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Gold And The Fiat End-Game
Our current fiat currency standard is terminal, nations around the world are dropping the U.S. dollar as a medium of exchange, central banks are buying gold, and Americans are seeing price inflation during an economic downturn. In order to avoid a systemic financial crisis here in the U.S., we need to focus on solutions. This mini-documentary expounds the problems and a solution to the real economic crisis hiding under the safety blanket of an equity market at all-time highs.
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Read again. $300 million in PAPER losses.
Its a paper economy.
Its not a question of questioning the status quo its a question of investing and for a HF its not a good investment to advise to his alma mater. Maybe in five years...
Ok, paper losses, because they didn't sell yet..... Fuck FP, i'm on another planet...., it's THAT bad...
Considering how fast gold inventories are falling, I doubt UT is regretting their decision. Time will tell, but no way in hell do PMs stay down another 5 years.
Before inventories intend to fail, decisions will be made by tbtf. I believe this year decisions will have to be made. I've got several golden teeth with a silver lining, so i sure hope they will give me a smile.
This is a terrible video. Little more than propaganda, the real content is close to zero.
It misses the problem by a mile and therefore doesn't come close to a solution. Fiat currency? Paper? When was the last time you used paper? The problem is CREDIT. Credit credit everywhere. And fractional reserve banking and the credit it creates work just fine on a gold standard.
Tell you what, go watch the "Learn Liberty" videos on You Tube instead. A lot more content in a better format.
Correct. It's a iKWN cheeseburger.
The "dollar" or FRN represents a specific type of credit. The video describes the creation of fiat which represents both printed money and digitially conjured money. Credit is of course a problem but you can't have credit on this scale without the fiat first.
I think you have it right. Fractional reserve banking has been around for the better part of a millenium, but the classical gold standard wasn't a series, of booms, busts, and bubbles.
Better yet though would be a pure metallic standard - no conversion rate because the metal is the money. You don't have to carry it on your person, you can have an ATM tied to an account with a claim on real, audited metal. Everything is priced in milligrams of copper, nickel, silver, and gold.
The ATM markers would drive "out" the real thing...http://www.investopedia.com/terms/g/greshams-law.asp
And the leverage advantages of fractional reserve would reappear, using gold as reserve. In a free market, the over leveraged crooks would get mashed, along with their investors. Justice would be served, keeping the honest, honest.
But when .gov moves in to "regulate" (protect) such activity, Gresham moves in.
This is an example of how things will fail...economy appears to be climbing higher and higher, then some unexplained (as of yet) displacement occurs, with the inevitable results:
http://www.youtube.com/watch?v=lksDISvCmNI
EVERY TIME I EVER SAW THAT MUCH GOING ON IN THE SHORTS,
IT MEANT SOMEONE WAS GONNA SHIT THEMSELVES INSIDE OUT.
There's a big dose of Market Metamucil coming for some fucktards who believe in margin short paper trading...............................
I guess framing Strauss-Kahn worked out just fine for the status quo. I've read several of DSK's speeches made just before the criminal accusation(s); seems he may have been attempting to change some of the repayment requirements and/or loan options offered to 3rd world countries. Might even have thrown a bone or two to poor, indigenous populations. What a Monster!! Glad that didn't get to happen; he was arrested in plenty of time so as to prevent the crime of helping the less fortunate through the institution of which he was in charge. JUMP, IMF FUCKERS, JUMP!!
Whatever.
DSK is a filthy sex fiend, using prostitutes or any woman.
STFU, apologist.
The women he fucked and the men he screwed blame him. His political intrigue merely exposed his lies.
He was the leading contender to lead Socialist France before his exposure. Now his successor Lagarde is also being held to account for a different sort of fraud: embezzlement.
France: idiots.
No friend to anyone. Just self-serving jerks.
Agreed, another debauched jewish banker with the french predilection for colonial women.
He thought the paid off whores at orgies were all into old blokes, corrupt as it gets and ideal for the head of the IMF.
Have you seen the image of him meeting michelle obama?
make up your own mind.
http://au.images.search.yahoo.com/search/images?_adv_prop=image&fr=spigo...
your hatred of the french and the bankers blinds you so that you don't see that the judges in both france and usa are OWNED and you keep thinking that the law serves justice. no, it serves the filthy tyrants who play with filthy imf chairmen like a cat plays with a mouse.
Something really offtopic maybe it has been adressed before, but are drones locking/plotting inon droid devices with integrated gps when you visit fringe side of the interwebz ?
really dont give a shit about gold or any of the other priced crap. from the early oriel roubini site back in 2007 i am only looking at results, and how they are gotten. i am a house painter. and holy shit work is fucking exploding out here on the eastern end of long island. its like the extrem of bubble . but what the hell do i know, i only read zero hedge. maybe GWB did not make prescription drugs but of medicaid only to benifit the pharmaceutics oh hell if no one could pay for them then what the hell would happen ? dont worry we will just make sure you get your profit,,,,, obama the labeled liberal by the labeled right is a liberal so he must be...... think you .... fucked up 80% profit of medical go ahead and complain about enlistments, chances are you have just now gained more from entailments then any give to undocumented democrats but who the hell cares i have lots of work and will bend over backwards to fuck some nice latin ass
edit ok so i posted after some 6 resins
That is simply the result of two things: 1) People just got their tax refunds; 2) people just got their hurricane money. Furniture stores are booming also. Enjoy it while it lasts!
@real - you might want to spend a few bucks of the loads of money you are making on english classes.
Just so others can read what you have to say and follow it without the mental gymnastics.
i am a house painter. and holy shit work is fucking exploding out here on the eastern end of long island. its like the extrem of bubble
Well then......we can only surmise the fiscal world is just doing great based on that flowery anecdotal report. What the hell are we worried about?
How long has it been since the hurricane? Damn that FEMA is efficient!
remember..central banks believe that asset price inflation (bonds, equities, commodities etc) leads to economic growth..if it was that esy ..even zimbabwe could do it...or japan..still 75% below the peak of the nikkei in 1991..easy money in its third decade and nothing to show for it but larger government debt.
creating asset price inflation reduces long term returns..for the same risk..although the risk is hidden by regulated (only up allowed) asset prices.
Adjust by inflation, Dow Jones touched Long Downtrendline from 2000 this month !
So.....15.540 must be the finish line to Dow Jones
See here: http://pracompraroupravender.blogspot.com.br/2013/05/finalmente-o-dow-jones-ajustado-pela_25.html
Before you hit the down arrow consider this:
The structure of the Euro is very pro-liberty. The ECB holds gold on its balance sheet but at a market price.
From Fofoa: http://fofoa.blogspot.com/2011/05/return-to-honest-money.html
worth the read
Read what the colonialist SLAVES to the British said. Kill a few lawyers and bankers and we won't revolt....Bankers and attorneys fled and we had our freedom. I figure it would only take the death of twenty attorneys, bankers and we would be free...Thomas Jefferson. Paraphrased of course...
Ummm... @ 2m 20s - "fiat currency that has been tried on every continent and has failed every time".
I am not trying to be pedantic, but I think that might be simply dramatic and not accurate. A long time ago one of my majors at Uni was 'English language' and so I could have a crack at various grammatical deconstructions of what they might be saying; but will interpret it as 'everywhere fiat has been tried it has failed'.
I don't think that this is true. Perhaps I am wrong? Australia has never defaulted? Australian fiat has never failed? And right at this moment, today, I think it would be a tough argument to reasonably demonstrate beyond doubt that Australia's fiat is already in a state of failure, or will inevitably fail at some point in the future.
If my understanding is correct about Australia might there be other examples? Perhaps other historical examples where a civilisation was doing fine with fiat right up to the moment that some horde or volcano swept it aside?
Corrections welcome and appreciated. Cheers
History of money in the land of OZ.
http://www.aussie-info.com/tourist/money2.php
I think it is more correct to say that every fiat system enters into long-term catastrophic failure at the moment of its inception. Assuming you want the people to have a reliable store of value, that is. Australia (and everywhere else) is in the process of defaulting, even if it's not apparent to the naked eye, because they have built on a rotten and evil economic foundation, fiat money.
There simply is no reason for fiat except that it benefits certain parties at the expense of others. It's a tool for domination and control. Ultimately it serves to expand the power of the state to where it comtemplates total control. Without fiat you cannot have a welfare state or a warfare state - at least not for long. 7 billion people on earth, most just want to live their lives, love their kids, do rewarding work, get closer to their Creator - and a few thousand sociopaths hold all of us hostage, to one degree or another.
I was flattered that she threw herself at me until i clocked the 12inch blade in her right hand!
Heh ho WE can understand the bankers motives ( greedy bastards that they are ) BUT the Politicos for the Sheeple by the Sheeple is a double butt fuck!
How can you pay yourself out of public coffers then fuck the very same. Izz an Injustice it Eeezz.
Lets Hang these dirty fuckers NOW!!
Freegolders say they are AGAINST gold as money but that they are FOR gold at the same time.
Who is AGAINST gold or honest money?
THE BANKERS.
Fregolders say that gold is neither commodity nor money. What kind of bullshit is that?
Freegold=Freebullshit
"the just so stories" as Zero Hedge. gold should be money. PERIOD. "then we can go about our business working for a living and not having to worry about what we're being paid in." Japan will serve very shortly as a reminder to the perils of all the bullshit Governments and "the people" do with "what they want as money." it's all the same: "free money people." the end game is upon us: once Japan's hundreds of trillions of JGB debt gets vapoarized and the yen totally collapses then "the contagion risk" will be revealed. London will start the debt panic and after that outside of the USA "all bets are off." the Fed will start buying treasuries hands over fist..."this means war" as Bugs Bunny teaches us. move along...
End the Fed, in all its sort.
End the Monarchy, in all its types.
End the Vatican, for its child abuse, and money grubbing ways which makes the Fed and Monarchy.
The world is very naive when it fails to see the historical link between our present indebtedness and the Vatican liars, money grubbers, child abusers, utilised by CIA and Mossad with Islamists as mere paid thugs, encouraged by the House of Saud which wants a Caliphate and connives with Western politicians.
It is disgusting that this Republic is ruined by foreigners. Foreigners are anyone who owes allegiance to another land. Patriots are anyone who lives and loves this land.
Some foreigners love their own place, as we do ours. And they also are ruined by this failed Internationale, globalist, Trilateral Commission agenda.
as a 'northwest yankee' misplaced in the south, with a deep case of "go ahead john/miles davis big fun"
comin'on in the background.... my digitals's are '''b'b'b' rbeakein'up analof=g stylee'. but one greenie to you.
Imperial Military Center: Washington DC
Imperial Money Center: City of London, deputized by Wall St, Manhattan, NY
Imperial 'Spiritual' Center: Vatican, Rome
"This means war."
Gold for savings. Paper for transactions. Seemples.
Fiatsco wants paper and no savings.
Why? To make paper money for interest rates for international financiers who make nothing, but endless war for their own profit by way of their usurious system.
Caveat emptor. Your choice.
Paper tigers kill most.
Gold is the best Store of Value. Gold is wealth.
Yes. DoChenRollingBearing.
And thanks for the link you gave to a live report of Asian markets earlier this week. Very helpful.
My father was an engineer. We should never allow politicians to demean manufacturers.
Well if you are a US citizen the gold in fort knox that the treasury let the fed hold (honest baby I love you) is probably long gone. Why else would they not audit it annually as required by law? So in all probability the USA would be up shits creek without a paddle in the unlikely event of a gold standard instituted in the USA . The greenback as issued by Lincoln comes to mind but that will never happen. Sure the BRICS will probably go to a gold standard. The USA not so much.. Stock up on your shoddily made Chinese goods! The best case scenario would be a default on the debt by all nations and fair trading and free markets using a gold standard but what if the golds gone?
"...we need to focus on solutions"
Build a guillotine.
Rejection; Revolution; Retribution; Restoration of the Constitutional republic
Gold, physical, in my hand.
I don't care if it goes to zero; it isn't paper or chips in the casino of Wall Street.
And the I.R.S. can KISS MY FUCKING ASS.
Kick their own ass, as they are doing now. Schmucks.
End game:
Paper can go to zero.
Gold and silver cannot.
Caveat emptor.
Japan has opened the flood gates making Ben look like a Novie Printer.....now the EU and Ben must compete since exports for EU and USA will plunge with the economy right behind ...can't compete with weakening Yen. As Rcihter predicted....Currency Wars are just beginning!
Politicians and international financiers serve themselves first, and schmooze everyone else to subsidise them.
Solution: buy physical gold, silver, land, stay close to family and community.
Once upon a time, it was conventional investment advice to put a minimum of 10% into gold.
Idiot politicians and traders with their HFT and derivatives are about to learn how very stupid they are to ignore the wisdom of ages.
The latest fiat system is failing as every other one did, and penniless people Party on, whining rather than protecting themselves with the world's only true currencies: gold and silver.
Like a person in the rain refusing to buy an umbrella, and whining about it.
It doesn't matter if it is gold or printer paper as long as the guys in control are the same.
It isn't about the instrument we use to trade. It's about POWER. Who is in control of the instrument we agree to use.The big picture, the main issue is being avoided here. Below is Fitzwilson’s exclusive piece for KWN: Fitzwilson: “Give me control of a nation’s money and I care not who makes it’s laws” — Mayer Amschel Bauer Rothschild “In trying to make sense of what occurred late last week and to start this week, it is important to remember this quote. The unifying factor underlying much of what we witnessed is the stark reminder that all of these seemingly disparate events share a common factor, control of the money. http://beforeitsnews.com/economy/2013/04/who-is-buying-all-the-gold-that... Just to quote... Killing, plundering, slaughtering for the value of oil, the US dollar, gold, it's always killing, plundering, slaughtering.
They're killing people and stealing on mines all over the World.
Google Barrick Gold killing people or any other mining Co. name
BOGOTA, Colombia – A Colombian judge has convicted a former contractor for the U.S.-based Drummond coal mining company of murder for being the mastermind of the killing of two union leaders in 2001.
Read more: http://www.foxnews.com/world/2013/02/06/contractor-convicted-in-2001-murder-2-union-leaders-at-drummond-coal-mine-in/#ixzz2UMdlEKzT See here: http://protestbarrick.net/ WHO is gonna control the Gold value? Who controls "The Market"? A Psychological Gold Standard? The Illusion Of Convertibility With Redemptions For A Select FewI was talking with a banking veteran this week who has thought through multiple scenarios of how we might reach a gold backed currency. He believes that when, and if we do, it will be only the new currency that will have a gold backing, not the former dollar. He also believes that a new gold-backed currency may only be partially redeemable into physical gold, on a percentage basis, and only available to those individuals with a large personal holding of cash, which would eliminate the possibility of almost everyone from actually taking delivery of physical gold from the new gold-backed system. Yes, most everyone would believe their new currency is now backed by gold, and confidence will likely soar. Restrictions will likely be placed on institutional, corporate and governmental holders of large sums of electronic money to prevent an over-redemption of physical gold.
In essence, when and if the currency is backed by gold, it will be backed predominantly, in a psychological sense, nothing more, and will preserve the illusion of convertibility for the masses, by allowing redemptions for only a select few. The real test will come if actual gold holdings are truly audited and accounted for, and if government spending is ultimately tied to annual gold production and total gold holdings. http://conquerchange.com/a-psychological-gold-standard-the-illusion-of-c... I live it to each one of you to think about the subject.Well observed. I read King World News too.
My conclusion: buy gold and silver and do not tread on me and mine. That would be my advice to every person of every nation. We are equal, but different. Trade on.
Sociopathic Rotchilds, Oppenheimers and the rest of the Khazar fake jews have money. What they want is power, by any means.
Only Americans refused to hand their jewish comrades over to Nazis in WWII. The Nazis, funded by the likes of the Rotchilds, Oppenheimers, Prescot Bush, and recently the Democraps and Repugnants who serve the Trilateral Commission, the new name for the old Nazis.
Christians fled Britain to the USA in the 1600s, and jews arrived in the 1700s. This is our Republic, for better or worse. Nazionism is a creation of the old world financiers of the 1800s. They hate us, and founded the un-Federal no-Reserve Board in 1913, with that dupe President Wilson whose campaign they funded, and he later wrote about his regret, saying no independent political action would be possible as those who issued the currency control the country.
snif snif....this looks like another Jonathan Lebed backed video. did they drop the Future Money Trends and National Inflation Association angles?
If spot for silver went to $17 and there was no bullion at all available to buy at spot...
This would mean that no one would take delivery on crimex- would you? Would you actually try to take delivery on crimex at $17? With all the trillions of dollars out there not one billionare says hey i think ill put 30 million in it a$24 and take delivery? gee wonder why. Now a vaporising- a MF global- that sort of thing happens to players no big deal. Buy all the coke you want. Buy all the lamborghinis you like. Buy all the hookers you like. Do not even think of buying over a bit of chump change in silver. Your a player, the rules are clear. Hey I know we will just take delivery in hong Kong we will be safe there. I like the food and poon better in HK anyway! Dang Hong kong prison not so fun. Now a photovoltaic manufacturer they will take delivery no problem. The missle manufacturer takes delivery no problem. Shit even China can have a chunk if its not too much and their playing ball. APMEX suddenly doesnt want delivery. So whats your silver buffalo worth? If im buying and spots $17 i want $20 sale. But bread is $9 a loaf so if im selling I want $95. So no bullion changes hands. Which is where we are heading and the way they want it. So australia is trading Kangaroo tails to china for hammers made out of pot metal. So what. Spot is $17. Your heirs will turn in your shiny stuff for breast implants at $17.
There's no solution to "looting spree".
How can anyone still think Bernanke et al are bungling idiots? They're executing a well-planned looting spree. But sheeple don't see it. They're the bungling idiots.
Actually there IS one solution to "looting spree", but we'll never see it.
Pay attention, munchkins.
Bernanke will not be at the Jackson Hole meeting.
What does that tell you?
Get your financial affairs in order before August would be me advice. Your choice.
The reset is soon.
"Bernanke will not be at the Jackson Hole meeting.
What does that tell you?"
What? That he has a deviated septum and his favorite call girl got out of the business so he is depressed? Now its certainly odd. My guess might be that he resigning and the next guy "bad cop bob" will tighten. I askeded my cat marmilade and she did not reply so i dont know what it means. Whats your guess? What does the Bernankes absence mean?
Good program on Coast to Coast tonight.
Joining John B. Wells, former Senior Counsel to the World Bank and whistle-blower, Karen Hudes, will discuss what happened when she warned the Treasury Dept. and U.S. Congress that the U.S. would lose its right to appoint the President of the World Bank. She was recently arraigned and arrested by DC police.
They're talking about gold now.
aaaaand she sounds like a total shill.
paraphrasing here, but she's stating she needs to be placed back into the MFin IMF so she can regulate so that we can reinsitute the "rule of law" so we don't return to a barter system.
"Why would we return to a barter system?," JBW asks.
"Because we wouldn't have the dollar". SMH
Not once has honest (or what is) money been discussed, and the brief mention of gold coincided with her acting like a fruitloop.
She's a lawyer, looking out for herself.
I don't doubt that she whistleblew on the IMF, but we need to tear down the IMF, not reform it!
At this stage, the end of the fiat system is tied to the depletion of resources.
Once resources on a global scale are low enough, the fiat currencies will be done. Just as any other type of currencies. The USD is beyond oil right now. Oil matters but it is not the full picture. The very idea that at this stage, alternative solutions to the USD might come from nations using it less and less is 'american'
The 'american' USD starts with such an advance. Not only it represents all the consumption performed from 1950s to now (which is more than all the consumption performed by humanity since dawn of man on many sectors;10,000 years of human consumption are less than 50 years of 'american' dominated consumption) but it also represents at least two or three decades more of consumption at the 'american' rate.
The window for any other currency to take over by substitution is closed. There is simply not enough resources left to support the transition toward another type of currency.
'Americans' look for points of no return. Burning enough resources to prevent any alternate solution from rising and taking over is one of their forte.
They have succeeded in this case.
It is an 'american' world. Bear with it.
I'd say 1.3 billion Chinese can burn some resources too...Indians also.
1.3 billion 'american' chinese will for sure burn far more resources than all the chinese could since China's history start.
Same for the Indians. If you want to perform in the consumption department, adopt'americanism'
With 'americanism', consumption is no longer only a matter of number but of consumption for the sake of consumption.
300 millions 'americans' can consume so much more than several billion people.
Adopt 'americanism' if you want to perform in the consumption realm.
.
Adopt 'AnAnonymist' Chinese citizenism if you want to perform in the roadside defecation realm.
but will their "ball sack" make me feel more vigorous?
AnAnonymous, apparently changing his story and hoping nobody would notice, said:
Only two or three decades? I seem to recall, two or three years ago, a certain AnAnonymystical prognosticator of valparaisian economics claimed to have run some computations in 2008 and predicted the USD system would last until at least 2058.
Naturally such predictions exist in the fantasical realm and are without ground as the guy gave no evidences. Must have confused computations with hallucinations.
Does it ring a bell? A Chinese citizenism propagandic bell?
Comical.
Create one fiat currency and start playing the inflate /deflate game for a couple of decades.
How do you get out of this system? By paying the debt in full so you can try something else.
YOU DON'T SO BANKRUPTCY IS THE ONLY CERTAINTY.
Sorry, but I can not see that yet...
ZH readers may like to ask HEART why he/she intentionally posts various disinfo including Boston bombing fake injuries / fake blood / crisis actors garbage which is 100% DISINFORMATION.
HEART, we are still waiting for an explanation...
(Have got screen caps so don't bother deleting your Boston posts)
................................
ZH is being targeted by FedGov spambots & human operatives saturating the comment sections with garbage and disinformation in addition to down voting certain posters.
They are not harmless trolls, they are professional operatives attempting to undermine and discredit ZH via multi nic sock puppets.
Attacking this post by constant down voting speaks for itself.
Case closed.
Fuck off, FedGov spambot.
i-dog must be a heart sockpuppet :)
so sez the poster with the nick of "CutOut."
The case is, indeed, closed.
During your slender 3 month tenure here....Mr.\Ms. "CutOut"
... your vociferous enunciation of a monolithic message of "FedGov spam bots saturating the comment sections with trash and down voting certain posters" has been noted by careful readers as the mark of the inserted counter-intelpro artist, tasked with denouncing legitimate expression of dissent... by means of a carefully crafted storyline which accuses others of the very crimes which the perpetrator[in this case...."CutOut"]is guilty.
The guiding assumption of which effort... that we are weak-minded and suseptible to your pathetically obvious trolling... can be dismissed... along with yourself... and all your numerous inserted ilk here.
Have a nice (half)life!
(note to controller: train your inserts to avoid the upvote self\downvote intended victim giveaway!)
Its like the start of Dune... Sowing the seeds of distrust.
'Americans' will always look for new ways to consume even bigger and faster.
Accordingly, there could be some fedgov spambots and human operatives running around.
It would be another example of the addiction of 'americans' for consumption because the work performed by those fedgov spambots and human operatives is totally useless.
'Americans' are 'american' and it is enough already. Useless to spend resources on dripping them in disinformation or/and misinformation. The 'american' love for propaganda and fantasy makes the job without any exterior help.
Fuck off, FedGov spambot.
AnAnonymous said:
Ah, ah, good use of oblique humour to make a point. Chicom propagandabots and human operatives not running around because running not possible when squatting on roadsides.
Martin Armstrong sums it up nicely. Read the article in is blog titled "Gold The Real Conspiracy".
http://armstrongeconomics.com/armstrong_economics_blog/
THAT makes more sense than anything else I've ever read on gold. Thanks for the link.
We know they want a single global currency.
We know they want an electronic currency.
We know they won't be paying back the accumulated debts.
We know the black market in drugs and slave trading is worth trillions per year.
We know they want to control and tax every transaction.
... then Armstrong puts all that together. Nice.
We know they want a single global currency.
__________________________
Like gold for goldbugs.
Global currency for all: gold.
Direct link to that article:
Gold The Real Conspiracy
SocGen: Gold $10,000 - Stocks Crash
SocGen's Albert Edwards: "My working experience of the last 30 years has convinced me that policymakers' efforts to manage the economic cycle have actually made things far more volatile… The current round of quantitative easing will be no different"http://homment.com/gold10000
Chairman Mao once said, "Power comes from the end of a gun."
There are a good number of groups who control millions of guys with guns. They use currencies as a tool to project their power and increase wealth. If you mess with that tool, they send intimidating messages. If pressed, they send the guys with the guns.
These groups are called governments.
There is only one solution. The great orator and philosopher Homer Simpson said: "Beer the cause of and solution to life's problems. I want to live at the bottom of the sea."
blah, blah, blah - they are selling the book, again.
A goldstandard isn't without flaws either. Different system, different problems. Actually it is all about demographics and (so far wrong) incentives. A goldstandard won't change those.
Just in case there might be yelling: I own gold and I am still buying on a regular basis, taking advantage of the cost-averge-effect. But I won't go all-in, just as I have never gone all-in in all the other asset-classes. Uh, uh, I said "asset"...
http://www.youtube.com/watch?v=SYkbqzWVHZI
cu, folks
No, it certainly isn't without flaws.
Thats why it must be compared to the current system, which has much greater flaws!
Right now the wealthy have a printing press. That means they can generate, essentially, income for themselves (if you lend yourself money created out of thin air, with no intention of paying yourself back, what is the essence of the tx?)
If the printing press is destroyed, or its product, the USD, then the wealthy will be MUCH worse off than currently. Yeah, they will still be wealthy, but that wealth will be depleted! As opposed to now, where the illegitimately acquired wealth just grows and grows.
Why should I work for a measly ounce of gold in a week when I can receive 15 one hundred dollar bills? It is much less trouble to buy some good paper to print currency and everybody always uses the paper for exchanges.
You never see gold used as a currency. It never circulates in the money stream.
Paper currency is the way to go. You can even stamp more numbers on the paper if you want so that the paper is worth even more.
You can't go wrong with paper money.
The more I read the more I know that markets are fully rigged. Small guys are encouraged via legislation to "inveest" in "the market" so wall st can collect commissions and the connected can win money from them. BOA and JP had 100% winning trades last quarter. Maybe it's because they're pros playing against amateurs, maybe it's because they rig markets. 100% seems unlikely to be obtained without some fraud. The very idea that we will all buy corporate america and retire on corporate america is just silly. Add to the fact that ceos and boards are all integrated and vote each other ridiculous compensation packages out of the stockholders monies and it just makes it clearer that it's just impossible. They've made it very hard to save outside of wall street. After all, if tax rates go down you'd be a fool not to take the tax free growth, right?
I'd own real estate as it's real but I don't have the temperment of a landlord. It'd just be another headache. I got enough on my plate without adding another thing I don't want to do. Farmland and gold, that's my old age savings. I may invest in some small cap stocks but only small ones I can understand and follow the financials on.
BTW. retirement is bs. People have always worked until they died. My grandfather farmed until 84 died at 87. My 70 year old dad still runs 150 head of cattle by himself. My current job isn't one I can do at age 70 or likely beyond early 60s but after that I see myself farming and gardening, keeping my expenses low and using up my savings as slowly as possible. That's how it is. I think everyone should plan accordingly.
Farmland and gold seems like a good strategy.
Yet, we don't know how things will play out and which of the preparations we've taken will be the workable ones.
It is probably best to be very diversified and cover everything possible to stay afloat (gold, silver, farm land, income property, stocks, bonds, etc.). You'be be better prepared for all outcomes. I just don't have enough money to do so.
I'm all in cash now and lending it out at high returns, waiting for the USD to continue strengtening as it becomes the international currency and only destination for Japans and Europe's capital flight to safety (per Martin Armstrong's predictions). Eventually I'll have to convert to tangibles before the high inflation begins but I'm hoping for continued deflationary pressure and low velocity of money to give me more time to make money and decide upon and educate myself on the tangibles I will need to acquire for my ark.
Truthfully... I'd rather just be playing my guitar and enjoying hiking in the mountains. We've allowed sociopaths to gain control of our governments and other life sensitive activities so as to unstabilize us and make basic living a challenge. I look forward to the day when I see their heads rolling off the guillotine into the basket or them hanging from lamposts in front of their burned down mansions.
So you are currently a usurer? Think about that.
Herd Redirectio:
Give me a break. I'm a capitalist. I lend money to real estate investors who buy, rehab and sell homes. This creates jobs for people and beautiful homes for owners or rental properties for investors. The borrower/rehabber makes a profit and livelihood from this (he creates work for contractors, laborers, plumbers, electricians, realtors, appraisers, title companies, insurance agents, building supply stores, county inspectors, and more). I lend money that I HAVE. I don't do fractional reserve lending. This stimulates the economy. I worked hard and made capital that I lend out which facilitates production and generates wealth. Without credit there isn't much progress. You might need to reconsider your ideology. I don't believe the Jesus/money changers meme applies to me and what I do. It's 2013 not 213 AD.
The FRN is done... put a fork in it and get it over with.
The solution here is clear to me, not a gold standard, but a one world currency, gold itself, used between nations to trade and settle trade deficit/surpluses. Gold will trade against these paper currencies, enforcing discipline on fiscal and monetary policy. This is the only solution to triffin's paradox. Surplus nations with good policies will see gold enter their countries, making them wealthy in the process. Deficit nations will see gold flee their countries, forcing them defend the value of the local currency against gold or see all gold exit.
Well that might work for a while, but if the deficits are soaring - what do you think will happen? And you know it happened exactly that way in the past, why should it be different this time?