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lquadland10 (< 20)

News Media really does fear Ron Paul.

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June 14, 2010 – Comments (7) | RELATED TICKERS: GS , GLD , SVL

So listening to the Stock TV station the News Castor's  go after Ron Paul for holding gold and silver and being on the banking committee and he advocates we go back to a gold standard. Then someone else brings up Polosie and the fact that she owns stock in Cline and would head up the climate change bill. If we take Ron Paul off banking then Polosi on Climate. But I do believe the most famous words come from Drum Roll Please ............ Alan Greenspan. Yep. Good old Alan. So I will stick to my gold and silver picks.

7 Comments – Post Your Own

#1) On June 14, 2010 at 3:40 PM, lquadland10 (< 20) wrote:

correction on cline the ticker symbol is clne

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#2) On June 14, 2010 at 4:24 PM, chk999 (99.97) wrote:

The total amount of money in the world is about 50 Trillion dollars and the total amount of gold is 6 Trillion dollars. So how do we make this work? The total bond market is about 80 Trillion. Do we have a 8.5 to 1 deflation?

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#3) On June 14, 2010 at 4:31 PM, blueberrygoo (74.95) wrote:

Or a gold price inflation to 8.5x.  I like the sound of $10,370 per ounce of gold (or $155/oz silver for that matter)!

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#4) On June 14, 2010 at 4:33 PM, lquadland10 (< 20) wrote:

It has been done in the past in America. We could use gold and silver. Remember the silver certificate dollar? The government could even make it 10 to 1 deflation. I see the word deflation as getting back to the original value of the dollar before inflation ( de-valuation) of the dollar.

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#5) On June 14, 2010 at 5:15 PM, chk999 (99.97) wrote:

We also used to have slavery in this country, but I don't think going back to either of them would be a good idea.

Deflation doesn't mean what you think it means. It means a persistent fall in the price of goods. While this sounds like it good, what it means is that everyone that owes money (like everyone with a mortgatge) is really shafted as they have to produce more and more to get the same dollar amount. (And the debts are denominated in dollars in the country for the most part.)

Suppose your debts stayed the same, but your income was cut by 3% every year. What would happen? At first you could economise and still make the payments, but after five years or so there would be no place to economise and you would have to default. Having all the mortgages in the US default would make the recent unpleasantness look like a walk in the park. 

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#6) On June 15, 2010 at 10:04 PM, Diagoras (89.66) wrote:

You could actually accomplish a switch to the gold standard without deflation (or price inflation of gold) by using a fractional-reserve gold system.

However, there wouldn't be much point in switching to gold with that system, since it would still result in money supply growth (which happens when fractional-reserve banking is used due to the same money being in both accounts and in loans). For example, in the 1800's, there was frequently spikes in the inflation and deflation rates due to "wildcat banks" which used fractional reserve banking to the extreme to effectively alter the money supply, even though there was specie backing. This is what would be difficult with commodity money today.

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#7) On June 16, 2010 at 10:41 AM, lquadland10 (< 20) wrote:

chk yes we used to have Slavery. No it was not good. However how did we get them? Oh blacks captured blacks in Africa to sell to the whites. That way they could keep controll of the other tribes. Israel in the old testament kept slaves also. You could also look at it as we are slaves to the FED. any way I am off track. This person can explain things much much better than I ever could.

http://caps.fool.com/player/abitare.aspx

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