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A Trillion Reasons to Buy Gold Now

October 8, 2010 by  

A Trillion Reasons to Buy Gold Now

I can already hear some of you saying, “Now Chip really has lost his mind. Doesn’t he know gold is the most expensive it’s ever been? It’s been hitting new highs day after day for weeks.  Why on earth would he tell us to buy some now?”

I can answer that objection in one sentence: If you don’t own any gold, you need to. The sooner the better. Yes, gold may come down in price a bit. In fact, I’d be surprised if it doesn’t. But not far. And not for long.

If you’re waiting to buy when gold is back under $1,000, you’d better put some money in your will. Then tell your great-grandchildren to buy some with it. Because I don’t believe you’ll see that price again in your lifetime.

What makes me so certain? Refer back to the headline above. I’m talking about the trillions of paper dollars that will be cranked out non-stop by the U.S. Treasury and the Federal Reserve over the next decade. The lowest estimates for our deficits over the next 10 years come to $10 trillion.

The more dollars that flood into the economy, the less each one will buy. You see it in higher prices for everything. Why is a loaf of bread or a bottle of milk 20 times more expensive than when your parents were young? Because our government has caused the dollar to lose 93 percent of its value in the past 100 years. I’ll save the lecture on Keynesian economics for another day, but many of you know the quotation by John “Candy” Keynes that explains what’s happening.

And please don’t count on Congress to solve the problem. Sorry to put any die-hard Republicans on the spot, but can you tell me how much Federal spending was reduced under Ronald Reagan? Let me hear a chorus of “Zero!”  Right you are. How much did the two Bushes cut spending? Can you say “they goosed it to the moon?” Right again.

Even if the Republicans gain control of both branches of Congress this November, there isn’t much they can do to slow down the spending spree. Almost every entitlement is not only written into law, increases in those same entitlements are also written into law.

Now, don’t get me wrong. I do believe there will be a political solution to our country’s runaway spending. There has to be, because there are only two other possibilities: a total economic collapse or an armed revolt. And frankly, I don’t want to be around for either one.

Solving the economic mess that the Democrats and Republicans have created won’t take place overnight. It will be like turning around a giant ocean liner.  First you have to slow it down and then you have to start very gradually moving in the opposite direction. Depending on how far you’ve gone, it can take you a long time to get back to port.

Folks, it’s going to take a long time to get back to Constitutional government. Heck, it took the socialist schemers more than 150 years to get us to this point. How could we possibly believe we can undo everything they’ve done in one election? It can’t happen.

But we can get started. We can put a freeze on new government hiring; we can eliminate hundreds of programs and put limits on thousands more. We can stop acting like the world’s policeman (or in the eyes of many, like the world’s bully), close scores of overseas bases, and bring thousands of our boys and girls home.

Even more important, we can stop killing the goose that lays the golden eggs. Stop taxing producers to death. It’s that simple. We can encourage new businesses to open, new investments to be made and new jobs to be created. We can encourage the same thing that’s worked dozens of times before in our history: Get government out of the way so free people will go to work and solve our problems.

A robust economy will mean more money for almost everyone — definitely including the ones who collect it for Uncle Sam. We won’t have to borrow more; we won’t have to flood the country with worthless specie. We can pay our bills and start reducing our deficits by doing things that get the economy growing again.

And yes, I’m simple-minded enough to believe that lowering taxes, slowing spending, reducing regulation and letting free enterprise work will do all of this… and more.

But in the meantime, I urge you to own an asset that can protect your purchasing power against both inflation and deflation. My earnest recommendation is that you own some of the world’s best and oldest money — gold and silver. People have trusted it for more than 5,000 years as a way to protect their wealth. Can you think of anything else that has worked as well or lasted as long?

While there are many ways to exchange some of your depreciating dollars for non-depreciating assets like gold and silver, let me mention two of my favorites. Go to the Internet and you’ll find many, many more:

  1. For gold, I prefer the coins issued by the U.S. Mint. The gold Eagles are, in my opinion, one of the most beautiful coins ever made. There is no such thing as owning too many of them. But also consider the Buffalo, another one-ounce coin from the U.S. Mint. This is one of the world’s few 24-karat gold coins, which means it is .9999 pure, without a bit of alloy added to it.
  2. For silver, while the silver Eagles from the U.S. Mint are also lovely, the bags of so-called “junk silver” are a much better value. These are circulated dimes, quarters and half-dollars made by the U.S. Mint before 1965. These 90 percent silver coins come in bags of $100 or $1000 face value. They are instantly recognized, impossible to counterfeit and, unlike gold coins, have never been confiscated. And they happen to make an unmistakable “clink” when dropped on a wooden table.

The “spot” price of gold and silver changes throughout the day; so do the premiums various dealers charge. That is why it is important to shop around for the best deal. When you do, make sure you’re comparing apples to apples, not apples to kumquats. Unless you’re picking up your purchases locally, they should come to you via insured, registered U.S. Mail with a return receipt requested. Know all of these costs before you buy.

There are thousands of dealers around the country who will be happy to sell you all of the gold and silver you want. You probably have some in your own town or city. Here are four national dealers I know and trust. All of them have been in business for years and have excellent reputations.

*Asset Strategies International is a boutique precious-metals firm based in Rockville, Md. They’ve been around for 28 years and are known for good prices and even better service. Find them at www.assetstrategies.com or call 800-831-0007 or 301-881-8600.

*Camino Coin Company was founded by Burt Blumert, one of my personal heroes in the battle for liberty. His successors are doing a wonderful job of maintaining the same high standards and low costs for which he was famous. They’re in Burlingame, Calif., at www.caminocompany.com. Phone 800-348-8001 or 650-348-3000.

*Gainesville Coins in Tampa, Fla., also comes highly recommended. Although I’ve never been a customer, I have many friends who are. They all speak very highly of the staff and the service they receive. Check the firm out at www.gainesvillecoins.com or call 813-482-9300.

*Kitco is a giant operation based in Toronto, Canada. I’m told their website gets more than a million hits a day — in large part because they’re one of the best places in the world to find stock and metals prices. I know some people who go there two or three times an hour. The company is busy and so is their landing page. But their prices and service are also good. See for yourself at www.kitco.com or call 877-775-4826 or 514-876-4202.

And to anticipate an accusation I know that some of my liberal readers are just itching to make: No, I do not make a penny on any of your purchases from any of these people. I wrote this piece because I believe, like the Wise Men of old, you should own some gold.

But this time, don’t give it away or let it be taken from you. Put some of your depreciating dollars into real wealth. Put it into gold and silver. Then start enjoying the “sleep at night” comfort that comes from knowing you have some wealth that rust can’t corrode and politicians can’t inflate.

Until next time, keep some powder dry.

— Chip Wood

Chip Wood

is the geopolitical editor of PersonalLiberty.com. He is the founder of Soundview Publications, in Atlanta, where he was also the host of an award-winning radio talk show for many years. He was the publisher of several bestselling books, including Crisis Investing by Doug Casey, None Dare Call It Conspiracy by Gary Allen and Larry Abraham and The War on Gold by Anthony Sutton. Chip is well known on the investment conference circuit where he has served as Master of Ceremonies for FreedomFest, The New Orleans Investment Conference, Sovereign Society, and The Atlanta Investment Conference.

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  • s c

    Some people don’t need a reason to have gold. Some people will wait until it’s too late.
    A corrupt government is a good reason for having gold. A corrupt government that relies on paper currency is a good reason for having gold. A government that has faith in a central banking system is a reason for having gold.
    In effect, most governments in the world can be classified as corrupt, reliant on paper currency, slaves to a central banking system and living in denial.
    People have to decide which is more important. They can believe that nothing can go wrong, or they can trust in history. History is repeating itself, and
    the world is again on a collision course with reality.

    • http://none Rick Keller

      I agree with most of what you said, but I need to chime in on the Wisdom of buying gold at this time. Buying gold at this time only supports those you and I are against.

      The only people who have the money to advertise selling of gold, and being able to actually sell gold, are the ones that have it. So, if it’s such a good investment, why are they trying to get rid of it?

      It really is as simple as that, but let me give you some more details. Buy low, and Sell high, its the only way to make money. They tell you gold was up to roughly $1600 and ounce and is now down to $1300 an ounce, but they are not telling you is that gold usually hovers around $500 per ounce when the economy is good. Gold is not currently at the bottom and ready to go up as they would have you believe. Gold is on it’s way back down, so they are trying to sell it to get as much money as they can for it.

      Gold is a great investment IF you ALREADY HAVE IT. When the economy goes bad, the price of gold usually goes up. When the economy turned bad gold was right around $500 per ounce. The wealthy then purchase as much as they can, wait for the prices to reach the top to the point nobody is buying it. Then they work hard to sell it to those that do not know any better…You.

      Do NOT buy gold at this time, it is a foolish investment.

  • dan az

    Chip
    When and if november ever gets here if we do take the thrown from pelousy then impeach this imposter then every thing that he has put into play can and will be null and void. As far as the already spent money that the feds have stolen then they can be held responsable to return it,or of with there heads.I would also like to say that with every ounce of gold that you buy equal weight of lead should be bought also.

    • Gordon in Texas

      You’ll need the lead to keep the gold. It’s never a bad idea to keep precious metals on hand. And it’s always a good idea to be able to defend yourself and your assets…which include food.

      Remember; NEVER keep your valuables in a safe deposit box at the bank. That can be “secured” (confiscated) by the government during a time of crisis. You’ll get your documents—in time—but you will lose your gold. Also, money overseas does nothing if we’re cut off from technology (EMP) or if the government’s monitoring our transactions. Invest in a good fireproof safe for the homestead for your financial assets, documents, and firearms. It’s difficult for a thief to walk off with a 500-pound safe. If TSHTF, you may need to put your gold coins in a more secure place where itchy government fingers can’t touch it. That place is your little secret.

      Of course, you can do as the liberals do; nothing, and hope for the best. Everyone loves a heartbreaking story of how you lost everything you’ve worked for.

    • Al Sieber

      Yeah dan, for every gram of gold, 50 grams of lead to back it up.you can always pour gold bullets if you have a bullet mold.

    • JC

      I talked to my stock broker yesterday. I asked him what I should be buying with the markets the way they are.
      He said, “Canned food and ammunition”.

      • Denniso

        You should fire the moron…he’s a fool.

        • JC

          You take yourself pretty seriously don’t you.
          Don’t bother, you’re wasting your own time..

      • dan az

        JC
        Now there’s someone with common sense!

  • http://Americanpatriotsofbakersfield.wordpress.com mizentropy

    …..equal weight of lead! I like that!

    • Jim H.

      I wish I had an equal amount of gold as I do lead, I wouldn’t have to go to work this morning. The little brass holders the lead comes in has some value too.

      • Denniso

        dan Azz just can’t refrain from ranting and spouting violence,can he…
        Chip Wood, I’ll make you a gentleman’s bet that gold crashes w/in a year and will fall back way under $1000. When gold spikes people always think that we’re in a ‘new’ time…instability,anger,
        uncertainty,’corrupt’ gov’t,new world order,etc,etc…nothing’s new,
        and like dozzens of times before, gold is peaking and will collapse.

        Rightwingers think the dollar is only paper,so it’s worthless. The truth is that gold is only metal and has the high value it does now because people are arbitrarily giving it such. It can’t last forever.

        If I owned gold now I would cash it in before the crash,which will be sooner than later…buy back into the stock market which is on a steady path up, and does have real value in the real worth of business.

        • DaveH

          I sincerely hope you hold your savings in cash. You deserve it.

          • s c

            DaveH, your comment was right on target. D and his chums are rarely cogent in normal topics. When it coms to economics or investments, D and that herd are way out there in lalaland.
            You could have told D to invest in solar energy and hang on to his complete faith in Herr Obummer to “revive” the economy, too.

          • denniso

            Just stand back a little and look at the histories of bubbles,even the recent one. Gold is the latest bubble…bubbles burst,and we don’t seem to learn from the past, partly because we all are greedy and get in on the bubble and then keep it going on wishful thinking, for a while.

          • DaveH

            Denniso,
            If you want to remain ignorant, be my guest. But don’t try to influence others with your ignorance. Anybody who wants to put in the studying and thinking can figure out how wrong you are.
            The real question is, Are you really that ignorant that you can’t grasp the fact that the more money the Fed prints, the less it is worth, thus the more it takes of it to buy something? Or, are you just doing your evil best to influence people who are equally ignorant and don’t want to make the effort to think?

          • dan az

            DaveH
            The problem with dunnso is that his one brain cell cant grasp the logic of toilet paper versus gold If he had any money left from his 401k that his buddy BO took from him he would have bought some.But now all he has is BS and no tp left.

          • Denniso

            So, just how exactly did Obama ‘take’ anyone’s 401k? Did the crash start under Bush or not? Under Obama, the stock market has regained 85% of it’s pre crash value. People who left their money in the market are almost back to where they were. You people are blinded by the hate you’ve been told by your ‘handlers’ to direct at Obama and the FED and all Dems.

          • DaveH

            The stock market went from a high of 9600 in November 2008 to a low of 6500 in March 2009 largely because the investors were understandably afraid of what the newly elected Obama would do to our economy. So, Dumniso, using the wonderful gift of Liberal hindsight, uses the low of that time period to compare to the present stock prices. Of course the companies are going to be worth more in present dollars because the dollar is now much more diluted and worth less with all the bailout money that has gone into the economy. Our money. The Democrats have used our money to bail out various special interests who were failing because of their own inept behavior. So now, using our money, those losers have been kept alive so they can compete against those companies that took the bitter medicine and did the right things and therefore didn’t need bailouts.
            Imagine training hard, eating right, and sacrificing pleasures to prepare for a race. Then as you are winning the race, the Democrats feel that it isn’t fair that you have such an advantage, so they stop you until your competitors are well past you before releasing you.
            Is it any wonder that the Socialist countries have economies that are in the dumpster?

          • Denniso

            Oh my, so brainy and wrong. The market and economy were crashing before Obama got elected. When the market has a major collapse it’s like a snowball falling straight down. How in hell was Obama supposed to stop the freefall that began w/ Bush in office? Get real and quit spouting mindless propoganda just to tarnish Obama.

        • Gordon in Texas

          Oh, I believe that gold and silver will dip after the November elections but that will only be for a few months. After that, gold and silver will be driven up when the market realizes that the bozos in office still don’t get it. I highly doubt that gold will go below $1000 an ounce. I’d buy when it gets to $1200. And remember Denniso, the majority of those who “invest” in gold and silver don’t expect huge returns; that’s what the stock market is for. Gold and silver protect us from the idiots who continue to print fiat money and destroy the dollar.

        • DaveH

          So now the guy (Denniso) who can’t even understand inflation is encouraging people to buy stocks? Unbelievable. We are in, very possibly, the riskiest market times in our country’s history. Unless you know a lot more about market dynamics than Denniso does, I would recommend that you stay away from the stock market for the near term. Stick to hard assets to protect your money until the time comes (if ever) when the Government starts weaning itself away from meddling in the economy. Governments, with their rampant politics, are ill-suited to running viable businesses.

          • DaveH

            Denniso recommending stocks reminds me of the story about Joeseph Kennedy getting out of the stock market shortly before the Stock Market Crash of 1929. He knew it was time to get out of the stock market when the shoe shine boy was giving him stock tips.

          • Denniso

            And, this is the time to get out of gold, before the coming crash. It’s a growing bubble and will colapse soon just as the stock market did.

          • http://none Rick Keller

            Denniso is corect.Gold is on it’s way back down, it’s a foolish purchase at this time and the stocks are on the way back up, at a fairly steady rate.

            Gold normally resides around $500 per ounce when the economy is good, but then it shot up to around $1600, and now is heading back down and is around $1300, but it’s still high, and all those that have gold and are advertising that you should invest in it are trying to fool you into believing that $1300 is low.

            If it’s such a good investment then why are they trying to sell it? It’s a foolish investment at this time. Focus on the stock market, a lot of companies are coming back strong.

        • JC

          Denniso, Gold will never “crash”. It hasn’t in a couple of thousand years. Only paper script backed by…nothing, can “crash”
          What color is the sky on your planet anyway?

          • denniso

            OK genius economist, just look at a graph of gold prices…I posted one here in another post. You pick the word you like to define what happened when gold spiked in the late 70′s into ’81 or so, then fell to about 1/2 of it’s high and stayed essentially flat for more than 20 yrs. Not a crash? What then, plummet,collapse,disintegrate?

          • JC

            You’re comparing it to fake paper…ya just don’t get it do you?
            When the greenback is worth less than toilet paper…where will gold stand? Don’t think about it too much, you’re pointed little head might explode.

          • Denniso

            You’re deluded and blinded by partisanship. The dollar has not become worthless in over 200 yrs…why would it now? I’ve talked to many kooks like you who think the sky is falling and that only gold and guns can save them…enjoy your bunker sucker, and keep pushing gold and ammo up in price so smarter people than you can get rich off your paranoia.

          • JC

            You hope. Your deity is taking a bad idea that Bush started and making it 100 times worse. Infalation is infalation and the dollar has about 4% of the buying power it did in 1910. I’d say ask yourself why…but you just don’t get and you never will.

          • JC

            “Inflation” is going to be our undoing, along with Kenyan Health Care:

            If people truly understood this:
            http://www.youtube.com/watch?v=HcBaSP31Be8

            There would be a revolution by morning.

          • Rick Keller

            Gold will never be worthless, so in that sense it will never “Crash”, but it will continue to go down and likely level off between $600 and $700 per ounce and i think it will last for about 10 to 15 years with minor fluxuations.

        • dan az

          Name calling?
          I will take you up on that one!
          read it a weep!
          “United Nations World Economic and Social Survey 2010,”

        • dan az

          Denn is O
          You really need to get your facts strait
          The level of external indebtedness of the United States has increased substantially,
          reaching $3.8 trillion in 2009, and is expected to increase further in 2010. Strong
          downward pressure on the dollar is thus anticipated to continue in the outlook. The value
          of the dollar had been on a downward trend since 2002, but it rebounded in the second
          half of 2008 through the end of the first quarter of 2009. This sharp appreciation of the
          dollar was mainly driven by flight to safety effects as the global financial crisis heightened
          risk aversion and caused a massive move of financial assets worldwide into United States
          Treasury bills. Since March 2009, however, the dollar has resumed its downturn as a result
          of the stabilizing conditions in global financial markets. This moderated the deleveraging
          process of major financial institutions as well as the flight to safety effects. At the same
          time, investors started to become increasingly concerned about the rise in the budget deficit
          and the worsening of the net foreign investment position of the United States. If this
          were to cause a gradual depreciation of the dollar, it could form part of an orderly rebalancing
          of the global economy. In all probability, however, such an adjustment would not
          be gradual and eroding confidence in the world’s major reserve currency would first lead
          to substantial exchange-rate volatility which could subsequently escalate into more abrupt
          declines and a hard landing of the dollar.

  • Paul

    I am in Shanghai now with my wife on a vacation.Forget about the EXPO it is nothing but pictures you can get on the Internet yourself.It seems to me these Chinese are more Capitalists then US under B Hussein O bama.I also think there is more religious freedom in China than in the US now. They don’t have an ACLU and no mosques either.They are now as we were in the roaring 20′s.
    You can trust Lear Capital for purchasing your gold too.I live in NY and they are in Mexifornia. NO STATE TAX.

    • Grey Wolf

      China does in fact have mosques, over 1000 of them serving about 20 million Mohammadites who call China home! Several beautiful examples in Xinjiang Autonomous Region & at least a couple right there in Shangai.

  • mike

    I have been investing in gold for the past decade and look to buy on the dips as often as I can. I like the buffalos and the maple leafs for the purity of gold that they are made of.I dont care if gold does go to 1000 an ounce,I will never sell it. We my however have to use it to buy goods one day!

  • home boy

    for all you gold lovers , please read ezekiel 7;19 in your bible to see where gold is headed. at least the bible tells the truth

    • CJ

      Don’t confuse gold usage with worship. It is an exchange of value when the standard currency fails. A fiat currency is backed by only the faith in the government that printed it. If that government fails, what will you use?

      • home boy

        GOD

    • Angel

      I have to agree. I, myself am not worried either. I know the one who owns all the precious metals in the world and the Lord giveth, and the Lord taketh away. I have never seen the righteous forsaken, or His seed, begging for bread. My faith is in the Lord will supply all my needs BUT…I don’t think I will be here when it all happens. I believe the Lord is coming to take His people home while He brings His wrath on the rest of mankind.

      • marcel duranleau

        Bless your heart for your comment. I own gold and silver but I don’t
        get attach with no people or things in the world.Because I don’t want
        reign with this world=hell. I believe at the Lor’d Coming at the
        Rapture of the Church. Stand still believe and have trust on Him.Be like King David fears God. Not like King Saul was afraid of men. Be
        not afraid of theirs faces. Never trust a marxist professor Obama.
        http://www.obamacrimes.com/

      • home boy

        if your not here then you will be 6 feet under. and you have been lied to about being raptured. only 144,000 will be going to heaven. you really need to read your bible and stop listing to man.

  • jopa

    Buy gold now? It only has a markup of 180% and with current trends you will break even again in fifteen years.The senate is currently investigating Goldline and other gold salesmen for ripping off senior citizens and other gullible Americans.They claim their gold coins are worth more than they are and their customers are losing hundreds of millions in this gold scam being pushed by the likes of Fox ,MSNBC,CNN,and other network advertisers.Like they say,”there is a fool born everyday.”

    • CJ

      Like most, you confuse “cost” and “value”. It’s not that the value of gold has gone up, it’s the value of the dollar that has gone DOWN! You put your faith in the wrong holder of value. In other material goods, an ounce of gold will buy more than it did 50 years ago. How many dollars will it take to do that? Now, tell me, which is really more expensive? Don’t mix this with putting a numismatic markup on a coin, either. Those people are just adding an “artistic value” which is not reasonable in my book.

      • Denniso

        Gold was about $285 in ’78, so it’s barely catching up,finally, to inflation. It should be around $1600/oz compared to ’78 w/ inflation figured in.
        The dollar is doing fine against most other currencies,look it up for the last couple of decades. Inflation is a fact of capitalism,just as supply/demand is and it doesn’t mean there is anything wrong w/ the dollar.

        Gold is being hyped by the metal companies that stand to reap billions from it, but it won’t last because it’s like a giant ponzi
        scheme…the crash will make millions of working people poor and bitter.

        • DaveH

          We are supposed to listen to a guy who can’t even get his facts straight? First of all the highest price paid for gold in 1978 was $242.75. The inflation since that time (Oct 1978) has been 225%. So the price of gold is now higher than it would be based on inflation (about $800). It is higher than that now because the people who have the money (who know what they’re doing) invest 6 months or more ahead of the anticipated events.
          If you want to investigate just how bad it can get, look up “hyperinflation” in Wikipedia. Or study the “economic history of Argentina, which in the early 1900s had the 10th best economy in the world. Now it is around 35th.
          As far as the dollar goes, anybody that is interested could go to this website and experiment with different currencies compared to the US dollar. The beginning link is the US dollar compared to the Canadian dollar in 2009. For instance, in January of 2009 it took only 82 cents to buy one Canadian dollar. In September of 2010 it took 97 cents to buy one Canadian dollar:
          http://www.x-rates.com/d/USD/CAD/hist2009.html

          • DaveH

            Whatever you choose for your economic path, do not, I repeat, do not take your economic advice from a Liberal. If they had a clue, the Socialist countries would be fabulously wealthy instead of the economic messes that they actually are.

          • Grey Wolf

            Dave, I wouldn’t waste time rebutting Denniso. He’s an economic illiterate! The psuedo U.S economy will collapse before gold prices do. The same for silver. It’s highly unlikely that there will be an economic recovery. The reason is that there is no economy left, it’s just an illusion. You’re right about things getting ugly soon. Prepare for the worst. Get out of paper & into hard assets so you’ll be able to buy what’s left out there, ie food, fuel, guns, etc. Thanks for your insight, too!

          • denniso

            No recovery? If you had put your money in the market after it crashed and hit 6500, toy would have almost doubled your money by now. The market is up, unemployment is stable,though still high, banks and investment houses aren’t falling like dominos and the global economy is stable…all after the worst crash since ’29. No recovery?

            You’ve let yourself be fooled into the doomesday thinking that originates w/fundamentalist religion and taints many people’s thinking.

          • Grey Wolf

            Denniso, I still maintain you’re an economic illiterate who has no idea of what is going on. Also, you’re spelling is atrocious & syntax deplorable. Another product of our disgraceful public school system?
            Besides that, I’ve spent over 40 years of my life studying economics with an emphasis on its historical cycles. As far as your reference to fundamentalism, I would call that a non sequitur.

          • denniso

            toy?? should be ‘you’…

          • denniso

            So, Grey Wolf is just another rightwing zealot who spends most of his time w/ personal attacks…surprise,surprise!

            You’re free to maintain whatever you like, I maintain that your a fool. Since you are having trouble w/ the fundamentalist part, I’ll spell it out. For 2000yrs,christians have thought that the world as we know it was going to end…essentially every generation thinks that Jesus will return and the good get whisked up to heaven,where ever that is supposed to be,and the non saved will be left to struggle in a hell on earth. My point is that this absurd theory infects society and leads even sane people into a doomsday mindset of economic,cultural or societal collapse. I’m not assuming that you are sane since it appears you’re one who believes in a coming Armageddon and are planning on heading for the hills. Of course, the funny thing is that Jesus never seems to return and the world goes on pretty much like usual,w/ crises and disasters periodically.

            DaveH wants to quibble over numbers,because the history of gold prices looks like a steep rollercoaster…the price of gold was starting to soar then and was up to about $700/oz in 1980. I say that actual inflation since then is more like 300%, which means that a dollar then was worth three times what it is today. That would give us a gold price of $2100/oz just to keep up w/ inflation, no real investment return. Gold collapsed in the early 80′s and then sat stagnant at around $400 for more than 20 yrs…NO return on anyone’s investment for 2 decades, but billions of $$ lost to inflation because it didn’t even keep up w/ that.

            Look at the facts and then tell me that gold is such a great investment in any relatively short time period,like 10 or 20 yrs…
            Sure, if you people sold now you would probably make some money depending on when you bought it. Long term? NO one knows and if the crap hits the fan,so to speak,gold will be worthless. What will count is a man’s labor and ability to dig,work,build…not how much gold he has.

          • denniso

            Here’s a chart on the gold rollercoaster…

            http://goldprice.org/30-year-gold-price-history.html

            And, just to correct DaveH’s misinformation, most,if not all, of the scandinavian and western European countries have a higher quality of life rating then we do…life span,child mortality,financial security,murder,rape,etc,etc…Some are struggling now,as we are, because of the global recession.

          • DaveH

            Misinformation, Dumniso? Show me one thing that I have said that isn’t true.
            By the way, Denmark, one of those Scandinavian countries you mention is the 3rd freest (economically) among 43 countries in the European region:
            http://www.heritage.org/index/country/Denmark
            And it is almost identical in economic freedom to the US.

          • Al Sieber

            DaveH, you are correct about hyperinflation, and it’s coming. you can print up all the paper you want but not gold and silver. there’s a big shortage of precious metals, it can’t be mined fast enough. paper money is someone else’s liability, thanks for the links.

          • JC

            Do note that Denniso’s responese generally consist of insanely stupid and naieve remarks or name calling.
            Zero substance there…

          • DaveH

            Dumniso stepped into it with that Scandinavian remark. Pretty funny. Now I suppose he will do his best to find some dirt about Denmark. The moral of the story is that ignorant Liberals like Dumniso need to learn something about economics before they debate somebody who does know. Of course, if they did learn something they wouldn’t be Liberals any more.

          • Denniso

            You trash the scandinavian countries as examples of failed socialism, then you trumpet Denmark? You’ve twisted your brain in circles.
            It’s clearly pointless to try to discuss anything w/ you.

          • JC

            Here’s a light hearted look at the success of the European Union and it’s socialist ways…

            http://www.youtube.com/watch?v=5D0VhS8qXT0

            And it’s pretty funny right till you stop laughing.
            Now think “North American Union”

          • DaveH

            Dumniso says “You trash the scandinavian countries as examples of failed socialism, then you trumpet Denmark? You’ve twisted your brain in circles.”

            Are you insane, Dumniso? Show me where in any of my comments that I “trashed the scandinavian countries”? You are just the typical Liberal Liar.

            Please keep posting Dumniso, so the others who read this board can see just how sick you are. A typical Liberal.

        • Grey Wolf

          Denniso: First of all, I’m not a rightwing zealot! Who’s resorting to name calling now. Second, I doubt if you know what the meaning of non sequitur is because of your reply about fundamentalism. It’s obvious you never studied Latin or logic in that regard. Third, your comment about the countries of Western Europe & Scandinavian countries leaves me asking: have you ever visited these places? Well I have & 25 years ago, the social systems of these countries were beginning to unravel.
          The U.S. media lied about how wonderful these places where, knowing full well that most Americans never leave the Continental U.S. Being dumbed down, the masses believed this nonsense. Personally, I could care less if you call me a fool or tell me to go have intercourse with myself. Good luck, have a great life & get yourself a good education, because you really need it!

          • Denniso

            Hey Grey Wolf, you started the insults. Don’t start it and I won’t follow up w/ it. You want a reasoned discussion then stick to the issues and lay off the insults and name calling.

            Any adult knows what a ‘non sequitur’ is…did you still miss my point? Religious fundamentalists have for 2,000 yrs told everybody that the world is ending and that seeps into regular society…others than start predicting the demise of the country, the economy and modern society. That’s the connection, and most on this site think the world(to varying degrees)is about to end and they have to stockpile guns,food,ammo,gold…it’s all counter productive and wasteful and childish. The gov’t and society are not going to collapse anytime soon
            and we will slog through all the fearmongering and hate and fear.

          • DaveH

            Dumniso,
            Most of the people on this board know what a useless double-speaking Liberal you are. Did your mother not give you enough attention as a child? So you need to seek any kind of attention, even if negative?
            Any Liberal can fabricate facts, Dumniso. Show us some real facts, instead of citing useless unsupported generalities.
            Explain, for instance, why the most government regulated countries are also the poorest with the worst living conditions?
            http://www.heritage.org/index/Ranking.aspx
            You don’t even understand the dynamics of money creation, and you pretend to know the particulars of the economic factors and living standards of foreign countries?
            And you have the nerve to dis other people who choose to believe in a higher power, while your arguments are based purely on conjecture rather than reality?

          • Denniso

            If you’re so out of touch w/ society and history to not know the facts of many religions groups that have forecast the ‘end’, essentially generation, then you are ‘thinking’ in a virtual vacuum.

            It’s not disrespectful to connect the dots between religion and society. You and your buddies can remain ignorant, it’s a free country, and no one is going to force you to open your eyes.

            Keep feeding the golden ponzi scheme and remember what I said…gold will collapse w/in a year and fall well below $1000…I’ll go out on a limb and predict it will drop to $800. Enjoy the ride down…

          • Denniso

            essentially ‘every’ generation…Oh,DaveH, sorry if I don’t respond as many smart and well intentioned liberals/progressives do to the kind of personal attacks, smears and petty/childish insults directed at me on this site, from you and the people you are trying to use in your recruitment for your fringe group, the libertarian party. I don’t run from that sort of pap spewed by clueless propogandists who act like playground bullies and think they can win a debate by shouting insults and ‘tough’ talk.

          • DaveH

            I think it’s time for your diaper change, Dumniso.

          • JC

            Just a child having just a tantrum Dave…

  • CJ

    The point of buying gold or silver is to use it for exchange of value. If we get to that point, “pretty” coins will NOT return what you pay. Don’t waste your money on marked up coins for the numismatic value. Find older circulated coins that only have a slight handling markup over spot. When it all hits the fan, only the weight of the coin will matter. Circulated coins have the “guarantee” of the government minting them that the weight is accurate.

    • Vicki

      “junk” grade silver coins (dimes usually) for the best investment.
      Hard to find “junk” gold coins :)

  • Lincoln Carter

    Silver coins or rounds will be useful for smaller transactions and are a good way to start – for $500 you can get 20-25 at todays prices.

    • Denniso

      Remember the gold/silver crash in the 70′s?? Silver was near $50/oz and gold about $900. After the crash, which only took a few weeks,silver was down to $5, and sat there for yrs, then feebly climbed to $8 and stagnated there for more yrs. If you get in and out of metal smartly you might manage to do well…don’t hold it for long term. When the hysteria and fearmongering ends,metal crashes and you lose big.

      • s c

        You’re way out of your element here, D. Talk to people who knew it was time to BUY silver when prices went into the dumper. Are you so dim-witted that you don’t know they made a killing when silver prices came UP? Get some lights in that cave (or stop mainlining that Keynesian drug).

      • DaveH

        Denniso,
        You are mixing apples and oranges, as usual. Silver spent most of the 1950s hovering a little below $1 an ounce. Then it climbed somewhat steadily through the 60s and the 70s until the late 70s when there was indeed a silver frenzy, largely due to the imagined cornering of the silver market by the Hunt brothers. It took about 7 years before it settled down to its more normal price of $5. But still that was 5 times its 1960 price.
        As long as there is mankind, there will be frenzys. But that says nothing of inflation. Inflation is real and only fools will ignore that it is going to get ugly soon with the excess dollars that are being created by the Federal Reserve. More dollars chasing fewer goods inevitably results in inflated prices.

        • Vicki

          Just keep in mind that inflation is the direct measure of the loss in value of the paper we call “dollar”. All that is necearry to create inflation is to print lots more dollars. Then the supply/demand equation takes over and other items (food, gold etc) become lower in supply compared to dollars so the person trading the food for dollars wants more dollars. Inflation.

        • denniso

          In case DaveH doesn’t know it, inflation is a natural and even necessary aspect of capitalism. It only becomes a problem when it reaches hyper levels, 10,15%. And much like in the late 70′s early 80′s, it doesn’t last very long…the Fed and gov’t do know a little more about controlling it then Germany did pre Hitler.

          • Vicki

            Denniso demonstrates his abysmal lack of understanding of even the most basic economics. Inflation is and always has been the direct metric of the devaluation of (fiat) money.

            There is nothing in the capitalist model of wealth creation that requires any amount of inflation. Our forefathers knew this when they instructed the federal government to COIN money out of gold and silver.

            Whatever is used for money MUST have intrinsic value to be able to work as money. That way its inherent value moves with the value of other commodities. The value of gold coins shows that they have held their value to purchase other things.

          • Denniso

            WOW!!!I’m glad to know that we had NO INFLATION before we went off the gold standard..great news! But wait, we did have inflation when we were on the gold standard, so what’s wrong w/ the picture? Oh, I guess you’re wrong. You should go to school in economics or read real
            books on it before spouting off on something you clearly don’t know much about.

            Every biz in a market economy tries to raise their prices as high ‘as the market will bear’. Demand increases for a good, and the price goes up…that’s inflation, simple. It’s not some mysterious boogey man or evil spirit or the fault of any particular person or party. If
            our money loses value compared to foreign currency then we have to pay more for imports, more inflation.

          • DaveH

            What good does it do to argue facts with an Ignorant Liberal? Your stupidity is your religion. Your comments, Dumniso, consist entirely of unsupported conjecture, not reality. I could teach an eighth grader why inflation is a monetary phenomenon, which is unrelated to supply and demand. But it would be a waste of time to try educating somebody as ignorant as you, Dumniso, because you just don’t want to learn. You would much rather spread your venom on unwelcome ears than to do a little studying. I believe you are damaged goods, Dumniso. Seek help.

          • Denniso

            More insults from DaveH…answer the question, was there not inflation before we went off the gold standard? You can fool most of the people on this site who have no or little ed in economics and fall prey to false info and fearmongering…you don’t fool others.

          • Al Sieber

            All inflation is, is a hidden tax on the poor and middle class. read the coinage act of 1792, the founding fathers knew about central banks and what could happen.

          • s c

            Have you no sense of shame? STOP being a Kenyesian parrot, D. GOVERNMENT is America’s #1 engine that creates and maintains INFLATION. Good God, you have not a CLUE. And I’m willing to bet that all of your friends are as hardcore DUH as you. You are SPOOKY.

          • Vicki

            Denniso now impresses us with his understanding of simple English words.

            http://www.merriam-webster.com/dictionary/inflation
            2: a continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services.

            I.E. inflation is the direct measure of the devaluation of (fiat) money. Should you have possessed gold $20 coins or silver $1 coins the effect of this devaluation would be much less severe.

            DaveH. I must disagree. Inflation is the direct measure of the supply/demand effect of (paper) money vs goods.

          • Vicki

            While researching the simple definition of inflation for Denniso I also found this interesting tidbit to help support Denniso’s assertion that there was inflation prior to our getting off the gold standard.
            http://www.inflationdata.com/inflation/inflation_rate/historicalinflation.aspx

            I note with amusement this list conveniently stops at the year after the central banks came to the US in the form of the Federal Reserve.

          • Vicki

            And one more point of interest. The price of gold was artifically fixed at $35/oz by government edict. When it was released from that edict the price jumped to its natural position allowing anyone holding (secretly if in US) gold to avoid most or all of the “inflation” that Denniso claims existed under the gold standard.

          • DaveH

            Dumniso,
            You’re the one who is stating that there was inflation with the gold standard. The burden of proof is on you, not us. Show us the Beef, Liberal.

          • JC

            Denniso says:
            October 8, 2010 at 11:18 pm
            WOW!!!I’m glad to know that we had NO INFLATION before we went off the gold standard..great news! But wait, we did have inflation when we were on the gold standard,

            That comment makes absolutely no sense…none.

            Gold standard or not, Fractional Reserve Banking is the source of inflation.

            Another thought that’s too big for you I know, but there it is anyway.

          • DaveH

            Vicki,
            What are you disagreeing with? Was it my comment that “inflation is a monetary phenomenon, which is unrelated to supply and demand”? I was talking about the supply and demand of the goods or services. Not money. And I was paraphrasing Milton Friedman who said “inflation is always and everywhere a monetary phenomenon”. Do you disagree with Milton Friedman, arguably the most knowledgeable economist of our times?

          • Vicki

            “inflation is a monetary phenomenon, which is unrelated to supply and demand”? ”

            Yes DaveH. I’m disagreeing with a single word (well 2 letters :) ) in that statement. un in unrelated. As I have said before inflation is the direct measure of the supply/demand relationship of the commodity called money and all other items. Thusly I am not disagreeing with you nor M.Freedman that inflation is a phenomenon of monetary policy but reminding everyone that EVERYTHING economic is effected by the law of supply and demand. Even “free” things.

  • NoConspiracy

    People with money can afford to buy good advice. If so, what are they doing? Are they buying gold? (The answer is yes, in case you don’t know it.) If you buy gold you are selling dollars. Do you get the picture now? If you want the dollar to lose its value, you need to sell dollars and buy something of value, like gold or land, etc. Does that not make logical sense? When you buy gold you are hastening the collapse of the money economy.

    • SamFox

      Good point No Con. What I can’t figure out is why gold sellers want our lousy $ for their great gold. Why would anyone in their right mind trade good gold for falling paper?

      Also I think we must NOT FORGET that under the radar the world is being pushed to a paperless system. If the one worlders have their way as I understand, the ideal is to have all forms of physical barter fail. By that I mean all nation’s currency, silver & gold. Silver & gold may not ‘fail’ in the way the US $ is failing, but S & G can be made irrelevant.

      So what is the answer to the electronic transfer of wealth model where we do all buying & selling via RFID chip?

      Are we being set up? Is all the talk of gold & silver a smoke screen, a diversion?

      I am not an expert, but I am kinda puzzled.

      SamFox

      • DaveH

        Sam,
        They want our lousy dollars for their gold because that is their business. That’s how they earn their livings – off the premiums we pay them for their gold.
        And the electronic money is really just a counterpart of paper money. Every electronic dollar must trace back to a root source for every dollar represented (to be legal). If not the money supply would quickly balloon out of control. I realize that there will always be crooks, such as people who sell short securities that do not always exist, or commodity contracts that do not represent underlying physical commodities.

        If I had my way, the Federal Reserve would not be able to issue any money that wasn’t backed by hard assets, such as gold, silver, land, etc.

  • DaveH
  • ABinGA

    Can’t afford the gold but have been investing in silver. I think it will be easier to barter with when, not if the need arises.

    • Vicki

      If you can buy silver you can buy gold. That said however silver comes in nice dime size chunks and will be easier to barter with than 1 ounce blocks of very valuable gold.

  • oldbill

    When milk was 5 cents a quart, many were lucky to make $1 a day. $30 a month sounds cheap for labor. That was 1.5 ounces of gold, or $1,950 a month wages in todays dollars, with gold at $1,300. So, the quart of milk for 5 cents would be $1.10 today, with silver at $22 an ounce.

    Wages and prices adjust to inflation, over time. A fiat system requires inflation to be functional. I’m not for or against such a system.

    And yes, I own both gold and silver, physically held. However, fiat, as it exists today, is a debt to be repaid. If the government(s) aren’t going to repay their debts (which the US mostly has) then that is a separate issue from inflation. Doubling the national debt, may or may not cut the value of the dollar in half.

    So far, I’m still buying most necessities for what I was paying ten years ago. I’m buying luxuries for even a better discount.

    It is my opinion that gold can just as easily decline to $300 before it sees $3,000. Are your laid off, homeless neighbors buying gold at today’s price? Are your about to be laid off, about to be homeless neighbors buys gold at today’s price? Are those in debt, who are worried about their job and losing their home, borrowing today to buy gold at today’s price? It’s something to think about.

    • DaveH

      Here’s a pretty good article on why gold has been sought after since the beginning of human history, Bill. There will probably always be people seeking the pleasures of owning Gold. Of course it is possible that humans could change that desire at some time in the future, but history is on the side of human demand for gold.
      http://www.commodityonline.com/news/What-makes-gold-precious-and-valuable-20252-3-1.html

      • Denniso

        Primitive people found ‘pleasure’ in owning gold because it was pretty and good for decorative purposes. Are we still that primitive?

        • s c

          D, get help – NOW! Until today, I thought a slow leak in your head was the problem. It’s MUCH WORSE than that. You personify what scholars mean when they talk about useful idiots and self-deluded,
          soft-minded, plastic people.

          • Denniso

            Such a thoughtful comment. How ‘pleasureable’ was it for those who held unto gold for the 20+ yrs that gold stagnated through the 80′s and 90′s and into the beginning of the 2000′s? When people had put their faith and money into gold and either couldn’t sell it or sold at a loss?

          • Vigilant

            Wilford Brimley’s comment in “Absence of Malice” is appropriate here: “Last time we had a leak like that, Noah built himself an ark.”

          • DaveH

            What I can’t understand, SC, is why such a clueless guy would even dare to be so outspoken. Maybe he is just an intellectual masochist?

        • DaveH

          Primitive people also argued about things they didn’t understand. Kind of like you, Dumniso.
          Yeah, we know Dumniso, that you and your fellow Liberals would like to dictate our tastes. Tell us something we don’t know.

  • klhpraise

    Homeboy must read a different Bible than the majority of the world!

    The Bible clearly states in Revelation that there will be 144,000 (12,000 from each of the twelve tribes) Israelites who will be in heaven. The Bible doesn’t precisely give any number as to the multitudes of others who will be present with the Lord in heaven for eternity.

    The Bible does make it sound like Gold will be a worthless commodity someday. But the way I read it that won’t be until the period of the Great Tribulation (God’s 7 year Judgment on the Earth Dweller’s who have rejected Christ as their Lord and Savior).

    Personally I believe Gold and Silver to be the best tools for store of one’s wealth (outside of treasures stored in heaven – souls of men). I don’t believe Gold or Silver to be an investment tool per se; it should be used to store some of your wealth in to protect you from just the sort of governments we have had for the last century in this country. Governments that use Fiat money and a taxation system to slowly steal the hard-earned wealth of their citizens.

    I also believe that we can’t trust in Gold or Silver, or anything else created for that matter; but I believe that God would have us plan for the future and use the brains He has given us to the prepare for the eventual failure of our economy and our country. Who knows, He (God) could you and your preparation to bless others.

  • http://gunner689 gunner689

    I realize that gold, and other precious metals, are a very good hedge against inflation. My biggest concern is that someday the Fed. Gvt. may confisicate all gold held in private hands. This was done before. I wonder if the gvt. paid the current value of the gold they confiscated or did they just steal it?
    With computer records it’s very hard to hide anything these days.

    • Denniso

      That’s a myth…the gov’t never did confiscate people’s gold.

      • Al Sieber

        The Govt. allowed you to only keep some gold in certain forms, you were paid $20.67 a oz for your gold, 6 months later the Govt. raised the price of gold to $35.00 a oz. and it was basically stolen from us. you were not allowed to own gold until Nixon took us off the gold standard in 1972. so what then is gold confiscation under another name Denniso?

        • s c

          Al, EVERYONE needs to read D’s lalaland response. In one, short sentence, D betrayed himself and his political philosophy. That makes D 1) incredibly IGNORANT (by choice?) or 2) a supreme example of a progressive who is a miserable LIAR.
          Is there any doubt why conservatives have so little use for progressives? They are in constant DENIAL, they have NO use for accurate history, they make being confused seem like an ‘improvement’ and they will say and do ANYTHING to persuade others that they know what they’re talking about.
          And THEY think they can run a government? They can take FAILED policies and economic theories and make the damned things WORK? Ye gods, Al, what can we do to GET RID of these people? Next, someone like D will tell us that Herr Obummer can walk on water and that he came down from Heaven to “save” us from ourselves. What absolute CRAP!

          • Denniso

            1933 was a time of national crisis during the worst depression to affect the U.S. and the entire global economy. The gov’t decided they had to take serious measures to deal w/ the disaster that had people and kids starving in the streets. The gov’t paid for the gold, so it wasn’t stolen, it was bought by the gov’t. The operation helped revive the economy from the depths of total despair.

            We all know that the gov’t has emergency powers that can be used in dire circumstances, like war or civil unrest…the depression was the greatest widespread disaster we have ever faced.

            The gov’t allowed people who used gold in biz or art to keep it. I imagine that the dollar being backed by gold then had something to do w/ the law forbidding people from hoarding gold in the depression, which the gov’t was trying to reverse.

            I had 2 links included in this post,but there seems to be a problem getting them on allowed on here.

          • Al Sieber

            SC, you’re right, it’s a waste of time trying to explain this to Denniso, this depression is not like the last one, you can’t compare the two. this is just the beginning. there is no manufacturing left in this country, our money is worthless it buys nothing,more people are homeless and on food stamps then ever and all the Govt. does is keep printing up Fed.Notes instead of creating jobs. nobody can be this stupid.

          • Vigilant

            “The operation helped revive the economy from the depths of total despair.”

            Economists exploded that leftisr canard decades ago. FDR’s actions lengthened and deepened the Depression. It was WWII that got us out of it.

      • DaveH

        You’re way out there, aren’t you Dumniso? I suppose you are also a Holocaust Denier?
        http://www.the-privateer.com/1933-gold-confiscation.html

        • Denniso

          You seem confused…it’s actually some of your allies in your fringe party and on the extreme rightwing who are anti semites and halocaust deniers.

          The whining about ‘confiscation’ is silly and irrelavent…most people think the gov’t stole people’s gold, but in fact it was bought. The gov’t decided that it had to be done for the benefit of the whole country, much as private property can be forcibly bought by gov’t for highways,pipelines,powerlines,etc. I don’t especially care for that governmental power, but it’s been law for a long time.

          The ‘confiscation’ paranoia is driving people to buy some types of gold for a higher price…not smart, especially because gold will not be ‘confiscated’…it’s not tied to the dollar any more.

    • James

      Gunner 689, I agree. Gold is simply a mirror that reflects the value of any given currency. In the past year, gold has gone up over 35% in its dollar price, it closed yesterday at $1347/oz. That just means the dollar has lost that much of its purchasing power, that much of its value. Back when Barack Obama was president-elect, he was interviewed by 60 Minutes, and was asked if he had read the new book about President Franklin D. Roosevelt. Obama said “Oh yes, he’s my hero” or something to that effect. Since he has been president he has followed FDR’s economy takeover plan, which was taken right out of Karl Marx’s Communist Manifesto. The only area he differs from FDR is our seemingly endless warfare. While he went along with the wars he inherited, he is now dragging his feet, especially about the proposed war with Iran.
      I would not recommend buying gold, because I believe President Obama will have possession of it outlawed. Right now, silver is the better, and safer, investment. It closed yesterday at $23.20/oz. That’s a ratio of 58 to 1, to gold. Back in the 1980 runup, gold hit $850/oz. and silver rose to $50/oz. for a ratio of 16 to 1. While it will never reach that ratio again (gold production is diminishing), silver still has a lot of catching up to do.

      • Denniso

        Gold going up does not mean that the dollar is down…the dollar has been quite stable for yrs w/ very little inflation. Gold is up because of demand driven by fear of the stock market in this recession, also because of general uncertainty w/ the global economies and a building bubble fueled by gold companies and others.

        When gasoline soared from $2.75/gal to over $4 in a matter of a few months, did that mean the dollar had lost 70% of it’s value? No, the gas spike was another bubble orchestrated by traders and the gas/oil industry and helped along by rising demand in the then booming economy. When prices fell to $2.50/gal after the crash in ’08, did that mean the dollar suddenly rose by and equivalent percentage? No.

        • DaveH

          There has been little inflation in consumer prices because we are in a deep recession, Dumniso. When people are jobless, it kind of puts a damper on spending.
          And the dollar isn’t down? For people that, unlike Dumniso, like to learn, here is a website that tracks the historical value of the dollar relative to various currencies. Try a few different countries, like Australia, or Canada, or New Zealand, or whatever you choose to compare to see how the value of the dollar has fared against other currencies. The sample page is for how much it would have cost in US Dollars for Australian Dollars in 2009. Change that to 2010 to see current costs:
          http://www.x-rates.com/d/USD/AUD/hist2009.html

          • DaveH

            Great online Book by Murray Rothbard on the concepts of money:
            http://mises.org/books/whathasgovernmentdone.pdf

          • Denniso

            DaveH finally agrees w/ me…good old supply and demand affect inflation or the lack of. We’re in a recession so demand is down,hence businesses can’t raise their prices much if at all,so we have little or no inflation…even though we still have ‘paper’ money and all that gov’t spending trying to stave off a depression.

            Low demand, low inflation…high demand in a booming economy,higher inflation.

          • DaveH

            Dumniso,
            Dream on. Obviously, you didn’t read the referenced online book.
            Sure, consumer prices in specific sectors are affected by supply and demand. I have never said different. But the aggregate prices in the broad economy only increase substantially when the money supply increases substantially or if Government stifles productivity across the country.
            If people have a constant amount of money, it doesn’t matter if specific products increase in price due to supply and demand. If the people need that product and buy it with dollars from their pool of money, then the money leftover is diminished more than normal, and they either have to forego items that they normally would have bought, or the suppliers of those less necessary items have to reduce their prices to get them sold. Thus, some of the items in the consumers basket may rise in price, but others decline in price, as the consumer only has so much to spend. So the overall prices remain unchanged. The only way for aggregate prices to climb is if there have been excess dollars created or if something has happened to dramatically weaken productivity across the country (such as Big Government regulations).

        • James

          Denniso, Inflation is built into the federal reserve system. Its rate is published every month by the feds, the current rate is 1.2%. The rate is that low, now, because hardly anyone is borrowing and spending. Back when the housing inflationary bubble burst it was around 5%. The steady devaluing of the dollar is because of the interest rate applied to all newly borrowed money. At any given moment the debt owed to money lenders is always greater than the money in circulation. The current federal reserve rate, to lower banks, is almost zero, but, still, few are borrowing. When borrowing speeds up, the interest rate will go up, that’s inflation.
          I can remember when a double-dip ice cream cone, of real ice cream, was a nickel, while now it’s over $2.00, that’s inflation.
          I agree that when prices are jacked up by man-made shortages, that’s not inflation, but since the 1920s the dollar has lost over 95% of its value. An ounce of gold will buy about the same amount of corn, wheat and beans, now, as it did back in the 1920s, while the dollar price of those commodities has soared. That’s inflation.

  • DaveH

    Something to think about:
    With the tremendous productivity gains we have had in the last decade, thus more efficient production of goods and services, the prices for goods and services should have dropped nationwide. But they haven’t. Since the year 2000, prices have risen by almost 30%. Why is that? Too much money creation, and too much Government is why. As we increase our efficiency, the Government just wastes more.

  • klhpraise

    The dollar has lost approximately 90% of it’s purchasing power since 1950. Between 2000 and now (2010) alone, the dollar has dropped 22% in respect to most other currencies in the world. Knowing this I find it unbelievable for someone to be able to say that we don’t have a problem with inflation.

    The Fed is doing things all the time to keep the money presses running which will eventually put tons more dollars into the economy – result of this huge increase in the money supply will be many more dollars chasing after fewer and fewer goods (inflation). It will probably be a very rapid rate of inflation.

    Isn’t it wonderful how the government has kept out of their reported rate of inflation the everyday stuff all of us citizens need to survive (food and energy). Last year alone the U.S. Department of Labor reported that Milk and Cheese prices were up 9.7%, Pork prices had risen 19.1%, fresh fruits were up 28.8%, Eggs were up 33.6% and fresh and dry vegetables were up as much as 56.1%. And of course we all have seen the incredible rise in Fuel prices over the last several years.

    It seems to me that the people who are in charge in Washington (Both parties – it won’t matter who controls Congress) and all the the Banking establishment know the the debt our country owes plus all the unfunded Liabilities are so large that the only way they see out of it is to print more money allowing them to pay off these bills in a much weaker currency. By doing this however they are destroying the buying power of all of the citizens of this once great nation and destroying our lives savings and retirement. Look for incredibly higher prices in foreseeable future and much higher taxes. Place your money out of the dollar and cash equivalents and into real assets like silver, gold, land and make sure you have plenty of food on hand to eat and to share. We are heading the way of Rome! The dollar will soon be history!

  • DaveH

    Just one more example of why our economy is going to hades:
    http://www.resistnet.com/forum/topics/federal-light-bulb-ban-creates?xg_source=activity

    It’s time to outsource the Democrats.

  • gb

    I find I must disagree with Denniso when he claims on 0910, gold was not confiscated. Among the first official act’s FDR to issue was Executive Order # 6102. This allowed the Government to confiscate all privately held gold. FDR declared private hoarding of gold was a serious breach of National Security. Confiscated gold was to be compensated with paper currency regardless if the public liked it or not. The public were given 25 days to surrender all gold coinage and bullion or face a $10,000 fine or 10 years in Federal Prison or both. All bank safe deposit boxes were sealed until further notice. Eventually some various paper documents were returned. However, absolutely no gold. The public was paid $20.67 per ounce of gold in paper currency. After the 25 days expired, a price of $35.00 per ounce for gold was set. This effectively devaluated the U.S. dollar by roughly 40%. When you are forced to sell your gold for $20.65 per ounce which is now worth $35.00 per ounce, FRD stole $14.33 per ounce of confiscated gold from your net worth. Them are the hard facts pal. Had nothing to do with being Republican or Democrat nor clinging to any Religion or guns. That confiscation law is still on the books today.

  • THIRD PARTY

    GOLD WAS in fact confiscated,you are correct gb.I was buying real gold,not paper,since 1996.My average COST FROM 1996-2006 WAS AROUND $296 A OUNCE.I had sold around $6,000.00 worth to a coin collector,with no 1099,or other scam reporting.I still keep around $10,000.00 in gold coins,I can easily sell it on the open market with no watch dog.Paper gold is very questionable,and the gov is in your business.I feel the fed can do it again at any time,because the law is still on the books.

    • gb

      Just make sure TP you stay just below 10K for any transaction. However, new law written into Obamacare makes it a crime in 2012 not to report all transactions public or private exceeding $600.00 in a calendar year. IRS mandates any aggregation of transactions of goods or services must be reported via 1099. Thanks Obama.

      • Vicki

        Is that each individual transaction or total to single entity?
        If each transaction I can see a lot of computers suddenly being “kits” 1-n :)

        • gb

          Aggregation Vicki. You must file a form #1099 with IRS for any expenditure to a single vendor exceeding $599.99 in a tax year. This law is so silly it requires individuals to keep track of how much you spend for groceries, and at what store then send the store and IRS a form #1099. You have to keep track of gasoline purchases also and 1099 them. Thanks again Obama.

  • Nancy

    A country where 1% of the population controls 96% of the wealth and treats the other 99% of the population as slaves is bound to collapse. The time for that collapse has come and very soon the rich and super-rich will go through grinding poverty in their lives. This is gods judgement coming.
    Gold is God’s money. So it is real. Don’t buy gold for speculation and gambling. Use it rightly to provide for your family when the times are bad like in a currency crisis or economic collapse when barter becomes the only means of exchange.

  • jopa

    Glen Beck and Chip Wood are selling gold not buying it you suckers.

  • gb

    You have no proof Jopa, Beck and Chip Wood are selling gold. You also have nothing to say they are not buying gold. Sure every investment contains some risk. However, there are always more skeptics like yourself, left at the starting gate with an empty sack than there are winners. I have been buying gold for almost ten years and am much further ahead from the stock I sold to purchase gold. The dollar is in big trouble and potential disaster just around the corner. Weak minded people were duped by a snake oil salesman with a good gift of gab, and now find themselves making excuses for a blatant Socialist/Marxist. That gross error is about to be corrected.

    • Denniso

      Thousands of people are pushing gold,w/ millions of others helping by
      believing and repeating the same doomsday cliches…the sky is falling,the dollar is worthless,the endtimes are at hand,the president is a Marxist…a ‘gold bubble’ has been produced and it too will crash. Hold on…

      • gb

        Tell you what Denniso, you collect all the gold you can get your hands on and I will buy it from you at $1,200 an ounce. That way when the crash comes I will be the one with the big loss. Consequently, if your predictions of doom are wrong, you will still be left with some cash. Gold is not normally considered a speculation commodity. However, the past few years speculation seems the way to go. As with any speculative investment it requires constant monitoring. I eagerly await your reply.

  • http://yeswinnipeg.economicdevelopmentwinnipeg.com/member/25065/ mosaic

    Your webpage does not show up correctly on my apple iphone – you might wanna try and repair tha

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