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To: DannyTN

Only because of dervative type scams...there is no basis for the value or the growth in the value.

It could be argued that the housing crisis would not have happened if we still had a tangible value behind our money.

The reality is the Fed was the most stable when the gold standard was in place it has been since we have ditched the gold standard that things are getting wildly out of hand and the Fed is now forced to make drastic moves that will come back to bite us all.

In a sense the Fed today is only shifting the effects of one bubble to another bubble and there is no floor to fall back on and that is the achillies heal that we are facing and will pay the price for.

When the US dollar is no longer the reserve currency and that will probably happen in 2011 we will see the true value of your paper money and it won’t be good.

Somehow you think gold isn’t a real asset or are you saying real property assets?


33 posted on 03/04/2011 9:44:57 AM PST by surfer (To err is human, to really foul things up takes a Democrat, don't expect the GOP to have the answer!)
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To: surfer
"It could be argued that the housing crisis would not have happened if we still had a tangible value behind our money."

You need to go back and look at the real estate bubbles of the 1800's when we were on the gold standard.

The reality is the Fed was the most stable when the gold standard was in place it has been since we have ditched the gold standard that things are getting wildly out of hand and the Fed is now forced to make drastic moves that will come back to bite us all."

That's just not true. Go back and look at the CPI swings when we were on the Gold standard.

"Somehow you think gold isn’t a real asset or are you saying real property assets?"

I was saying most of our wealth is in real property, businesses, equity. We use currency as a temporary store of value, not as a long term store of value.

Gold is a real asset, but it's not one that returns much. The real return is usually close to 0. It's better than holding dollars long term, but not much. If you want to store wealth long term, Gold is ok. But there are better safer investments than gold.

35 posted on 03/04/2011 10:12:34 AM PST by DannyTN
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