Posted on 09/26/2012 4:28:02 PM PDT by blam
Keynesians and Chicagoans do not make up the history of capitalism.
capitalism is not the problem as this article seems to suggest. The problem is FRAUD...Legalized or not. And that Fraud extends to Bankers, Wall street, and right up into the hands of Government.
Add to the mix Obama administration shutting down both coal and oil production in the US. Devalued dollar, reduced domestic energy output....Cost of imports (oil) will go up, after election.
Gold would only be good if you are betting that the dollar will collapse entirely or the government recalls all currency and reissues money that has an expiration date to force it back into the banking system.
Not buying this scenario.
Why not?
According to this article....
http://www.freerepublic.com/focus/f-bloggers/2935479/posts
massive reserves of oil & gas have been found off the coast of Greece; its part of the same giant field off the coast of Israel.
The result? The Germans have changed their tune about keeping the Greeks solvent and keeping them in the Euro.
Now scale up what’s happened in Greece 100 fold and you get what’s happened in the USA. That is, because of fracking USA gas and oil reserves have gone up 100 fold.
What does that mean?
That means that the USA becomes energy independent by 2020. That means that the dollar is backed by much larger reserves of oil. Oil is like Gold.
All oil exporting countries have hard currencies.
If Romney gets elected in November—then gold is today at its peak.
I’m going to go get an $8.00 burger and fries, that being said it will be worth $8.00 to me tonight... tomorrow morning it will be worth considerably less
TT
Couldn't have said it any better myself! What we have seen during the past decade or two isn't Capitalism. What you so comprehensively described, combined with runaway spending by government at all levels and the offshoring of our workforce(tax base) is what got us where we are today.
It's gonna hurt like hell, but the only way to fix this mess is to UNDO it!!
5 Million jobs coming back to the US between now and 2020 because companies actually find it cheaper to produce in the US among many things, as in i.e. cheaper cost of energy, logistics, and now Japan companies wanting to get out of China.... and Obama and his polices had nothing to do with it... it’s all market driven.
Really? Gold is the answer? Ulitmately against what, a weaker world currency?
No my friend, gold ain’t going to buy you food and water in a national crisis....its worthless.
Good secure shelter, a healthy stockpile of food, clothing, medical, toiletries, fuel, guns and ammo is how you will survive.
stockpiling gold is a joke, will get your broke, and will get you dead fast.
That's usually what happens after a delationary cycle. In the beginning, those piles of greenbacks you stashed are worth more each day. Best go buy gold with them while you can and the price of precious metals is lower. Because not long after the delfation, the dollar will be devalued and the government will be forced to drop a zero...or two from the value of those dollars.
Every empire up thru the middle ages had a gold standard currency. I would say fiat money has a poor track record.
You'll jump like a clown dog for me, when the paper money is worthless, for a sliver of gold. You'll do anything for the gold then. Ha.
I wouldn’t trade you a can of soup for a gold bar if I’m hungry partner.
You will crawl on the ground like hog and squeal for a gold coin while I laugh at you.
Frauds of various kinds including one the author of this piece propagates: that deflationary collapse is unthinkable. It is simple really: let the bad banks collapse. QE is nothing but a way to maintain fake positive balances and cash flow in the large banks which keep the market going. One of the biggest frauds was declaring that every American deserved a low rate mortgage whether or not they lived in a slum, had good education and prospects or not. A current related fraud is mortgage rates at 3% when inflation, future inflation and poor payback prospects would dictate a 10 or 15% rate.
The main solution to our economic problems is simple, people enough capital to fund a business that can hire a couple people need to have reassurances that their money won't be debased when they tie it up for years. The Fed is doing the opposite. Another simple solution is to let failed banks fail for real and pay the trillions for deposit insurance (it would be less than Obama has squandered). The remaining smaller banks can finally be rid of the burden of low rates and high deposit insurance. Let the asset bubbles pop because propping up asset prices (Fed with QE and low rates) is killing the real economy.
When in history has gold ever been worthless? People will always need a medium of exchange. Silver is more practicle for day to day transactions though. I suggest old dimes and quarters.
The things you list are essential. Anything more (e.g. a product from China or extra fuel to tool around with) will cost you gold. Why? Simply because those countries won’t accept our worthless green (and other color) backs. They only accept them now because of dollar and US military/intelligence hegemony. Once that is gone, there will be middlemen who will take your gold (or mine as the case may well be) and hand over a cool product or a nice amount of fuel.
bartering
The author wouldn’t recognize capitalism if it bit him in the ass.
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