The case against Dr. Paul

[dash]

What purpose could that possibly serve?

When fiat currencies (paper currencies backed by nothing but faith) collapse, people resort to barter and trade. Precious metals come into their own in such times, people always remember them and run to their safety.

The dollar is in the process of collapsing. Too many people owe too many dollars. So too many people will be too happy to have the dollar collapse. Very simple, really.

I'd say wanting multiple competing currencies is a way of avoiding a period where the one single currency collapses and nothing exists to replace it. Barter and trade are slow...slow...slow. That's why money was invented in the first place.

So while dollars are collapsing, introduce a new currency backed by precious metals. Then people can take their choice. If dollars can collapse slowly enough it would be an orderly transition to a PM backed currency. This would be good for economic well-being.

Don't worry, though, as long as the government is able they'll fight tooth and nail any competition to the dollar. So the dollar's collapse is the only thing that can happen.

Now, everything changes if the Fed raises interest rates through to roof. This will introduce a serious recession but will save the dollar. No one in the know realistically expects this to happen though.

-Dave

 

[JEROME DA GNOME]

How does that answer the question? A dollar backed by gold would still be worth a dollar, no matter what happens to the price of gold.

The value would be much more stable.

 

[WildCat]

The value would be much more stable.

Backing one dollar in 50 with gold will make it "much more stable"?

 

[dash]

Don Harrold on The Bear Stearns Takeover

http://www.youtube.com/watch?v=4sZCNlPwG8o

Must-see video.

-Dave

 

[Oliver]

How does that answer the question? A dollar backed by gold would still be worth a dollar, no matter what happens to the price of gold.

You are kidding, right?

Theoretically, a Dollar fully backed by Gold would be worth as much as the Gold's worth itself. In this case the money would be a 1:1 proxy for the stocked Gold itself.

Right now, the Dollar is worth nothing but it's price for printing and a lot of Politicians and Bankers saying it's worth something. But of course: They are right - and Paul is the Nut.

 

[WildCat]

You are kidding, right?

Please keep up witht his thread Oliver.

Theoretically, a Dollar fully backed by Gold would be worth as much as the Gold's worth itself. In this case the money would be a 1:1 proxy for the stocked Gold itself.

And people wonder why I have to keep explaining how there isn't enough gold in the entire world, let alone the US, to back every dollar.

Right now, the Dollar is worth nothing but it's price for printing and a lot of Politicians and Bankers saying it's worth something. But of course: They are right - and Paul is the Nut.

Oliver, did you know that the Euro is also a fiat currency? When will you start making threads demanding the Euro be backed by gold? Do you actually have a clue about anyting? And yes, Ron Paul is a nut.

 

[Suddenly]

http://www.youtube.com/watch?v=4sZCNlPwG8o

Must-see video.

-Dave

Have you seen this one?

Harvard Economics Professor endorses Ron Paul's monetary theories...

 

[dash]

Backing one dollar in 50 with gold will make it "much more stable"?

No one wants to back dollars with gold.

 

[dash]

Have you seen this one?

Harvard Economics Professor endorses Ron Paul's monetary theories...

Is this what Rickrolling means then? Touche.

http://www.xkcd.org/396/

-Dave

 

[WildCat]

No one wants to back dollars with gold.

Your fellow Ron Paul fanboy Oliver does...

 

[dash]

Your fellow Ron Paul fanboy Oliver does...

No he doesn't. You don't understand.

 

[WildCat]

You don't understand.

That's quite possible. Not many here understand Oliver...

 

[WildCat]

In other news, gold is down $88.60/oz since Monday.

 

[dash]

In other news, gold is down $88.60/oz since Monday.

Yep. Silver's way down as well, big selloff on wall street. Lots of chaos! I'm content to ride out the storm. Good time to buy silver + gold, actually. The fundamentals are still there, they're headed up. Expect short term volatility as the Fed and Plunge Protection Team thrash around. Nothing will work though, even corrupt bailouts like Bear Stearns.

We certainly are living in interesting times!

-Dave

 

[Suddenly]

I'll know gold isn't a sucker play when the cheesy advertisments on TV and radio telling me to buy gold and how great it is stop.

Until then, the greater fool theory applies...

 

[JEROME DA GNOME]

Yep. Silver's way down as well, big selloff on wall street. Lots of chaos! I'm content to ride out the storm. Good time to buy silver + gold, actually. The fundamentals are still there, they're headed up. Expect short term volatility as the Fed and Plunge Protection Team thrash around. Nothing will work though, even corrupt bailouts like Bear Stearns.

We certainly are living in interesting times!

-Dave

Someone is paying attention.

 

[Corsair 115]

Yep. Silver's way down as well, big selloff on wall street. Lots of chaos! I'm content to ride out the storm. Good time to buy silver + gold, actually. The fundamentals are still there, they're headed up.

I bet folks who bought gold in 1980-81 were thinking the same thing. Only it turns out they took a financial bath — it took over twenty-five years before the price reached the same highs. And that's in nominal dollars. If you correct for inflation, the folks who bought in 1980-81 have come nowhere near recouping their money.

Inflation adjusted gold price history

 

[WildCat]

How's that "stable" gold doing today? Has it reached $40,000/oz yet?

 

[dash]

I bet folks who bought gold in 1980-81 were thinking the same thing. Only it turns out they took a financial bath — it took over twenty-five years before the price reached the same highs. And that's in nominal dollars. If you correct for inflation, the folks who bought in 1980-81 have come nowhere near recouping their money.

1980-81 was the peak. But remember the 70's was the decade of huge gains for gold and silver. So is today like 1980, or is today like 1973? I say we're like 1973. The gold/silver run has only just begun. And in fact we've got 20 years (1980-2000) to make up for.

Also in the case of silver there is a whole lot less silver in the world, lots more reason for it to rise in price.

Time will tell. I'm happy with my investments.

-Dave

 

[dash]

How's that "stable" gold doing today? Has it reached $40,000/oz yet?

$924.10 after bottoming out at $914 or so. There is so much market manipulation going on it's ridiculous.

Here's an interesting take on the subject -- the gist being the market would be providing signals to investors so they'd know where to invest, but the PPT is busy doing their best to cloud the issues...

http://www.marketoracle.co.uk/Article4069.html

In the PPT's whacky world of virtual reality, all of the informational queues that normally allow investors to make informed decisions are removed – to prevent a widespread panic. It's only for their own good, of course.

You see, father state - and those who finance it – are very concerned about your emotional well-being. You cannot be allowed to see your economic reality as it is, because that might make you not like it and, God forbid, might make you even want to do something about it – like, oh, maybe turn around and walk the other way?

-Dave