forget what I paid for them but they have “held” their value.

The only mistake Bernard made was to put the word “dollar” on them. 

(Even though it’s not a restricted term.)

He should have just stuck to the weight.

But they are no more “counterfeit” than they are “worthless”.

Argh!

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POLITICAL: Why do we have these TLAs?

Wednesday, June 5, 2013

http://lewrockwell.com/grigg/grigg-w327.html

The FBI: An American Cheka
by William Norman Grigg

*** begin quote ***

From its inception, the Soviet secret police agency was engaged in what we now call “Homeland Security Theater.” The same could be said of the FBI, which actually had a nine-year head start on its Soviet counterpart. J. Edgar Hoover’s two chief priorities were the collection of what the Soviets would call kompromat on significant public figures – politicians, policy-makers, celebrities – and the management of his secret police agency’s public image. With the advent of COINTELPRO in the 1950s, the FBI became fully engaged in a campaign of surveillance, harassment, disruption, and assassination (if only by proxy) targeting political dissidents. Since that time, the FBI has been a fully realized political police organization, in every evil sense of that expression.

 *** end quote ***

I remember the FBI story with Jimmy Stewart.

If I’d been paying attention I’d have seen the flaws.

Right at the beginning, a “federal agency” to handle interstate crime.

How could I have been so stupid?

The Goofermentcreates the problem with Prohibition and Banking laws, then of course they need an agency to combat what they create.

Stupid!

Well, 60 years later, I’ve wised up.

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INTERESTING: A gang with an institutional structure

Sunday, September 9, 2012

http://dailyreckoning.com/fifty-shades-of-government

Fifty Shades of Government
By Jeffrey Tucker

*** begin quote ***

This is the great tragedy of living under leviathan. People have different ideas about how it ought to conduct its affairs. Who should be rewarded? Who should be punished? Who gets the privileges? Who must bear the cost? It becomes a war of pressure groups, everyone seeking to live at the expense of everyone else.

What is this thing we call government? It consists of the gang with an institutional structure that makes the rules, enforces the rules, and lives by rules that are different from those it imposes on the rest of the population. We can’t steal, but government can. We can’t kill, but government can. We can’t counterfeit, kidnap, and engage in fraud, but government can. This thing called government, obviously, has a strong interest in maintaining its power, prestige, and funding.

This is true no matter what the structure of the government happens to be. Oligarchy, absolute monarchy, constitutional monarchy, presidential republic, parliamentary republic, democracy — all of them have one thing in common: They create a special caste of citizens that live at the expense of everyone else.

*** end quote ***

The essence of Libertarianism is that we need no such class. 

Each man, and woman, of course, is their own sovereign.

Responsible to keep their word and a free to bind themselves in any way they see fit.

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