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economicmayhem
Joined: 22 Oct 2009
Location: Yong In
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 Posted: Thu Nov 12, 2009 3:25 am Post subject: $1,120 for 1 troy oz of GOLD |
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This is very current event.
US currency is being destroyed.
If you'd like proof, check out my twitter account history; I post articles daily, or go read Bloomberg.com
In the USA you can't go to a bank and say, "Hey, I'd like a Euro account" well you could, but they'd laugh at you in most cases. Some examples, Mexico has gone through so many currency problems, you can now save money in bank silver accounts. Here in Korea you're blessed with gold accounts. ShinHan bank will open an account for you in seconds, just as easy as opening a dollar account or any other currency they care to offer (gold is money, paper is currency). Shinhan will even allow you to withdraw gold bars at various weights. Go look at Shinhan's foreign exchange rate page. You'll see XAU at the bottom; that's gold.
The gold price is pretty high, but it should just keep going up. Inflation in the US is going nuts. Inflation in Korea is being felt too. Each month prices are rising by like 2%.
No matter what happens with the price of gold in the short term, just remember ONE THING, ALL PAPER CURRENCIES FAIL!! Governments ALWAYS print too much. If you trust the won or any other paper now, that's your choice. |
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No_hite_pls
Joined: 05 Mar 2007
Location: Don't hate me because I'm right
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| Posted: Thu Nov 12, 2009 4:54 am Post subject: Re: $1,120 for 1 troy oz of GOLD |
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| economicmayhem wrote: |
This is very current event.
US currency is being destroyed.
The gold price is pretty high, but it should just keep going up. Inflation in the US is going nuts. Inflation in Korea is being felt too. Each month prices are rising by like 2%. |
I agree that the US currency is being destroyed, but there is little inflation in the US. The stock market lost trillions and houses values have lost trillions these things have countered the inflation of printing too much money.
There is near negative inflation in the states at the present moment.
The British Pound has been around for almost forever it is not backed by gold.
I just bought 3 nights lodging and six days lifts in the states for 350us or 225 euros. This is cheapest ski package that I have bought in 15 years.
A lot of prices in the states are coming down because people are scared and are not spending.
Last edited by No_hite_pls on Thu Nov 12, 2009 3:48 pm; edited 1 time in total |
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bacasper
Joined: 26 Mar 2007
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| Posted: Thu Nov 12, 2009 6:11 am Post subject: Re: $1,120 for 1 troy oz of GOLD |
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| No_hite_pls wrote: |
The British Pound has been around for almost forever it is not backed by gold.
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Isn't the British Pound Sterling backed by sterling silver? |
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blackjack
Joined: 04 Jan 2006
Location: anyang
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| Posted: Thu Nov 12, 2009 7:35 am Post subject: |
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I still can't get over the fact that gold has almost no value other than scarcity. You can't eat it, you can't make tools out of it.
How is placing your money in gold any safer if we get a world word economic breakdown. |
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visitorq
Joined: 11 Jan 2008
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| Posted: Thu Nov 12, 2009 7:46 am Post subject: Re: $1,120 for 1 troy oz of GOLD |
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| bacasper wrote: |
| No_hite_pls wrote: |
The British Pound has been around for almost forever it is not backed by gold.
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Isn't the British Pound Sterling backed by sterling silver? |
Used to be, was also backed by gold for awhile. Now it's just another fiat currency. |
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RufusW
Joined: 14 Jun 2008
Location: Busan
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| Posted: Thu Nov 12, 2009 7:52 am Post subject: |
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| blackjack wrote: |
| How is placing your money in gold any safer if we get a world word economic breakdown. |
Because whatever happens women ([hold up!]and men) will always place value in shiny things.... especially shiny things that show they have wealth and consequently status.
The strangest is diamonds... we can produce diamonds of the same visible quality as 'real' diamonds... but we'll still meant to shell out one months' wages for a 'real' diamond ring.
Last edited by RufusW on Thu Nov 12, 2009 7:57 am; edited 1 time in total |
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RufusW
Joined: 14 Jun 2008
Location: Busan
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| Posted: Thu Nov 12, 2009 7:57 am Post subject: Re: $1,120 for 1 troy oz of GOLD |
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| economicmayhem wrote: |
| If you'd like proof, check out my twitter account... |
I lol'd.
| economicmayhem wrote: |
| ...just remember ONE THING, ALL PAPER CURRENCIES FAIL!! |
I don't understand... you have proof that all paper currencies have always failed? Seems a little far-fetched seeing as the dollar - the most important currency of the 20th Century - the pound, and the Euro have yet to 'fail'. |
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visitorq
Joined: 11 Jan 2008
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| Posted: Thu Nov 12, 2009 7:59 am Post subject: Re: $1,120 for 1 troy oz of GOLD |
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| RufusW wrote: |
| economicmayhem wrote: |
| If you'd like proof, check out my twitter account... |
I lol'd.
| economicmayhem wrote: |
| ...just remember ONE THING, ALL PAPER CURRENCIES FAIL!! |
I don't understand... you have proof that all paper currencies have always failed? Seems a little far-fetched seeing as the dollar - the most important currency of the 20th Century - the pound, and the Euro have yet to 'fail'. |
They are failing though. They've already lost most of their value, and gold is going through the roof. The IMF just put 200 metric tons of gold on the market to try to drive down prices and the Bank of India bought up all of it. The dollar's days are numbered. |
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RufusW
Joined: 14 Jun 2008
Location: Busan
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| Posted: Thu Nov 12, 2009 8:03 am Post subject: |
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| They may be failing but to say - quote - "THEY'VE ALL FAILED" is a little different. Call us back when they actually have. |
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bacasper
Joined: 26 Mar 2007
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| Posted: Thu Nov 12, 2009 8:20 am Post subject: Re: $1,120 for 1 troy oz of GOLD |
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| visitorq wrote: |
| bacasper wrote: |
| No_hite_pls wrote: |
The British Pound has been around for almost forever it is not backed by gold.
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Isn't the British Pound Sterling backed by sterling silver? |
Used to be, was also backed by gold for awhile. Now it's just another fiat currency. |
That's what I was afraid of. |
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RufusW
Joined: 14 Jun 2008
Location: Busan
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| Posted: Thu Nov 12, 2009 8:35 am Post subject: |
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| visitorq wrote: |
| bacasper wrote: |
Isn't the British Pound Sterling backed by sterling silver? |
Used to be, was also backed by gold for awhile. Now it's just another fiat currency. |
Source? |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Thu Nov 12, 2009 8:45 am Post subject: Re: $1,120 for 1 troy oz of GOLD |
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| economicmayhem wrote: |
This is very current event.
US currency is being destroyed.
If you'd like proof, check out my twitter account history; I post articles daily, or go read Bloomberg.com
In the USA you can't go to a bank and say, "Hey, I'd like a Euro account" well you could, but they'd laugh at you in most cases. Some examples, Mexico has gone through so many currency problems, you can now save money in bank silver accounts. Here in Korea you're blessed with gold accounts. ShinHan bank will open an account for you in seconds, just as easy as opening a dollar account or any other currency they care to offer (gold is money, paper is currency). Shinhan will even allow you to withdraw gold bars at various weights. Go look at Shinhan's foreign exchange rate page. You'll see XAU at the bottom; that's gold.
The gold price is pretty high, but it should just keep going up. Inflation in the US is going nuts. Inflation in Korea is being felt too. Each month prices are rising by like 2%.
No matter what happens with the price of gold in the short term, just remember ONE THING, ALL PAPER CURRENCIES FAIL!! Governments ALWAYS print too much. If you trust the won or any other paper now, that's your choice. |
You are completely correct.
However, so some of the less economically literate here feel better, it would be wise to say that:
No matter what happens with the price of gold in the short term, just remember ONE THING, ALL UNBACKED PAPER CURRENCIES, otherwise known as Fiat Money, eventually FAIL!!
The dollar became "unbacked" less than 4 decades ago, under Nixon. However, for many years, the dollar acted like a currency undergoing a "revaluation downward." The market did not know but that the government would "reback" the dollar with gold. Adequate gold reserves were on hand to do so, so the slide to collapse was delayed. Even today, we cannot be sure how much gold the government actually still owns, but it could be possible to "save" the dollar and reback the currency at some much devalued level. From the original $20 per oz. we might be able to go back on a gold standard at $5000 or maybe $7500 per oz. We need a FED audit to find out.
There is little time left for this, however, as the total National Debt, according to the FED is now over $99 trillion. If the national health takeover becomes law, this will quickly rise by tens of billions of dollars more. The coming impact of unfunded liabilities will bring about the total collapse of the US Government and the dollar. In a few years there will be no stopping this. The fascist-socialists national health care bill will accelerate this process by several years. We have 8 to 12 years left at best, barring radical reform. The process has already begun, and the current 2nd Great Depression is just the onset of bigger troubles.
When the fall does come, there will be a quick denoument followed by a new dark age. If we follow a Libertarian and Austrian economic model thereafter, the world will rebound. If not, the new dark age will last generations.
You will also note that there are numerous posters here who have no concept of what INFLATION is, so they do not understand that we have been experiencing massive inflation lately.
INFLATION - is an increase in the supply of money without an equivalent increase in the backing of that money.
Inflation is not what we measure when we hear about the CPI - consumer price index. The CPI measures the changes in prices of a basket of goods and services that has been picked politically to give a number that tells us what has happened to the aggregate prices of these items.
Originally, the idea of the CPI was that by selecting the appropriate market basket of goods and services, we could estimate over time what the actual inflation rate might have been. However, even when managed honestly, the CPI has always been a lagging measure. Market prices will rise only after a significant amount of time has passed - enough time to allow the actual inflation to make its way through the economy and raise the overall price level.
At all times there will be changes in prices, some go up and some go down as relative costs and demand change. All such changes in prices gradually affect other prices and it takes a great deal of time, months and even years for prices to reflect the inflation that has already occured.
Right now we've experienced over 100% inflation very quickly. The prices will be rising as a result over the next few years. We know what's coming and the FED knows as well. The inflation has already happened. The prices must rise.
Unfortunately, the CPI is now a politically managed number. The Government has deliberately chosen a market basket that the believe will significantly underreport the overall change in aggregate prices. This helps keep costs down for government programs that require CPI adjustments. The government, after all, only creates programs to increase its power, and giving people more money automatically does not enhance the power of the politicians, so they want to minimize the effects of CPI adjustments.
Finally, it is in the interest of the government to lie about what the CPI is. They do not want to tell anyone that the inflation has already happened and that they are inflating every day. They want to blame others and pretend that inflation is less than it is. Sadly, most people and most Dave's posters have never actually read a book on economics and they only know what they've been spoon fed by the government, passed along by a national media controlled by the FCC and dominated by economically illiterate reporters. |
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RufusW
Joined: 14 Jun 2008
Location: Busan
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| Posted: Thu Nov 12, 2009 8:55 am Post subject: |
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I lol'd hard.
Total Natioanal Debt = 99 Trillion? Source? (Wikipedia says 10 Trillion; 10% of what you said. As a % of GDP this is half of what it was during WWII)
Please don't copy and paste from Con. articles..... it's not a real discussion then. |
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mises
Joined: 05 Nov 2007
Location: retired
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| Posted: Thu Nov 12, 2009 8:57 am Post subject: |
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| RufusW wrote: |
I lol'd hard.
Total Natioanal Debt = 99 Trillion? Source? (Wikipedia says 10 Trillion; 10% of what you said. As a % of GDP this is half of what it was during WWII)
Please don't copy and paste from Con. articles..... it's not a real discussion then. |
I wouldn't lol too hard. Maybe your bestest university in the world OMG didn't cover concepts like "total liability" but:
http://seekingalpha.com/article/139580-dallas-fed-president-richard-fisher-the-voice-of-reason |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Thu Nov 12, 2009 9:05 am Post subject: |
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| mises wrote: |
| RufusW wrote: |
I lol'd hard.
Total Natioanal Debt = 99 Trillion? Source? (Wikipedia says 10 Trillion; 10% of what you said. As a % of GDP this is half of what it was during WWII)
Please don't copy and paste from Con. articles..... it's not a real discussion then. |
I wouldn't lol too hard. Maybe your bestest university in the world OMG didn't cover concepts like "total liability" but:
http://seekingalpha.com/article/139580-dallas-fed-president-richard-fisher-the-voice-of-reason |
The US Comptroller reported the total debt of the Federal Government at over $60 trillion and later over $70 trillion several years ago. He was making speeches that have appeared all over the media, YouTube etc and linked here on Dave's as well.
Numerous recent expansionist socialist bills for health, drugs, etc. have further increased the numbers since. |
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