MONEY: The tomato soup standard of value

Monday, August 18, 2014

http://keywestlou.com/a-good-time-last-night

*** begin quote ***

Then to Publix. I bought nothing. Cost $51. How do families do it?

When I was in high school, I worked in what was then called a supermarket. The time 1949. Supermarkets then were not the huge stores of today. Not even close. One of my jobs was to stock the shelves. One of the items was Campbell Tomato Soup. Five cents a can. I noticed Publix was having a Campbell Tomato Soup sale. Four cans for $4.95. $1.24 a can.  Although more than 60 years later, still a major increase!

*** end quote ***

I would suggest to you that the difference is not “a major increase”, but a way to recognize that the value of “a dollar” — whatever that is — has dropped from 0.05 to 1.24.

Some economists — mostly from the Von Mise’s “Austrian School” — have asserted — I believe correctly — that the dollar has lost anywhere from 99.9% to 90% of its value depending on the interval you choose to measure.

In your specific example, it’s 95%!

Argh!

It’s about the Federal Reserve System, that is the OPEC of American Banks, Gooferment debt, Gooferment spending, cowardly politicians, and spendthrift bureaucrats.

The dollar, like the history of the French Franc, has been “devalued” day by day. Today the dollar is a shadow of its former self.

That’s the problem. 

Tomato soup hasn’t become more expensive; the dollars used to buy it are worth so much less. Ditto gas. Ditto every other product or service.

Argh!

# – # – # – # – #   


MONEY: US 90 percent silver coins minted before 1965

Monday, July 21, 2014

http://www.alt-market.com/articles/2229-the-immorality-of-paper-money

The Immorality Of Paper Money
Monday, 14 July 2014 16:44 Bob Livingston

*** begin quote ***

I still like U.S. 90 percent silver coins minted before 1965. They can be purchased in bags of $1,000 face amount or in smaller increments — even individually. (Find a local, reputable coin dealer with a good rating with the Better Business Bureau and a history in the community.) Buy for great price explosion upward as well as for survival coins. As paper money fails, a silver dollar will buy a week’s groceries any time.

*** end quote ***

A silver dollar is probably worth 19 U$D in melt value.

Don’t think that buys a week’s groceries. That’s probably hype.

But, it’s not hard to look at Zimbabwe, Argentina, Venezuela, or the pre-WW2 Germany experiences for an approximation of what could happen here.

# – # – # – # – #   

 


MONEY: THOSE SAME THREE SILVER DIMES

Monday, July 7, 2014

http://www.kitco.com/ind/Brecht/2014-07-03-Gas-Prices-Near-6-Year-Highs-No-Inflation-Who-Says.html

Gas Prices Near 6-Year Highs, No Inflation? Who SaysThursday
July 03, 2014 12:59

*** begin quote ***

While official government statistics show U.S. inflation at still low levels, anyone who buys gas, food or health insurance can attest to the fact that inflation exists in our everyday lives. GasBuddy has predicted that U.S. consumers will see the most expensive July 4th since 2008 at the gas pump.

Despite the dramatic increase in U.S. oil production in recent years, GasBuddy estimates that Americans are likely to pay about $1.435 billion per day for gasoline during the holiday week, about $50 million more each day, or $350 million more per week than last year.

*** end quote ***

Any wonder why the “stock market” is going up while the “standard of living” is going down like the Titanic!

The value of the Federal Reserve Note!

THREE silver dimes from 1964, when I started buying gas, would buy ONE GALLON of gas. At $21.15 per silver ounce, those SAME THREE SILVER DIMES are worth $5.70. Far more than a gallon of gas. (Never mind that today’s gas is better, cleaner, and healthier.)

So what’s changed?

The value of money has been inflated away by the Gooferment politicians and bureaucrats for the benefit of the Crony Capitalists and the Banking Cartel.

When do The Sheeple wake up?

# – # – # – # – #   


MONEY: Nickels are “poor man’s gold”

Wednesday, January 29, 2014

http://www.lewrockwell.com/2014/01/robert-wenzel/machinations-at-the-mint/

Price Inflation Will Force the US Mint to Once Again Change the Metal Content of Coins
By Robert Wenzel
Economic Policy Journal

*** begin quote ***

The Mint is considering a change to the mix of metals it uses to make quarters, dimes and nickels, because of the climbing cost of production of the coins. reports WSJ.

It now costs 1.8 cents to make a penny and 9.4 cents to make a nickel, costing the federal government about $104.5 million last year.

*** and ***

I fully expect that in the next bout of accelerating price inflation that the value of the metal content of current nickels will soar. Thus, nickels are a great no downside investment. If the price inflation I anticipate doesn’t develop, just spend the nickels. For more on nickels as an investment see: Why You Need to Own Nickels, Right Now

http://www.economicpolicyjournal.com/2011/02/why-you-need-to-own-nickels-right-now.html

*** end quote ***

Nickels are “poor man’s gold”.

Argh!

# – # – # – # – #   


MONEY: A negative on bitcoin

Saturday, January 18, 2014

http://dont-tread-on.me/?p=31861

26 Reasons Why I Will Never Support Bitcoin
By Silver Shield, on December 21st, 2013

*** begin quote ***

20. Then there is that anti government aspect of it.  Really? It seems the Anglo American bankers love it, including Ben Bernanke and JP Morgan.  It is right up their alley with something for nothing.  They may crack down on Bitcoin only to launch their own brand.  Look at the Lotto.  They went after the mob for running numbers, but then made it legal for them to profit off of.  They went after Charles Ponzi and then created their own Ponzi Scheme with Social Security.  I am telling you Bitcoin or something just like Bitcoin will be used to sell to the people after the dollar collapse, a new electronic worthless currency.  Who knows maybe we will get bonus points for watching TV and using it?  They already have millions hooked on EBT cards, get the corporations involved and the government muscle and you could see the final realization of a digital currency where they can cut you off if you get out of line.  How many stories do we already hear about bank bailins and IRS and NSA messing with people’s bank accounts.  Having real wealth outside of the system is the only antidote for that.

*** end quote ***

It’s the “intrinsic value” argument that hits me hardest.

In POW camps of WW2, cigarettes were “money”.

Gold and silver have the advantage of “intrinsic value”. Junk silver, (i.e., pre-1964 US coins), will be the money of TEOTWAWKI (The End Of The World As We Know It)!

The survivalist community plans to use ammo as money. As well as commodities, like liquor, can be barter fodder. 

Remember barter will precede “money”.

So, save wealth in forms that are not paper!

# – # – # – # – #   


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!

# – # – # – # – #   


GOLD: An EXTRA 4,000 metric tons!

Saturday, September 7, 2013

http://dailyreckoning.com/a-huge-gold-prediction-from-reality-tv/

A Huge Gold Prediction… From Reality TV
Matt Insleyby Matt Insley.Posted Aug 30, 2013.

*** begin quote ***

You wouldn’t expect to find gold under Ghana’s tan brown soil.

But it’s there. Lots of it.

Whether it’s a brand new Caterpillar 330b, a piecemeal front end loader or an army of low-paid workers, excavators are moving top soil to unearth the gold-rich gravel. I’ve seen it all.

There’s a frenzied pace in this boom-country… today we’ll take a look. But more importantly we’ll see how Ghana’s gold rush has shed light on the decade’s MOST important gold trend.

*** and ***

In short, the two American yahoos, while trying to secure a mining claim, found thousands of Chinese nationals are overtaking many of the mining concessions in Ghana. It’s illegal, but no one was stopping the brute force of the Chinese. As one local tribesman admitted, the Chinese “have guns” and aren’t easy to move from a claim.

How Do You Say “Claim Jumper” In Chinese?

If you’re watching the reality show looking for a good plot the Chinese claim jumpers make for a good antagonist. But if you’re tuned in to the show as a gold watcher, you know there’s a lot more to this story.

For starters, what the heck are thousands of Chinese nationals crawling around Ghana’s gold fields for?

*** and ***

If we do some back of the envelope math, since the country’s last “official” announcement we’ll quickly see that China could be holding an EXTRA 4,000 metric tons (or more) of gold. That’s enough gold to place them firmly as the world’s second largest gold holder.

But let’s get back to that reality TV bit above. China, the way I see it, isn’t just producing large amounts of gold and legally importing bullion from Hong Kong.

*** end quote ***

Unless you think the Chinese are stupid, why are they pursuing the “barbarous relic”?

Do they suspect that the paper chase will end when the music stops?

And what does the poor Sheeple do?

Debt and “saves” in “dollars” (whatever those are) paying the inflation tax!

Argh!

# – # – # – # – #   


Follow

Get every new post delivered to your Inbox.

Join 1,049 other followers

%d bloggers like this: