Posted on 07/15/2011 6:21:22 AM PDT by quesney
"It is very scary: the flight to gold is accelerating at a faster and faster speed," said Peter Hambro, chairman of Britain's biggest pure gold listing Petropavlovsk.
"One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money."
(Excerpt) Read more at telegraph.co.uk ...
“A new Gold Standard would probably be based on a variant of the ‘Bancor’ proposed by Keynes in the late 1940s. “
Que the one world currency.
Gold may have replaced the dollar but if Obama is willing to destroy the U.S. Dollar,what’s to prevent him from banning the private possession of Gold in any form other than as jewelry?Nothing.
President Roosevelt did this already so there is a precedent.
Ignoring the Euro, that's an oversimplification. It's "faith and credit." And there is a statutory link between the credit of the US -- the value of US debt -- and the earning power of US citizens -- that's a bit more than faith.
Estimations of the strength that earning power, the ultimate value of the dollar, the likelihood of the US Gov't to truly default, etc do enter the realm of speculation, which is lumped together with "faith," but only carelessly.
As for the big US bank texting that silver would be worth 1/5th of gold, yeah, good luck with that. A twenty multiple doesn't even match with current metals trade.
But in the end, if we went to a metals backed US currency, we'd be much much worse off than we are today. We don't have the mining deposits available without years of reopening and starting up mines again, and it'd just be a constant downward spiral as we offer more and more greenbacks to purchase the metals we're going to back our currency with. The constant devaluation would just make international trade turn to another currency to do their trade in while we self destruct.
Feel free to hedge with metals - it just wouldn't work for backing our currency at this time.
It does take much to move the gold market higher these days. On July 1 gold was at an interim low of $1478.
In 8 trading days gold was at a new all-time high of $1595.
Those who already have gold are not selling and those who need gold are finally buying.
On July 14th last year gold was at $1207. Quite a runup in prices or quite a decline in the value of fiat currencies.
The danger to America is not Barack Obama but a citizenry capable of entrusting a man like him with the presidency. It will be easier to limit and undo the follies of an Obama presidency than to restore the necessary common sense and good judgment to an electorate willing to have such a man for their president. The problem is much deeper and far more serious than Mr. Obama, who is a mere symptom of what ails us. Blaming the prince of the fools should not blind anyone to the vast confederacy of fools that made him their prince. The republic can survive a Barack Obama It is less likely to survive a multitude of fools such as those who made him their president.”
If cash money gets to be worthless ... what do you redeem the solid gold for ?
I should have gone on with my question ...
Gold has no value in tough times (IMO)
What are you going to use it for ?
I can see the usefulness of it for preserving wealth as long as the “value” of the gold corresponds with a number of dollars (or other denominations) and rises against it’s fall.
But in the real world, after everything has gone to carp, what is it good for and why would a fellow with a can of peas rather have some shiny metal and be willing to trade for it ?
You want to make some smart investments ?
Buy weapons, ammunition, fishing line and tackle, garden seeds, tobacco, ... stuff people can use and will be wanting.
Barter will always be with us but you have to have something to swap that others will be wanting and when times get tough a couple of Canadian Maple Leafs in the pocket just doesn’t bring the same warm fuzzy feeling that a half-dozen 12-gauge double-00’s do. (and I’d keep them 2-3/4”, they fit more than the 3”)
That MSNBC reporter was right about Obami.
The term ‘full faith and credit’ shows that they are linked, even if only in peoples’ minds. Once the ‘credit’ is gone, as in the US downgraded or outright default, the ‘faith’ erodes rather rapidly until there is none left. The dollar will become as worthless as Confederate money was after the Civil War. They have destroyed an entire nation’s wealth in less than a decade................
Hey people, think outside the box. If currency does become worthless in the future, what can you buy now for pennies that will be worth its weight in gold later. In an economic melt down, anarchy, etc., what would people want that they would exchange their gold for? I am thinking hybrid seeds, canning lids, water purification, and yes, freeze dried peas.
This isn’t gloom and doom, it is an investment opportunity. Did you know that Mountain House freeze dried foods is not taking any new orders until fall because they are sold out! Some folks are already ahead of us.
Gold reclaims its currency status as the global system unravels: We already know that the eurozone money markets seized up violently in early May as incipient bank runs spread from Greece to Portugal and Spain, threatening the first big sovereign default of our era -- Ambrose Evans-Pritchard -- June 20, 2010
And pray you don’t get dementia or become physically disabled because the new “retirement” age will become 80.
*
Food comes to mind.
In truth, it has taken about 100 years through “progressives” i.e., Wilson, Hoover, FDR, LBJ, GWB, and now BHO. Add in the complicit sinecures in Congresses eager to buy votes to maintain their power. In the end, it has always been “the health and survival of the Republic be damned,” I’m going to get my own (look at Michele Obama for an egregious example). But even 100 years is a pretty short time for something like this to happen and it’s been staring us in the face and has been impossible to deny for at least 50 years.
+1.
Systematic Inflation is the only way the government can meet it obligations. Social security will still pay the $2000 month check but it will only have a percentage of the value that was original paid in. The real question is how much will inflation eat up when you get your check? I figure 60% when I start getting mine.
No guarantees in life, but the odds are creeping up a little every day. And there is no evidence of anything happening to change that.
Because the worst case scenario is too horrible to contemplate doesn't mean it can't happen.
Ahead of you, maybe.
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