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To: frithguild; vietvet67; Travis McGee; Moonman62; cgbg; rbg81; kinoxi; Erik Latranyi; Old_Mil; mhx; ..
Great topic. Debauched currency. But re the author's opinion:

"No, it's all about the Fed. It's all about how many dollar bills they churn out of their printing presses, and how many helicopters they use to rain those bills down upon our heads. That's all that matters." That's overly metaphorical.

From what I can gather our currency is devalued with any inordinate lending by banks, or by Communist China lending to the U.S. Government through our bonds/debt.

Imagine an economy where money is 'created' whenever fractional banking (with 5% or whatever 'required reserves') extends loans, mostly by electronic transfer records, for most of the big-ticket items we buy now (Houses, cars, education, medical services...) and increasingly for so much of our other purchases through credit cards (at grocery stores, auto repair shops, restaurants, etc.).

The theoretical limit to the 'money supply' then becomes the extent of our appetite as a nation for 'credit' from the moneylending industry.

Add to that the propensity for spending (devaluing currency) induced by making 'cheap' money through all 'third-party payers': insurance, government subsidy/transfer payment, financing ...

That's a debauched currency ... and a debauched culture.

14 posted on 09/29/2007 11:51:55 AM PDT by ProCivitas (Duncan Hunter = Pro-Family + Fair Trade = Pro-America)
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To: ProCivitas; frithguild

IMO, it doesn’t hurt to buy some gold, even if it’s a relatively small amount, to diversify a bit.

Some “experts” say gold YES; some “experts” say gold NO, but I figure I’m ready for whatever happens.


24 posted on 09/29/2007 7:02:43 PM PDT by Sun (Duncan Hunter: pro-God/life/borders, understands Red China threat, NRA A+rating! www.gohunter08.com)
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