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
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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!
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Posted by reinkefj
http://tslrf.blogspot.com/2009/10/buying-gold.html
Friday, October 16, 2009
Buying Gold?
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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?
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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.
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Leave a Comment » | GOLDBUG | Tagged: Economics, hyerinflation, Inflation, investments | Permalink
Posted by reinkefj
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
Leave a Comment » | MONEY | Tagged: Inflation, NATIONAL DEBT | Permalink
Posted by reinkefj
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
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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.
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Wonder if I buy some bags of coins from TD. They have the free coin sorter. Hmm.
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Leave a Comment » | MONEY | Tagged: Inflation, investments | Permalink
Posted by reinkefj
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
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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.
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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.
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Leave a Comment » | MONEY | Tagged: Economics, FRAUD, Inflation | Permalink
Posted by reinkefj
Leave a Comment » | MONEY | Tagged: economic freedom, Economics, facism, FED, Foreign Exchange, FRAUD, Inflation, Moral Hazard, Morality | Permalink
Posted by reinkefj
http://www.cmi-gold-silver.com/gold-confiscation-1933.html
Myths, Misunderstandings, and Outright Lies
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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?
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Leave a Comment » | GOLDBUG | Tagged: Education, FRAUD, Inflation, Revolt | Permalink
Posted by reinkefj
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
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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!
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Leave a Comment » | GOLDBUG | Tagged: economic freedom, Honest money, Inflation | Permalink
Posted by reinkefj
http://www.lewrockwell.com/spl/abolish-cash.html
To Fight Deflation, Abolish Cash
Could Japan Make Reality of ‘Science Fiction’?
by Leo Lewis
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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.
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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!
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Leave a Comment » | MONEY | Tagged: economic freedom, Gooferment, Inflation | Permalink
Posted by reinkefj
June 16, 2009
Are Gold American Eagles Worth What Congress Has Said They Are Worth? Or: The IRS v. Robert Kahre
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[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.
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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!
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Leave a Comment » | MONEY | Tagged: economic freedom, GOLD, Gooferment, Inflation, Moral Hazard, Tax Revolt | Permalink
Posted by reinkefj
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FJohn Reinke
Consultant at Technology Legacies LLC
Advisor, Computer Governance Committee at Manhattan College
Editor / Publisher at Jasper Jottings
Greater New York City Area
JJ Positraction JJ Endnotes Downsize DC
Philosophy of Liberty
I have NOT received any gagged governmental information requests
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