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Letter from my Dad (May be important)
Mar 03 | KB's Dad

Posted on 03/03/2006 7:59:26 AM PST by Killborn

Edited on 03/03/2006 8:11:35 AM PST by Admin Moderator. [history]

Hi Guys,

I hope everyone loaded up on gold (now up 50%)and silver (up 85%) and is happy, because the flip side is very gloomy. The dollar continues to lose value and the resulting decline in American wealth looks like it will cause class warfare. Whether it is only economic warfare making everyone poor or whether it develops into physical violence is still not clear.

Greater than 93% drop in the greenback -

Since the US government decided to use central planning to control interest rates instead of the free market and the gold peg, the dollar has lost more than 93% of its value. For centuries the dollar value of gold hardly moved. Then politicians created the FED early last century.

Do you remember $35 an ounce? I do, and now it's $570. When Alan Greenspan went before congress last year, he was asked how was the US Government going to be able to finance its obligations regarding Social Security (i.e. pay retirement checks).

Greenspan's answer was that it was no problem, they would just issue Government checks. When the senator looked confused, Greenspan added, 'the problem is whether these checks would buy anything of value'.

The economically challenged senators still didn't get it. What good is a monthly check for $10,000 if a loaf of bread costs $10,000.

At his State of the Union speech, Bush lamented he couldn't get Social Security reform through congress. The Democrats, led by Hillary Clinton cheered.

I hope that tape is replayed when retirees riot over their worthless SS checks. But, at least this gives us someone to blame.

Americans aren't saving for their retirement, instead they are going ever deeper into debt, confident the Government will give them a nice retirement check.

Both Republicans and Democrats are spending like drunken sailors. No worries mate, we'll just borrow some more.

Now that Americans aren't saving enough to finance this debt, we have to borrow from foreigners at the rate of $2 billion a day.

The amount of wealth we will have to transfer to these foreigners to repay this $8 trillion debt will bankrupt a whole generation. Unless, of course, we just issue worthless Government checks and inflate away the value of the dollar.

But who are our central planners going to blame. There must be someone. How about Wal-Mart. Maryland central planners are going to force health care costs for employees, their spouses, children, parents, relatives, pets, etc. onto Wal-Mart. Maybe we can have a windfall profits tax to pay for our debt.

The central planners in Russia and China never let windfall profits happen. Maybe we just won't let foreigners spend the dollars they so foolishly accepted. We can call it National Security and not let them buy Unocal and not let them operate our ports. When they stop accepting our dollars, we can be happy with all our paper money, happy and poor.

I still think the best protection from our central planners are hard assets like gold, silver, oil sands, gas, etc. Then you don't have to worry when they let the printing presses roll.

Tom


TOPICS: Culture/Society; Your Opinion/Questions
KEYWORDS: bahog; buymygold; goldbuggery; goldgoldgold; goldshillery; takethegoldmineshaft; vanity; yukoncornelius
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Ok, I know you guys aren't a fan of vanities, but I think what he is saying is pretty important.

A bit about my dad: Libertarian, free trade, smart economics guy. Foresaw the Dot bomb before a lot of people did.

Comments? Questions?

1 posted on 03/03/2006 7:59:27 AM PST by Killborn
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To: Killborn

There is some logic in this.


2 posted on 03/03/2006 8:00:56 AM PST by TXBSAFH (Proud Dad of Twins, What Does Not Kill You Makes You Stronger!!!!!!)
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To: Killborn
Lo siento, let's format that: Hi Guys,

I hope everyone loaded up on gold (now up 50%)and silver (up 85%) and is happy, because the flip side is very gloomy. The dollar continues to lose value and the resulting decline in American wealth looks like it will cause class warfare. Whether it is only economic warfare making everyone poor or whether it develops into physical violence is still not clear.

Greater than 93% drop in the greenback - Since the US government decided to use central planning to control interest rates instead of the free market and the gold peg, the dollar has lost more than 93% of its value. For centuries the dollar value of gold hardly moved. Then politicians created the FED early last century. Do you remember $35 an ounce? I do, and now it's $570. When Alan Greenspan went before congress last year, he was asked how was the US Government going to be able to finance its obligations regarding Social Security (i.e. pay retirement checks). Greenspan's answer was that it was no problem, they would just issue Government checks. When the senator looked confused, Greenspan added, 'the problem is whether these checks would buy anything of value'. The economically challenged senators still didn't get it. What good is a monthly check for $10,000 if a loaf of bread costs $10,000.

At his State of the Union speech, Bush lamented he couldn't get Social Security reform through congress. The Democrats, led by Hillary Clinton cheered. I hope that tape is replayed when retirees riot over their worthless SS checks. But, at least this gives us someone to blame. Americans aren't saving for their retirement, instead they are going ever deeper into debt, confident the Government will give them a nice retirement check.

Both Republicans and Democrats are spending like drunken sailors. No worries mate, we'll just borrow some more. Now that Americans aren't saving enough to finance this debt, we have to borrow from foreigners at the rate of $2 billion a day. The amount of wealth we will have to transfer to these foreigners to repay this $8 trillion debt will bankrupt a whole generation. Unless, of course, we just issue worthless Government checks and inflate away the value of the dollar. But who are our central planners going to blame. There must be someone. How about Wal-Mart. Maryland central planners are going to force health care costs for employees, their spouses, children, parents, relatives, pets, etc. onto Wal-Mart. Maybe we can have a windfall profits tax to pay for our debt. The central planners in Russia and China never let windfall profits happen. Maybe we just won't let foreigners spend the dollars they so foolishly accepted. We can call it National Security and not let them buy Unocal and not let them operate our ports. When they stop accepting our dollars, we can be happy with all our paper money, happy and poor.

I still think the best protection from our central planners are hard assets like gold, silver, oil sands, gas, etc. Then you don't have to worry when they let the printing presses roll.

Tom

3 posted on 03/03/2006 8:01:29 AM PST by Killborn (Pres. Bush isn't Pres. Reagan. Then again, Pres. Regan isn't Pres. Washington. God bless them all.)
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To: Killborn

Whete Freepers are fans of vanities, most of them are fans of paragraphs.


4 posted on 03/03/2006 8:01:34 AM PST by Mr. Lucky
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To: Killborn
Do you have your stockpile for MREs and ammo at the ready?

The end is coming!

</sarcasm>

5 posted on 03/03/2006 8:01:48 AM PST by E. Pluribus Unum (Islam Factoid:After forcing young girls to watch his men execute their fathers, Muhammad raped them.)
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To: Killborn
Weeeeeellll, a lot of moving pieces in that one.

Oh, well, back to work so I can continue to pay my taxes.
6 posted on 03/03/2006 8:02:55 AM PST by PeteB570 (Guns, what real men want for Christmas)
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To: martin_fierro; Petronski

BAHOG! Ping


7 posted on 03/03/2006 8:03:02 AM PST by Tijeras_Slim
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To: martin_fierro; Tijeras_Slim

Big-ass-hunk-of-gold ping


8 posted on 03/03/2006 8:03:18 AM PST by Constitution Day
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To: Killborn
I think the South is going to rise again. Shall I speculate in Confederate Dollars or Mexican Pesos?

/sarc 

9 posted on 03/03/2006 8:03:30 AM PST by peyton randolph (As long is it does me no harm, I don't care if one worships Elmer Fudd.)
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To: Tijeras_Slim

GMTA!


10 posted on 03/03/2006 8:03:33 AM PST by Constitution Day
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To: Mr. Lucky

I know, I know. When I saw my own post, my eyes hurt.


11 posted on 03/03/2006 8:04:45 AM PST by Killborn (Pres. Bush isn't Pres. Reagan. Then again, Pres. Regan isn't Pres. Washington. God bless them all.)
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To: TXBSAFH

Definitely.


12 posted on 03/03/2006 8:05:01 AM PST by Killborn (Pres. Bush isn't Pres. Reagan. Then again, Pres. Regan isn't Pres. Washington. God bless them all.)
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To: Killborn

I'm just glad my friends that have been touting gold for decades, but never seeing it payoff, finally see some good news, too bad they wasted all those previous years.


13 posted on 03/03/2006 8:05:04 AM PST by ansel12
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To: Killborn
Comments?

All that text with no paragraph spacing is not doing my macular degeneration any good.

P.S. BAHOG

14 posted on 03/03/2006 8:05:20 AM PST by Petronski (I love Cyborg!)
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To: PeteB570

Whatr do you mean by "moving pieces?"


15 posted on 03/03/2006 8:05:34 AM PST by Killborn (Pres. Bush isn't Pres. Reagan. Then again, Pres. Regan isn't Pres. Washington. God bless them all.)
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To: E. Pluribus Unum

Likelihood of his WCS happening?


16 posted on 03/03/2006 8:05:54 AM PST by Killborn (Pres. Bush isn't Pres. Reagan. Then again, Pres. Regan isn't Pres. Washington. God bless them all.)
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To: peyton randolph

Well, in the event that happens, we Yankees will just sit tight while you clean out the scum. :)


17 posted on 03/03/2006 8:06:47 AM PST by Killborn (Pres. Bush isn't Pres. Reagan. Then again, Pres. Regan isn't Pres. Washington. God bless them all.)
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To: Killborn

This is not true though it is often repeated. US issued notes are good and represent among the most stable assets on the earth. If a population of people perceive something to be of worth-- then it is. The dollar and the US economy which it represents has been a strong investment since WWII. The best estimates are that it will continue to be a great investment-- increasing in size from 13 trillion dollars to 20 trillion dollars by 2020. The European economy will decline in relative size. China and India will have increasing economies.

In the 1980s, people said the very same thing in relation to Japanese financing of US debt. Guess who was right?

Buy gold if you want, because enough people "perceive" a panic-- they will indeed buy up the price. Gold is not however the economic panacea its proponents suggest. The US economy is a good investment.


18 posted on 03/03/2006 8:07:05 AM PST by lonestar67
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To: ansel12

Gold should always be a vauable commodity, even if the Dollar became the toop currency of all time.


19 posted on 03/03/2006 8:08:10 AM PST by Killborn (Pres. Bush isn't Pres. Reagan. Then again, Pres. Regan isn't Pres. Washington. God bless them all.)
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To: Killborn
Letter from my Dad (May be important)

If your dad is important, tell him not to worry. He can always adopt.

He may not be important at all, it may be that your mother is barren.

Adoption is a viable alternative.

20 posted on 03/03/2006 8:08:32 AM PST by Bon mots
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