Tag: GOLD

http://lewrockwell.com/orig9/watkins-b2.1.1.html

Could the Presidential Election Turn On a Dime?
(Not if the WaPo Banksters Have Their Way)
by Bill Watkins

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Really? Now? Where? Congressman Paul explained that a SILVER dime is currently worth over $3.00, which is nearly enough to buy a gallon of petrol in the U.S. You remember those Mercury head dimes, don’t you? What ever happened to those? And, come to think of it, why doesn’t a dime minted in 2011 buy a gallon of gas?

Admittedly, it’s a simple question. And that why it’s so dangerous. This line of thinking simply can’t be allowed to gain traction. It’s crazy talk by Ron Paul who stubbornly clings to a bygone era of monetary policy (including relevant clauses of the Constitution) and who simply doesn’t comprehend the modern wonders of “quantitative easing.” Move along citizens, there’s nothing here to see. Got it?

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The recent Republican debate had a moment of unprecedented clarity.

“dime a gallon”!!!!

The moderators were falling all over themselves to get off that point.

Why?

Because it would unleash a cornucopia of issues that would put the proverbial metaphorical pin in the propaganda balloon.

Here’s just a few of my observations. (probably obvious to real economists and history students.)

* The “dollar” is a perverse illusion of what it used to be. Systematic inflation robs the workers of the fruit of their labor as surely as if they were robbed at gunpoint. It’s immoral. By not having a connection to anything constant, the theft is by “printing press”.

* The fraud of the “dollar” is “We, The Sheeple” have been trained to think of it as a constant. The North Star of value. That’s like playing football on a field where the yard shrinks between 2 and 20% every year. Great for breaking records. Not too honest. And, certainly not a way to keep score.

* The FED is a cabal of bankers that use the fiat currency to ensure that they keep the power.

* The politicians and bureaucrats like this system real fine. It allows them to spend money. They don’t have to take wealth from the producers in the form of taxes. They get it by the “printing press”!

* A fair news report would report prices in ounces of gold. Or, any fair basket of commodities. Then people would see the “hidden story”. Hard to imagine reporting the price of gasoline, the Dow, and the dollar in terms of ounces of gold.

All from the “dime a gallon” comment.

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http://blogs.forbes.com/afontevecchia/2011/07/13/bernanke-fights-ron-paul-in-congress-golds-not-money/

ECONOMY
Bernanke Fights Ron Paul In Congress: Gold Isn’t Money
Jul. 13 2011 – 11:26 am

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“Is gold money?” he asked. Clearly bothered, Bernanke told the representative, “No. It’s a precious metal.”

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“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

Clearly, the Federal Reserve Banknote is NOT a store of value. 95% loss of value from 1970 to 2000.

But, Ron Paul has to admit that gold isn’t either. It’s not a medium of exchange. Was; could be; ain’t.

Argh!

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http://gregnupe.wordpress.com/2011/03/20/the-long-term-capital-gains-tax-rate-on-gold-is-28/

The long-term capital gains tax rate on Gold is 28%

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People keep asking me what I think about gold. Its been on a great run, but one must be extra careful when investing in precious metals. Precious metals like gold and silver are considered “collectibles,” as are the ETFs that track them (like the ETF, “GLD”). Per the IRS tax code, “collectibles” held less than one year are taxed as short-term capital gains at one’s ordinary income tax rate, and if held for greater than one year, collectibles are taxed as long-term capital gains at 28%. Your broker probably won’t tell you this because he or she probably doesn’t know, yet will gladly take your commission. However, a 28% capital gains tax rate can be a problem.

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Of course, some, less than scrupulous folks, or tax protestors, might use gold to evade the inheritance tax laws. AND, if one is concerned about the possibility of hyperinflation a la pre-WW2 Germany, gold bullion coins is an interesting choice. Personally, I wouldn’t call it an “investment”; more of “insurance”.

As “insurance”, metals only make sense if they are in your custody; not in an account somewhere. And, if you’re buying bullion, then clearly the cost over spot should be minimized. As well as, avoiding anyone like the plague selling “collectible coins” at a premium over spot. TV ads are a clue as to who to avoid.

In the pyramid of a financial plan, if one has a “big pyramid”, then certainly metals have a place. I learned very early in life not to be overly concerned about taxes. Yes, they are theft, but it should NOT drive your behavior. IF by some chance, you have to liquidate some gold, then you can worry about paying taxes. There are options to sales with a paper trail.

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http://www.foxnews.com/politics/2011/03/03/utah-considers-return-gold-silver-coins/

Utah Considers Return to Gold, Silver Coins
By Stephen Clark
Published March 03, 2011 | FoxNews.com

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The Utah House was to vote as early as Thursday on legislation that would recognize gold and silver coins issued by the federal government as legal currency in the state. The coins would not replace the current paper currency but would be used and accepted voluntarily as an alternative.

The legislation, which has 12 co-sponsors, would let Utahans pay their taxes with gold and also calls for a committee to study alternative currencies for the state. It would also exempt the sale of gold from the state capital gains tax.

The bill cleared a state legislative committee on Wednesday, the first of 11 similar bills in statehouses across the country to do so. If the bill clears the House, it would have to pass the Senate before the governor could sign it into law.

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Excellent!

We need a return to sanity.

And, an end to “legal tender” laws.

Allow the marketplace and the people to decide what is “money”?

I’ll know we’re free when the supermarkets price their wares in units of silver or gold.

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