fiat currency Archive

  •  Nations still printed and controlled their currency. But securitization gave banks the ability to print their own currency. And this new securitized currency, based on debt, was theirs to print, control, spend, and ultimately to debase. In short, it gave banks a power to rival nations. It is worth, therefore, understanding its outlines at least. Please don’t panic. Like most financial stuff its not nearly as difficult as the priesthood would have you believe.

    Securitization – the Undead heart of the Shadow banking machine – Part 1

    Nations still printed and controlled their currency. But securitization gave banks the ability to print their own currency. And this new securitized currency, based on debt, was theirs to print, control, spend, and ultimately to debase. In short, it gave banks a power to rival nations. It is worth, therefore, understanding its outlines at least. Please don’t panic. Like most financial stuff its not nearly as difficult as the priesthood would have you believe.

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  • Some say that the gold price rises and falls, but they are grabbing the wrong end of the stick. It is the purchasing power of national currencies that rise and fall. Here is an analogy to make this point clear. When standing in a boat and looking at the shore, it is the boat (currencies) – and not the land (gold) – that is bobbing up and down.

    Determining the value of gold

    Some say that the gold price rises and falls, but they are grabbing the wrong end of the stick. It is the purchasing power of national currencies that rise and fall. Here is an analogy to make this point clear. When standing in a boat and looking at the shore, it is the boat (currencies) – and not the land (gold) – that is bobbing up and down.

    Continue Reading...

  • Gold should be thought of as a currency, one which pays no interest. Dollars, euro, yen and other currencies can be deposited to receive interest, and this rate of interest is meant to compensate for the decline in the value of paper currencies via inflation. Gold, in contrast, maintains its real value over time so no interest is necessary.

    PIMCO On Gold – The Simple Facts

    Gold should be thought of as a currency, one which pays no interest. Dollars, euro, yen and other currencies can be deposited to receive interest, and this rate of interest is meant to compensate for the decline in the value of paper currencies via inflation. Gold, in contrast, maintains its real value over time so no interest is necessary.

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  • "Bernanke is so bad that we should wish to return to the age of Marriner Eccles in 1935 - a fiscal Keynesian who believed that money-printing would fuel speculation and inflation; if the government were going to rob the people, it should do it the honest way - through taxes"

    How Crony Capitalism Corrupts the Free Market | David Stockman

    "Bernanke is so bad that we should wish to return to the age of Marriner Eccles in 1935 - a fiscal Keynesian who believed that money-printing would fuel speculation and inflation; if the government were going to rob the people, it should do it the honest way - through taxes"

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  • I have dealt with gold investors for over forty years. Their checks are always good; they honor every commitment, stay informed on current issues, and have a profound understanding of history. They provide for their families, and they don't go broke. I can assure you that many, many of them have done very well with their gold investments.

    Gold and the New Yorker Magazine

    I have dealt with gold investors for over forty years. Their checks are always good; they honor every commitment, stay informed on current issues, and have a profound understanding of history. They provide for their families, and they don't go broke. I can assure you that many, many of them have done very well with their gold investments.

    Continue Reading...

  • If they think that government will ever be neutral towards the gold market, they are fools. It is equivalent to thinking the US government — or any government for that matter — would relinquish their ability to collect taxes. To protect the corrupt stranglehold they impose on the economy, the insiders will violate every commandment. Intervening in the gold market is just a minor chore.

    The King Doesn’t Like Gold, Never Has, Never Will — Unlike Mr. Chang

    If they think that government will ever be neutral towards the gold market, they are fools. It is equivalent to thinking the US government — or any government for that matter — would relinquish their ability to collect taxes. To protect the corrupt stranglehold they impose on the economy, the insiders will violate every commandment. Intervening in the gold market is just a minor chore.

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  • Most importantly, somehow, we have traded-away all that Gold & Silver in exchange for funny money, paper certificates claiming ownership of something intangible and more than likely with a counter-party (or 20), cheaply made tangible assets which need replacing regularly, and a population of zombies completely and utterly addicted to trinkets (iPhones, GalaxyS, iPad, Play Stations, X-Boxes, Facebook, Twitter {for Twits}, Farmville etc)…where did all the real wealth go, and who has it…who are the modern world Conquistadors who have swindled us?

    Traded Worthless Items for Real-World Goods

    Most importantly, somehow, we have traded-away all that Gold & Silver in exchange for funny money, paper certificates claiming ownership of something intangible and more than likely with a counter-party (or 20), cheaply made tangible assets which need replacing regularly, and a population of zombies completely and utterly addicted to trinkets (iPhones, GalaxyS, iPad, Play Stations, X-Boxes, Facebook, Twitter {for Twits}, Farmville etc)…where did all the real wealth go, and who has it…who are the modern world Conquistadors who have swindled us?

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  • It’s a prudent idea to heed this lesson from Italy, for as the banking malaise in southern Europe spreads, cash is likely going to be a premium asset in the rest of the world as well. And it certainly makes sense for individuals to have some holdings of cold, hard cash in addition to physical metal.

    Why You Always Want Physical Everything

    It’s a prudent idea to heed this lesson from Italy, for as the banking malaise in southern Europe spreads, cash is likely going to be a premium asset in the rest of the world as well. And it certainly makes sense for individuals to have some holdings of cold, hard cash in addition to physical metal.

    Continue Reading...

  • The evolution of currency systems over the past two centuries, as it turns out, is far more exciting than is usually let on (think political thriller as opposed to economic textbook!). GoldMoney presents, in all its glory, the quixotic history of exchange-rate regimes from 1821 to the present day.

    History of Exchange Rates

    The evolution of currency systems over the past two centuries, as it turns out, is far more exciting than is usually let on (think political thriller as opposed to economic textbook!). GoldMoney presents, in all its glory, the quixotic history of exchange-rate regimes from 1821 to the present day.

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  •  The one thing I can guarantee, however, is that when gold and silver finally make new highs, and they will, some of the ferocious moves higher are absolutely going to stun a lot of people as most of the general population never takes the time to understand the bankster gold and silver manipulation game and therefore never recognize the true dynamics of the physical gold and physical silver markets that are never reported by the bankers and rarely reported by the mass media.

    With Gold & Silver, Why Does the General Population Consistently Get the “Buy Low, Sell High” Mantra Backwards?

    The one thing I can guarantee, however, is that when gold and silver finally make new highs, and they will, some of the ferocious moves higher are absolutely going to stun a lot of people as most of the general population never takes the time to understand the bankster gold and silver manipulation game and therefore never recognize the true dynamics of the physical gold and physical silver markets that are never reported by the bankers and rarely reported by the mass media.

    Continue Reading...