Currency expansion

MrEnglish

Very good post Tom.

I love monetary history too.

What do you think gold will go to this bull run? $10K oz?

tomterm8

MrEnglish wrote: »

Very good post Tom.

I love monetary history too.

What do you think gold will go to this bull run? $10K oz?

I'm fairly bad at predicting the gold market. Your guess is as good as mine. Over the very long term, gold remains fairly stable. Over a human lifetime, it's not anywhere near as stable, and there have been periods of twenty or thirty years where it is a losing proposition. My personal preference is for silver, since a very large percentage of the worlds silver supply has been mined, and silver (unlike gold) is fundamentally quite a useful thing. Used in electronic equipment, and slowly running out. Fundamentally, even if SHTF doesn't happen, I think silver will increase in value.

MrEnglish

tomterm8 wrote: »

I'm fairly bad at predicting the gold market. Your guess is as good as mine. Over the very long term, gold remains fairly stable. Over a human lifetime, it's not anywhere near as stable, and there have been periods of twenty or thirty years where it is a losing proposition. My personal preference is for silver, since a very large percentage of the worlds silver supply has been mined, and silver (unlike gold) is fundamentally quite a useful thing. Used in electronic equipment, and slowly running out. Fundamentally, even if SHTF doesn't happen, I think silver will increase in value.

Yes and is it true that every year for several years now that more silver is used up industrially than is mined?

If this is true how long before we run out of silver stockpiles?

MrEnglish

Generali wrote: »

The IMF hasn't given a trillion dollars to anyone I'm aware of.

Generali

"Fears that the $1 trillion super-financing package for heavily-indebted European countries will not-be far reaching enough has only served to spike interest in gold. "


http://www.iii.co.uk/articles/articledisplay.jsp?article_id=10095909&section=Markets

The Western financial world is officially in full panic mode. A nearly $1 trillion bailout of Greece confirms that fact. Our very own Federal Reserve is providing billions to the effort, but this is much more than a bailout for Greece. It is a bailout for banks holding Greek debt and the debt of other European nations teetering on default.

http://usawatchdog.com/gold-is-money/

RDB

IMF meeting solution find a new worldwide form of money.

http://www.imf.org/external/np/speeches/2010/051110.htm

Very good interview about it.

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/5/13_Jim_Rickards.html

PrivatisetheNHSnow

tomterm8 wrote: »

Oh... first nobel prize economics winner who agrees with fractional reserve banking for the day: Krugman. Now you find me a living nobel prize economist who thinks we should return to the gold standard.

you seem to imply fractional reserve banking and a gold standard are opposites. they're not.

when countries like the US were on the gold standard, they had fractional reserve banking too.

a fractional system is sustainable as long as there are no bank runs - it doesn't matter whether commercial bank reserves are fiat money or gold.

the reason rome's system collapsed is the same reason our system will collapse - because it is based on exponential expansion of interest bearing credit-money. when credit expansion stops, and all savings and capital inflows from other countries dry up, game over.

like us rome tried to stave off collapse by the equivalent of the government 'printing money' (debasing the coinage). but if you increase/debase the money supply without increasing production in the economy, then the value of money becomes decreased very quickly, leading to consequential social and economic problems.

RDB

RDB wrote: »

IMF meeting solution find a new worldwide form of money.

http://www.imf.org/external/np/speeches/2010/051110.htm

Very good interview about it.

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/5/13_Jim_Rickards.html

Anyone else following the story of the IMFs proposal for one worldwide currency?

tomterm8

PrivatisetheNHSnow wrote: »

you seem to imply fractional reserve banking and a gold standard are opposites. .

I certainly didn't intend to do so; I was talking in the context of previous posts in the thread. I don't think there is any realistic prospect of returning to a gold standard.

StevieJ

RDB wrote: »

When all the childish playground stuff is finished, can you take it somewhere else.

This Ron Paul

http://www.youtube.com/watch?v=CtvHAqK8P14

is 100% correct that the Greek bailout money is just added to the currency supply out of thin air.

If anyone disagrees with this, where does it come from?


Or like Tomterm8 who thinks that abusing currency supply like this is actually a good thing.


http://www.chartingstocks.net/2009/06/us-money-supply-updated-chart/

The German taxpayers will be glad to hear that, I think they think it is coming out of their back pocket

RDB

StevieJ wrote: »

The German taxpayers will be glad to hear that, I think they think it is coming out of their back pocket

What do you think Steve, where does the one trillion come from? Thin air?

Why not 10 trillion? Wouldnt that be better?