Lil Jon wants gold too.
Posted on 12/06/2005 11:25:43 PM PST by Capitalism2003
December 5, 2005
The market price for an ounce of gold rose to over $500 last week, a significant milestone for economists watching precious metals and commodities markets. The last time gold topped $500 was December 1987, in the wake of the “Black Monday” stock market collapse earlier that fall.
Gold prices historically rise when faith in paper currencies erodes, as investors seek the intrinsic value of gold to protect themselves from inflation. It’s interesting to note that while the U.S. dollar has regained some of its value relative to other paper currencies like the Euro, it continues to lose value relative to gold and other hard assets. This shows the folly of using one fiat currency to value another.
Gold is history’s oldest and most stable currency. Central bankers and politicians don’t want a gold-backed currency system, because it denies them the power to create money out of thin air. Governments by their very nature want to expand, whether to finance military intervention abroad or a welfare state at home. Expansion costs money, and politicians don’t want spending limited to the amounts they can tax or borrow. This is precisely why central banks now manage all of the world’s major currencies.
Yet while politicians favor central bank control of money, history and the laws of economics are on the side of gold. Even though central banks try to mask their inflationary policies and suppress the price of gold by surreptitiously selling it, the gold markets always cut through the smokescreen eventually. Rising gold prices like we see today historically signify trouble for paper currencies, and the dollar is no exception.
President Nixon finally severed the last tenuous links between the dollar and gold in 1971. Since 1971, the Federal Reserve and U.S. Treasury have employed a pure fiat money system, meaning government can create money whenever it decrees simply by printing more dollars. The "value" of each newly minted dollar is determined by the faith of the public, the money supply, and the financial markets. In other words, fiat dollars have no intrinsic value.
What does this mean for you and your family? Since your dollars have no intrinsic value, they are subject to currency market fluctuations and ruinous government policies, especially Fed inflationary policies. Every time new dollars are printed and the money supply increases, your income and savings are worth less. Even as you save for retirement, the Fed is working against you. Inflation is nothing more than government counterfeiting by the Fed printing presses.
Gold represents protection from the devaluation of fiat currencies, including our U.S. Dollar. Ron Paul is dead right.
It means quite a few more locals will be running dredges out 70 mile nx summer. For most, just a hobby or addiction; how you see it. When gold prices increase, it becomes another seasonal activity here in rural Alaska.
Naah, not gonna post it.
Been done to death this month.
< |:)~
Actually this entire thing by him, is junk.
Silly goldbugs, talking up the value of gold so that they can dump their shares higher.
This is kinda interesting. People look for gold as a hobby?
No he isn't and he has less than no idea what he's talking about. His "facts" are spurious; oh bloody hell, they're garbage!
Exactly so!
Gotta love Ron Paul; he was almost my congress-critter once, but they changed the districts around, and I'm not in his district now.
IMHO, goldbugs have got it all wrong.
It's not the dollar, or "fiat currencies" - goldbugspeak for money.
There's nothing wrong. The sky isn't falling. The dollar isn't collapsing - in fact it's rising. What's happening is global economic growth.
What's driving gold is DEMAND. One billion Chinese, with money to spend. One billion Indians, with money to spend. Both cultures, have historically valued precious metals. Now they're showing up at the buying counter - with money in their pocket, ready to spend some of it.
Gold. Silver. Platinum.
Prices are rising - because of competition. Simple as that.
Lil Jon wants gold too.
Hehe I am surprised the mods have not pulled this advertisement for gold.
Wonder how long till someone catches on ;)
That gold seems to grab onto to some people and its all they think about; yet they still only make 10-20 gran at it. One of the more successful local gold junkies here, spent his time pickin morels last summer.
Alaska is one of the few states I haven't visited, but always wanted to since reading Going to Extremes. One day.
Thanks for the answer. Maybe these guys have been unduly influenced by Robert Service....
Were you ever out in the Great Alone, when the moon was awful clear,
And the icy mountains hemmed you in with a silence you most could hear;
With only the howl of a timber wolf, and you camped there in the cold,
A half-dead thing in a stark, dead world, clean mad for the muck called gold;
While high overhead, green, yellow and red, the North Lights swept in bars? --
Then you've a hunch what the music meant. . . hunger and night and the stars.
History is filled with examples of fiat currency collapses. Ron Paul has a better grasp on financial issues than most, and is far more "conservative" in the true sense of the word than anyone in the Congress.
Just for kicks, read "The Coming Collapse of the Dollar and How to Profit from It" by James Turk and John Rubino. It provides a nice history lesson regarding the dangers of fiat currencies throughout world history and the reasons why governments prefer fiat currencies to gold and silver backed currencies (which relate primarily to their ability to print and spend more).
I'm putting all my money in coltran. It's the future!
Gold is nothing to hang your hat on, either. Read Wealth of Nations.
It means I'm gonna be filthy rich.
Who wants to touch me?
FYI...the week before BLACK MONDAY, the markets fell and made a rebound. Then Monday hit and while the markets all went down, none of them "collapsed", as he stated. And it took no time at all for the markets to bounce back.
Trust me, when it comes to this topic, I know far more about it than you, Paul, and probably the majority of FREEPERS and lurkers.
And SALT is the oldest and longest lasting commodity that has backed currencies; heck, it was used as currency and trusted more, when metal coinage could be and was so easily debased.
"Fiat money" is a ridiculous term and only used by boobs.
Been to Alaska just once. Picked up the gold panning bug real fast! 8-)
Been to Alaska just once. Picked up the gold panning bug real fast! 8-)
Is it any fun at all or just a quick money activity?
I used the term "fiat currencies", not "fiat money". What makes "fiat currency" a ridiculous term?
Because only idiotic goldbuggers use the term on FR.
From the prices I see in the stores here that could make him some $$$$$
Your ignorance is surpassed only by your arrogance.
"Fiat currency" is not a 'goldbug' term. It is a description of currency that is not backed by any solid asset, but is backed only by the full faith and credit (i.e. the promises) of the government that issues it.
The other aspect, just being out in the boonies, 'playing' in a creek/stream (something both basic--3 year olds do it--and primal in that), away from the world.
Ahhhhhhhh. Work hard and relax at the same time.
Quick money isn't as easy to come by as the solitude, either. You earn it, either doing homework, dirtwork, or both.
Oh yeah...I'm the "ignorant" one, but Ron Paul, your "hero", wrote an article filled with lies and 1/2 truths and completely inaccurate info. LOL
Thanks. I could imagine myself being out there fishing half the day and looking for gold the other half. I always suspected it might be fun. Thanks again for the confirmation.
What do rising gold prices mean?
Uh, maybe that the supply of new dollars is outstripping the supply of new gold?
Or maybe that public confidence in the dollar has sunk slightly faster than that of public confidence in gold?
Or maybe it's just random? Who knows?
"Fiat currency" is not a 'goldbug' term. It is a description of currency that is not backed by any solid asset, but is backed only by the full faith and credit (i.e. the promises) of the government that issues it. >>>
Uh, the promises AND the assets. The assets of the U.S. government are certainly worth vastly more than a few tons of refined yellow metal in a safe.
Maybe this has something to do with the price of gold/silver.
Debt to the penny:
12/05/2005 $8,119,496,424,139.25
http://www.publicdebt.treas.gov/opd/opdpenny.htm
Print Print Print away...WEEEEEEEEEE!!!!
Little green rectangles that can be printed at no cost vs a precious metal that exists in 1 gram per 5 tons of the earth'surface.
Which is the better value? Hmmm...
Gold going up in tandem w/ the dollar could also mean some Saudis and other Muslims are buying in anticipation of an Israeli strike on Iranian nukes -Katy bar the door if that happens. The trash talk from Iran about destroying Israel helps the gold price. Never trust someone who says he wants to kill you. Even if he says it just once
I had this debate just the other day with someone and they kept telling me I was nuts but my contention was that other than for some industrial purposes gold has no value. It's like freaking tulip bulbs, it's only valuable as long as we think it has some value. He insisted that I was nuts.
Of course he probably didn't want to tell me that he had purchased gold in 1980 @ $850 an Oz. and was pumping it to avoid a loss (grin).
http://www.amazon.com/exec/obidos/tg/detail/-/0671885286/qid=1133949904/sr=1-2/ref=sr_1_2/104-7658784-2060762?v=glance&s=books
Very good book. "The Great Reckoning" Gold, Islam, computers, deflationary markets etc
I never saw or heard of anyone throwing gold in the trash bin. Gold is a beautiful lustrous compact convenient store of wealth. People know this instinctively.
What makes it wealth other than, like paper money, people think it has value? If the world ends I'd rather have something usable to survive.
I guess I just don't get it, I see it as tulip bulbs. Just ask those poor souls that bought it at $850 in 1980. Don't think they'll ever get their "wealth" back.
At least you could eat a tulip bulb.
You're dead ass wrong but I won't waste time trying to disabuse you of your notions. Gold has been recognized in nearly all cultures across time as having great value. Paper is recent, plastic more recent. Now electronic blips equal money. Gold endures.
That is one weird ass definition of dead ass wrong but if that's being wrong I don't wanna be right.
And I have it on good authority that tulip bulbs are far tastier than gold but then it may be a matter of the spices used.
Heh - It ain't about you and your stock portfolio. We were discussing gold's intrinsic value.
How about 2 years ? Gold has beat the S&P 500 price performance by 6%.
How about 4 years ? hmmm.... gold has beat the S&P 500 price performance by 75%.
How about 8 years ? Gold has beat the S&P 500 price performance by 47%.
Every time I am in the car there is a commercial for gold on the radio.
Does Ron Paul own gold shares? Or is he just a useful idiot?
I think I'll trust PIMCO rather than Mr. Paul.
Hmm.
Wish I had the cash to get into gold right now. Because I think gold is showing how much inflation we really have.
If you don't like those green rectangles, email me privately and I'll give you an address you can send them to.
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