Posted on 01/15/2014 7:33:03 PM PST by Publius
Something is up.
Yeah, it seems they were hinting at that...
“Then we have to ask the US why they store so much gold, but instead of selling gold, they issue debt to other countries to rescue the financial market.”
There is a difference between a weak dollar, which is good in a world of fiat currencies, and a collapsed dollar, which would be refused in trade.
Everybody is preparing for a mess. Why else would the government buy billions of bullets and militarize their regulatory agencies? As to timing, I don’t know.
Thanks, looks like it’s still a good idea to have some old coins stuck away for a rainy day. :)
The long term value of gold is the cost to produce it, plus net profit (which should factor in the risk for market volatility), and overhead.
Even at $1300/oz or even less, there is plenty available in the long term.
How does this hurt us?
Why would I care about a collapse of foreign trade?
Such a sentiment, even if I had it, wouldn’t save the premise of the idiotic article.
If China mines a lot of gold, and buys a lot of gold, they are going to get killed financially on that investment at some point.
It helps us by making the dollar look better than it really is, which is why we’re doing it. As long as the game can go on. But if it ends, the price of gold skyrockets, and because gold is the inverse of the dollar, the dollar takes a big hit. That could destabilize the world’s financial markets.
One fact is that the US is printing more and more dollars while increasing the national debt; and the other is that the price of gold is essentially going down when that price should be going up thanks to the printing of more and more unbacked - by gold or silver - dollars.
One good indicator is that the price of gold stocks are not going up, and it's my opinion that the US government is actively selling gold stocks to prevent their stock prices from rising as they should be given the coverall price inflation we are seeing month after month.
The bubble will have to burst, and I don't think the market crash is far off.
Unless they work with the BRICS nations to issue a gold-backed yuan, which is the current plan. If there is a question to the stability of the dollar, this would become an alternative to the dollar for trade.
You aren’t grasping what a cheap Dollar means to foreign trade on the one hand, and to our domestic economy on the other.
No wonder you liked the idiotic article.
I think they are planning to kill off a ton of Americans. Remember that one home grown terrorist said 25 million Americans need to be killed off. They are awaiting their marching orders.
The investment banks that execute the policy of the Fed and Treasury have been naked shorting gold mining stocks so that certain privileged companies can acquire these gold companies at bargain basement prices, something called a “stink bid”. Yesterday a Chinese company acquired a significant junior gold miner with a stink bid.
Good.
The current strong Dollar harms the U.S. economy.
A weak Dollar will improve the economy by making domestic goods seem cheap while making imported goods look expensive.
We don't *want* the Dollar to be the world's reserve currency.
A strong Dollar props up the rest of the world at U.S. expense.
The fact that we have the reserve currency of the world permits us to behave in a profligate manner with respect to entitlements and war. To lose that status would mean that we would have to finally accept economic reality, something of which I approve. The problem is how people would react to strict financial discipline. It won’t be pretty.
Careful what you wish for, you just might get it!
Are you ready to wake up one morning soon in the future, stop to get gas on the way to work, and pay $14.00 a gallon?
Because that’s what it means!
http://www.youtube.com/watch?v=2N8gJSMoOJc
You don’t understand the price mechanisms for fuel, then.
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