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Title: IS GOLD MONEY?
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Published: Jul 14, 2011
Author: Ron Paul
Post Date: 2011-07-14 13:07:59 by socalv8
Keywords: Paul, Ben, Good Question
Views: 75487
Comments: 131
Big Ben's hesitation was telling. What say you?
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#1. To: socalv8 (#0)
What say you? Money can take any form if there is a consensus.
Money serves two purposes -- a medium of exchange and a store of value. Gold evolved as the most widely acceptable form of money over history because of it's characteristics -- it's scarce and durable. The pieces of paper that we pass around today are a lousy store of value because the government purposefully inflates the money supply to hand out to special interests. The only reason that they are accepted as a medium of exchange is because the government has decreed them to be so.
Money has certain properties- chief among them, being easily transportable and divisable, as well as the inability for anyone to create money quickly (scarcity). Fiat money- because it can be inflated at the whim of the Fed- is NOT money. Gold is the ultimate form of money.
“If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.” The State can no longer hide the consequences of their 100-year lie. VERY interesting times are ahead.
The same thing happened with gold and silver based money. We saw deflation and inflationary periods with gold. In fact, just finding new gold mines would lower the value of your purse. We have had gold and silver bubbles before. As soon as people start to 'cash' in their gold holdings the price of gold will start to fall. That's what happened to the stock market and real estate bubbles. People bought the things and as more people bought the more the price went up but as soon as the tipping point was reached for people selling the stuff back the values collapsed.
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
There's gold dissolved in the world's oceanwaters. I believe one estimate is 21 billion ounces. Of course the big problem is the price of extraction
Dumb ass, the only way you can increase the supply of gold is by mining it. Historically, the gold supply has increased an average of 2% a year. On the other hand, there is no limit to how much fiat money a government can create and how quickly it can create it. This is why gold is a good store of value and fiat money is not.
It's a commodity like orange juice. And unlike most commodities it took only one man to keep the price of gold down for 15 years. And now it's become the next bubble, so please.... buy lots of it while the price is high, even invest your kid's college money while you are about it.
As soon as anyone with significant reserves announces they are selling their gold the value drops. When the UK declared a sale of its gold in 1999 that was the fear and led to the Washington Agreement on Gold.
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
I always find it funny the brokers sell gold for worthless fiat money.......
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
Tulips anyone?
Von Mises associates any Government involvement in markets as "Socialism" , to mislead people into thinking Government is the enemy , when infact empire is the enemy and empire is Privatized.
LMAO! That is the kind of nonsense that keeps stupid people storing the fruits of their labor in paper promises until they become poor stupid people. When I was very young a $5 gold piece would buy you a fine rifle, a silver dollar would buy you 4 to 5 gallons of gasoline. Had one kept that silver and gold until today they would still be able to use it to purchase the same items. Keeping the same money in paper would now get you, maybe, two rounds for that rifle and a quart of gas.
The Washington accord exists because the UK put up large quantities of gold for sale in 1999 and the value of gold dropped. Supply and demand. But you seem to think you are a global player with a gold coin.
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
LOL. It's a safe bet to say he's never owned a gold coin... I'm sure gobsheit has his 'savings' stored- not even in printed money, but in digital money, at the local bank. Which means it's not worth the paper it's not printed on... Of course, this supposes that an idiot like gobsheit has enough earning potential to have any savings...
“If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.” The State can no longer hide the consequences of their 100-year lie. VERY interesting times are ahead.
Global player? What in hell are you talking about? The fact is gold and silver have held their value and all the stupid comments about accords and supply and demand are not going to change that fact. Reality does not seem to be you friend. Open your eyes.
I am not certain how or why anyone could be so stupid or foolish to ignore the reality of what I said. Even if someone is just a sleazy political propagandist, coming across as that stupid is insanity.
The flaw in this statement, is that a LOT of people were too lazy to buy physical gold, and instead "invested" in gold or silver exchange-traded funds (ETFs), IRAs or "graded" gold coins. Most estimates place the number of ETFs outstanding as ~7 times MORE than physical gold in existence. From http://pacificcoins.wordpress.com/1-gold-silver-scams/: Banksters and precious-metal "traders" sold pieces of paper obligating their company to produce the gold or silver on demand. And then they kept selling more and more, even after their stock of precious-metals was already sold off. You assume that the investors all hold physical metals. When those investors finally get around to trying to take delivery, the ensuing scandal will rock the financial world, and cause the prices of gold and silver to catapult (easily) five times current prices. I'm a buyer of precious metals, but only physical metals. No "paper gold" for me!
“If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.” The State can no longer hide the consequences of their 100-year lie. VERY interesting times are ahead.
To gobsheit, stupidity and insanity are as natural as breathing. LOL.
“If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.” The State can no longer hide the consequences of their 100-year lie. VERY interesting times are ahead.
You know I wonder if someone is paying him to say that stupid stuff or is it all his own ideas????
When asked by a Liberal what I bought my Granddaughter for her 1st birthday I replied, "MORE AMMUNITION"!!!!
Yep. Here's the purchasing power of the dollar since the Federal Reserve was foisted on us: He's an active member of the 50 Cent Party. Check it out on wike... it's good for a laugh.
“If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.” The State can no longer hide the consequences of their 100-year lie. VERY interesting times are ahead.
My guess is that Goobershit has never held a job either...
Check it out on wike... it's good for a laugh. It should be called the 1/2 cent party, cause that's all what you read from them is worth...... It seems to me that I read a post on here from someone who admitted they did that sort of thing, but don't remember who it was....
When asked by a Liberal what I bought my Granddaughter for her 1st birthday I replied, "MORE AMMUNITION"!!!!
Which civilization started this nonsense and why?
So was Bernanke wrong or lying? His pregnant pause screams lie, I'd guess.
We? Stealing from Jews causes a bubble?
Who?
?
Therefore, to avoid this they'll need to see the price drop by half in the near future?
You are a good poster, btw. Thanks.
Toothless inbred hillbillies know more about economics than you guys. The gold standard failed. Move out of the last century. The gold standard of the 1920s prolonged the Great Depression. The gold standard limited the flexibility of central banks' monetary policy by limiting their ability to expand the money supply, and thus their ability to lower interest rates. In the US, the Federal Reserve was required by law to have 40% gold backing of its Federal Reserve demand notes, and thus, could not expand the money supply beyond what was allowed by the gold reserves held in their vaults. That is different than investing in gold. But that is no more or less exotic than investing in orange or wheat futures. It's a commodity like any other. You will probably make more money investing in black gold aka oil. But the "gold delusion" is part of the mental mind fuck you right wingers operate under because it is linked to this mythology of a lost golden age back when America "worked", when blacks were Jim Crow'ed and women were subservient to men and other such delusions. Your obsession with the gold standard has more to do with your mythological world view (conservatives/right wingers in America are increasingly living in a fantasy world were empirical evidence is ignored) than sound economic policy.
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
What's wrong with you?
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
As in the human race.
Von Mises associates any Government involvement in markets as "Socialism" , to mislead people into thinking Government is the enemy , when infact empire is the enemy and empire is Privatized.
That's pretty darned accurate.
Von Mises associates any Government involvement in markets as "Socialism" , to mislead people into thinking Government is the enemy , when infact empire is the enemy and empire is Privatized.
Yup. But with Helicopter Ben creating digital fiat money like crazy, there's absolutely NO chance of that happening. I read somewhere, that if you divide all the fiat money around the world by the amount of gold in the world, it works out to some crazy number like $12000/ounce. With there being 7X the amount of gold ETFs as there is physical gold in all existence, it would seem that gold will increase potentially 7X it's current price... which works out to $1500x7=$10,500/ounce. If it only gets halfway there, it's still $5000/ounce. My silver investments should do better. Silver links to gold at ~30:1-40:1. If I call it 35:1, with current gold at ~$1500, gold should be at $42. When gold goes ballistic (maybe $5k/ounce), that means silver would be ~$142. I can live with that. :)
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow Orwells' mottos: War is peace. Freedom is slavery. Ignorance is strength. They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished. Stephen King once observed, "The beauty of religion mania is that it has the power to explain everything... [and] …logic can be happily tossed out the window. This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots... Their God... is the STATE.
No, gold is not money but a commodity. Economics 101
"Keep Your Goddamn Government Hands Off My Medicare!" - Various Tea Party signs.
Economics 101 Gold evolved over thousands of years of societal evolution on almost every part of the planet as the preferred form of money. It did so because it was durable, easily divisible, and scarce. In the 20th century, arrogant people with their all encompassing view of the state destroyed what thousands of years of societal evolution created. Economic History 101.
That was more the result of colonialism.
Von Mises associates any Government involvement in markets as "Socialism" , to mislead people into thinking Government is the enemy , when infact empire is the enemy and empire is Privatized.
Free will and ambition, the lack of which creats socialists, hippies and Democrats.
Fair enough, but I didn't ask you. I asked someone far less credible than you.
Any chance of gold and silver going in different directions?
Comments (41 - 131) not displayed.
Top • Page Up • Full Thread • Page Down • Bottom/LatestBig Ben's hesitation was telling.
#2. To: socalv8 (#0)
Any fourth grade history student knows socialism has failed in every country, at every time in history -- Vladimir Putin
#3. To: socalv8 (#0)
-- Joseph Goebbels --
#4. To: jwpegler, mininggold (#2)
(Edited)
The pieces of paper that we pass around today are a lousy store of value because the government purposefully inflates the money supply to hand out to special interests.
#5. To: Godwinson (#4)
The same thing happened with gold and silver based money. We saw deflation and inflationary periods with gold. In fact, just finding new gold mines would lower the value of your purse. We have had gold and silver bubbles before.
#6. To: Godwinson (#4)
(Edited)
The same thing happened with gold and silver based money
Any fourth grade history student knows socialism has failed in every country, at every time in history -- Vladimir Putin
#7. To: jwpegler (#6)
(Edited)
This is why gold is a good store of value and fiat money is not.
#8. To: jwpegler, mininggold (#6)
(Edited)
This is why gold is a good store of value and fiat money is not.
#9. To: mininggold, jwpegler (#7)
#10. To: Godwinson (#4)
People bought the things and as more people bought the more the price went up but as soon as the tipping point was reached for people selling the stuff back the values collapsed.
#11. To: Godwinson (#8)
As soon as anyone with significant reserves announces they are selling their gold the value drops.
#12. To: eskimo (#11)
As soon as anyone with significant reserves announces they are selling their gold the value drops.
#13. To: eskimo, Godwinson (#11)
(Edited)
LMAO! That is the kind of nonsense that keeps stupid people storing the fruits of their labor in paper promises until they become poor stupid people.
-- Joseph Goebbels --
#14. To: Godwinson (#12)
The Washington accord exists because the UK put up large quantities of gold for sale in 1999 and the value of gold dropped. Supply and demand. But you seem to think you are a global player with a gold coin.
#15. To: Capitalist Eric, Godwinson (#13)
It's a safe bet to say he's never owned a gold coin...
#16. To: Godwinson (#4)
As soon as people start to 'cash' in their gold holdings the price of gold will start to fall.
This is what world renown economist Bob Chapman recently had to say about the COMEX and other ETFs, in the August 12th issue of his newsletter The International Forecaster: “Speaking of COMEX gold and silver futures, it appears that the Illuminati have solved their physical gold and silver inventory shortage which was causing them great headaches as massive demands for physical delivery were received. At first, they just lied about their inventory. The inventories did not change even as hundreds of requests for physical bullion were settled month after month, often with the help of central banks like the ECB and other outsiders like the Canadian mint. Now, instead of using physical bullion, they can hand you an ETF contract instead. So they are trading paper for, well, more paper! Pretty slick, eh? They want to give investors the convenience of having an interest in a publicly traded security so they will just hang onto it and not demand physical delivery. But therein lies the trap. These ETF’s have leased large portions of their bullion out to the bullion banks for purposes of gold and silver suppression. They do not have what they say they have any more than the COMEX does, and if you hold on to your ETF contract, you may well become the next victim of a Madoff-like Ponzi scheme.
-- Joseph Goebbels --
#17. To: eskimo, Godwinson (#15)
Even if someone is just a sleazy political propagandist, coming across as that stupid is insanity.
-- Joseph Goebbels --
#18. To: eskimo (#15)
I am not certain how or why anyone could be so stupid or foolish to ignore the reality of what I said. Even if someone is just a sleazy political propagandist, coming across as that stupid is insanity.
#19. To: eskimo (#11)
Any fourth grade history student knows socialism has failed in every country, at every time in history -- Vladimir Putin
#20. To: CZ82 (#18)
You know I wonder if someone is paying him to say that stupid stuff or is it all his own ideas????
-- Joseph Goebbels --
#21. To: Capitalist Eric (#13)
It's a safe bet to say he's never owned a gold coin...
Any fourth grade history student knows socialism has failed in every country, at every time in history -- Vladimir Putin
#22. To: Capitalist Eric (#20)
He's an active member of the 50 Cent Party.
#23. To: jwpegler (#2)
The only reason that they are accepted as a medium of exchange is because the government has decreed them to be so.
#24. To: Capitalist Eric (#3)
Gold is the ultimate form of money.
#25. To: Godwinson (#4)
We have had gold and silver bubbles before.
#26. To: mininggold (#7)
it took only one man to keep the price of gold down for 15 years.
#27. To: lucysmom (#10)
Tulips anyone?
#28. To: Capitalist Eric (#16)
When those investors finally get around to trying to take delivery, the ensuing scandal will rock the financial world, and cause the prices of gold and silver to catapult (easily) five times current prices.
#29. To: jwpegler (#19)
#30. To: jwpegler, Capitalist Eric, CZ82, lucysmom, mininggold, eskimo (#21)
#31. To: socalv8 (#25)
Stealing from Jews causes a bubble?
#32. To: socalv8 (#25)
We?
#33. To: Godwinson (#30)
...the mental mind fuck you right wingers operate under because it is linked to this mythology of a lost golden age back when America "worked", when blacks were Jim Crow'ed and women were subservient to men and other such delusions.
#34. To: socalv8 (#28)
Therefore, to avoid this they'll need to see the price drop by half in the near future?
#35. To: Capitalist Eric (#34)
IS GOLD MONEY?
#36. To: Godwinson (#35)
(Edited)
No, gold is not money but a commodity.
Any fourth grade history student knows socialism has failed in every country, at every time in history -- Vladimir Putin
#37. To: jwpegler (#36)
Gold evolved over thousands of years of societal evolution on almost every part of the planet as the preferred form of money. It did so because it was durable, easily divisible, and scarce.
#38. To: Godwinson (#31)
What's wrong with you?
#39. To: lucysmom (#32)
As in the human race.
I asked you what you meant by "tulips".
#40. To: Capitalist Eric (#34)
.
.
.
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