GOLD: What are your “savings” worth?

Sunday, April 17, 2016

https://www.lewrockwell.com/2016/04/jack-perry/praise-penny/

In Praise of the Penny
By Jack Perry
April 14, 2016

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Consider this: If I back my dollar with gold, there are only so many dollars I can print because gold is a finite thing. No one will be able to accumulate too many of those dollars because, sooner or later, they’re going to have to part with them if they want to eat. But if I can print unlimited cash, unbacked by anything, I’m not even limited by the supply of paper! I can use a computer to say, “There! I just created ten billion dollars to issue to Slob Junction Central First National Bank!” After all, hey, we’re going to electronic transfers and people are saying we don’t even need the fig leaf of paper money to hide the fiction of the currency. Therefore, people can hoard immense sums and when there’s a shortage of available currency because it’s being hoarded, they just print more. Or open up a computer program and create more out of thin air and electrons. Same thing. That’s what creates “income inequality”, not wages.

*** end quote ***

It’s no secret that I’m a gold bug.

When the <synonym for excrement> hits the fan and the Gooferment can pay its bills, guess what will happen?

Of all the “fun things” that might happen, the one that worries me most and that I have personally seen is INFLATION.

When the value of paper money or “electronic dollars” goes into the toilet, I bet a roll of nickels will be worth something. Never mind an ounce of silver or gold.

Remember that’s what many USED to be.

Twenty dollar gold piece had real value.

Argh!

“We, The Sheeple” are so dumb.

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GOLDBUG: A universal gram based gold currency is what the world needs

Tuesday, March 22, 2016

http://www.321gold.com/editorials/moriarty/moriarty031516.html

Reviewing The New Case for Gold
Bob Moriarty
Mar 15, 2016

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… … what we need is for all countries to accept a gram based gold currency unit instead of gold being tied to anything. The financial problems of the world today are caused by fake money and the solution is not another fiat currency that no one understands but real money that you can touch and feel and hold. Gold fills the bill, SDRs do not.

*** end quote ***

Imagine how easy it would be for commerce and travelers.

And, no more controversy about exchange rates, “currency manipulation”, and “racing to devalue”.

The Tower of Babel says that humanity was cursed with different languages. Maybe we were cursed with different currencies and that is really the thing that keeps us separate. And, under the proverbial thumb of the Bankers.

Of course, that will never happen.

“Honest money” is the friend of the poor, senior citizens on fixed incomes, and anyone trying to save! For retirements, a house, a child’s education.

Remember that “Cross of Gold” speech? How much better of would be those Farmers if their “wealth” hadn’t been stolen by the Gooferment with it’s inflation, “price supports”, and regulations?

While there’s no way to know for sure, it couldn’t be as bad as the “hidden tax” of the inflation of the US dollar. It has lost 99% of its value in the last 40 years.

Argh!

And, don’t forget the the current 18T+ national debt and the guesstimated 200T+ in unfunded liabilities that our posterity will have to deal with!!!

Gold is the standard.

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GOLDBUG: The Banksters are going attempt a robbery of “We, The Sheeple”

Sunday, February 28, 2016

https://www.lewrockwell.com/2016/02/clive-maund/curb-enthusiasm-just-little/

Gold Market Update
By Clive Maund
CliveMaund.com
February 22, 2016

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The big banks have plans to seriously mine their customer’s accounts, and we are not talking about charging half a percent a year here, we are talking about 2 or 3 percent of your account money being siphoned off into their coffers every year for the privilege of you being able to hold an account with them. Of course, any rational person knowing this was coming would withdraw their money and stuff it under a mattress or buy gold, so they are going to be prevented from doing so, by the introduction of the “cashless society”. 

*** end quote ***

This situation is shaping up to be a robbery of “We, The Sheeple”.

Not sure how the average Joe Sixpack can avoid this theft.

Maybe save some nickels?

Argh!

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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

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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

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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

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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.

*** 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

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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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