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Title: Fiat Currency Is The Bubble, Not Gold
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Published: Jul 25, 2011
Author: Jeff_Berwick
Post Date: 2011-07-25 14:33:03 by Capitalist Eric
Keywords: None
Views: 5063
Comments: 17
Fiat Currency Is The Bubble, Not Gold Commodities / Gold and Silver 2011 Jul 25, 2011 - 05:58 AM By: Jeff_Berwick There are countless reasons, which we've shown in our public and subscription-based writings over time, why gold is not in a bubble. Aside from all the empirical data, however, probably the most obvious sign that gold is not in a bubble is the fact that the media and the government keep proclaiming it to be in a bubble. The media and the government never see bubbles coming. Just look at Mike Norman, the Chief Economist for John Thomas Financial in 2006, nearly choke on his own tongue laughing at the thought the US housing market was going to collapse on Fox News (fast forward to the final minute). 12/31/2006 Peter Schiff On FOX Bulls And Bears/Cavuto In honor of Mike Norman, we will create the "Norman Indicator". When he appears on Fox News and almost urinates in his pants at the thought of the price of gold going down we will have to re-assess our view. No other "bubble" in history has ever had so many people aware of its existence. It seems every man, woman and child is aware of the gold bubble and is incredibly vigilant to any information or data that agrees with their worldview. As one example, a reader forwarded us this photo they took in San Francisco of a company that was being fairly extravagant (they had balloons!) about wanting to "buy your gold". Surely this must mean the end of the gold "bubble" is nigh! There is a company operating in plain site that is in the gold business! Note, however, that they are buying gold. Not selling. When there are line-ups in every major city and people calling in sick to work to run down to buy gold (like they did in 1980) then, maybe, we are nearing the end. As well, another reader forwarded us an email, stating that Ebay had opened a gold & silver center. Surely, they intoned, this must mark the peak. After all, you can buy billions of things on Ebay and now you can also buy gold and silver. What euphoria! However, the thing is, even if we did start to see euphoria style buying and gold and gold stocks were the topic of conversation at every cocktail party, every taxi driver was giving you gold stock tips and a picture of a golden bear rampaging through Wall Street was on the front cover of Newspeak... sorry, News Week, this still would not necessarily mean gold is in a "bubble". Fiat Currency is the Bubble Today's ADD culture and non-financial literate, government educated populace have forgotten that prior to 1971 gold, or at the very least something tied to gold, was money. Next month truly fiat global currencies celebrate their 40th anniversary. All of the agents of the state and the international fiat bankers have tried for forty years to convince people that gold is a barbarous relic. But the fact of the matter is that this period since 1971 has been the aberrant period and the current rise of gold is not a bubble - it is simply a reversion to the mean, in which gold and silver are a more widespread part of financial and goods markets. It is amazing how well the financial establishment has convinced people that gold is dead. During the 1990s and much of the 2000s anyone interested in gold was considered some kind of an anachronism, sort of like a cross between a stamp collector and a gun nut. As gold rises it will not be a "bubble". It will not rise to a certain number. $2,000. $3,000. $5,000. These are all numbers batted about. But the fact of the matter is that the most likely outcome is that the 40 year fiat currency bubble not only collapses but fiat currencies become completely worthless. The Return of Gold as Money Ben Bernanke, sadly, was correct when he said gold isn't money. However, the day draws very near when he will be incorrect. On that date, Bernanke will likely find himself hiding in a bathroom with a pistol in his mouth or hung from a tree. So, he better enjoy his box seats at Washington Nationals games while he can. His voice quivers every interview because he knows this is coming. Interestingly, much of the "western" world is still quite brainwashed and believe that the financial world for the last 40 years was real. Other parts of the world have never forgotten what is real money and what is not. Global gold demand comes 20% from China and 32% from India. The US and Canada? Only 8% combined. People who have lived off of debt, war and fiat currencies in the western world for the last 40 years are about to realize that almost everything they believed in wasn't true. They will be left holding scraps of paper that, in hindsight, they won't believe they could have been so silly as to think that pieces of paper with drawings written on them were something they considered of value. Fiat currencies are the bubble and they are about to go pop. Your government won't tell you that. The talking heads on TV won't tell you that. You need to find this out for yourself before it is too late.
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#1. To: Capitalist Eric (#0)
Thanks for posting this. It's exactly. I am always amazed at how few people actually understand money.
You mean like loonymom/ming? Or gobsheit?
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984: War is peace. They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished. Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window. This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots... THEIR God... is the STATE.
Or gobsheit? Both of those and more... Include a handful on the so-called "right".
Or gobsheit? Jwpegler posts about me while having me on Bozo, what a chump, but then it's to be expected from a so called capitalist. Hey Pegler..... you need to give that huckster Eric your kid's college fund in exchange for gold that will be kept somewhere else unless you want your house insurance rates to either skyrocket or to invest in an expensive quality safe. But I bet Eric will agree to keep it nice and safe for you. Until he absconds to Russia. LOLOL
A friend of mine fled Czechoslovakia decades ago to escape communism. He often jokes about going back to escape it again. Those who have lived under communism, agree that it stinks!
Obama's watch stopped on 24 May 2008, but he's been too busy smoking crack to notice.
Hitler used communism to solidify his own power. I'm beginning to think American conservatives are using communism in the same way.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
ming, you've no idea what a capitalist is. Not surprising, though- you're typical of the brain-washed sheeple that pass for Americans, these days. So I'm a "huckster," because I tell you the truth... which happens to be in contradiction to everything the MSM talking-heads, politicians, and even the LYING POTUS tell you...? Is THAT it? Paddy Chayefsky nailed you, when he wrote the script for "Network." Here, let me give the quote: We're in the boredom-killing business! If you want truth, go to God, go to your guru, go to yourself because that's the only place you'll ever find any real truth! But, man, you're never going to get any truth from us. We'll tell you anything you want to hear. We lie like hell! …. We'll tell you any shit you want to hear! We deal in illusion, man! None of it's true! But you people sit there -- all of you -- day after day, night after night, all ages, colors, creeds -- we're all you know. You're beginning to believe this illusion we're spinning here. You're beginning to think the tube is reality and your own lives are unreal. You do whatever the tube tells you. You dress like the tube, you eat like the tube, you raise your children like the tube, you think like the tube. This is mass madness, you maniacs! In God's name, you people are the real thing! We're the illusions! You watch a lot of TV, don't you, ming? How else could you be so consistently brain-washed, to think that truth is a lie, and the LIES are the truth? Go back... watch your CNN show, listen to NPR (National Petroleum Radio), and consume the pap that they offer you. You're a perfectly-cultivated useless idiot... just one more mindless member of the herd... Never make the mistake of thinking that the rest of us will join you in your desire to be... a slave.
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984: War is peace. They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished. Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window. This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots... THEIR God... is the STATE.
No one is as in love with you as you are.
------------------------------------- He loves every word that someone pays him to post. When he's not at one of those important 'business meetings'.
Anyone who cluelessly posts what you do over disagreements with the price of gold, of all things, has to be a slave already. I know I would never pay anyone one dime who looks so inept, with absolutely no power of persuasion, as you do on the internet.
Given your proclivities to deny objective reality, your words ring hollow. I hope that as reality reaches your door and you struggle to survive, you post the details of your declining lifestyle. I'll be sure to tell you, "I told you so," just so you don't forget. For now? Go ahead and "take the blue pill... and believe whatever you want to believe." Your unfounded faith in the nanny-state government will... disappoint you, of that I have no doubt. No, of course not. You're interested in the more interesting fictions of the evening news. Truth is not something you want, nor something you would pay for. It's easier... it's more comfortable... to continue to believe the lie, than to wake up and face reality. As to what you consider my powers of "persuasion," I rely on objective, measurable facts. The difference between you and I, ming/loonymom, is that I recognize the facts, and am fully aware of their ramifications. You willfully ignore facts which contradict your view (through rose-colored glasses). Like a spoiled child, you foolishly believe that wishing something to be so, will make it so... The continuing economic collapse will either make you change your tune, and grow up... Or you'll die. Either way, I really can't bring myself to give a sh!t...
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984: War is peace. They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished. Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window. This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots... THEIR God... is the STATE.
Yet your post the size of a "treatise" yet still grossly full of wrong ASSUMPTIOBS says otherwise.
If you recognize facts, you don't give much evidence of it. The continuing economic collapse will either make you change your tune, and grow up... Or you'll die. Either way, I really can't bring myself to give a sh!t... Interesting stuff to say - would you care to elaborate?
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
I know reading a couple of paragraphs is hard work... and your lips must get tired. I type very fast, so it's only a few seconds to respond. People who think that measurable and objective facts can be altered depending on their whims, often make such claims. Don't worry, be happy... Carry on with your delusions. Time and reality will cure you of your insanity.
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984: War is peace. They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished. Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window. This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots... THEIR God... is the STATE.
A nonsensical statement. TELL me... are you able to put together a string of coherent thoughts, or do you just babble whatever the idiot-box tells you? My statement was quite clear, and to the point. Figure it out...
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984: War is peace. They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished. Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window. This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots... THEIR God... is the STATE.
Don't worry, be happy... Carry on with your delusions. Time and reality will cure you of your insanity. More wrong assumptions, you are batting 1000 now. No wonder you are a failed businessman doomed to post rantings on third rate chat sites, demonstrating why you desperately need treatment for your Aspergers.
Loonymom: More wrong assumptions, you are batting 1000 now. RIIIIIIIIIIIIIIIGHT................ ((((smirk)))) Talking about making false assumptions... ((((big grin)))) You have NO idea what I do... so you try to attack, to drag me down to your pathetic level of existence. LOL. Oh, when did you start your own forum? Link? Ahh, THERE'S that leftist mentality shining through... Because I reject your delusions, it must be a mental problem on my part, yes? You're a caricature of every leftist wing-nut on the internet... You never fail to entertain me with your pathetic gyrations and rationalizations, vainly struggling to show that the entire WORLD is wrong, reality is wrong... and your delusions are right. You're not nearly as intelligent or smart as you think... in the Bell- curve of intelligence on this board, you're *seriously* at the low end of the spectrum... right there with the rest of your wing-nut ilk.
It used to be the leftists that had bumper-stickers that said things like "Question Authority.' Today they follow slogans from 1984: War is peace. They blindly LOVE Big Brother. They believe competition, pride & profiting from ones labor, are evil things to be banished. Stephen King observed, "The beauty of religion mania is that it has the power to explain everything... [so] logic can be happily tossed out the window. This describes socialists. They will ignore logic and "common sense." They will ignore REALITY. Because THEY are religious zealots... THEIR God... is the STATE.
To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude. — Thomas Jefferson
#2. To: jwpegler, lucysmom, mininggold, godwinson (#1)
Freedom is slavery.
Ignorance is strength.
#3. To: Capitalist Eric (#2)
You mean like loonymom/ming?
To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude. — Thomas Jefferson
#4. To: Capitalist Eric, (#2)
(Edited)
You mean like loonymom/ming?
#5. To: mininggold, Capitalist Eric (#4)
absconds to Russia
"We (government) need to do a lot less, a lot sooner" ~Ron Paul
#6. To: hondo68 (#5)
A friend of mine fled Czechoslovakia decades ago to escape communism. He often jokes about going back to escape it again.
#7. To: mininggold, jwpegler, Hondo68 (#4)
Jwpegler posts about me while having me on Bozo, what a chump, but then it's to be expected from a so called capitalist.
Hey Pegler..... you need to give that huckster Eric your kid's college fund in exchange for gold that will be kept somewhere else unless you want your house insurance rates to either skyrocket or to invest in an expensive quality safe. But I bet Eric will agree to keep it nice and safe for you.
Television is not the truth! Television is a goddamned amusement park, that's what television is! Television is a circus, a carnival, a travelling troupe of acrobats and story-tellers, singers and dancers, jugglers, side-show freaks, lion-tamers and football players.
Howard Beale, "Network," 1976
Freedom is slavery.
Ignorance is strength.
#8. To: Capitalist Eric (#7)
Why don't you make like a tree and get out of here?
#9. To: Biff Tannen (#8)
No one is as in love with you as you are.
#10. To: Capitalist Eric (#7)
Never make the mistake of thinking that the rest of us will join you in your desire to be... a slave.
#11. To: mininggold (#10)
Anyone who cluelessly posts what you do over disagreements with the price of gold, of all things, has to be a slave already.
I know I would never pay anyone one dime who looks so inept, with absolutely no power of persuasion, as you do on the internet.
Freedom is slavery.
Ignorance is strength.
#12. To: Capitalist Eric (#11)
(Edited)
Either way, I really can't bring myself to give a sh!t...
#13. To: Capitalist Eric (#11)
I rely on objective, measurable facts. The difference between you and I, ming/loonymom, is that I recognize the facts, and am fully aware of their ramifications.
#14. To: mininggold (#12)
Yet your post the size of a "treatise"
yet still grossly full of wrong ASSUMPTIOBS says otherwise.
Freedom is slavery.
Ignorance is strength.
#15. To: lucysmom (#13)
If you recognize facts, you don't give much evidence of it.
Interesting stuff to say - would you care to elaborate?
Freedom is slavery.
Ignorance is strength.
#16. To: Capitalist Eric (#14)
People who think that measurable and objective facts can be altered depending on their whims, often make such claims.
#17. To: mininggold (#16)
ME: People who think that measurable and objective facts can be altered depending on their whims, often make such claims.
Don't worry, be happy... Carry on with your delusions. Time and reality will cure you of your insanity. No wonder you are a failed businessman...
...doomed to post rantings on third rate chat sites...
demonstrating why you desperately need treatment for your Aspergers.
Freedom is slavery.
Ignorance is strength.
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