ANON COMMENT –
‘My message goes beyond buy gold.
I am an individual who is not a trained economist. for decades I could not follow the reasoning of the main stream press commentaries and the analyses of the economists
About nine of 10 years ago a man walked into my office late at night, abot 10.30 pm where I was doing some planning for the next day. he stayed 3 hours and at last I had a glimmer. He explained what he was doing and why and it resulted in my reading various web sites 30 hours a week. Bit by bit it seaped in and piece by piece the gaps filled and I began to understand.
The credit cycle of boom and bust is the direct result of the fractional reserve banking system. a deposit is made to a bank and the bank firstly lends out what is not his but also lends out 5, 10, 20 50 times the amount of the deposit. This of course rapidly expands the “money supply” (currency) which devalues the buying power of the currency in existance and so is the causer of inflation. There would be no inflation and no boom and bust without this.
The practice in any other area would be criminal fraud and here it is legal fraud because fraud it is that has been legislatated to be legal. babkers can play this like a fish on a line, easing credit and then tightening it, boom and bust.
Fractional banking must be banned. fraud is not allowed by society why here?
An economy does not need an expanding money supply to have a vibrant expanding economy and one which by its nature is mildly deflationary as goods and services become cheaper through efficiencies.
Money is essentially a commodity. Unlike fiat paper money which is not. Originally commodities were traded back and forth in a system of bartering that seems to be neolithic in origins. One or two commodities exhibited characteristics the others did not possess. Some had atributes the others did not have but some had the following that made them useful as a store of wealth, and a means of exchange.
Portability for high value in small amounts, readily exactly divisible, Readily recognisible, Consistant in quality, durable, and indistructable. Gold and silver have intrinsic value as they have to be worked for to be produced out of the ground.
Gold was the natural choice in the majority of places with silver for day to day transactions and copper for spare change.
As gold is money let us consider a fixed supply in an economy. As the demand for money increases it goes out of circulation and is saved. As busines continues the rest of the gold left in circulation must do the job as a means od exchange and so less money is allocated against the goos and services and so less gold is need to obtain them. In other word the same amout buys more goods. or the value of the money increrases. this causes some of the savers to look at the opportunity cost of holding the gold and thet decide to purchase.
This puts money back into circulation and raised the price of the goods. So the value of money drops. With unlimited numbers of people making these decisions there is always just enough money in circulation. with inovations in production goods get cheaper over time and so their are more goods and services in the economy and everyone is better off.
any addition to the money supply induced in to the economy addsa distortion that has an unexpected result. Thus the addition of new money disrupts the economy and benefits only the holder and owner of the new money to every one else’s expence.
people buy gold because they do not trust the fiat paper money to hold its value. They are correct.
I do not see it as a thumb in the dyke but as a wall being built around your wealth and assets to protect you from the ravages of inflation
Every ounce bought is a brick torn out of the castle wall of the bankers castle of oppression.
Bankers hate gold because it is universal money. goods and services can be bought using gold anywhere in the world. It is money everywhere and anywhere.A canadian Maple leaf .999 pure will sell for goods anywhere in the world. Not so canadian fiat currency
Bankers HATE gold as it rings the death knell on their ponzi scheme.’
ANON COMMENT –
‘As far I know when you introduce a good currency a bad currency like the euro will drive the good currency out of circulation because the citzens will hoard the silver coins. I agree with gold but their is manupilation for political purposses of gold so you would need to be very careful.’
ANON COMMENT –
‘You are absolutely correct.
The idea is to have the silver coin issued along side the fiat currency. This does not disrupt the current system.
Issue the silver coins and yes they will be saved. The people are desperate to have a method of saving not subject to inflation. The demand for the coins will be huge. In North America the minting of Silver Maple Leafs and Silver Eagles out paces the new mined supply of silver annually. Think of that. North America already has a silver current account deficit.And these coins are not monetized. The silver Maple Leaf hs $5 stamped on it when it is worth 35 on the market.
The production of a Euro or Irish silver one ounce coin will be devoured in a similar fashion.
not until savings needs are satisfied will the coins begin to circulate.
The silver coins will circulate because the mandated monetary value of the coin is guaranteed to always be 20% higher than the spot world price for silver.
The monetary value of the coin will only rise with inflation and can never fall. It must be issued with those guarantees. Because of this it will only be spent in the local monetary system but unlike bank notes will have an intrinsic value which will be recognised around the world. The coin can not be devalued, ( a bank note’s intrinsic value is zero), below its intrinsic value which is the world price for silver. It’s melt value.
Only if the coin has a fixed monetary value stamped upon it will it go out of circulation as the value of the silver in the coin exceeds the monetary value.
There will be no stamped value on the coin, just the weight and purity of the silver. Once the savings are saturated and the coin moves in to circulation will people start pricing goods by how many ounces of silver. Like, How many ounces did you spend to buy the car.
At some point when the premiums are eliminated in the open market, for these coins, the coin will circulate.
Savings in an economy are the bedrock of prosperity. Savings mean people do not spend. The part of the economy producing the consumables will slow and release the resouces that are chanelled in to research and development. Research and development is funded by savings. The research and development create new products and efficiencies that tempt people to spend and the savings thus are moved back into circulation and the improved economy benefits all.
IT IS NOT ANY LONGER A DEBT BASED ECONOMY AND IS NOW PRODUCING TO MEET REAL DEMAND.
Our current debt based economy creates distortions that send false messages to the buyers and sellers and so we have goods produced that there is not a real demand for. People spend as they are deluded by the lower interest rates into thinking the economy is better than it is. The induced inflation causes people to further indebt themselves to buy today what they should not buy until tomorrow if at all.
You are correct about the gold manipulation but is is a suppression of the gold price to discredit it as an asset and money. Gold is the Achilles heal of the bankers. All smart money is accumulating gold including the the money powers behind the banks. Only western countries have rid themselves of the gold. More countries are accumulating than not. The quoted price mechanism is on the paper market. there is only onr ounce of physical gold available for every 50-100 ounces sold. It is a fractional reserve system. Every physical ounce bought and held in hand puts the squeeze on the system. There is a shortage of physical gold and the rest is another paper ponzi scheme which at some point will collapse.TThen the price of bullion will soar. Middle east counties are buying bullion, russia, china, Vietnam, India, Iran , Turkey etc are all accunulating.
Gold is for the long haul, and you should buy on the dips or ust as you can afford to.buying a little now and then will provide and average buying price that will level out. I have not worried about that. I bought when I could and paid the premiums. My last was before christmas. The latest downdraft is still above that but I have not yet covered all the premiums paid. It is the best performing asset of the last 40 years so where is the risk. Be not afraid of gold and silver as they will protect your old age.’
ANON COMMENT –
I find it difficult not to be sidetracked. So I will stick to my subject.
Honest money and silver.
The transfer to the Fereral Reserve of all the monetary policy of the US was the beginning of the modern era of central banking.
The biggest lie is the “We are here to help” suggesting that their mandate is to control inflation.
The central banks with the connivance of the parliamentarians, create inflation. It is said the inflation is purely a monetary event. Any addition to the money supply adds to the inflation.
All inflation creates distortions in the economy of unknown effect until after the event.
Inflation must be eliminated. That means the money supply must be frozen. That means no more deficit budgets. That means the people must save and be encouraged to do so.
Hence my proposal to monetize the silver one ounce coin of guaranteed weight and purity.
One of the functions of government is to maintain standards. The corruption of the money and its issuance leasd to all else. Fiat money schemes have a life expectancy of about 40 years. We are about there for the US. All currencies are today fiat so all currencies are going down. TPTB will try to restor order with a world paper fiat currency and thereby totallt remove soereignty and usher in the universal debt slave model over the whole world.
Silver money is freedom . Embrace it and live free.’