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Return of the Gold Standard as world order unravels(Gold has already replaced the dollar)
Daily Telegraph ^ | 14 July 2011 | By Ambrose Evans-Pritchard

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 ...


TOPICS: Editorial
KEYWORDS: activefantasylife; belongsinbloggers; federalreserve; gold; goldbugs; notanewstopic; paulestinians; paultards; ronpaul
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1 posted on 07/15/2011 6:21:26 AM PDT by quesney
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To: quesney

ping


2 posted on 07/15/2011 6:22:32 AM PDT by unkus (Silence Is Consent)
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To: quesney
gold hasn't replaced anything. I don't see people carrying bags of gold down the street to pay for things.

It is, and always has been, a universal store of wealth -- since long before the dollar existed.

3 posted on 07/15/2011 6:24:09 AM PDT by the invisib1e hand ("America will cease to be great when America ceases to be good." -- Welcome to deToqueville.)
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To: the invisib1e hand

“It is, and always has been, a universal store of wealth — since long before the dollar existed.”

Gold has effectively replaced the dollar as a safe-haven store of value. I think that’s beyond arguing at this point.

There’s every possibility the US will turn sane after the 2012 elections, but I’m not counting on it. The problem isn’t just Obama - it’s the devolving electorate that voted him into office.


4 posted on 07/15/2011 6:26:18 AM PDT by quesney
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To: quesney

BS story


5 posted on 07/15/2011 6:27:55 AM PDT by silentknight
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To: quesney

Devolving electorate...... perfect analysis! That truly is the bottom line problem.


6 posted on 07/15/2011 6:30:24 AM PDT by Integrityrocks
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To: silentknight; AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; ...

/bingo


7 posted on 07/15/2011 6:30:24 AM PDT by SunkenCiv (Yes, as a matter of fact, it is that time again -- https://secure.freerepublic.com/donate/)
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To: quesney

If cash money gets to be worthless ... what do you redeem the solid gold for ?


8 posted on 07/15/2011 6:31:00 AM PDT by sawmill trash (OBAMA, YOU FAILED US, YOU'RE FIRED !)
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To: quesney
Gold has effectively replaced the dollar as a safe-haven store of value. I think that’s beyond arguing at this point.

Nope. Not splitting hairs but if gold did that, it'd be north of, oh, $20,000 an ounce. probably way north.

9 posted on 07/15/2011 6:31:18 AM PDT by the invisib1e hand ("America will cease to be great when America ceases to be good." -- Welcome to deToqueville.)
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To: sawmill trash
If cash money gets to be worthless ... what do you redeem the solid gold for ?

Peas. 'Cause you gotta eat 'em.

10 posted on 07/15/2011 6:32:09 AM PDT by the invisib1e hand ("America will cease to be great when America ceases to be good." -- Welcome to deToqueville.)
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To: quesney

In a way most people have never left the gold standard as only gold has been able to maintain its status as the store of value of choice.
The only further debasement of the currency possible is to reduce the physical size of a dollar bill to the size of a postage stamp.


11 posted on 07/15/2011 6:33:42 AM PDT by count-your-change (You don't have be brilliant, not being stupid is enough.)
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To: silentknight

$1,000 silver?? LOL! If silver were that high, we’d have had a TON of major world-destructive events on the way there. Ridiculous.


12 posted on 07/15/2011 6:33:48 AM PDT by mn-bush-man
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To: quesney

If an economic apocalypse occurs I’d rather have guns and butter than gold.


13 posted on 07/15/2011 6:34:10 AM PDT by TSgt (When in the Course of human events...)
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To: quesney

One piece of bubblegum, please.................

14 posted on 07/15/2011 6:34:42 AM PDT by Red Badger (PEAS in our time? Obama cries PEAS! PEAS! when there is no PEAS!..........................)
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To: sawmill trash

food, clothing and shelter..........and ammo.................


15 posted on 07/15/2011 6:35:38 AM PDT by Red Badger (PEAS in our time? Obama cries PEAS! PEAS! when there is no PEAS!..........................)
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To: quesney
“There’s every possibility the US will turn sane after the 2012 elections, but I’m not counting on it. The problem isn’t just Obama - it’s the devolving electorate that voted him into office.”

Exactly.

16 posted on 07/15/2011 6:35:52 AM PDT by pieceofthepuzzle
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To: sawmill trash

“If cash money gets to be worthless ... what do you redeem the solid gold for?”

Charmin notes.


17 posted on 07/15/2011 6:39:06 AM PDT by count-your-change (You don't have be brilliant, not being stupid is enough.)
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To: the invisib1e hand

The only thing keeping the dollar alive, and the euro, is faith. When that fails, everything falls apart. The liberals, elitists, one-worlders, and the room temperature IQ mouth breathing leech voters have ruined an entire nation........................


18 posted on 07/15/2011 6:39:49 AM PDT by Red Badger (PEAS in our time? Obama cries PEAS! PEAS! when there is no PEAS!..........................)
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To: sawmill trash

Should I by stock in a scale company?


19 posted on 07/15/2011 6:40:10 AM PDT by John 3_19-21
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To: quesney

Inflation is the only way out. Devalue a $1,000 Social Security check by 10% and now it only buys $900 but the actual check amount fools the recipient because it is still $1,000. Do that year after year and the $1,000 check will only buy a few hundred dollars in value. This happened in 1978 through 1983 when there was 50% inflation over those 5 years and grandma was eating dog food to survive. What if the inflation rate was 50% a year. That is the only way out of this mess. The unions have been too successful at getting retirement packages that are unaffordable and SS funds are stolen as they come in. Hyper inflation will take care of it though and grandma will move in with her kids or pitch a tent.


20 posted on 07/15/2011 6:40:24 AM PDT by Any Fate But Submission
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To: quesney

“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.


21 posted on 07/15/2011 6:41:34 AM PDT by PetroniusMaximus
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To: quesney

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.


22 posted on 07/15/2011 6:43:30 AM PDT by puppypusher (The World is going to the dogs.)
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To: Red Badger
The only thing keeping the dollar alive, and the euro, is faith.

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.

23 posted on 07/15/2011 6:45:14 AM PDT by the invisib1e hand ("America will cease to be great when America ceases to be good." -- Welcome to deToqueville.)
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To: quesney
I think I figured it out once, that if half of all silver production in the world was absorbed just for this year's budget debt, that silver would be upwards of $18,000 an ounce.

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.

24 posted on 07/15/2011 6:45:33 AM PDT by kingu (Everything starts with slashing the size and scope of the federal government.)
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To: quesney

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.


25 posted on 07/15/2011 6:47:43 AM PDT by Presbyterian Reporter
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To: pieceofthepuzzle

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.”


26 posted on 07/15/2011 6:48:01 AM PDT by unkus (Silence Is Consent)
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He's a popular guy.

Ambrose Evans-Pritchard site:lewrockwell.com
Google
Ambrose Evans-Pritchard site:dailypaul.com
Google
general info:
Google
Evans-Pritchard: Gold Could Hit $3,000 (Wednesday, 26 May 2010) -- at the time gold was over $1200/oz, now it's in the $1580s. An economic collapse would mean no more gold market, no more trading, and lots and lots of heads on poles.


27 posted on 07/15/2011 6:48:53 AM PDT by SunkenCiv (Yes, as a matter of fact, it is that time again -- https://secure.freerepublic.com/donate/)
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To: sawmill trash

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”)


28 posted on 07/15/2011 6:52:09 AM PDT by sawmill trash (Contry folk can survive)
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To: the invisib1e hand
Peas. 'Cause you gotta eat 'em.

That MSNBC reporter was right about Obami.

29 posted on 07/15/2011 6:52:24 AM PDT by frogjerk (Liberalism: The ideology of envy.)
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To: the invisib1e hand

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................


30 posted on 07/15/2011 6:53:21 AM PDT by Red Badger (PEAS in our time? Obama cries PEAS! PEAS! when there is no PEAS!..........................)
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To: quesney

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.


31 posted on 07/15/2011 6:54:54 AM PDT by Any Fate But Submission
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Gosh, has it been a year already?
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

32 posted on 07/15/2011 7:01:56 AM PDT by SunkenCiv (Yes, as a matter of fact, it is that time again -- https://secure.freerepublic.com/donate/)
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To: Any Fate But Submission

And pray you don’t get dementia or become physically disabled because the new “retirement” age will become 80.


33 posted on 07/15/2011 7:03:19 AM PDT by ProtectOurFreedom
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To: quesney

*


34 posted on 07/15/2011 7:05:45 AM PDT by PMAS
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To: sawmill trash
If cash money gets to be worthless ... what do you redeem the solid gold for ?

Food comes to mind.

35 posted on 07/15/2011 7:07:43 AM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: Red Badger

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.


36 posted on 07/15/2011 7:08:52 AM PDT by ProtectOurFreedom
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To: the invisib1e hand

+1.


37 posted on 07/15/2011 7:09:01 AM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: Any Fate But Submission

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.


38 posted on 07/15/2011 7:09:09 AM PDT by 2001convSVT (Going Galt as fast as I can.)
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To: mn-bush-man
$1,000 silver?? LOL! If silver were that high, we’d have had a TON of major world-destructive events on the way there. Ridiculous.

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.

39 posted on 07/15/2011 7:09:57 AM PDT by ChildOfThe60s ( If you can remember the 60s....you weren't really there)
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To: Any Fate But Submission
Some folks are already ahead of us.

Ahead of you, maybe.

40 posted on 07/15/2011 7:12:54 AM PDT by Stentor ( "All cults of personality begin as high drama and end as low comedy.")
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To: unkus

Post of the day... hands down.


41 posted on 07/15/2011 7:14:11 AM PDT by AAABEST (Et lux in tenebris lucet: et tenebrae eam non comprehenderunt)
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To: Any Fate But Submission
Did you know that Mountain House freeze dried foods is not taking any new orders until fall because they are sold out!

Wake up people. You can protect yourself without Mountain House. Canned goods will last longer than many of us here have left to live.

http://shop.conserva.de/epages/es116266.sf/en_GB/?ObjectPath=/Shops/es116266_conserva/Categories/Langzeit-Nahrung/information_shelf-life_tins


42 posted on 07/15/2011 7:18:28 AM PDT by ChildOfThe60s ( If you can remember the 60s....you weren't really there)
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To: puppypusher

Yep. Obama is every bit as conniving, elitist, and deluded as FDR was. The parallels in world view between the two are many, as well as their actions in economic crises. Both are utter failures.


43 posted on 07/15/2011 7:20:56 AM PDT by ecomcon
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To: the invisib1e hand

Actually about $11,000 from what I have read in some financial newsletters.


44 posted on 07/15/2011 7:22:52 AM PDT by redangus
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To: TSgt

I’d rather have all three.


45 posted on 07/15/2011 7:23:56 AM PDT by redangus
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To: 2001convSVT

I believe social security is inflation adjusted.


46 posted on 07/15/2011 7:29:34 AM PDT by ecomcon
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To: the invisib1e hand

I don’t see people carrying bags of gold down the street to pay for things.


You can say the same thing about savings accounts. Useful for storing your wealth, but not for grocery shopping.


47 posted on 07/15/2011 7:38:12 AM PDT by Atlas Sneezed (Government borrowing is Taxation without Representation)
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To: Any Fate But Submission
Did you know that Mountain House freeze dried foods is not taking any new orders until fall because they are sold out!

Maybe? Maybe not.

I just placed an order this AM of #10 cans of freeze dried foods from Emergency Essentials, including Mountain House product.

Emergency Essentials sent an e-mail this AM that they had many Mountain House items back in stock.

I also checked Amazon and the vendor they use is also fully stocked on Mountain House.

IIRC, Mountain House was on deep back-order for much of the first half of this year, reportedly due to huge .gov orders...and preppers' heavy demands.
48 posted on 07/15/2011 7:39:10 AM PDT by CaptSkip
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To: sawmill trash

If cash money gets to be worthless ... what do you redeem the solid gold for ?


Cash never gets to be worthless. You redeem for whatever large amount of cash gold is worth (just like in Zimbabwe).

You can also redeem your gold for goods (paying an accumulated bill, or depositing ofor a merchant credit). You can also buy a Wal-Mart Gift Card (or will be able to should your scenario come true.

You can also pay the cashier with your gold, and get...

...change (in smaller gold coins, silver, or cash!


49 posted on 07/15/2011 7:41:33 AM PDT by Atlas Sneezed (Government borrowing is Taxation without Representation)
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To: silentknight

Are you the genius who added all the hostile (looney) keywords to this article?:

activefantasylife; belongsinbloggers; federalreserve; gold; goldbugs; notanewstopic; paulestinians; paultards; ronpaul


50 posted on 07/15/2011 7:43:17 AM PDT by Atlas Sneezed (Government borrowing is Taxation without Representation)
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