Korean Job Discussion Forums

thepeel · Joined: 08 Aug 2004

52 trillion in debt/liabilities. 7 trillion in $assets in the hands of foreigners.

Yes. Ron Paul is the one who could fix it. To fix it, you have to end the entitlements, and stop the wars. Nothing else will work.

igotthisguitar · Posted: Wed Jan 23, 2008 12:39 pm Post subject:

ontheway · Posted: Thu Mar 13, 2008 9:10 am Post subject:

Today gold futures broke $1000 for the first time.

This documents the continued fall of the dollar. Concomitantly, oil hit $111 per barrel.

http://www.marketwatch.com/news/story/crude-his-new-high-111/story.aspx?guid=%7B6F37A54C-D191-475C-997C-99BAFB93CBBB%7D

Remember, all the fiat currencies are on the way to zero. Some experts have predicted that the dollar will fall to the $2000 per ounce level by the end of 2008.

To understand, you need to reverse the fractions:

When the Federal Reserve was established, it cost 100 ounces of gold to buy $2000. Due to the failure of this socialist institution, it now costs only 2 ounces of gold to buy $2000 dollars, and by the end of the year it may only cost 1 ounce of gold to buy that same $2000.

The Fed has stolen 98% of your cash money. The dollar has lost 98% of its value. It could be 99% by the end of the year.

Congratulations to all the statists, socialists, fascists, Keynesians and other fans of Fiat money: social security, national health care and fiat money are the most successful financial frauds ever committed against mankind.

Pluto · Joined: 19 Dec 2006

Joo Rip Gwa Rhhee · Joined: 25 May 2003

Gold is less than it was in 1980 after adjustments for inflation.

ernie · Joined: 05 Aug 2006 Location: asdfghjk

i've had this discussion with a friend of mine who keeps making the same mistake as this ^

i realize you're talking about the value of gold (which DID hit a high in 1980, and is peaking right now), but you're confusing the issue, which is the value of the dollar wrt gold...

when you're measuring the value of the dollar, it makes no sense to adjust for inflation wrt to the dollar, because your result will always be 1! when we measure something, we must adjust for changes in the UNIT OF MEASUREMENT, not the thing we're measuring, because the change is what we're measuring!

when measuring the value of the dollar you must adjust for inflation, but you must adjust according to the inflation in the supply of gold (or whatever other commodity you're using to measure the value of the dollar)... since the worldwide supply of gold is (relatively) constant (i.e. we don't find that much new gold every year), gold is a good measure of value over the long term... currently gold is overvalued because of the volatility of the USD, because it's not tied to gold in any way...

Joo Rip Gwa Rhhee · Joined: 25 May 2003

Ok I buy my girlfriend a gold necklace in 1980.

I buy my girlfriend a gold necklace in 2008.

Was is more of a financial burden to buy for me in 1980 or in 2008?

ernie · Joined: 05 Aug 2006 Location: asdfghjk

you're right: gold did peak slightly higher in 1980 than it is now... my point is that we're measuring the value of the dollar (not the value of gold) so we must adjust for the inflation of gold (not the dollar) in our calculation because gold (not the dollar) is the unit of measurement...

i think we are saying the same thing in a different way... it's so easy to get confused 'adjusting for inflation' because many people don't understand that 'inflation' really means an increase in the SUPPLY of something (usually we mean money because that's our unit of measurement), not an increase in price... the increase in price is (partly) a RESULT of more money being in the system...

the problem with the lack of a gold standard is that, because of inflation, saying that gold is at $1000 or oil is at $100 isn't that indicative of true VALUE because the value of the dollar is so volatile at the moment... are gold and oil more valuable or is the dollar simply less valuable? all of the other world currencies are fiat-based, so they aren't trustworthy either!

how am i supposed to measure value?!

Pluto · Joined: 19 Dec 2006

Glenn Beck and Ben Stein on Big Oil Multinationals and money. I found this conversation pretty insightful. I got into a debate about the 'evil' multinationals a couple days ago so it's pretty important to define who the owners are of these multinationals. It turns out it's people like you and me. ( that is, of course, if your concerned about your own wealth and financial well being) Remember, the managers act in the best interests of their owners (e.g. the stockholders); the free market forces them to do so. Also, in the interests of the shareholders, all of the stakeholders(which is pretty much everyone reading this post) the managers will do whatever possible to look out for their interests as well. Again, the free market forces them to do this.

As far as the Fed and inflation are concerned, if you're that worried then you should throw your money into hard assets like oil. Exxon-Mobile is a good choice, too. There's never been a better time Cool

ernie · Joined: 05 Aug 2006 Location: asdfghjk

i'm no stock trader, but imo the best companies to invest in are those in bed with whoever is president of the usa...

Pluto · Joined: 19 Dec 2006

Kuros · Joined: 27 Apr 2004

huffdaddy · Joined: 25 Nov 2005

ontheway · Posted: Fri Mar 14, 2008 7:33 am Post subject:

The spot price of gold is up again today: $1004 per ounce.

The dollar is now worth less than 2% of what it was in the year that the Federal Reserve was created.

The only effective way to measure the inflation of the dollar is to compare it to gold.

The CPI uses a basket of goods purchased at various locations, but it is a completely useless number. It has been politically manipulated to severely underestimate the real inflation rate in order to minimize required upward adjustments in entitlement payments which would increase government expenditures, and to reduce the CPI linked tax deductions that would reduce government income.

Even at its best, CPI misses the point about inflation. When linked to some commodity, inflation is a measure in an increase in the supply of money relative to the commodity backing it. When it comes to fiat money, the money has no real value in any case. The fact that it maintains some temporary purchasing value has to do with the fact that all change takes place over time, that some people are so ignorant that they can be fooled indefinitely, and that governments can use force and fraud without prosecution to maintain their criminal enterprises.

As a result, the only way to measure the value of the dollar is to compare it to gold.

Under the management of the Federal Reserve, the dollar has now lost more than 98% of its value.

Nice job.