Replies

Remember a few years ago when Internet , Cable, and tele everything stocks were sky high?? Proponents argued that the business cycle was over. They believed that the value of a stock was not based on something intrinsically real ( such as selling something for money and perhaps even reporting a profit.) The old notions of how an economy worked were archaic. Well doomsayers were belittled. Told they had missed the train. Then quickly they themselves were hit by that very train. Ah, there was a market. Heartless, brutal without mercy. The “Rational Market” proponents forgot that the market is rational in the long run. In the short run whether it is tulips, Mr Ponzi, enron or IDON”TMAKE OR SELL ANYTHING.COM people are vane, selfish, stupid, and greedy and will believe anything if it is sugar coated.. But in the long run the market rules. Real values are recognized.

This article on gold reminds me of all the mindless tripe once written by Marx, Keynesians, and last years stock analysists on how they have circumvented, controlled or ended the market. They are on the ash heap of history and many more will join them. One man’s or many men’s opinion of the market or of a real monetary unit does not make them right. Gold is real, it is desired. It needs no ones approval or backing. You can’t control its supply and that is the rub. Governments seek control. That which can not be controlled is always dangerous. Forgive me for being repetitive, but you need it rammed into your heads.
Yours in Freedom
TAPONLINE

Amen. Amen and Amen to that! "Governments always seek control...." Absolutely. The inflation rate in this country is astronomical. The only reason for inflation is the government PRINTS too much money.

The idea that there is not enough gold to support our economy is misguided. The price of gold will fluctuate with the economic activity of the country. If things go well, then the price of gold will rise to meet the activity. That way, individuals who hold gold will profit from the good economy. It would be an incentive to go out and be productive. Making the economy perform would be a national pastime to make the value of their gold rise. I see nothing but good things in that.

The government has in the past banned the ownership of gold coins for a very good reason. They know that the "MONEY" they are printing is nothing more than debt instruments used by international bankers to control us. If you own gold, then you are independent of their plans and that cannot be tollerated.

I would much rather have been payed in gold for all my work. By now I would have had enough real money to buy anything I would care to buy. For example, a person buying an automobile in 1920 would pay about $450.00 for a Model T. If you took $450.00 in 1920 and bought gold coins with that money, you could pay cash for a new car today. That is the power of inflation tax that the government is doing to us when it prints worthless debt instruments called federal reserve notes.

For a good historical backgound of the non "FEDERAL RESERVE", read "THE CREATURE FROM JEKYL ISLAND" by G. Edward Griffin.

The biggest problem I see with the U.S. Government in whole is the checks and balances the Founding Fathers of the American Nation put in place in the U.S. Constitution are being trampled by the people that the citizens vote into office.

Congress has way too much power to tax. Get rid of the heavy taxation (Socialism) and you will see much more prosperity.

Dittos to you, Tap.

How often it is the repeated truth: money = power.

When government defines money government is empowered. There is a zero-sum situation which positions individual power (liberty) against that of the Government. Runaway government spending-beyond-their-revenues disempowers the individual by competing with him for bank credit, and paying back that debt by debasing through inflation the purchasing power of the individual's labor. That economic fact won't change or be philosphised away.

Gold in combination with a basket of valued commodities (e.g., silver, platinum, oil, etc...all natural resources with intrinsic value, not the word of government whose good faith is regularly questioned) would be the check that government has lacked for 60 years when it first monetized debt by currency debasement, as it raised the value of an ounce of gold from $20.67 to $35.

In 1950 gold was $35/ounce. A Chevy cost $3000. In 2002 gold was $350/ounce. A Chevy costs $30,000. What's left behind is 50 years of inflation's winners (government power) and losers (individual power and with it, liberty). The intrinsic value of gold remains as precious and desired as ever.