Gold in Hoards versus Gold on the Go

[escapee]

The following article deserved to be read by all Steve's members who care about the financial future of the world.

Gold in Hoards versus Gold on the Go

Professor Antal E. Fekete

[Still Growing]

I think that the bigger problem is not gold but the fact that the Fed is private. Am I wrong?

Gold is symbolic for value. Now that we have a fiat currency there is not enough backing to secure the value of the dollar.

My real complaint is that the Fed prints money and then charges us interest for it. The more money we print the more money they make. Its my contention that the Fed has way too much power in our economy and hidden power in our gov't.

Its my belief that the wealthy private bankers who own our Federal Reserve have decided to cash in their American investment and to invest into the far East. Do you agree?

[Brutha]

Its my belief that the wealthy private bankers who own our Federal Reserve have decided to cash in their American investment and to invest into the far East. Do you agree?

But at the same time far East invests in America and it invests more into America than American invest abroad. Otherwise America would have a positive trade balance.

[escapee]

My real complaint is that the Fed prints money and then charges us interest for it. The more money we print the more money they make. Its my contention that the Fed has way too much power in our economy and hidden power in our gov't.

I wonder if the excessive power to create money out of thin air is a "major symptom" or a "cause" of going off gold standard. IMO, It really doesn't matter if it's government or fed. When you make it so simple for an entity to create money, hyperinflation and the ensuing collapse of paper money are destined or likely to happen. The history provides many examples of such cases.

Do you trust 10000 ounce of gold or a piece of paper with 1 million dollar written on it ? A million dollar bill is just a paper. I will take 10000 ounce of gold anytime. Nobody would want to trade 10000 ounce of gold with a piece of paper in a barter system ( 100000000x n ounce of wood is probably reasonable to trade with). The continuous worldwide hyperinflation will wake a lot of people up that the wealth they earn is just some cheap paper with " fragile faith installed" by the governments and will depreciate over time. In the meantime, let's enjoy it while it last

"The trifling economy of paper, as a cheaper medium, or its convenience for transmission, weighs nothing in opposition to the advantages of the precious metals... it is liable to be abused, has been, is, and forever will be abused, in every country in which it is permitted." Thomas Jefferson

[escapee]

But at the same time far East invests in America and it invests more into America than American invest abroad.

Right, If i 'm holding bunch of dollars, I would be so keen to invest heavily in commodities ( oil, gas, metals, food, raw material and etc ) rich of productive nations as long as the faith for paper is still there. It should not be surprising to everyone that China, with her huge paper dollar reserve, is so aggressive in pursuing commodities based companies around the world.

China's acquisitions provoke unease: Associated Press Business News: US:AA - MSN Money

[Still Growing]

Originally Posted by Brutha

But at the same time far East invests in America and it invests more into America than American invest abroad. Otherwise America would have a positive trade balance.

Yes but its a different type of investment Brutha.

The investment community has stopped building factories and are pulling out assets. China is not investing; they are loaning. There is a big difference in the final outcome.

Do you understand the difference?

Google for Warren Buffet's "A tale of two islands". You'll find it interesting.

[Still Growing]

Originally Posted by escapee

IMO, It really doesn't matter if it's government or fed. When you make it so simple for an entity to create money,

Escapee, I've been reading your posts and I agree with everything you are saying about the Gold situation...

I think that the plot is much thicker though and that there are those who wanted to go off the Gold Standard for personal gain. I think you should really look into what I am saying because it is so relative to your argument.

You can see the affects of going off the gold standard but I think you should investigate who lobbied for it and why.

What is happening is equivalent to "the fleecing of America". What is happening is that the value and cash is being sucked out of America and the empty shell is there remaining with debt. The money is then being reinvested outside the US.

When the dust settles Escapee I think that some day it will come to light the complex manner in which the country is being fleeced.

The Gold Standard was like a giant shackle that limited the US dollar's ability to circulate more dollars. The Gold Standard was good for having a fiscal responsible country. As soon as we went off the Gold Standard it was like creating wealth out of thin air.

The fact that our Fed is private is very relative. They have the power to create this wealth and then they charge the US taxpayer interest to do it. So they create money out of thin air and then make real money on real interest.

I think that whether the Fed is private or gov't ran is very relative. If you doubt that the Fed is private you can go to their official site and then click on a link they have for Fed Education. This shows their history and they clearly use the word Private.

Entertain the idea I am posing with a "what if".. If what I am saying is true and proveable I think it is very relavent.

[Brutha]

The investment community has stopped building factories and are pulling out assets. China is not investing; they are loaning. There is a big difference in the final outcome.

Do you understand the difference?

You can withdraw loans theoretically, but if China would try to do this on a big scale I would guess that the US would freeze those loans.

Google for Warren Buffet's "A tale of two islands".

If I google that pharse I land on an essay by Chris Leithner. Is that what you mean?