Tag: Inflation

MONEY: Rich people buy new cars. Poor people do not

Published on by reinkefjLeave a comment

http://dailyreckoning.com/the-corruption-of-america

The Corruption of America
By Porter Stansberryleadimage
12/21/11

 

*** begin quote ***

 

All we’ve done is convert the government’s nominal GDP stats into a fixed currency value that’s based on real-world purchasing power. The fact is, our data are far more accurate than the government’s because they represent the real-world experience. That’s why our data are far more closely correlated to other real-world studies of wealth in America.

Consider, for example, annual sales of automobiles. Auto sales peaked in 1985 (11 million) and have been declining at a fairly steady rate since 1999. In 2009, Americans bought just 5.4 million passenger cars. As a result, the median age of a registered vehicle in the U.S. is almost 10 years.

Our data shows that real per-capita wealth peaked in the late 1960s. Guess when we find the absolutely lowest median age of the U.S. fleet? In 1969. At the end of the 1960s, the median age of all the cars on the road in the U.S. was only 5.1 years. Even as recently as 1990, the median age was only 6.5 years.

Rich people buy new cars. Poor people do not.

 

*** end quote ***

 

Once again we have the “underground” confirming what we know in our gut, the country is getting poorer day by day.

 

“Penny candy”! Remember that? Like the recent Ron Paul point about 1964 dimes and gas, “penny candy” is a similar point.

 

One tenth of one single silver dime in the Sixties would get you one or more pieces of loose candy at the cash register. (Amazing in light of today’s focus on germs and health hazards that anyone survived.) Fast forward to today. That silver dime is worth about two of today’s dollars. So a tenth is about 20 cents. “Penny candy” is sold in quarter “gum ball” dispensers. So all that’s changed is the value of the money with respect to the  goods available.

 

Who wins in this inflation? No surprise there. The politicians and bureaucrats!

 

Argh!

 

# – # – # – # – #

 

 

MONEY: Just take two zeroes of FRBies?

Published on by reinkefjLeave a comment

http://bigpeace.com/nmachiavelli/2011/07/15/irans-economic-spiral-country-to-cut-4-zeros-off-of-national-currency/

Iran’s Economic Spiral: Country To Cut ‘4 Zeros’ Off Of National Currency

Posted by Niccolo Machiavelli Jul 15th 2011

*** begin quote ***

TEHRAN — Removing four zeroes off the national currency will not have any inflationary impact on the economy, the deputy governor of the Central Bank of Iran, Hossein Qazavi, said here on Wednesday.

*** end quote ***

Is this the vision of how it could happen here?

Old dollars to new “improved” Federal Reserve Bank Notes. They could have contest to who would appear on the bills. Big winners those who have change.

# # # # #

MONEY: The US$ is worth less; dramatically less

Published on by reinkefjLeave a comment

http://seekingalpha.com/article/244020-coins-vs-bags-comparing-two-options-in-physical-silver

Coins vs. Bags: Comparing Two Options in Physical Silver – Seeking Alpha

*** begin quote ***

The 90% Silver Bags consist of coins — dimes and quarters — that were once used as money in the United States. In 1964, one could take a dime to the store and buy a loaf of bread (if you are old enough to remember). Today, that same 90% silver dime is worth $2.10, enough to buy a loaf of bread.

*** end quote ***

Interesting? It’s not that the cost of that loaf of bread has increased. It’s that the value of the money has decreased. Even though, I KNOW that, and I think I UNDERSTAND that fact, still concrete examples like this are a punch to the solar plexus. Leaves you sucking wind. By the same formula, I bout gas for 40¢/gallon. That equates to $8.40/gallon. So, gas has gotten “cheaper”! Argh! Makes me sick to my stomach. And, it’s only getting worse.

# # # # #

RANT: How can you exclude energy and food?

Published on by reinkefjLeave a comment

http://online.wsj.com/article/SB10001424052748704828104576021262542609064.html?mod=djemalertNEWS

*** begin quote ***

News Alert from The Wall Street Journal

U.S. consumer prices barely gained in November, rising just 0.1% from the prior month, as energy prices saw their smallest increase in five months. So-called core inflation, which excludes energy and food prices and is closely watched by the Fed, inched ahead by 0.1%, the first move after three flat months.

The annual underlying inflation rate was 0.8%, well below the Fed’s informal target of between 1.7% and 2%. The central bank’s policy-making committee Tuesday signaled that it thinks core inflation remains too low–a key factor in last month’s decision to start buying $600 billion in Treasury bonds.

*** end quote ***

How can you exclude energy and food? Planing to stop eating any time soon? And, “energy” is in EVERYTHING that moves. Just between you and me, and the Western World, my gasoline price has gone up a dime in the last few weeks!

# # # # #

MONEY: We need to return to Constitutional money — gold and silver

Published on by reinkefjLeave a comment

http://nicholasnigro.blogspot.com/2010/11/quantitative-easing-just-got-easier.html

Sunday, November 7, 2010
Quantitative Easing Just Got Easier
Nicholas Nigro

*** begin quote ***

This roundabout way of printing money will, apparently, guarantee only one sure thing that you can take to the bank: the further weakening of the once Almighty Dollar and a corresponding rise in critical commodity prices because of it. Translation: From the grocery store to the gas pump, those who can least afford it will pay more and more for basic necessities. But I imagine the government measuring sticks will continue to tell us that we are living in a period of very low inflation for the foreseeable future, and that we should be more concerned about the prospects of deflation.

*** end quote ***

What “they” have fooled everyone into thinking is that a “dollar”, a “Federal Reserve Note”, that green piece of linen cotton “paper”, is actually worth something tangible. In elementary economics, we learned that humans transferred from barter to money because money had certain useful characteristics. Most notably it permitted the butcher to trade directly with the candlestick maker without trading with the baker first. From whence all the good things that the division of labor provides — specialization.

Quoting from my favorite novel (Mine!) “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

“We, The People” have forgotten that. As well as the Dead Old White Guys Constitutional admonition that only gold and silver should be money. Along with a bunch of other stuff, like the Bill of Rights, Declaration of Independence, and a general dislike for oppressive Gooferment.

So, now, the politicians and bureaucrats are riding high on the hog and the taxpayers have been laid low. Like the host of a parasite weakened to near death.

Gooferment is the meme that kills people. It’s time to awaken from our economic nightmare and throw out the FED and return to “Constitutional money” — gold and silver. And watch the global economy rebound when the world isn’t paying the “inflation tax”.

# # # # #

MONEY: Competing currency is an inflation hedge

Published on by reinkefjLeave a comment

http://www.connectmidmichigan.com/news/story.aspx?id=481793

Competing currency being accepted across Mid-Michigan
by Dan Armstrong
Posted: 07.12.2010 at 8:13 PM

*** begin quote ***

Jeff Kotchounian says he’s used this Ron Paul half troy ounce of silver to get $25 worth of gas from a local station. While the government and banks don’t accept them, many others do. So why is there interest in these competing currencies?

*** end quote ***

Pretty simple.

INFLATION!

The Federal Reserve Bank is going to enable the politicians and bureaucrats to inflate their way out of the debt.

Of course, those on fixed income, the poor, and anyone with savings in dollars will be totally screwed.

A silver round may make the difference between eating and not.

# # # # #

MONEY: The Pope should lead the way to “honest money”

Published on by reinkefjLeave a comment

http://www.catholicnewsagency.com/news/vatican-coin-now-in-circulation/

Vatican coin now in circulation

*** begin quote ***

Vatican City, Jul 23, 2010 / 05:02 pm (CNA/EWTN News).- Coins bearing the image of Pope Benedict XVI are now in open circulation within Vatican walls. As of this month, Vatican visitors will find that 50 cent pieces are being given as change at places such as the gas station, pharmacy and post office.

*** end quote ***

Imagine the impact on the world if the Pope led the way to “honest money”?

Hard to imagine.

Gooferments, around the world, steal the people’s wealth by inflation. They claim the “King’s right”, the “Soverign’s duty”, or the “Tyrant’s Treasure Chest” to produce “honest coins” or “money”. (Like the marketplace could not figure out what “money” was “honest” on its own. Gresham’s Law http://en.wikipedia.org/wiki/Gresham%27s_law would demonstrate whats good and what’s not, without any “inspectors”. The Gooferment steals the wealth by printing more paper money, called “fiat currency”. Fiat because it has value because the Gooferment says it has value. No conflict of interest there.

Now here’s why the Pope should care. Inflation, the printing of “extra” money, impoverishes the poor, middle class, savers, and old age pensioners. That’s why he should care.

Inflation results in higher prices in the marketplace. Wages lag inflation. If they rise at all, it won’t be proportional. Investment, similarly, never “catch up”. So pensioners get hit with a triple whammy: their pensions are usually fixed and so don’t go as far as they used to, their savings are eroded, and prices go up.

So that’s why the Pope should act.

The Church has always been the traditional refuge for the serf from the abuses of the King. (I’ve seen enough Robin Hood and Zorro movies to know that.) It’s time for that to happen again.

Imagine if the Pope ordered all Vatican coinage to be in gold or silver?

First impact, that they’d be selling like hot cakes to the tourists. Then would come the folks overseas. As an example of “honest money”. The Vatican could even show a profit; much more than what they rip off coin collectors for meaningless proof sets.

And the little people would have money that could not be stolen silently by the King’s printing press.

Even the most illiterate dumber-than-a-rock parishioner could see the benefit of using the Pope’s money for savings.

It would be the ultimate control on the power of the King — the Gooferment.

IMHO one of the reasons, or possibly THE reason that Old Sadam got knocked off his horse was NOT wmd; the tyrant had the audacity to suggest that he wanted to be paid for his oil in gold. Rumor was that he was months away from starting an oil exchange denominated in gold. Remember the “Gold Dinar”? Not that he had a religious bone in his tuckus, he was pushing the religious aspect too. Hey, he realized that the FED was going to “tax” him on his dollar holdings. Silently. With no muss ‘n’ fuss, as the printing presses kept rolling out dollars.

So, Holy Father, the little people of the world would like you to end the tyranny of the King, who steals their little bit of wealth, give us honest money. If you truly believe in the workman being worth his wage, then make sure he get it in something that is worth something. Honest money is Godly money. And, slapping on a few saint’s pictures on the coins wouldn’t hurt morality either.

# # # # #

GOLDBUG: a store of value

Published on by reinkefjLeave a comment

http://economist.com/node/16536800

Gold
Store of value
Low returns on other investments and fears about the world economy have caused the price of gold to soar. Don’t count on its continued rise
Jul 8th 2010 | Delhi and london

*** begin quote ***

The appetite for gold arises partly from the paltry, uncertain returns from more conventional investments. Gold’s main drawback is that it pays neither a dividend, like a share, nor a coupon, like a bond, nor a rent, like property. But monetary policy has been keeping official interest rates, and thus the opportunity cost of holding gold, low and seems set to do so for a while. The yields on the government bonds investors regard as safest, notably America’s and Germany’s, are also thin. Equity markets are weighed down by worries about economic growth. Investing in property, which lay at the root of the financial crisis, requires a boldness that many still lack.

At the same time, the looseness of monetary policy has made many investors fear the eventual resurgence of inflation. The wretched state of many governments’ finances makes some worry about states’ ability to repay their debts—or about the temptation to inflate them away. Banks’ exposure to sovereign debt and to a still-fragile world economy adds another layer of concerns. And when all governments would like their currencies to be weaker rather than stronger, whose paper money do you trust? Hussein Allidina, head of commodities research at Morgan Stanley, reckons: “Gold looks better every day with growing sovereign risks.”

*** end quote ***

Over the past few years, the market’s net return has been zero or maybe negative depending upon the interval, so gold and siler look good.

Cheap insurance.

If inflation spikes, it’ll really pay off.

Depending upon what loon you listen to predicting the price of gold, it could be essential.

# # # # #

GOLDBUG: Just because there’s an obvious bias, doesn’t mean what being said is wrong

Published on by reinkefjLeave a comment

http://www.kitco.com/ind/GoldReport/may32010.html

*** begin quote ***

In terms of preserving the purchasing power of your assets, the best thing I can think of is physical gold. That’s worked over the millennia. I’m not per se a gold bug. It just happens to be a circumstance in which it’s the cleanest asset around for that. You don’t need to put all your assets into gold, but hold some. Hold some silver. I’d look to get some assets out of the U.S. dollar and look to get some assets out of the U.S. When I say outside of the U.S. dollar, again, I look at the Canadian dollar, Australian dollar, Swiss franc in particular. I think they will tend to do particularly well, whereas the U.S. dollar is going to become effectively worthless.

As the dollar breaks down, you’ll also likely see disruptions in supply chains, including shipments of food to grocery stores. People should consider maintaining stockpiles of basic goods needed for living, much as they would for a natural disaster. I sit on the Hayward fault in California. I have a supply of goods and basic necessities in case something terrible happens—natural or man-made—that will carry me for a couple of months. It may take that long for a barter system to evolve, which I think is what you’re going to end up with; at least until a new currency system is reorganized and you get a government that’s able to bring its fiscal house into order. No currency system in the U.S. is going to work unless the fiscal conditions that drove it into oblivion are also addressed.

*** end quote ***

Ignoring for the moment Kitco’s inherent bias, (just because they’re biased, doesn’t mean they are wrong), it would seem that buying 1,000 ounces of silver rounds (about 19K$) is good “inflation insurance”. Remember Zimbabwe used silver, gold, and American dollars when their currency collapsed. A lesson form the Mormons about food storage; it’s be nice to keep a year’s worth. And, an urban yute discouragement device or two with a sufficient of individual reminders to go away, and you have a nice “insurance police” in case crazy as a loon Ferd is right once in his life. Remember forewarned is fore armed. Or, four armed. As I see it, fjohn

# # # # #

MONEY: Sneering at Ron Paul and “End the Fed”

Published on by reinkefj1 Comment

http://curiouscapitalist.blogs.time.com/2009/12/29/visiting-ron-pauls-fed-free-utopia/?xid=rss-topstories

Visiting Ron Paul’s Fed-free utopia
Posted by Justin Fox
Tuesday, December 29, 2009 at 2:22 pm

*** begin quote ***

As for his welfare state argument, there’s surely something to it, but not nearly as much as Paul seems to think. In the post World War II era, Germany has followed much more of a hard-money (that is, Ron-Paulish) line than the U.S., yet it has a much bigger welfare state. So the growth of government can be a political choice, not just the result of the machinations of central bankers.

*** end quote ***

It’s hard to imagine the Germans creating their welfare state WITHOUT a fiat currency. That’s what enabled them to create the state without seizing the nation’s wealth silently. If there was a non-fiat monetary base (i.e., gold or competing currencies), then the German politicians would have had to inflict pain on the wealth holders to acquire the funds to give away. With a fiat currency, they can silently inflate away wealth without taxes.

Note that gold isn’t necessary. Repealing the legal tender laws would allow the folks to use a non-inflating alternative.

From times long past, sovereigns always debased the currency to serve their needs. I cite the French Franc from Louis 1 to 17. And rest my case.

# # # # #

MONEY: M note; not C note

Published on by reinkefjLeave a comment

http://www.bloomberg.com/apps/news?pid=20601039&sid=aY6fyCTnmgh0

Dollar’s Doom Puts a Face on New $1 Million Bill
Commentary by David Reilly

*** begin quote ***

Oct. 23 (Bloomberg) — Forty years ago, the U.S. government said the $100 bill would be the highest-denomination note. With the Federal Reserve now trying to print its way out of the financial crisis, it may be time to revisit that decision.

*** end quote ***

Guess we’ll need trillion dollar notes like Zimbabwe!

# # # # #

GOLDBUG: Never ask a gold bug for comments!

Published on by reinkefjLeave a comment

http://tslrf.blogspot.com/2009/10/buying-gold.html

Friday, October 16, 2009

Buying Gold?

*** begin quote ***

We may or may not face serious inflation but I would like to hold as much gold as possible either way. It might cost me a couple bucks more for the same thing but worst cast I will just laugh about that when I buy for less in a few months.

Thoughts?

*** end quote ***

Gold — bullion; not “collectibles” — currently has a 10% premium. Silver seems to be about 12%. (Palladium is an “interesting” play; rarer than platinum, but priced 60% below gold?) Unfortunately, that’s a lot of “commission” to pay. (A loan shark’s vig?) In the past it was as low as 2%. A mutual fund with a 10% load would be found unacceptable; why should we treat bullion any different. Hold it for 10 years and it doesn’t feel as bad.

The other consideration is what are your protecting against. In an “orderly” inflation scenario, other investments may “surf” the riding tide of inflation (i.e., real estate; stocks). In a “disorderly” inflation scenario (e.g., hyperinflation like Rwanda or pre-WW2 Germany), then you want the bullion coins in your possession. (Or, where you can get to them in a pinch.)

Bottom line: In hyperinflation, bullion coins will overcome the premium in a heartbeat. But what’s the probability of it happening? Tough call.

# # # # #

MONEY: When the shoe drops

Published on by reinkefjLeave a comment

http://www.lewrockwell.com/rozeff/rozeff313.html
*** begin quote *** My bet is this. One fine day the bottom is going to drop out of the dollar. There will be a swift and sharp order of magnitude change. The recognition of the problems will reach a point at which it starts to go exponential, not just in terms of people being vaguely conscious that things are not right, but in terms of actually taking action to protect themselves. Foreign central banks may be reluctant to dump their dollar securities and think it better to liquidate them slowly so as not to drive prices down and break the market, but when they observe that others are running for the exits, they will run too.*** end quote ***
I agree that there will be a “run”. But it will look differently.
The Chinese are leading it NOW. The recent swap of Chinese held dollars for IMF gold, their “strategic reserve” acquisition program, and their stated “strategic rebalancing of their portfolio” is happening now.
Since there is nothing backing the US dollar, there is no “bank” to “run” on. So by definition, it will look differently than the Great Depression.
IMHO, (and I’m an injineer by education and know it all blogger by avocation), the “run” is happening now.
US borrowing is in trouble. I think we are seeing the FED quietly, carefully, and with malice aforethought manipulating with the assistance of the bailed out Wall Street firms manipulating the Treasury bond sales. They are selling debt at what appears to be record low levels. But by using shills, they are quietly buying it back from their accomplices on the street after the auction.
That’s why the FED coudn’t stand an audit as Ron Paul and others have asked for. It’s a Ponzi scheme.
So, what will the run look like?
Foreigners will exit the Treasury market. (Didn’t the Chinese students laugh at Geithner?) The dollar will tank against foreign currencies. Commodities rise in dollar terms, but not as much in other currencies. The world “readjusts” to a trading pattern that excludes or minimizes the US since everything will be much more expensive in dollars that no one wants.
Here at home, the fixed income people are screwed — the old, the retired, the elderly, the “savers”. The elite political class continues to spend other people’s money which is fast drying up. (Without access to foreign credit, all they can do is run the printing press.) Hyperinflation will destroy the dollar. As the welfare spending drops, there has to be riots in the inner cities. As the crisis expands, warfare spending has to drop. Eventually the government has to default on its debt. Unfunded liabilities like social security are defaulted on as well.
I hope that commodity money reemerges from the “return to barter” and the chaos of the “American default” like Zimbabwe. And, we can begin the long climb back up.
It’s going to be messy.fjohn

MONEY: Coins may be an inflation hedge?

Published on by reinkefjLeave a comment

http://www.survivalblog.com/nickels.html

Mass Inflation Ahead — Save Your Nickels!
By James Wesley, Rawles — Editor of http://www.SurvivalBlog.com
Updated, April, 2009

*** begin quote ***

In five years, the circulating nickel as we now know it, will be history, and it will be treated with nearly the same reverence that we now give to pre-’65 silver coinage.

*** end quote ***

Wonder if I buy some bags of coins from TD. They have the free coin sorter. Hmm.

# # # # #

MONEY: A global central bank would be a disaster

Published on by reinkefjLeave a comment

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

*** begin quote ***

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.

# # # # #

GOLDBUG: Myths, Misunderstandings, and Outright Lies

Published on by reinkefjLeave a comment

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

Myths, Misunderstandings, and Outright Lies

# – # – #

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?

# # # # #

GOLDBUG: 5k$ gold?

Published on by reinkefjLeave a comment

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

*** begin quote ***

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!

# # # # #

MONEY: Cash; one defense against gooferment

Published on by reinkefjLeave a comment

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

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

*** begin quote ***

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!

# # # # #

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!

# # # # #

MONEY: THe FED’s inflation in our future

Published on by reinkefjLeave a comment

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

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

*** begin quote ***

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 … …

# # # # #

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

Published on by reinkefjLeave a comment

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

# # # # #

MONEY: Calculating the impact of taxes

Published on by reinkefjLeave a comment

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

*** begin quote ***

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!

# # # # #

MONEY: Watch an old quizz show

Published on by reinkefjLeave a comment

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!

# # # # #  

MONEY: The dollar as the world’s reserve currency

Published on by reinkefjLeave a comment

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 ***

# – # – #

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!

# # # # #

MONEY: The dollar is a figment of your imagination

Published on by reinkefjLeave a comment

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.

# # # # #