Reinke Faces Life

And, it’s like a blinking neon sign, to those that don’t.

Be careful not to buy gold from TV ads or to pay more than 10% over spot price. You don’t want “collectibles” or strange coins from strange lands. 1 ounce bullion rounds only.

Gold or silver for investment amounts.

And for those who don’t believe or don’t have the ready funds, don’t forget the “poor man’s gold” — nickels. Last I looked they were worth 8¢ each. (Only the Gooferment can produce “money” and lose money doing it.)

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http://www.survivalblog.com/2011/02/the_nitty_gritty_on_nickels.html

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$300 face value (150 rolls @$2 face value per roll) fit easily fit in a standard U.S. Postal Service Medium Flat Rate Box, and that weighs about 68 pounds.) They can be mailed from coast to coast for less than $25. Doing so will take a bit of reinforcement. Given enough wraps of strapping tape, a corrugated box will securely transport $300 worth of Nickels

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Everyone will laugh at “investing” in nickels, but he who laffs last …

Today, pre-64 silver coins command a 20 times face value. And, that’s what you get retail.

2011 – 1964 = 47 years

20x = 2000%

2000 / 47 = 42% roi

There is NO reason to think that nickels won’t have a similar experience.

Like the author says, the only the things that are certain in life are death, taxes, and inflation!

In fifty years, you’ll be saying “Shoulda, coulda, and woulda! if I’d a listened to that crazy fat old white guy injineer, I’d be rich.” I will be dealing with other problems when you say, so I will be unavailable to say “I told you so.”

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http://www.lewrockwell.com/orig10/fry5.1.1.html

Tracing the Fed’s Vital Role in the Decline of the US Dollar
by Eric Fry

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… let’s consider the plight of two hypothetical buddies from 1914. The first buddy, Caleb, stashes a $500 “rainy day” fund under the floorboards of his house – a roll of ten $50 Ulysses S. Grant dollar bills. The second buddy, Josiah, also stashes $500 under the floorboards – he walks into the neighborhood bank with ten $50 Ulysses S. Grant Gold Certificates and exchanges them for gold. Josiah then takes his gold and hides it under his floorboards.

Both buddies forget about their hidden stashes. Eventually, let’s say 2010, the respective heirs of these two long-deceased buddies happen to conduct simultaneous renovations of their respective residences. Caleb’s heirs find the ten ancient $50 bills. “How quaint,” they think to themselves. Josiah’s heirs find $32,172 worth of gold!

Thus, 98 years of history demonstrates conclusively that a blind monkey could have preserved the dollar’s purchasing power better than a Federal Reserve Chairman. Unfortunately, it’s tough to find a blind monkey who will take the job.

Reprinted with permission from The Daily Reckoning.

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A longer version of my summation: “Which would you rather find? A pirate’s chest of gold coins, a chest full of Confederate money, or a chest full of Federal Reserve Banknotes?”

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http://www.lewrockwell.com/rockwell/gold-standard-never-dies159.html  

The gold standard never dies
LewRockwell.Com
by Llewellyn H. Rockwell, Jr.
(11/12/10)

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John Maynard Keynes thought he had pretty well killed gold as a monetary standard back in the 1930s. Governments of the world did their best to help him. It took longer than they thought. Gold in the money survived all the way to Nixon, and it was he who finally drove the stake in once and for all. That was supposed to be the end of it, and the beginning of the glorious new age of paper prosperity. It didn’t work out as they thought.

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“We, The Sheeple” have to change our thinking. Fiat currency — paper is money because the “King” says it is — is nothing more than an IOU from the politicians and bureaucrats. They have no wealth; they can only spend what they steal from someone else.

Repeal the “legal tender” laws. Let the people choose what they will consider to be money.

Kill the FED.

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http://irisheagle.blogspot.com/2010/11/better-euro-dies-than-we-leave-it.html

Tuesday, November 16, 2010
Better the euro dies than we leave it

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Okay, call me nuts and I don’t really believe that our government or Department of Finance folks have this sort of courage, but what if our government has suddenly realized that the euro doesn’t suit our economy? Would it be better to leave the euro with our tail between our legs or to hope for the complete collapse of the currency?

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Ireland could become the “economic Switzerland” with one “modest” change. Very simple. Leave the euro, create an Irish Currency Unit (the golden Punt?), and tie it to some amount of gold. Forget the current price of gold. Figure out the number of Punts in circulation and how much gold or silver is in the Treasury. Then, the Central Bank opens the “gold window” to buy them back for gold and sell them for gold. Purchasable from the central bank in gold and redeemable by the average joe — paddie in your case — in gold. From the Central Bank’s concern it’s a near zero some game; they can even have a few basis points small commission on each transaction to cover their costs. As the world’s only non-fiat currency, it would quickly become the world’s reserve currency. It makes the Punt worth something intrinsically. internationally as the only non-fiat currency it becomes a proxy for gold. The Central Bank could even mint the golden punt — like the Sadam supported, proposed im Malaysia, golden dinar http://en.wikipedia.org/wiki/Islamic_gold_dinar . What a shock to the global economy. It would hamstring the Irish Gooferment to only spend what it could afford in taxes. But, wow, the recovery would be dramatic.

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http://www.lewrockwell.com/orig11/powell-chris1.1.1.html

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The valid documentation about the gold market also practically screams at financial journalists:

• There are the huge and disproportionate gold, silver, and interest rate derivative positions built up at just two or three international banks, positions that never could be undertaken without the express or implicit underwriting of the U.S. government.

• And there are the dozens of official records, records collected and publicized by GATA over the years, demonstrating the plans and desire of the U.S. government to suppress and control the price of gold.

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Perhaps a few “coins” (i.e., bullion gold, bullion silver, common nickels) might be a valid “investment choice”? But, to avoid all the scams, you have to have them in your possession.

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http://www.lewrockwell.com/holland/holland31.1.html

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If you trust the gold reserves are in Fort Knox then just buy more gold from time to time on price dips. But, if you believe “it’s not just the beer talkin,” then take actions while you still can to secure your gold now before we have a crisis and a repeat of Roosevelt’s confiscation program.

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Regardless of whether or not it’s there, no there, there but we don’t own it, it’s a disaster waiting to happen.

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http://www.lewrockwell.com/orig5/johnsson8.1.1.html

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Gold is probably the only asset that could eliminate the mountains of debt we see today. And the folks in the governments of China, Russia, Nepal, etc., have already realized this. Hundreds of millions of people around the planet has also already realized this. Or rather, they haven’t forgotten, or they haven’t been brainwashed into believing gold is simply a “barbarous relic.” They are accumulating gold. For example, in China the government is running TV ads (available at YouTube) encouraging people to have at least 5% of their assets in physical gold and you can get gold coins and bars at any decent shopping mall, at banks and at airports. I know it’s the same in Russia, and I wouldn’t be surprised if it’s the same in India.

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5% is a modest amount. But, most folks in the US have zero. They may have etfs, or such paper. That’s not gold!

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http://www.chinadaily.com.cn/thinktank/2010-10/02/content_11374685.htm

$10,000 Gold?

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Indeed, another critical fundamental factor that has been sustaining high gold prices might prove far more ephemeral than globalization. Gold prices are extremely sensitive to global interest-rate movements. After all, gold pays no interest and even costs something to store. Today, with interest rates near or at record lows in many countries, it is relatively cheap to speculate in gold instead of investing in bonds. But if real interest rates rise significantly, as well they might someday, gold prices could plummet.

Most economic research suggests that gold prices are very difficult to predict over the short to medium term, with the odds of gains and losses being roughly in balance. It is therefore dangerous to extrapolate from short-term trends. Yes, gold has had a great run, but so, too, did worldwide housing prices until a couple of years ago.

If you are a high-net-worth investor, a sovereign wealth fund, or a central bank, it makes perfect sense to hold a modest proportion of your portfolio in gold as a hedge against extreme events. But, despite gold’s heightened allure in the wake of an extraordinary run-up in its price, it remains a very risky bet for most of us.

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A gold price of 10k$/oz has terrible implications for the American economy and the average American. It’ll freeze global commerce as the price of oil gets denominated in gold. Hope they’re wrong.

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http://dailyreckoning.com/if-gold-were-money-again

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In his short but trenchant analysis in 1994 of fractional reserve banking, The Case Against the Fed, Murray Rothbard laid out another methodology for establishing an benchmark price of gold based upon liquidation value of the Federal Reserve. For perspective, in 1994 gold closed the year at $384/ounce, while the broadest measure of money having been printed in the United States (M3) stood at $4.4 trillion, or only 31 percent of its 2008 quantity. When he performed this exercise using the balance sheet of April 6, 1994, he calculated that shutting down the Federal Reserve and distributing gold bullion to its creditors would reset the dollar’s value to $ 1,555 per ounce.

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If it were, we could be sure that the Gooferment was not plundering us by the invisible taxation of inflation. And, none of this deficit nonsense, if they want to spend it then we have to pay for it. Remember the Spanish American cell phone tax! At least, our forefathers had the stones to pay the bills for what they wanted done and not leave an I_O_China for our progeny to pay off.

Argh!

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