MONEY: A global central bank would be a disaster

Thursday, July 30, 2009

http://thedailybell.com/bellPage.asp?nid=461&fl=

Daily Bell Archive
Issue 360 • Sunday, July 26, 2009
“The smallest minority on earth is the individual. Those who deny individual rights cannot claim to be defenders of minorities.” – Ayn Rand
Peter Schiff explains why he was right about free-markets, why Art Laffer was wrong and whether he will run for Senate

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Daily Bell: Where do you think this central banking approach to economic development is headed? Do you think it will eventually succeed as a global force – generating a global central bank, etc?

Peter Schiff: I think that in the end, central bankers controlling fiat money will prove to be an unworkable and inherently flawed system. Despite the apparent distinction, central bankers are politicians who are more concerned about rosy economic statistics than they are about sound currency. This can only lead to devalued currencies, which sooner or later becomes a major issue. A global central bank would be a disaster.

*** end quote ***

It would truly signal the end of the American Empire.

Without the status of the world’s reserve currency, an awful lot of dollar would start looking for a home! They’d come to our shores looking for something to buy. Price inflation would be inevitable. Anything that could be boxed up and shipped home would be bid up. One can see whole productive factories being packed up and shipped lock, stock, and barrel. Labor is cheaper elsewhere. The USA wages would drop like a rock.

We’d suddenly know what it is like to be the tail on someone else’s dog.

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MONEY: Recognize the dollar for what it is; an ongoing fraud

Thursday, July 23, 2009

GOLDBUG: Myths, Misunderstandings, and Outright Lies

Tuesday, July 21, 2009

http://www.cmi-gold-silver.com/gold-confiscation-1933.html

Myths, Misunderstandings, and Outright Lies

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Well worth reading BEFORE buying or selling anything gold, silver, or other “valuable stuff”.

As a veteran “gold bug”, I knew this stuff, but it’s well written refresher.

It’s long, but let me summarize: If you see it on TV or hear it on radio, be afraid. Be very afraid!

If Wall Street is a casino, then a lot of the gold dealers are just fraudsters.

Fore warned is fore armed.

Now can I interest you in Nigerian Gold Shares?

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GOLDBUG: 5k$ gold?

Tuesday, July 14, 2009

http://www.bi-me.com/main.php?id=38821&t=1&c=62&cg=4&mset=

Gold is ultimate store of value for a discredited dollar, says Peter Schiff
Author: BI-ME staff
Source: BI-ME
Published: Fri July 10, 2009 4:12 pm

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INTERNATIONAL. Renowned Wall Street financial forecaster and economist Peter Schiff, the president of investment firm Euro Pacific Capital and author of ‘Bull Moves in Bear Markets’ said gold prices are poised for a “spectacular” and prolonged rally as the recession deepens and investors finally become disillusioned with the US dollar.

Schiff, who warned of the October 2008 stock market crash and accompanying recession as far back as 2006, has predicted a gold price of US$2,000, and rising as high as US$5,000 as inflation takes hold.

Speaking at a recent interview with Business News Wire, Schiff suggests that the looming prospect of a hyper-inflationary environment in the US will severely debase the US Dollar over the next few years.

“The global investment community will realise that gold represents the ultimate “store of value” as a safe haven replacement for a discredited dollar,” Schiff said.

*** and ***

“The only solution to the economic problems that we have today is a return to sound money… The world is ultimately going to have to move away from the ‘Dollar Standard’ and back their currencies with something real. I think gold is the best thing to use. Gold has been money for 5,000 years,” he said.

“One of the reasons that gold isn’t stronger is because of this temporary strength of the dollar. This is keeping the gold market in check. And the dollar is getting some of the safe haven money that should be going into gold,” Schiff added.

“At some point that will stop. The people who are buying dollars will realize that there’s no safety in dollars. Because the central banks are going to try to pay for the economic bailouts and stimuli by looting the world’s savings and by printing money and debasing it.”

“So, if you want to escape that, you hold gold, which is something that the government cannot debase,” he concludes.

*** end quote ***

Music to a Gold Bug’s ears.

The implication of 5k$ gold is that inflation as measured in dollars is 400%. That translates to a gallon of gas is $16, a package of hot dogs is $10, and a six pack of cheap beer is $20! Makes Frau’s social security check and my pension a lot lot smaller!

On the positive side, it makes it much easier to pay off the 11T$ “national debt”. But, how do you think the Chinese will feel holding 5T$ of diminished purchasing power? Not too happy!

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MONEY: Cash; one defense against gooferment

Saturday, July 4, 2009

http://www.lewrockwell.com/spl/abolish-cash.html

To Fight Deflation, Abolish Cash
Could Japan Make Reality of ‘Science Fiction’?
by Leo Lewis

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With recovery elusive, a population doddering into old age and perhaps a decade of deflation in prospect, Japan may start mulling the most radical monetary policy of all – the abolition of cash.

Unorthodox, untried and, said one Bank of Tokyo Mitsubishi strategist, “in the realms of economic science fiction”, the recommendation has nevertheless begun floating around Tokyo’s corridors of power and economists have described Japan as particularly suitable as a testing ground.

The search for more outré economic policies continues, despite the recent surge in the Nikkei 225 index. The market may be reflecting soaring Chinese investment, rising consumer confidence and other cheerful data but economists see few long-term beacons of hope for Japan.

*** end quote ***

There’s no doubt that the gooferment would love to eliminate cash.

It could really track and control the People then.

How can we think that we are “independent”?

The gooferment manipulates us into thinking we’re in charge. Just try and change anything. They don’t even follow their own rules!

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MONEY: A dollar is worth a dollar, except when the dollar is a gold coin

Friday, July 3, 2009

http://federalism.typepad.com/crime_federalism/2009/06/are-gold-american-eagles-worth-what-congress-has-said-they-are-worth.html

June 16, 2009
Are Gold American Eagles Worth What Congress Has Said They Are Worth? Or: The IRS v. Robert Kahre

*** begin quote ***

[Editor’s note: I am not a tax protester. Until researching the issue that is subject to this blog post, I thought all of the arguments raised by the tax protester crowd were frivolous. On this issue, I am not so confident.]

Take a look at this gold coin. It’s a Gold American Eagle. Look at the image on the right. Do you see what the coin says on the bottom half, underneath the nesting baby eagle?Gold American Eagle 50 Dollars

It says $50, right?

Indeed, it is (as I will explain below) $50. It’s worth as much as an Ulysses S. Grant. Well, if you believe it’s really only worth $50, send all of your Gold Eagles to me. I will sell them on eBay for about $1,000 each.

And now you can see the problem of Robert Kahre. Mr. Kahre is facing federal prison because he claimed that Gold Eagles are worth what Congress has said that Gold Eagles are worth.

Is Mr. Kahre’s position frivolous? I don’t think so. Please indulge me.

*** end quote ***

I blogged about this one.

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http://reinkefaceslife.com/2008/02/26/goldbug-why-buy-and-hold-gold/

(4) There are some interesting nuances in holding American Gold Eagle, which are produced by the gooferment (i.e., the Treasury Department’s Mint), and are asserted to be dominated in dollars. The one ounce gold American Eagle is stamped 50 “dollars”. AND, it is really worth ~940 “dollars” in Federal Reserve Notes. (There’s a recent tax case where the employer declared his employees earnings in “dollars” as represented on the Eagles he gave them. Everyone paid less taxes.)

*** end quote ***

This is an interesting quirk that can be exploited.

Of course, at your own risk.

Sigh, what is a dollar anyway!

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MONEY: THe FED’s inflation in our future

Sunday, June 7, 2009

http://lewrockwell.com/north/north715.html

False Flag Infiltrators: Gold-Hating Fiat Money Inflationists Inside the Libertarian-Conservative Movement
by Gary North

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A web page by Ellen Brown is making the rounds. It is here. http://www.webofdebt.com/articles/hyperinflation.php

Ellen Brown is a lawyer. She is anti-Federal Reserve. So, she gets a hearing in conservative circles. This is unfortunate. There is nothing conservative about her. She is an apologist for statism and the United States Treasury (a wholly owned subsidiary of Goldman Sachs).

Her article is about the hyperinflation of Germany, 1921–23. She has no understanding of what happened or why, but she talks as if she does.

*** end quote ***

Interesting economic discussion about inflation. I remember hearing the same in Carter’s inflation. And, I’m sure we will hear it again in Obama’s. Evil speculators drive down the value of the dollar. Dont be fooled. It’s the FED; it’s always the central bank’s printing press of money; it’s the FED!

Argh!

Those that don’t learn from history are condemned … …

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MONEY: The Gooferment acts to preserve its monopoly on “dollars”

Friday, June 5, 2009

Dear Reader:

This is OUTRAGEOUS. Just as Sadam Hussein of Iraq learned when he suggested that oil be trade in gold, don’t mess with the US’s monopoly on the world’s reserve currency.

(Disclaimer, I think the Liberty Dollar is overpriced versus the spot price of the underlying commodity. But, maybe I don’t understand how expensive it is to mint medallions. They are cheaper than what is offered on the late night infomercials to buy “Liberian Silver” or such nonsense.)

Bernard and the Liberty Dollar folks are threatening to take the country back to Constitutional money of gold and silver. Single handedly! Interesting is they are the size of a gnat on a cow’s butt in comparison to the Federal Reserve. The “establishment” is so threatened as it has to persecute and prosecute them.

See the Establishment can NOT afford to have any one “look behind the curtain”! You might ask the question “What is a dollar?”. That question leads to the more “deadly” question — deadly to their ability to delude the people into allowing the Government have the ability to inflate — “What value does a Federal Reserve Banknote intrinsically have?”. That’s the question that puts a stake thru the heart of the vampire known as the Federal Reserve Bank. Inflation is the silent hidden tax.

(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. )

(As an aside, just look at the reelection rate of incumbent politicians. And, where they are “replaced”, note that their “replacement” is a member of the opposite “major” party that follows the exact same agenda. And, you wonder why stuff doesn’t change. How can it? The elite are very content with the current system. It’s only the “unwashed” who get screwed. Repeatedly.)

So, the Federal Reserve Banknote allows the politicians to take everyone’s wealth by inflation. So they can have a “welfare / warfare” society and the sheeple don’t even known they are being shorn. In the last thirty years, the dollar has lost more than 95% of it’s purchasing power. Watch the old quiz show “Let’s Make a Deal” and see the price of a new car in the Sixties was less than 5,000 “dollars”. Why does a Government Motors car cost 50,000 now? It ain’t the same dollars. My first house cost 8,000 “dollars” when it was built in the Fifties, why is it worth 350,000 “dollars” now. Did the boards suddenly become more valuable? No, the Government money is worth less and they can’t print houses.

So, here we have the Government desperately trying to reign in the whole concept of “honest money”. There’s an old rhyme “Money has functions four: a medium, a measure, a standard, a store.” See in order to be “money”, it has to be a store of value. The Federal Reserve Banknote is: a medium of exchange (as long as the sheeple believe it to be), a measure (as long as you realize each year it’s different; imagine a measure of length getting shorter every year — giving the Government “more” land to sell), a standard (as long as you don’t mind a standard shrinking every year), and a store (where the rats in congress erode your wealth silently).

That’s why they have to surpress anything that reflects badly upon their “dollar” monopoly.

Forewarned is fore armed!

*** begin quote ***

Begin forwarded message:

From: Liberty Dollar <truth@libertydollar.org>

Date: June 5, 2009 2:35:24 AM EDT

To: reinkefj

Subject: FBI Arrests Bernard, Kevin, Sarah & Rachelle

LIBERTY DOLLAR ALERT:

June 2009 Vol. 11 No. 06-A

Urgent News for All Liberty Dollar Supporters!

FBI Arrests Bernard, Kevin, Sarah & Rachelle

The battle for a value based currency has began!

The last two days have been amazing! Just shortly after midnight on Tuesday, the phone started ringing and I let the answering machine take the call. But very soon there was another call… with an even more urgent message! Very quickly, a friend of Kevin Innes, explained to me that Kevin had been “detained” by the local sheriff and was being held for the FBI to arrest him! Holy Cow!! The #2 supporter for the Liberty Dollar and co-instructor at the Liberty Dollar University training sessions was in deep trouble with the Feds! I was sure to be next. But would they arrive in a few minutes or would it be a pre-dawn Nazi style assault?

Finally, I got up at 4:00 AM. I was very concerned for Kevin and wondered when the FBI would hit me. Fortunately the morning was quickly filled with a flurry of calls from Kevin’s friend, other interested parties, the usual business calls and making preparations for the inevitable knock on the door. But nobody came. Then just after noon, Niles, who’s wife, Rachelle, manages the Liberty Dollar Fulfillment Office, called to tell me that Rachelle had been picked up by the FBI at the LD Office and was due to be arraigned in just a few hours! The FBI strikes again!

Luckily, I was able to talk to Rachelle via her cell phone while the FBI was holding her. I was pleased that the FBI agents were the friendly professional types and afforded Rachelle and I quite a few minutes of private conversation. Under the circumstances, Rachelle’s demeanor and resolve was right on target. And very quickly, I learned that a warrant had been issued for my arrest. And just a quickly, Rachelle was off to court to be arraigned.

Much later in the afternoon, I learned to my surprise that three big FBI agents had arrested Sarah at work. She and Rachelle were arraigned together and quickly released to on their own recognizance (OR) before the sun set on a very eventful day for the Liberty Dollar. The quick, professional effort with Sarah and Rachelle were gratifying and encouraging. Unfortunately, I was to learn that Sarah lost her job because of this event.

By last afternoon it was clear that the Liberty Dollar would be best served by my turning myself in to the to the US Marshals, otherwise know as ‘self reporting.’ After a few calls, I found myself talking to Agent Andy (aka Agent F) who was his usual friendly, chatty self. He even recognized my voice although we had only spoken twice and that was over 18 months ago. Sure enough he confirmed that a federal arrest warrant for my arrest had been issued. And after a bit of gamesmanship with Agent Andy, I agreed to report to the US Marshal’s office in Fort Myers, Florida at 9:00 AM on Thursday morning as it was too late to be arraigned, plus an overnight in jail would have wrinkled by clothes :)

The following morning, Thursday, June 3, 2009, I actually arrived at the Marshal’s office at 8:30 due to light traffic. As the saying goes, “If you gotta do time, do federal time.” Quite simply, the federal boys are better educated, better trained and have better manners. I was immediately escorted to a holding cell. After an hour or less, I met with the Pre-Trila Service rep and made it to court at 11:00 in chains and handcuffs. The female judge was businesslike and granted my request to attend my son’s graduation in Physics from UCLA next week. After fingerprinting, signing a $50,000 Appearance Bond, one final meeting with the Pre-Indictment Service rep, I was free.

In general, the arraignment was a pleasant affair. The US Marshals did their job with very little attitude, as they should. After all, I am self reporting, and it is for anything violent, I just want to prove that I have a right to issue my own currency and if any body chooses to use it then it is a “private contract.” It is certainly not a crime.

And so it came to pass, 2009 years after the birth of Christ, that four regular Americans have taken a stand to defend the People’s right to protect themselves from a government currency that has a long and unforgiving history of stealing the people’s purchasing power. This is a test of individual rights, as protected by the Tenth Amendment. It is the deciding moment that a private voluntary barter currency (PVBC) is legal in the great United States of America. This is a test that the Liberty Dollar must and will pass, for that I have no doubt. But it will not be easy or cheap. Please, if you support our efforts, support us with any kind of money you have, including pro bono services. Now that the Liberty Dollar faces a federal criminal trial, it is the US Government v Liberty Dollar ala Bernard, Kevin, Sarah & Rachelle. Please help us win. Please help yourself win. Please help American win.

Very simply this is a Win or Lose battle. In addition to money for this legal fight we need articles that reference non-government currency, such as Air Miles as currency, legal research assistance, expert witnesses, legal assistance, etc. If you support the ideals of the Liberty Dollar, this is the time to get behind the Liberty Dollar. We critically need your help! Please send your digital info to Legal@LibertyDollar.org and your donations of value including other kinds of “currencies” to:

LIBERTY DOLLAR

225 N. Stockwell Road

Evansville. Indiana. 47715

The best news is that the Liberty Dollar finally has the opportunity to prove beyond a shadow of a doubt that it is legal. Over two years ago I sued the US government for a Declaratory Judgment to resolve the legality issue. And how did they respond, they raided the Liberty Dollar and confiscated over $4 million dollars in gold, silver and cash. The US government has done everything possible to kill the Liberty Dollar! And guess what? It has not worked. The mere fact that the Liberty Dollar is still in business is a testament to your demand for Real Money and the ideals that the Liberty Dollar represents.

Thank you, thank you, thank you for your support! Trust me, the Liberty Dollar is not made up of any fat cats. We are all just regular Americans. And we all just want good money, a lot less government and no damn war!

Click HERE for a stilted Press Release by the DOJ. Its three pages with a whopper by Owen Harris, Special FBI Agent in Charlotte who said, “When groups try to replace the US dollar with coins and bills that don’t hold the same value…” WOW what a telling statement of pure spin.

Click HERE for the 13 page Indictment.

Click HERE for Sarah’s Arrest Warrant.

Guess what?! Liberty Dollar still in business and we need more business! As there has been no Cease and Desist Order, Liberty Dollar remains OPEN FOR BUSINESS. Please visit our shopping cart for all the 2009 Liberty, Peace, Freedom, T-Dollars and more. Don’t be bashful or stupid. Silver is going to the moon, just as sure as the US dollar is going to hell with your purchasing power. Now is the time to protect your purchasing with the “inflation proof” currency and help usher in a new monetary model that provides the only proven, peaceful, and profitable solution to the monetary cancer that has infected America.

OUTSTANDING ORDERS: Please rest assured that we will fill all outstanding orders. Yes, after producing a sizable amount of pre-minted Silver Libertys and finally getting current with most orders, we changed mints and are now behind again. We apologize emphatically! Poor and/or slow delivery is not acceptable business. It hurts everyone. And just when we were about to get current again we were arrested. Please continue to support us with your patience too. We promise to get every order out ASAP. But as I hope you can understand, it is a struggle to run a business, any business, in such an environment and fight a major legal battle for our right to protect our purchasing power

The last few 2009 Arrest Dollars. Are you familiar with the Arrest Dollars? Starting in 2007 and continuing through this year the Arrest Dollar is one ounce Silver Liberty that is specially hand hallmarked with a micro “handcuffs” stamp and my federally registered mintmark. Issued only from the day of the raid to today. The last few 2009 Arrest Dollars are currently on the Shopping Cart. After these are gone, they are gone to eBay for much more money.

The 2009 Tea Party Dollar (T-Dollar) is still available and we are still waiting confirmation on the shipment. We are still expecting to have the first batch order in the first 24 HOURS here for the July 4 events. The T-Dollar is still only a buck for an ounce of copper AND you can still get them for 10% discount to they $1 face value for a 100 or more. Hey, they are only a buck… you can’t go wrong. Plus every copper issue has sold out. Get these while you can and help support our legal efforts tooJ

The 2009 Silver Libertys! The backbone of the Liberty Dollar model is the one ounce .999 fine silver Lib! Just in the last few days, silver has bounced back over $16, soon the 30 day moving average will be $16 and the Liberty Dollar will Move Up again to the $50 Silver Base. PLEASE don’t be dumb and buy silver when it is high. Get it NOW!!! Sure it is not $5 per ounce any more, nor will it ever be again. $5 silver is just not possible with the government spending phony baloney fiat money like a drunken sailor. Please order silver now and protect your purchasing power and profit tomorrow!

Stay tuned to the Liberty Dollar News as we vindicate and validate the legality of the Liberty Dollar. Please take an active role in this exciting and profitable time. Don’t lose out. Get involved with the Liberty Dollar to make money, do good and have fun. I am having as much fun in my 60′s and I did in The 60′s and hope you are too.

Thanks again for your support.

Bernard von NotHaus

Monetary Architect

Editor@LibertyDollar.org

http://www.LibertyDollar.org

888.LIB.DOLLAR

888.421.6181

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MONEY: Calculating the impact of taxes

Sunday, May 31, 2009

http://ludwig-1.newsvine.com/_news/2009/05/21/2847441-time-for-revolution?email=html

Time for Revolution!
News Type: Event — Thu May 21, 2009 11:58 AM EDT
politics, government, taxes, liberal, freedom, liberty, revolution, libertarian, jefferson, roosevelt, conservitive, authoritarian
Ludwigc

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We need a revolution in this country. Not of violence, but a purging of what our apathy has created.

*** and ***

I work hard for my money. I’m self employed and in this economy I work harder than ever. After all that struggle and hard work I lose over 50% of my total income to the government per year. That is completely unacceptable.   

*** end quote ***

May I point out two things that make the definition or calculation of “taxes” harder:

(1) Corporate taxes are passed along for real people to pay. So when I pick up a can of something in the store, it’s IMPOSSIBLE for me to know how much tax I am paying. And, it’s like looking at a mirror with a mirror behind you. The progression is infinite. The can was taxed. The delivery was taxed. The production equipment is taxed. It’s an accounting nightmare.

(2) The money is no longer a “standard of account”. A 1970 dollar is “different” than a 2010 dollar. In purchasing power. It’s inflation by the Federal Reserve. And, it is the “hidden tax” on dollars. It too is difficult to calculate. If you think in terms of dollars, it’s like doing carpentry where this year’s inch is different than last year’s inch. It’s inconceivable. The definition morphs with time. And, it’s deceptive in that it impacts any dollar denominated asset. This means that you can actually pay more than 100% of your income in tax. Have a half million in assets and inflation is 5%, then you are paying a 25k$ in tax. And, how do you calculate inflation. The FED and the gooferment fudge the numbers.

So, we are slaves. We can’t even guesstimate how much we are paying taxes!

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MONEY: Watch an old quizz show

Sunday, May 3, 2009

Just for an “economics lesson”, watch an old “Let’s Make A Deal” on Game Show Network. Pick any episode. They’re all from the Sixities. Watch for the final prize giveaway. It’s usually a car. Guess the price?

A beautiful Buick LeSabre. Base price 3,000 dollars.

Different dollars!

It makes you laugh!

But, it should make us all cry.

Some store of value.

In 40 years, will people be looking back wistfully about what a dollar could buy!

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MONEY: The dollar as the world’s reserve currency

Saturday, May 2, 2009

http://www.garynorth.com/public/4879.cfm

The Emperor’s New Tools
Gary North
April 25, 2009

*** begin quote ***

Bernanke assured his listeners that the FED has lots of ways to deal with this threat — painless, politically acceptable ways, he implied.

We have a number of tools we can use to reduce bank reserves or increase short-term interest rates when that becomes necessary. First, many of our lending programs extend credit primarily on a short-term basis and thus could be wound down relatively quickly. In addition, since the lending rates in these programs are typically set above the rates that prevail in normal market conditions, borrower demand for these facilities should wane as conditions improve.

Translation: “The money we have created to bail out the financial system will return to the FED and be mopped up. It will not be lent out again.” The word “many” means “we aren’t saying how much, and we will not tell you if you ask.”

*** end quote ***

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They have no tools. Only the ability to pull the wool over the sheep’s eyes using their own wool.

I don’t understand: (1) Why the Chinese will hold more dollars? (2) Who’s going to buy Obama’s trillion dollar deficits? (3) What’s going to become of those on fixed income when inflation takes off? (4) What’s going to happen to the American economy when foreigners what to get paid with real money for the stuff they are sending us?

Argh!

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MONEY: The dollar is a figment of your imagination

Friday, May 1, 2009

http://www.campaignforliberty.com/article.php?view=59

The Fed and the Golden Fleece
By William Anderson
Published 04/22/09

*** begin quote ***

When I teach my economics classes about money, I pass around a $10 gold coin that is a replica of those that were in circulation around 1913, the year Congress created the Federal Reserve System. The coin is made from one-half of an ounce of gold, dating from the time when the dollar was based upon a standard of $20 an ounce.

If I were to value that coin today, according to current gold prices, it would sell for more than $400, which means that according to this way of measuring the value of money, the dollar is worth about 1/40 of what it was when the Fed came into being. Now, this is not necessarily the best or most accurate measure of the decline of the dollar, but it is good enough for the purposes of this article.

*** end quote ***

Regardless of how you calculate it or the timeframe you use, the dollar is NOT a store of value.

In my book Church (page 113),  “Money is a matter of functions four, a medium, a measure, a standard, a store.”

The dollar, after the 1913 creation of the Fed, was no longer a measure, standard, or store.

As a youth, reading the Count of Monte Cristo, I dreamt of someday finding a pirate’s treasure. (Hard to imagine anyone not dreaming to find that chest, win the lotto, or such.)

Imagine instead of a chest of gold, finding a chest of dollars. When they were put in, they were valuable. Now they’re worth a fraction.

I often remember my now deceased father-in-law carrying a fifty dollar bill in his wallet ever since he was a young man. He always said: “With that, I’m never poor!” Sad to say, that each year, the value that fifty represented was inflated away. Stolen by the govenrment!

Gold is the only defense.

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GOLDBUG: 10K Gold?

Wednesday, April 29, 2009

http://www.garynorth.com/public/4857.cfm

Why Gold Owners Are Targets of the Government
Gary North

*** end quote ***

At some point, the number of investors who figure out that they had better buy gold is going to go from less than 1% of the public to 5%. When that happens, the supply of gold will not increase, and the price of gold will skyrocket. If as many as 10% of the investing public tries to put 10% of their assets in gold, I suspect the price of gold would go to $10,000 an ounce. The gold market is so marginal in the overall commodities market that the attempted 10% of investors to increase their holdings of gold to 10% of their assets would make today’s holders of gold very rich and very happy. I think at some point this is going to happen, but I think it is going to happen in a time of price inflation so bad that the purchasing power of the currencies will decline so fast and so far that the fact that you can get rich in fiat money by selling your gold will not persuade you to sell your gold.

*** end quote ***

Like musical chairs, when the music stops, will you be left with worthless paper?

OH, I forgot, it can’t happen here!

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MONEY: Pay your taxes, serf?

Wednesday, April 15, 2009

http://www.impactlab.com/2009/03/27/watching-the-income-tax-system-implode/

March 27th, 2009 at 9:12 am

Watching The Income Tax System Implode

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Change does not happen because everyone gets together first and decides a change is going to happen. Momentum will build quickly around a single event or thought leader. When the general public senses that the end is near, an overwhelming flood of support will rapidly hasten its demise.

*** end quote ***

I think it ends when the productive class decides to produce less. They pay less tax. And, the gooferment can’t find enough to tax.

The Chinese decide that 5T$ is too much. And, the world refuses to lend more to the American “banana republic government”.

The world decides that era of the American dollar as a reserve currency is over. And, the American Empire slides into the dustbin of history.

Tax revolt?

Even if we don’t have one here, the one overseas will be much worse.

See inflation is a tax on those foreigners holding dollars.

Gold anyone?

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MONEY: Fiat currency kills the American Dream

Sunday, April 5, 2009

http://www.dailyreckoning.com/dinosaur-economists-and-their-paper-currency/

Dinosaur Economists and their Paper Currency
By The Mogambo Guru

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So the question is, “Is all that spending additive?” I mean, do you add 14% plus 7%? If so, then isn’t government spending 21% of Gross Domestic Product enough to kill the economy a dozen times over, which is what happens every other time in all of history when some brain-dead government of some idiotic country full of childishly-trusting morons allows their corrupt government to spend more than it takes in by creating as much fiat currency as it wants?

*** end quote ***

Amazing about the amount of “counterfeit money” the gooferment is going to push out.

Where does it end? Who winds up holding the bag? When does the “barbara streisand” hit the fan?

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INTERESTING: Deficits matter!

Saturday, April 4, 2009

http://www.youtube.com/watch?v=mhtTfK6Vuz8&feature=player_embedded

Worst Case: The Day The Dollar Falls Part 1/6

A 2005 Dutch film about TEOTWAWKI (The End Of The World As We Know It) caused by a financial panic. All caused by big US deficits.

Interesting?

Maybe the fellow just had the year and President wrong.

Now we have Trillion Dollar Deficits for forever.

Scary!

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MONEY: The creature from Jekyll Island – the Fed!

Thursday, April 2, 2009

http://www.lewrockwell.com/buchanan/buchanan108.html

Should We Kill the Fed?
by Patrick J. Buchanan

*** begin quote ***

Should not this creature from Jekyll Island, for all its manifold crimes and sins against the republic, also be summarily put to death?

*** end quote ***

The Federal Reserve Bank!

It’s neither ‘federal” since not even the US Congress can get its books audited.

It “reserves” nothing; it merely manipulates and prints.

And, it’s not a “bank”.

So what is it?

What is the creature from Jekyll Island?

(The name comes from the location of a secret collusion between bankers where the arrangement was hammered out.)

It’s a price fixing cartel a la OPEC for “american” banks.

As PJB alludes, Andrew Jackson must be rolling over in his grave, he killed one of it’s predecessors the “United States Bank”.

Of course, I agree that if we had commodity money, we would NOT have the artificial booms and busts that come with manipulating interest rates. Interest rates are the key indicator to business as to what projects are worth doing and what are not. AND, without a fiat currency, (where the Fed prints all the Congress can spend), the Congress would be restrained in its spending. AND, our poor and those on fixed income wouldn’t have to pay the brunt of the “inflation tax”.

Before leaving the Gold Standard in 1913 and before the FED embarked on manipulating us for the benefit of the rich and their banks, America was in decades of stable slightly declining prices. Money was a stable store of value.

(“Money is a matter of functions four, a medium, a measure, a standard, a store.” p116 in my novel “CHURCH 10●19●62″)

How does one plan in post WW1 Germany, Argentina in the 80′s, Zimbabwe today, or the USA in the next decade? Runaway inflation of the money supply and high interest rates are going to hurt everyone.

I have only heard one real objection and one minor objection to the Gold Standard.

Bob Brinker (bobbrinker dot com) had the minor objection that there would no ability for the government to supply stimulus to the economy with monetary policy. That’s is the problem, Bob; the politicians want inflation so they can spend to buy votes, reward their friends, and punish their enemies.

More substantially, Brinker objected to giving Congress the power to value money. He feared runaway inflation as the the COngress, as did the French Kings, inflate uncontrollably. That we agree on. Congress is like drunken sailors. Except their ship is always in.

Returning to the Gold Standard, where a dollar is defined as some amount of gold and / or silver, will impose discipline on the world.

How do we get there?

Let people be free to use whatever they want for money. The King, the government, the criminals in DC should just repeal the mandatory tender laws that force everyone to accept the dollar. The marketplace will quickly adjust.

And, Americans can get back to work.

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INTERESTING: Counterfeit aka fiat money messes up all calculations

Thursday, April 2, 2009

http://www.lewrockwell.com/orig9/shostak7.html

Would Cleansing Banks’ Balance Sheets Kick-start the US Economy?
by Frank Shostak

*** begin quote ***

Again, note that what makes the lending possible here is not money but the saved consumer goods. Money just serves here as a facilitator. Or we can say that the act of lending here is about the transfer of final consumer goods from lender to a borrower with the help of money.

The essence of credit will not be altered by the introduction of banks. Instead of lending money directly, John could now engage in lending through the intermediary. (John transfers his money to the bank. The bank lends the money to a borrower.)

Real savings determines the size of credit. What people really want is real stuff, i.e., real savings and not money as such. Hence, as long as banks facilitate credit that is fully backed by real savings, they should be seen as the agents in the transmission of wealth.

*** end quote ***

(Disclaimer: I’m an injineer that got D’s in economics.)

This little morality play about savings misses three factors that I think are significant.

The theft of money by inflation. It in effect “steals” from every dollar holder and acts as a hidden tax.

The interest rate controlled by the central bank “taxes” savings both when the rate is too high and too low.

The baker and all who consume bread are forced to “save” by virtue of these taxes.

When money is debased, all economic calculations are done with a “broken calculator”.

IMHO!

As I said I’m just a dumb old injineer!

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GOLDBUG: What is a dollar?

Tuesday, March 24, 2009

http://www.lewrockwell.com/murphy/murphy152.html

Defend the Gold Standard
by Bob Murphy

*** begin quote ***

I don’t trust central bankers to stick to a gold standard; that’s why I think the government should get out of the money industry altogether. Suppose we were starting in an initial state of pure laissez-faire in money and banking, and someone said, “Hey I know! Let’s give this Princeton professor – what was your name, sir, was it Ben? – a printing press, but be very stern that he can’t overdo it and allow the gold price to rise more than 1 percent from the day he starts. Does that sound like a good idea?” In response, I would obviously say, “No, that seems rather risky. I think we should stick to the current system, where the market determines how much new money is brought into the economy through gold production.”

*** end quote ***

We fall prey to these bozo bureaucrats when we let them mess with the money supply.

If we tie the value of a dollar to gold, then the Fed can’t just manufacture dollars out of thin air. And, congress critters can’t spend what they don’t take it.

It restores honesty to finances. It disciplines them into husbandry. It forces them to live with in OUR means.

After all in fiat currency, what is a dollar?

A toilet paper alternative?

Argh!

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MONEY: Ditch dollar movement?

Thursday, March 19, 2009

http://www.reuters.com/article/newsOne/idUSTRE52H2CY20090318

U.N. panel says world should ditch dollar
Wed Mar 18, 2009 11:16am EDT
By Jeremy Gaunt, European Investment Correspondent

*** begin quote ***

LUXEMBOURG (Reuters) – A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.

*** end quote ***

The end of the US Dollar as the World’s reserve currency? That would be unbelievable. “Everyone” said that it could never happen! SO, what happens when it does? Are we on the road to being like Zimbabwe?

Why are we still funding the UN. We should ditch them!

Gold and silver — the Dead Old White Guys were right — The Palladium rounds (i.e., medallions — the Gooferment gets mad if you call them coins. But thy look like coins to me.) at about 300$/oz seem like a bargain. Rarer than Platinum at 1200$/oz.

But, plan for a Carter-like inflation; did you see Carter visited the Obama White House yesterday. Why? To get advice on how to print “Whip Inflation Now” buttons?

Will Obama on Leno distract everyone with how incredibly screwed we are? And what a good guy he is personally.

Humbly, I think he’s drowning us in the deep end of the pool while he tries to distract us. Ain’t gonna work. At least, I’m not distracted as to what this means to us low fixed income folks. I hope it’s not distracting the People or you.

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MONEY: Where are we going to be in 20 years?

Monday, March 16, 2009

http://insidecatholic.com/Joomla/index.php?option=com_content&task=view&id=5565&Itemid=48

The Money Meltdown: A Conversation with Thomas Woods Jr. by Brian Saint-Paul 3/11/09

*** begin quote ***  

Q: We’ve had bailouts and stimulus packages, and possibly more of both in the near future. If you were to look into a crystal ball, where are we going to be in 20 years? Where is all of this heading? Will we reach a point of total economic collapse? Or will we wind up as the newest Euro-style state?

It seems to me that the best-case scenario is a kind of European third-way stagnation: high unemployment, anemic growth (if any), and a whole bunch of people scratching their heads and wondering why this is happening. That could be our fate.

Of course, it could be worse. It may turn into something like what Japan endured in the 1990s and beyond — though at least Japan had some domestic savings as a cushion. Or there could well be a complete collapse of the system, with the dollar destroyed. This is all conditional, because it depends in large part on what the government does. Its cure is almost sure to be worse than the disease.

I’d love to think that if a collapse came, people would say, “Obviously, intervention doesn’t work, so let’s try what the Austrians have been suggesting.” But I think instead a demagogue would rise up to say — as usual — that the problem is not enough government involvement, and that he’s going to rescue us.

That’s the most likely outcome.

*** and ***

Thomas E. Woods Jr. is senior fellow in American history at the Ludwig von Mises Institute. He is the author of nine books, including two New York Times bestsellers: The Politically Incorrect Guide to American History and the just-released Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse, as well as the award-winning The Church and the Market: A Catholic Defense of the Free Economy. Visit his new Web site.

* end quote *


MONEY: Zero debt is best

Saturday, March 14, 2009

http://www.lewrockwell.com/schiff/schiff7.html  

March 14, 2009
Credit Card Cancer
by Peter Schiff
Peter Schiff is president of Euro Pacific Capital and author

*** begin quote ***

Lastly, savings can always be relied upon whereas credit is ephemeral. Remarks this week from the Chinese premier Wen Jiabao should serve notice to all Americans that the day will soon come when the Chinese stop lending us their umbrellas. When that happens, the average American will be soaked to the bone.

*** end quote ***

One does NOT have to have a crystal ball to see the future.

The Chinese will stop buying Treasury debt. Interest rates to will go thru the roof. And, the economy will slow further.

The only defense is to have ZERO bad debt. That is nothing but a fixed rate mortgage that is well below 15% of your annual income.

Maybe Dave Ramsey is right. ZERO debt is best?

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POLITICAL: Tax increases in a recession?

Sunday, February 22, 2009

http://www.washingtonpost.com/wp-dyn/content/article/2009/02/21/AR2009022100911_pf.html

Obama’s First Budget Seeks To Trim Deficit
Plan Would Cut War Spending, Increase Taxes on the Wealthy
By Lori Montgomery and Ceci Connolly
Washington Post Staff Writers
Sunday, February 22, 2009; A01

*** begin quote ***

President Obama is putting the finishing touches on an ambitious first budget that seeks to cut the federal deficit in half over the next four years, primarily by raising taxes on businesses and the wealthy and by slashing spending on the wars in Iraq and Afghanistan, administration officials said.

*** end quote ***

Companies don’t pay taxes; people do. So raising the corporate tax is essentially a tax increase for everyone; poor included.

Rich folks have the ability to defer income and shit it and even “coast”. Watch how revenues “fail to appear”!

Stupidity!

Ignores the lessons of Kennedy and Regan.

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POLITICIAL: Ron Paul on Bill Mahr simple and direct!

Saturday, February 21, 2009

http://www.youtube.com/watch?v=M5lb0l3sYBo&eurl=http://www.lewrockwell.com/blog/lewrw/archives/025457.html&feature=player_embedded

Ron Paul rocks on Bill Mahr’s show!

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GOLDBUG: Can we EVER get back to “honest money”?

Thursday, February 19, 2009

http://news.goldseek.com/JamesTurk/1232989200.php

Restoring Sound Money in America
By: James Turk, Founder & Chairman of GoldMoney.com
– Posted Monday, 26 January 2009 | Digg This ArticleDigg It! | Source: GoldSeek.com

*** begin quote ***

There is a determined grassroots movement in the United States seeking the restoration of sound money. There are many different groups comprising this movement, but all share the same aim. It is to restore gold and silver to its rightful role as the money of the United States, as mandated by the Constitution.

I have written about this movement before. In “The Quest for Sound Money in New Hampshire” in May 2005 I discussed the bill, called the “New Hampshire Sound Money Bill”, that was drafted by Constitutional scholar and lawyer, Dr. Edwin Vieira. It was presented to the New Hampshire legislature, but sadly, remains pending in committee.

If enacted, the bill will enable people to use gold and silver in their transactions with the state of New Hampshire. An article by me discussing this bill, the aims of its several sponsors and some important background information on the monetary provisions of the Constitution can be found at the following link: http://www.goldmoneybill.org/turk.html

*** end quote ***

Sad to say, imho, not without a revolution.

When the people realize that gooferment is funded with inflation of fiat dollars, then they might wise up.

Saving in gold ounces is one option still open to the average bloke.

Buy one or more gold coins from a “paperless source” and bury it in your backyard.

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MONEY: What is a dollar?

Tuesday, February 3, 2009

http://www.lewrockwell.com/rajiva/rajiva12.html

Fiat Law and Fiat Currencies – the Relic of Barbarians
by Lila Rajiva

*** begin quote ***

The free market arose wherever there were laws and systems like that – whether in Europe or Africa or Asia. One way to think about this difference would be to see it as the difference between a fiat money, like paper, and a real store of value, like gold. You can print all the money you want, but if there’s nothing to back it up, then you’re in a bit of trouble. Your creditors are unlikely to put much store in you as a credit risk, just as the world’s wringing its hands today over the dollar. Pretty soon, they come calling for their loans with cudgels and pitchforks.

Gold does not have the same problem, because there’s a limited supply of it. It has to occur in nature. It has to be found somewhere underground and then mined and refined. It’s an expensive business – that takes risk, time, and money. There are costs attached to it that someone has to pay. Paper money, on the other hand, can be printed any time you want. Just ask Ben Bernanke. He’s dropping it by the helicopter load from the clouds.

*** end quote ***

They are “counterfeiting value” by printing more money electronically. It’s slight of hand. To understand, you have to understand the answer to the question: “What is a dollar?” and proceed from there.

The answer is it’s NOW an imaginary unit, backed by the belief that you can exchange a green peice of paper for something. A Keynesian (http://en.wikipedia.org/wiki/Keynesian) will never talk about what the definition of money is. An Austrian (http://en.wikipedia.org/wiki/Austrian_School) will insist that the pricing mechanism in the economy have commodity money. It USED to be tied to gold.

Sadly, as an Austrian, I think you are in for hard times. O is going to “finance” 2T$ in current spending. By monetizing it. A fancy word for counterfeiting. And, the value of the dollar is going down even further.

To understand, you have to go to Robinson Crusoe’s island, that economist’s use to simplify ideas. A fisherman, egg gatherer, and a fruit gatherer are on the island. (Magic; don’t ask questions yet!) They barter between themselves. After a while, 1 fish = 2 eggs = 4 coconuts. Due to the relative difficulty of effort. But the fisherman and fruit gatherer don’t deal directly. The egg gather is the middle man. Then a banker arrives. He creates money so that the Fisherman can deal directly with the Egg guy. He uses seashells. Then the value equation is 1 fish = 2 eggs = 4 coconuts = 8 seashells. The evil banker after a while introduces more seashells into circulation by spending them. So he get more stuff. Similarly through out the ages, the King (Government) seeks to enrich itself that way. When the currency is gold coins, it’s much harder. (I first learned this when I saw an exhibit at the Smithsonian of French Francs over time. The French Franc of Louis I was a gold hockey puck; Louis XIV’s was a very thin button. Inflation!) When the currency is pretty green pieces of paper, it’s much easier.

So there you have how O44 is goign to spend 2T$ that we don’t have.

Basically, it’s a “tax” on anyone who has a dollar or dollar denominated assets. By adding a “seashell”, the value of all the other seashells is adulterated. Watered down.

So who get’s screwed?

The Chinese have 5T$. There’s a lot of dollars out there. The poor and people on fixed incomes (i.e., the purchasing power of their few dollars goes down) get less for their money.

Who makes out?

The US Government mostly. People who have “valuable stuff”. Commodities, commodity producers, land owners, people who produce stuff that others want.

So that’s how O will spend what he ain’t got.

He’s betting that before the inflation comes, the economy will “restart” and we won’t notice. (Think LBJ and Carter!) It worked for Kennedy because he lowered taxes on the productive class and everyone was motivated to get to work. His quote was: “A rising tide raise all boats!”

Sadly, I don’t see O or his staff being that smart.

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