Posted on 09/19/2005 9:45:28 AM PDT by AdamSelene235
SAN FRANCISCO (AFX) -- Gold futures climbed to a high of $472.40 an ounce, a level not seen since 1988, according to monthly charts. December gold was last at $471.10, up $7.80, or 1.7%. Prices found support as rallying energy prices sparked worries over inflation
This story was supplied by MarketWatch. For further information see www.marketwatch.com
I don't believe inflation can be accurately measured. That's a fool's errand for a Soviet bureaucrat, not a free American.
February 2000
PAUL: Good morning, Mr. Greenspan. I see you have stayed on the job in spite of my friendly advice last fall. At least you remember the days of sound money, even if it’s only nostalgia, so I’m pleased to have you here.
We have talked a lot about prices today, but for the sound money economist the money supply is the critical issue. If you increase the supply, you create inflation.
If we aim at a stable price level, we’re making a mistake. Technology and other factors can keep prices contained, but if you’re increasing the money supply we still have malinvestment, excessive debt and borrowing.
Someone mentioned that the Fed might be too tight with money. I disagree. The last quarter of 1999 might be historic highs for an increase in Fed credit. Over the last three years the Fed has not once been in the target range for M3. You went over it, in fact, by $690 billion. Everyone likes it now because the bubble is still growing. But what happens when it bursts? Can you reassure me it won’t? Will M3 shrink?
GREENSPAN: Let me assure you we believe in sound money. We believe if you have a debased currency you will have a debased economy. As I’ve said earlier, the difficulty is defining what money truly is. We have been unable to define a monetary aggregate that will give us a reliable forecast for the economy. Until we find a reliable “M” we will go light on the use of monetary aggregates for monetary policy purposes.
PAUL: So it’s hard to manage something you can’t define.
GREENSPAN: It’s impossible to manage something you cannot define.
The CPI is a fraud. The bond market is dominated by Communist Central Planners in China, the idiots who destroyed Japan's economy and the Euro-Marxists. Ignorant is an understatment.
LOL - I love the ex-food and energy figure because, as we all know, people don't need food or heat to survive this winter.
Another great way to spot inflation is the cereal box "presto-change-o" (as I call it). Same cereal, same price, smaller box...
Isn't that a good thing? I thought China is the place to be.
*end sarcasm
He doesn't even speak on the subject anymore. Maybe he thinks it's no use since everyone else in congress is a Greenspan worshiper.
Permanent increases using geometric weighting will *reduce* energy's contribution to the CPI.
This isn't completely true.
I put 1/2 my IRA in one of the gold miners, a move my broker tried & tried to dissuade me from, & the other 1/2 I followed my brokers advice & was diversified across 7 funds in 3 different fund families. Then the tech stock bubble burst. The fund 1/2 of my IRA tanked. My gold stock went up, a little, but still up, & saved my IRA. My fund 1/2 is still below the initial investment and my gold stock is about to double, not counting all the dividends paid out.
That's amazing. Is it actual Fed policy?
What I meant to say is is that from an actual Congressional Record? Is there a citation for it?
Yep.....Right church, wrong pew?....Not even that is close anymore...Sad....
We bought in 1999. It was around $280 then.
Jealous?
I've NEVER been able to understand how our monetary systems is based upon gold.
you can't eat it, breath it, drink it, drive your car with it,..... its a freak'n hunk of metal worth nothing more than decorating yourself if you're over 50 and extremely vain, and various electrical conductor work.
never got it.
Or instability, or currency problems, or bad management, or war or, or, or....
I've NEVER been able to understand how our monetary systems is based upon gold.
IT'S NOT! HASN'T BEEN SINCE '71!!
In my view, its primary virtue is the inability of the FedGov to create it out of thin air. Its also compact,chemically stable and subdividable.
IT'S NOT! HASN'T BEEN SINCE '71!!
And arguably for Americans citizens (as opposed to foreign governments) not since 1933 when President Franklin D. Roosevelt in a fit of fascist executive orders bans the export of gold, halts the convertibility of dollar bills into gold, orders US citizens to hand in all the gold they possess and establishes a daily price for gold. He then goes on in 1934 to fixe price of gold at $35 per ounce. Considering he had just finished paying people $20 an oz the year before for following his dictatorial orders this was a pretty big time screwing of average Joe. (They liked it an elected him twice more, go figure.)
Just to be clear. You're saying that you know more than all those bond traders and foreign governments who are buying huge quantities of our debt? They're all being fooled into losing huge amounts of money by purchasing our debt?
You must be a very wealthy person knowing so much more than the bond market, central banks and the like.
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