Tag: GOLD

MONEY: “Labor Day” is a reminder of the effect of fiat money on the labor wage rate — Where is the $ 22-per-hour minimum wage?

Published on by reinkefjLeave a comment

https://schiffgold.com/commentaries/we-dont-need-better-government-policies-for-workers-we-need-better-money/

We Don’t Need Better Government Policies for Workers; We Need Better Money
August 31, 2023 by Michael Maharrey

*** begin quote ***

Labor Day is coming up. That means we will hear a lot about the plight of American workers. And we will undoubtedly hear calls for new policies to help make their lives better. But we don’t really need more government policies to help workers.

*** and ***

When he announced the closing of the gold window, Nixon said, “Let me lay to rest the bugaboo of what is called devaluation,” and promised, “Your dollar will be worth just as much as it is today.”

This was also a lie.

The dollar has lost more than 85% of its value since Nixon’s fateful decision, based on the CPI calculator. The purchasing power of a 1971 dollar is equal to less than 14 cents today.

*** and ***

Johnson promised removing silver would have no impact on the value of US coinage. “[The] Treasury has a lot of silver on hand, and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin,” he said.

He was lying, just like Nixon.

When LBJ signed the 1965 act, the value of a dollar was almost exactly the same as it had been in 1792—0.77 ounces of silver. By 1980 the dollar had plunged to 0.02 ounces of silver. Today, a dollar today is valued at about 0.06 ounces of silver.

What does this have to do with the minimum wage?

Consider this: In 1964, the minimum wage stood at $1.25. To put it another way, a minimum wage worker earned five silver quarters for every hour worked. Today, you can’t even buy a cup of coffee with those five quarters at face value.

But today, the silver melt value of those five quarters stands at over $22.

That’s a $ 22-per-hour minimum wage.

Now flip things around. Today, it takes 88 quarters to pay a $20 minimum wage. If you paid that in 1964 silver quarters, the value of the metal would be something in the neighborhood of $390!

*** end quote ***

That’s a $ 22-per-hour minimum wage.

So it you’re asking for a higher “minimum wage”, remember that the same Gooferment asking is the one that screwed you in the first place!

Focus on the true cause of “inflation” and why you can’t make ends meet.

Argh!

Happy “Labor” day, suckers.

—30—

MONEY: The coming default by the US FED / Treasury?

Published on by reinkefjLeave a comment

https://www.zerohedge.com/markets/are-you-ready-coming-us-government-default

Are You Ready For The Coming US Government Default?
by Tyler Durden
Monday, Nov 07, 2022 – 07:20 AM

Authored by MN Gordon via EconomicPrism.com,

*** begin quote ***

The vast herd of investors are a deluded crowd. Following the Federal Reserve’s much anticipated 75 basis point rate hike on Wednesday the major stock market indexes jumped upward.

Optimistic investors keyed in on the Federal Open Market Committee (FOMC) statement and, in particular, the remark that the Fed, “will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation and economic and financial developments.”

*** and ***

In other words, this bear market may not bottom out until well into 2025. What’s more, the entire dollar based financial system will likely blow up sometime beforehand.

*** and ***

But many won’t recognize heavy handed monetary policy as reasons for their disappointment. The erosion of purchasing power can be subtle over long periods. Moreover, the effects of currency debasement policies extend to all corners of the economy.

*** end quote ***

Depends upon how you define default. What happens when no one wants to buy US Treasuries?

It’s going to be ugly. As the interest rate goes up, more of the Federal budget should go to interest on the debt. If they don’t cut, then more dollar printing.

A vicious cycle.

Sigh!

But what will be the form of it? Us tin foil hats are trying to guess will they just: “print”, “default on the bonds (i.e., tough <synonym for excrement> you suckers)”, or something involving a FED version of mandatory bitcoin (i.e., cash is recalled just like gold was)?

And, then what will the sheeple do?

—30—

INSPIRATIONAL: The value of time

Published on by reinkefjLeave a comment

https://palexander.substack.com/p/the-last-wishes-of-alexander-the?token=eyJ1c2VyX2lkIjo0MTQyNTAzMCwicG9zdF9pZCI6NTQ4NDMyMzUsIl8iOiI4Wkx4aCIsImlhdCI6MTY1MjU0MjE1MSwiZXhwIjoxNjUyNTQ1NzUxLCJpc3MiOiJwdWItNTc5MzU2Iiwic3ViIjoicG9zdC1yZWFjdGlvbiJ9.ZJGAnfu5Bt83VIBS_AjP9GF2nPJBx6I-5NZuQn_U07Q&s=r

“The last wishes of Alexander the Great”; I am seeking to verify this by some fast extensive reading, but if so, this is stunning and I wanted to share…so light reading 
Dr. Paul Alexander

*** begin quote ***
 
The Greatest Military General in History,, who only lived to be 32 Years old

“My first desire is that”, said Alexander, “My physicians alone must” carry my coffin.”

2) After a pause, he continued, “Secondly, I desire that when my coffin is being carried to the grave, the path leading to the graveyard be strewn with gold, silver and precious stones which I have collected in my treasury”.

3) “My third and last wish is that both my hands be kept dangling out of my coffin”.

The people who had gathered there wondered at the king’s strange wishes.

One of his generals who was surprised by these unusual requests asked Alexander to explain.

*** end quote ***

Read further for the logic.

And, I really don’t care if it’s true or apocryphal.

“I fear all we have done is awakened a sleeping giant.” — apocryphal quote attributed to Admiral Isoroku Yamamoto played by Mako in the movie ‘Pearl Harbor’

It’s so true.  And, I wish I had GROKKED it as a young lad.  I did become a little L libertarian due to Robert A. Heinlein; maybe I should have absorbed the value of my time at that time. Not seven decades later.

Tempus fugit

https://youtu.be/0Zo0zN8ug-M

—30—

 

GOLDBUG: Time to diversify savings?

Published on by reinkefjLeave a comment

EMAIL TO LUDDITE AND OTHERS

Bitcoin: The Inevitable Path Toward Global Adoption Of The Next World Reserve Currency https://www.zerohedge.com/crypto/bitcoin-inevitable-path-toward-global-adoption-next-world-reserve-currency

So, if the USD has a shelf life partially due to historical precedence and partially due to fiscal irresponsibility (overprinting of the money supply), what comes next? What replaces the USD? Another fiat currency? It’s possible, but my guess is the days of trusting a centralized party to maintain a stable supply of a currency have come and gone. Why trust, when you can just verify? An argument could be made that gold is today’s reserve asset as it is held by the majority of central banks.

RESPONSE

Not sure what to say on this, it’s above my pay grade.

MY CONCLUSION

Me neither. But, with the Gooferment’s inflation destroying the U$D’s value, it would seem that “diversification” of savings is essential to preserving what little wealth one has. 

Pre-1913, people saved gold and silver coins.  Since there was a gentle price deflation in the USA during that interval, it was a great strategy for preserving wealth.  After 1913, the erosion began, I blogged in June of 2006 about Evy’s Dad and his Fifty Dollar bill  —

https://reinkefaceslife.com/2006/06/30/rant-a-visit-from-one-of-my-favorite-socialists/

*** begin quote ***

My now departed father in law used to have a folded up fifty dollar bill in his wallet. He had carried it their since he was a young man, so that he’d “never be broke”. He was blue collar working guy. Salt of the either. Raised his family, paid his bills, and did the best he could. He was poor! BUT, he never realized, (I didn’t tell him cause he wouldn’t have believed me! I was just a child in his eyes.) that HIS beloved DEMOCRATIC (not that the R’s are any different), silently stole his “fifty in sunken city”. Yup, when he put that Fifty in his wallet if could buy lots of stuff: A hundred gallons of gasoline. Feed his family for a week. Ffity cartons of his beloved Lucky Strikes. Pay an entire hospital bill for an accident. It had value 60 years ago. After 60 years of inflation, I didn’t have the heart to tell him that his beloved Fifty was really was worth about 13 cents. Sad isn’t it.

*** end quote ***

As you know I like gold and silver bullion coins, but recently I’ve been thinking about diversifying to bitcoin.  Now I’m thinking about GOLDBACKS. I’ve dabble in BITCOIN and ETHERIUM.  I’ll probably dabble in GOLDBACKs too.  My bullion coin dealer is shifting out of coins and into middleman.  (Why use him when I can go directly AMPEX or others?). Sigh. So in March, I’ll be shifting.  Not sure exactly what mix but I’ll do something.

YMMV

# – # – # – # – # 

“Three hundred years from now where will you be and where shall I be?” — Thich Nhat Hanh

—30—

MONEY: Bloomberg Intelligence Projects $50 Silver in 2021 | SchiffGold

Published on by reinkefjLeave a comment

DECEMBER 23, 2020  BY SCHIFFGOLD   0   0 Saxo Bank recently projected silver will soar to $50 an ounce in 2021, powered by loose monetary policy along with the push for “green energy.” Bloomberg Intelligence is now making a similar call, saying silver will be “the primary metal” benefiting from electrification and quantitative easing in 2021. Gold set a new record earlier this year and briefly traded above $2,000 an ounce. In a recent report, Bloomberg Intelligence senior commodity strategist Mike McGlone predicted silver will follow gold toward a record high of its own.

Bloomberg Intelligence Projects $50 Silver in 2021 | SchiffGold

# – # – # – # – #

Clearly higher metal prices are predicting inflation from all the FED’s action to stimulate the economy.

The result will be a harder life for the “middle class” if there is any such left.

—30—

GOLDBUG: This Gold Rally Is Different For One Critical Reason

Published on by reinkefjLeave a comment

From Birch Gold Group This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: Why the gold rally might be different this time, gold could continue to soar if the Fed keeps cutting rates, and gold and silver prices push higher following weak U.S. jobs data.

Source: This Gold Rally Is Different For One Critical Reason

*** begin quote ***

Isbitts believes that this one, however, will be markedly different. In the previous two instances, while the gold market flourished, it also had a safe-haven competitor in the form of government bonds, as the 10-year Treasury’s yields stayed between 4% and 5%.

*** end quote ***

It certainly seems that the Gooferment bonds are no longer competitive in the “safety” dimension. Nor, would they compete on the “ROI” dimension (i.e., gold pays no interest)!

It’s a sad state of affairs the “We, The Sheeple” will find themselves in. Like Venezuela, Zimbabwe, and German Weirmar Republic.

Hope everyone is saving nickels since they are the only currently circulating US coin with any intrinsic value.

— 30 —

MONEY: Virginia repeals sales taxes on money

Published on by reinkefjLeave a comment

http://blog.tenthamendmentcenter.com/2018/01/now-in-effect-virginia-law-takes-first-step-to-support-sound-money/

Now in Effect: Virginia Law Takes First Step to Support Sound Money

*** begin quote ***

RICHMOND, Va. (Jan. 7, 2018) –  On Jan. 1, a Virginia law that repeals sales taxes from some purchases of gold and silver went into effect. It represents an important first step toward encouraging its regular use as currency and breaking the Federal Reserve’s monopoly on money.

A bipartisan coalition of delegates and senators sponsored House Bill 1668 (HB1668) and Senate Bill 934 (SB934). The legislation exempts gold, silver, and platinum bullion or legal tender coins whose sales price exceeds $1,000 from state sales tax. Each piece of gold, silver, or platinum or legal tender coin need not exceed $1,000, provided that the sales price of one entire transaction of such pieces exceeds $1,000. With gold over $1,000 an ounce, a single bullion coin will exceed this threshold.

Under the new law, the exemption will remain in place until June 30, 2022.

*** end quote ***

This seems to be the first step to “killing” the Fed.

It’s a backdoor way but who cares how we can do it. Just that we do!

# – # – # – # – #

MONEY: Bitcoin “Not Backed”; so what “backs” FRNs?

Published on by reinkefjLeave a comment

https://fee.org/articles/fed-official-decries-bitcoin-as-not-backed/

Friday, December 01, 2017

Fed Official Decries Bitcoin as “Not Backed”
Bitcoin is backed by the use value of the distributed ledger in the underlying technology of the Blockchain.
by  Jeffrey A. Tucker

*** begin quote ***

Randal K. Quarles, a Trump administration appointee to the Federal Reserve Board of Governors and Vice Chair for bank supervision, has given a lengthy speech (“Thoughts on Prudent Innovation in the Payment System”) that directly targets Bitcoin as a danger to the monetary and financial system.

To reiterate, an official speaking for the nation’s central bank that manages the global reserve currency – the institution that has long bragged about its power to bail out the entire world with the magic powers of the alchemist – has put down Bitcoin for being untrustworthy, unbacked, and unsound.

*** end quote ***

Will someone please tell me what is backing up the current Federal Reserve Notes that pass for “money” today?

I can’t believe the hubris of some people.

The Federal Reserve Note, since 1970, has lost 99.99% of its value. There maybe even some 9’s at the end of that percentage.

I’m just shaking me head at this “attack” on bitcoin.

I’m speechless.

You should be too.

Save your nickels! It’s only thing worth anything — it still has some silver content. For now!

Argh!

# – # – # – # – # 

TINFOILHAT: Am I Asking the Wrong Questions?

Published on by reinkefjLeave a comment

http://deviantinvestor.com/7070/asking-the-wrong-questions/

Asking the Wrong Questions
Posted on June 3, 2015 by Gary Christenson

*** begin quote ***

We often hear (the wrong) questions such as:

What did politicians know about that scandal?
Will the stock market rally another year?
{Extraneous Deleted}
What happened to penny candy?
How much longer can “they” hold it together?
Will gold prices ever get to $2,000?
And 101 more…

In my opinion these are often the wrong questions. Ask better questions and we receive more relevant answers.

*** and ***

Garbage in, garbage out! Ask better questions and the answers will be more useful. The same thinking that brought the world to this point will not be helpful in solving the problems that threaten our financial well-being.

Gary Christenson

*** end quote ***

I find this funny because HRC won’t answer questions, BHO just flat out lies (i.e., keep your doctor), and politicians just stall until you give up.

Sharyl Attkisson just gave written testimony how the Gooferment evades and stonewalls FOI requests.

And, everything Gooferment plans to do is either classified, secret, or redacted.

So, when the author cites Groucho, I understand.

“Who are you going to believe, me or your own eyes?” —Groucho Marx

It’s related to: “I wouldn’t believe you, if your tongue came notarized.” … attributed to Judge Marilyn Milian, but may have an earlier history.

I see an county that is going quickly in the wrong direction, but have no idea how to stop it.

Argh!

# – # – # – # – # 

GOLDBUG: Gold, Silver, and Oil

Published on by reinkefjLeave a comment

http://www.marketoracle.co.uk/Article41457.html

Gold and Silver Investors Greatest Secret Weapon
Commodities / Gold and Silver 2013 Jul 18, 2013 – 04:01 AM GMT

By: Steve_St_Angelo

*** begin quote ***

As the FED turns up the heat in the central bank frying pan, the frogs (public) don’t realize they are being cooked to death by inflation. I am quite amazed how loud the sizzling sound has become, but for some odd reason hardly anyone notices it.

Unfortunately, we are well past the point of no return. It’s only a matter of time now before the whole “Financial Cliff” falls off the mountain side. Until then, gold and silver investors will have to put up with some of the worst analysis ever to come out of government and MSM.

*** end quote ***

Another indication that “someone” is cooking the books.

In a free market, commodities don’t diverge from glacial trends.

Of course, as a tin foil hat, I suspect manipulation.

The FED can print “dollars”, but they can’t print gold, silver, oil, land, food, water, bandaids, or bullets.

This is all a fraud being pulled on the Sheeple and Clovers.

# – # – # – # – #   

GOLDBUG: Waiting lists for coins and bars?

Published on by reinkefjLeave a comment

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/10028183/Gold-buyers-forced-to-go-on-waiting-list.html

HOME»FINANCE»PERSONAL FINANCE»INVESTING»GOLD
Gold buyers forced to go on waiting list
Gold buyers are having to wait up to six weeks for their bars and coins after a price dip led to increased interest.

By Rosie Murray-West3:55PM BST 30 Apr 201358

*** begin quote ***

Investment company Physical Gold said there were waiting lists of three weeks for some coins, and four to six weeks for gold bars. “Previously all would have been available within a few days,” the company said.
The company said that it had seen a 50pc increase in enquiries about purchasing gold and a 35pc increase in sales, with people buying tax-free gold coins. “We are now starting to experience physical gold shortages,” said Daniel Fisher, CEO of Physical Gold.

“In particular there are waiting times on some gold bars and a real difficulty in obtaining mixed year Sovereigns. “However, many clients are willing to ‘do a deal’ and wait for delivery as they want to secure the current price as they feel it will be higher in the near future.”

*** end quote ***

# – # – #  

Yeah, the price drops on “paper” gold, but premiums (seniorage) on “hard” gold goes up.

Now who doesn’t think the Sheeple and Clovers aren’t being manipulated?

# – # – # – # – #   

GOLD: Gold bug died unnoticed; at least the state didn’t get it!

Published on by reinkefjLeave a comment

http://gma.yahoo.com/blogs/abc-blogs/calif-teacher-inherits-recluse-cousins-7-million-gold-192002163–abc-news-topstories.html

Calif. Teacher Inherits Recluse Cousin’s $7 Million in Gold

By Christina Ng | ABC News Blogs – Wed, Dec 19, 2012 2:20 PM EST

*** begin quote ***

Samasko, 69, died in May due to heart problems and was not discovered until June when neighbors complained of an odor coming from his house.

When authorities went to clean out his Carson City home, they found boxes of gold coins in his home and garage.

*** end quote ***

The story leaves out that the Government tried to claim the windfall.

On Christmas Day, remember all the old gold bugs with no one.

p.s., it is DUMB to hoarde in your own place. The gooferment or the bureacrats will steal it all. That’s why pirates buried their treasures.

–30–

MONEY: PT is less than AU?

Published on by reinkefjLeave a comment

KITCO Metals quotes

 

 

Take a look at the price of platinum versus gold.

What does this signal?

Price manipulation in the commodities markets in advance of the election?

Wonder when we’ll hear about the derivative contracts that are used to move the market.

Argh!

—30—

GOLD: Joe Scarborough Admits

Published on by reinkefjLeave a comment

http://www.theblaze.com/stories/joe-scarborough-admits-glenn-beck-has-been-right-about-gold/

Business
Joe Scarborough Admits: ‘Glenn Beck Has Been Right’ About Gold
Posted on March 30, 2012 at 3:49pm by Becket Adams

*** begin quote ***

Today on MSNBC’s “Morning Joe,” Matthew Bishop, the US Business Editor and New York Bureau Chief for The Economist, talked about his new ebook “In Gold We Trust? The Future of Money in an Age of Uncertainty.”

Co-written with Michael Green, Bishop’s ebook discusses some awfully familiar themes: the instability of fiat currencies, the skyrocketing price of gold, and the future of the global economy.

“If you got volatile markets, why do you run to gold?” MSNBC host Joe Scarborough asked Bishop.

“This is a very interesting time because…the people who have been the most successful investors over the past few years, a lot of them basically are very worried about the future of the dollar, very worried about the future of the euro, and they see gold as the best alternative currency,” Bishop answered.

“And they’ve been right a lot,” Bishop added. “They have a lot of their money in that currency and I think the rest of need to understand why. It’s always dismissed as this kind of crazy rightwing thing to do,” Bishop added.

*** end quote ***

ROFL!

Bout time that someone, anyone, in the mainstream media acknowledges the economic reality.

 

 

 

# – # – # – # – #

GOLD: Asian gold theft crisis in the UK

Published on by reinkefjLeave a comment

http://www.guardian.co.uk/uk/2012/jan/31/gold-theft-asian-families

The great Asian gold theft crisis
With its value at a record high, gold has never been more attractive to thieves. Now burglars with metal detectors are targeting the homes of British Asian families for their collections of high-quality ‘Indian gold’ jewellery
Emine Saner        Emine Saner        guardian.co.uk
Tuesday 31 January 2012 15.00 EST

*** begin quote ***

Five weeks ago, she came home one evening to find the door ajar. The downstairs floor of her house was relatively untouched but upstairs the bedrooms had been ransacked – drawers opened, wardrobes emptied, clothes and belongings scattered everywhere. “It was such a huge shock,” she says, sitting on the sofa, her voice breaking slightly. Her husband, Mr Rashid (neither want to give their full names), a big man sitting across the room, shakes his head. “They took it all,” he says.

The thieves who broke into this semi-detached house in Earley, near Reading, stole around £70,000-worth of gold jewellery. To those who are not from a south Asian family, it might seem remarkable to own so much valuable jewellery, but families such as the Rashids (Mr Rashid runs a small business) live in ordinary houses and are not particularly wealthy. Their gold collection – elaborate necklaces, rings, earrings and bangles – is treasure that has been handed down from generations of their families in Pakistan or bought as wedding gifts. It’s our savings, our security, says Mrs Rashid, visibly upset. If, in future, the family needed money, they would have sold some pieces. “It’s like paying a mortgage for 20 years and then having a house worth thousands of pounds afterwards – it’s the same thing with gold,” she says. “Our parents gave it to us, we would have given it to our children, they would have given it to their children,” says her husband. They tried to put their gold in the bank, but “there were no lockers available. Everyone is looking for one.”

*** end quote ***

Camouflage!

You have to not look like a victim. And, make it hard to find.

Crazy that you can’t be secure in your own home.

Tie that back to the UK’s dole, gun laws, and generally tolerant attitude towards crime.

# – # – # – # – #

MONEY: How can anyone not count food and gas in the CPI?

Published on by reinkefjLeave a comment

http://www.veteranstoday.com/2012/02/05/hows-that-change-working-out-for-you

How’s that “change” working out for you?
Sunday, February 5th, 2012
Posted by Ed Mattson

*** begin quote ***

These government “number slingers” are the same bunch that tells you the Consumer Price Index increased 3.0 percent before seasonal adjustment to end 2011. Let’s see… 3% inflation. Do you really believe that? Have you been shopping lately? Have you purchased gasoline or diesel for your vehicle so you could go to work (if you still have a job)? Oh, that’s right.  THEY DON’T COUNT GAS AND FOOD IN THE INFLATION RATE!  I guess we don’t need food or gasoline.

In most families the women do most of the grocery shopping right? Men usually aren’t always up to current grocery store prices. Next time anyone talks about politics and how things are going, just ask them if they have purchased ten pounds of potatoes this past year, or stopped in at a gas station.  In 2009, 10 lbs of potatoes cost about $3.50 in Western Michigan (about $3.00 at Wal-Mart). Today the cost is over $5 any place you want to shop. Gas was $1.79/gal when Obama’s entourage slithered into Washington and today, down at the local discount gas station here in North Carolina, it’s $3.59. Is it any wonder they DON’T CALCULATE FOOD AND GAS INTO THE CPI?

*** end quote ***

Excellent point. If they did then they’d have to give a COLA to all the old folks.

It’s like the scam with ZERO interest rates by the FED. That keeps Uncle Sam’s 15T$ debt as a near zero expense.

When do “We, The Sheeple” wake up?

When does the World wake up?

You’ll know the scam is over when we have to pay for oil in gold or someone else’s national currency.

# – # – # – # – #

MONEY: Kill the FED; save the Republic

Published on by reinkefjLeave a comment

http://www.pittsburghlive.com/x/pittsburghtrib/opinion/s_777634.html

Kill the FedBy Eric Heyl, PITTSBURGH TRIBUNE-REVIEWSaturday, January 21, 2012
Read more: Kill the Fed – Pittsburgh Tribune-Review

*** begin quote ***

John Allison is the former chairman and CEO of BB&T, the nation’s 10th-largest financial holding company. He was named one of the 100 most successful CEOs by the Harvard Business Review and since 2009 has been on the Wake Forest University Schools of Business faculty as Distinguished Professor of Practice.

*** and ***

Q: In the long term, what do you think should be done with the Fed?

A: If I were in charge, I would get rid of the Fed. I believe that as long as the Fed exists, Congress can effectively print money. And it doesn’t matter whether they are Democrats or Republicans, they would rather print money than tax people. They want to spend because that effectively buys votes, and they don’t want to tax people because that loses votes.

I think the Fed provides the temptation for massive government deficits. If the federal government couldn’t print money, it would have to have better financial discipline than it has today.

*** end quote ***

Vote Ron Paul.

There’s no other candidate on the horizon that understands or articulates that the FED is the problem.

It gives the duopoly — the D’s and the R’s are two sides of the same coin intended to give “We, The Sheeple” the illusion of a choice — an unlimited checkbook to borrow and spend.

# – # – # – # – #

MONEY: Savings bonds have gone digital

Published on by reinkefjLeave a comment

http://www.doughroller.net/investing/how-to-buy-us-savings-bonds/

Electronic U.S. Savings Bonds–Say Goodbye to Paper
by Rob Berger
in Investing

*** begin quote ***

As of today, U.S. savings bonds have gone digital. Paper savings bonds are history.

I’m get a bit nostalgic when it comes to paper bonds. There’s just something comforting in holding physical evidence of your investment. And the designs of paper bonds over the years have been quite impressive.

*** end quote ***

In the old days, a family accumulated savings bonds to pay for the children’s education. War bond, savings bonds, even savings stamps that led to a savings bond were common.

Over time, even rubes recognized that this was a joke.

Sorry, but this is just another scam pulled off on “We, The Sheeple”.

If the inflation rate is what I think it is, there’s no way that Gooferment Bonds of any type make any economic sense.

And, any interest on those savings bonds add to your taxable income in the future.

Also, those “savings” count in the formula for aid for that education.

Bullion is a better vehicle for any saving. Similar to passing along an inheritance, the rounds don’t appear on any form or schedule.

Hey, if the Gooferment and Wall Street can have “off book” and “off balance sheet” entries, why can’t you?

Call it jewelry. Just don’t keep it in a safe deposit box. (FDR raided those.) Everyone should have a garden.

Keeping what’s yours and / or getting back what was stolen from you is just financial self-defense.

# – # – # – # – #

 

 

MONEY: Gas for a dime a gallon

Published on by reinkefjLeave a comment

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

*** begin quote ***

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?

*** end quote ***

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.

# # # # #

MONEY: Is gold money?

Published on by reinkefjLeave a comment

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

*** begin quote ***

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

*** 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

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!

# # # # #

MONEY: Gold 28% LTCG rate, but who sells?

Published on by reinkefjLeave a comment

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%

*** begin quote ***

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.

*** end quote ***

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.

# # # # #

MONEY: Utah Considers Return to Gold

Published on by reinkefjLeave a comment

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

*** begin quote ***

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.

*** end quote ***

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.

# # # # #

GOLDBUG: Time to return to Constitutional money

Published on by reinkefjLeave a comment

http://www.commodityonline.com/futures-trading/technical/Can-gold-be-valued-in-currency-or-is-itself-money-16935.html

Can gold be valued in currency or is itself money?
Published on June 21, 2010 14:45:00 IST

*** begin quote ***

My suggestion to Ron Paul and all those wanting to return to gold, is the best way to accomplish this is not by proclaiming your determination to replace the Federal Reserve Board with the gold standard, but to attack the legal tender laws of this country.

*** and ***

The key is to go after the governments monopoly on money. If broken, gold will find it’s way into the monetary system, as it is today, and reclaim it’s superior role as long as it is not prevented from doing so. Legal tender laws do just that. They prevent choice.

*** and ***

If governments fail to get their fiscal houses in order there is no telling what the future will bring. Gold offers some semblance of security. Among other things, it is a hedge against stupidity. Given the almost criminally reckless fiscal policies of government, who in his right mind would not want to protect himself. And if a currency crisis occurs, who would believe the promises of a new government paper currency in light of the broken promises of governments everywhere. Gold is not a promise that can be broken, and therein lies its present appeal.

*** and ***

To all the pundits that believe a gold standard is impractical, I suggest they look at the present fiat system and then judge it against the hundred years of monetary stability we enjoyed in years past under the gold standard. Then talk to me about which system is practical and which system is not.

*** end quote ***

The Dead Old White Guys had just experience the inflation of paper money. They saw first hand how it let the Gooferment buy more than it had without any check or balance.

By the creation of the Federal Reserve Bank —

(which: ain’t “federal”; it’s a private cartel of banks; ain’t a “reserve” of anything; it’s ious with the taxpayer being the ower; and ain’t a bank; it’s a price fixing machine that makes the bankers rich and the politicians with an unending supply of spendable “money”.)

— they have made the Dead Old White Guys’ worst nightmare true. Unchecked gooferment.

Argh!

Time to roll back “progress” and go back to gold.

As a check on gooferment spending. ANY gooferment!

How can we be “independent” without honest money?!

# # # # #

GOLDBUG: Why gold?

Published on by reinkefjLeave a comment

http://www.321gold.com/editorials/casey/casey110509.html

Why Gold Has a LONG Way to Go
Jeff Clark
Casey’s Gold & Resource Report
Nov 5, 2009

*** begin quote ***

Now ask yourself the same thing: how many of your family, friends, neighbors, and co-workers are buying gold and silver coins? Are any of them giving you hot stock tips about a fantastic gold producer, or telling you about the latest gold discovery made by a company in China? Have any fellow investors told you they’re dumping their brokers because they can select gold stocks better on their own? Anyone telling you they’re going to night school to learn the gold mining business?

*** end quote ***

Gold is the money of a thousand years. With the Gooferment spending us into oblivion, how else does one preserve wealth? And, after the “inflation tax” and “inheritance tax”, what’s left?

Argh!

# # # # #

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

Published on by reinkefjLeave a comment

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.

*** begin quote ***

https://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!

# # # # #