Posted on 11/25/2009 3:29:15 AM PST by ovrtaxt
"The point of fiat currencies is to debase them as needed"
While some investors remain concerned that lax monetary policy could end up resulting in inflation sometime down the road, we would argue instead that the whole point of having a fiat currency is to be able to debase it when the economic conditions require it.
Pinging the pingers...
People need to understand that gold is fiat money too. You can’t eat it and it doesn’t make as good a bullet as lead.
Fiat means that a value is artifically assigned to it by government. An ounce of AU will always be an ounce, and it always has been— regardless of the Fed’s opinion. There’s nothing fiat about it.
Gold is as worthless as paper in a real emergency. It has value because people value it, just like paper “fiat” money. It’s only real value in a catastrophic failure of society is as fishing sinkers. It has NO intrinsic value.
I’m with you.
I only wish I was sophisticated enough, that when I sold my house at the top of the market in 2006, that I hadn’t bought gold and silver with the proceeds. I’d be a wealthy gal now.
That said, I note that there has been a lot of movement in the overnight markets, wondering if we won’t see some profit-taking tomorrow. The gains have ranged from about $7 to $11 so far.
It will probably go over $1,200 soon. How much beyond 1200 , who knows? If big boys are coming out in front and pumping it, it could overshoot.
will read later
I confused myself. lol
I meant to say that I wished I HAD bought gold and silver with the proceeds.
You guys knew what I meant, right? LOL
Crap, if this keeps up, we’ll be at $ 1200 by the weekend!
This monomania with lead and bullets is hysterical. Do you plan on just robbing your neighbors in the future?
Global Commercial Real Estate Investment Soars 33% to $645 billion
Get in while you can!
http://www.metrics2.com/blog/2007/02/07/global_commercial_real_estate_investment_soars_33.html
Actually: not. Fiat money is paper decreed by a nation to have value when in fact it may or may not retain any value at all. Gold has intrinsic value and in fact stores value - minimally a store of the value of the capital expended to extract it, a scarce and precious metal, from the ground. There is a big difference, as proven through thousands of years of written economic history. Fiat currencies always fail because they are ultimately abused by those can create, expand and abuse them. They cannot resist the moral hazard/temptation to abuse, inflate, and devalue them for self-serving purposes. There are no known exceptions in recorded history. None.
Why can’t people see that gold is no more “real money” than cowrey shells? It will go down right after the big traders have convinced enough rubes to buy it.
Thousands of years of historical values for GOLD prove you totally ignorant....Just being brutally honest.
The common thread is.....those that are priced out of the GOLD market tend to be the most vocal opponents of its value.
There will always be a market for GOLD and an absolute requirement for energy, food and water.
Why, then, would gold companies sell you their gold for fiat currency?
Because 5000 years of human history prove you are wrong.
Why would anyone ever sell it?
So the Air Force includes a couple of pieces of gold in every ejection seat, just for kicks. Not as if a downed pilot might need the planet’s universal MONEY no matter where he might end up, since it’s “worthless”? You should call the Air Force and let them know how stupid they are.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.