It’s Getting Ugly: Economist Says Hoard Gold & Scotch
DriftingByTheStorm
Posts: 8,684
Someone asked the other day, "I guess this is a good time to buy gold", and i offered up a sheepish "maybe yes, maybe no" response. I want to clarify that by saying, while due to the already inflated price of metals, that although it is POSSIBLE that owning metals will turn out to be a loser percentage wise in the short to intermediate term, it is also quite likely that on hand physical metals may be one of the ONLY REMAINING STORES OF VALUE left, if the markets TRULY "meltdown".
That is to say, if shit REALLY hits the fan, the dollar collapses, and markets implode in a violent fashion, ALL your paper assets may be unrecoverable, but gold and silver will STILL BE IN YOUR POSSESION, and will retain SIGNIFICANT VALUE.
But the hesitation is a reflection of a need for everyone to do their OWN due dilligence, and i don't want anyone to come whining if they erroneously pile headlong in to gold, and then can't meet their obligations two years down the road, if gold is off 20% from its high around $1000 and the markets are still reflecting irrational (and inverse) pricing in both paper and physical assets.
SO HERE IS A GREAT INTERVIEW:
Paul Joseph Watson
Prison Planet.com
Tuesday, February 17, 2009
Respected economist John Williams, editor of ShadowStats.com, a popular website that tracks real inflation figures, is advising that people hoard physical gold as well as food items in bulk so that they have some means with which to barter as the economic crisis turns ugly.
“Three or four years into the future I think we could be in a hyperinflation, within the current year you’re going to see much higher inflation than most people are looking at,” Williams told MarketWatch.
Williams said that his definition of hyperinflation would be a situation in which a $100 dollar bill would become more functional as a piece of toilet paper than a store of value.
“This is a time when you want to preserve your wealth and assets because inflation will knock the value out of it,” he added, advising that people buy physical gold and assets other than the U.S. dollar.
“Then when the hyperinflation hits you’ll see disruption of normal commerce, you won’t have enough $100 dollar bills to buy what you want,” said Williams, adding that items to barter with, such as a bottle of scotch, would be more valuable than actual cash, even in large quantities.
Williams said that such items should be procured now in bulk so people had some means with which to barter and get them through rough times.
At least as far back as April 2008, six months before the collapse of Lehman Brothers and Bear Stearns, Williams predicted that the world economy was entering a phase of “hyperinflationary depression” that would peak in 2010.
In a hyperinflation special report, Williams said that the U.S. was on an irreversible course of “financial armageddon” that would likely lead to “extreme political change and/or civil unrest”.
Top trends forecaster Gerald Celente has echoed Williams’ advice, remarking recently that putting food on the table will become a primary concern over buying gifts at Christmas.
Watch the clip here.
That is to say, if shit REALLY hits the fan, the dollar collapses, and markets implode in a violent fashion, ALL your paper assets may be unrecoverable, but gold and silver will STILL BE IN YOUR POSSESION, and will retain SIGNIFICANT VALUE.
But the hesitation is a reflection of a need for everyone to do their OWN due dilligence, and i don't want anyone to come whining if they erroneously pile headlong in to gold, and then can't meet their obligations two years down the road, if gold is off 20% from its high around $1000 and the markets are still reflecting irrational (and inverse) pricing in both paper and physical assets.
SO HERE IS A GREAT INTERVIEW:
Paul Joseph Watson
Prison Planet.com
Tuesday, February 17, 2009
Respected economist John Williams, editor of ShadowStats.com, a popular website that tracks real inflation figures, is advising that people hoard physical gold as well as food items in bulk so that they have some means with which to barter as the economic crisis turns ugly.
“Three or four years into the future I think we could be in a hyperinflation, within the current year you’re going to see much higher inflation than most people are looking at,” Williams told MarketWatch.
Williams said that his definition of hyperinflation would be a situation in which a $100 dollar bill would become more functional as a piece of toilet paper than a store of value.
“This is a time when you want to preserve your wealth and assets because inflation will knock the value out of it,” he added, advising that people buy physical gold and assets other than the U.S. dollar.
“Then when the hyperinflation hits you’ll see disruption of normal commerce, you won’t have enough $100 dollar bills to buy what you want,” said Williams, adding that items to barter with, such as a bottle of scotch, would be more valuable than actual cash, even in large quantities.
Williams said that such items should be procured now in bulk so people had some means with which to barter and get them through rough times.
At least as far back as April 2008, six months before the collapse of Lehman Brothers and Bear Stearns, Williams predicted that the world economy was entering a phase of “hyperinflationary depression” that would peak in 2010.
In a hyperinflation special report, Williams said that the U.S. was on an irreversible course of “financial armageddon” that would likely lead to “extreme political change and/or civil unrest”.
Top trends forecaster Gerald Celente has echoed Williams’ advice, remarking recently that putting food on the table will become a primary concern over buying gifts at Christmas.
Watch the clip here.
If I was to smile and I held out my hand
If I opened it now would you not understand?
If I opened it now would you not understand?
Post edited by Unknown User on
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Comments
Did you not see the Zimbabweans Pan Gold To Buy Bread video i posted on here?
And do you think that the same fundamentals of human behavior would not apply here?
In other words, do you think gold would not function as a similar store of value in the western world, as it is currently doing in a poverty stricken, starving country that doesn't even HAVE any real gold stores to speak of?
If I opened it now would you not understand?
If I watched even have the videos you posted on here, I'd never get off my couch
We've got pawn shops all over this country... what do you get for a gold ring there? A pittance. Gold is only worth something if you have a means to channel it to a society of luxury willing to waste resources on pretty baubles.
It's an intro video for a box set of dvds, called Gold Rush 21 - "a historical gold conference exposing the long term manipulation of the gold market" by the central banks and their bullion buddies...
The conference was hosted by GATA http://www.gata.org - the Gold Anti-Trust Action Committee.
http://www.youtube.com/watch?v=H-r8lzKp ... annel_page
Yeah well.
My point remains, what are you going to buy ANYthing with (baubles included) when the PAPER notes in your pocket aren't worth the ink used to print them?
That is when gold shines brightest.
Further, while in a very lay sense i understand your gripe about gold being merely a "pretty bauble", if you actually bother to really understand monetary theory, this accusation seems to fall away to a deeper realization: gold's uselessness IS it's greatest strength. It's rare, it has a "general consensus" (thank you Obama) of value long determined by history, and it is durable. And BECAUSE it is not used for very many things except jewelry IT MAKES A PERFECT CANDIDATE FOR "MONEY". It isn't a necessary resource so you are not tying up something that could be more valuable in industry. Thus golds MOST SUITABLE USE is simply as a store of value. Sure sure, it's just a shiny piece of metal that makes girls smile. But that has value. Society has determined that going back thousands of years, and it still holds true. How much of any of this can be said for pieces of paper with faces on them?
Here is a better question for you:
what would you RATHER use as money?
If you can't answer that, then you shouldn't really complain about gold having value.
I checked out the previews, and this 8hr set looks amazing.
MARKET MANIPULATION IS A HUGE PROBLEM IN THE GOLD MARKETS.
Gold DOES make a great candidate for money.
But like all good things, it NEEDS A CHECK, or a complement ...
and that is why we were also blessed with SILVER.
If you go back to around the time of the reform movement in our country, when the banks and large financiers were taking over our country en masse ... William Jennings Bryan ran for president on a platform that focused intently on the gold standard and the perils of using ONLY gold as money. The reformers (the "people") wanted gold AND silver as money. Hell he wrote a speech about it: "The Cross of Gold" speech. He addresses the problem directy with talk of "the idle holders of idle capital". The popular answer to the problem of CORNERING MARKETS (in gold, particularly) was to have a DUAL standard, whereby gold AND silver were recognized as part of the monetary standard. SILVER was the PEOPLE's money.
Where the elite money powers could corner and manipulate the price of gold,
the common people could have their money in silver instead, and the more easily inflatable economics of silver could be used to the advantage of the debtor class of society.
Of course, i think today even a dual gold\silver standard may be impractical at a large level for many reasons: silver is allegedly consumed in industrial use to the point that it is a diminished resource, and may not be plentiful enough to use as a money supply on a large scale; the handling of physical coin for computerized institutions is more troublesome than with serialized bank notes; metal is still cumbersome.
I see a perfect world where gold and silver are issued as currencies useable by the people in cases where they want to STORE value, and a NONINFLATEABLE OR STRICTLY LIMITED INFLATIONARY PAPER CURRENCY is used in other areas (as a replacement at the federal level?).
Let us do as Milton Friedman suggested as his ultimate solution and simply abolish the Federal Reserve and END THE PRINTING OF NOTES, thus caping inflation at the base currency level (the dollar) and allowing the markets to create OTHER forms of paper currency to account for any further need to inflate credit.
If I opened it now would you not understand?
Like you said and like I said in my first post... Scotch
lol.
there may be some truth there.
If I opened it now would you not understand?
think about it.. if the economy "really melts down"... what are you going to do with your gold certificates? Shit the computer that tracks it may not be properly maintained or protected.. that requires labor.
If you think the economy might "really melt down" I suggest you hoard two other things:
1. Friends
2. weapons
gold CERTIFICATES !?!
If I opened it now would you not understand?
Hail, Hail!!!
Lots of them...with lots of ammo.
I would imagine that it will be very hard to part with gold in a time of total economic collapse, unless you have it broken down very small, into grams (kind of like that Zimbabwe video), where people were actually panning for it in a river.
I think silver (and maybe even copper will be more manageable) to actually buy bread with. Now, if you want to go buy someone's house, land, or even commercial property, gold might be great for that situation. Imagine buying a house with only 20 or 30 ounces of gold?
It's so hard to picture all of this in America... It is ALMOST unbelievable. But, I can't (and don't want to) bring myself to ignore history. This wreckless printing of our money might bang us tomorrow, or it might bang us 1, 2, 5, or 10 years from now... Who knows? Maybe our government CAN prolong it from happening, and that may not be a good thing by any means... I think that by prolonging it, the crash will only be worse. I would like to believe this myth that we are this pillar that the whole world relies on, that our currency being the world reserve currency is what makes it all work. There may not be a gold standard, but there is a standard, which, for whatever reason, will always hold confidence: the US dollar. But why? Maybe it's just because we've imposed an unwritten legal-tender law on the whole world, and have the military power to enforce it?
Actually, I would really not like our dollar to be accepted primarily out of fear. I wonder if this what is actually happening? Is this at least part of the reason why a currency, that many people consider to be unstable, is still the cornerstone of a world economy?
What I really don't like, is that a group of bankers, who answer to no one, have the power to essentially "dump" our dollar like a falling stock. Will it ever make sense for them to do this? Who knows-- but why allow them to have this power? They aren't exactly Boy Scouts.
Or is all of this just another "Red Scare," another boogeyman?
I have asked myself too many questions for one post, this much I know.
Kinda what I'm thinking. If we're all freaking out about some post-apocalyptic America a la The Road or Escape from NY... your best bet is a gun. Sure, maybe you can barter some shit with gold or scotch, but you can't hang onto it without something to protect yourself. And if you've got guns and plenty of bullets, you can always just take whatever shit you need from somebody else.
Remember the guy who kept telling us that we needed guns and gold?
But, it was supposed to be because half of California and all of Floida would be under 20 feet of ocean due to Global Warming, not because of Wall Street douchebags.
Would he have won that bet about us not being able to buy a pack of cigarettes from a 7-11 with a Krugerrand because there would be no 7-11s?
Hail, Hail!!!
Ha, good times there. I don't remember what the deadline was on that... but I'm pretty sure he lost that bet. His alarmist ramblings were fun. Say what you will about Drifting, at least he's consistent. That guy was all over the map with the coming catastrophe!
Secondly, if everybody swaps their cash money for assets, won't that actually MAKE inflation go through the roof?
Thirdly... SCOTCH? Who drinks that cheap shit? Irish Whiskey is the way to go
I really don't think anyone who can't afford to use money, will be bartering for whiskey.
Verona??? it's all surmountable
Dublin 23.08.06 "The beauty of Ireland, right there!"
Wembley? We all believe!
Copenhagen?? your light made us stars
Chicago 07? And love
What a different life
Had I not found this love with you