Since we're all in this together, all of the 'powers that be' have to maintain a status quo. Hyperinflation, while historically possible seems far fetched in that it is in nobody's best interest.. I think deflation is on the horizon.

mike_mccue


Does anyone ever wonder what made the gold standard a standard?

The choice seems sort of arbitrary, especially for a metal that you can't make a very sharp tool with.

Who decided gold was so special? Why?

I watched this on the boob-tube a few weeks ago. Funny you should ask.


http://www.npr.org/blogs/money/2011/02/15/131430755/a-chemist-explains-why-gold-beat-out-lithium-osmium-einsteinium 

HTH. :-)
Mike

interestingly, the Byzantine empire (I think I'm getting the right name here) used gold as their currency standard and for over 500 years prices and wages hardly budged... there was a slight increase of inflation of a few percent over that time span. 

The situation we are in now (worldwide) is a currency war. (#3 actually) The US is manipulating it's currency trying to gain a trading advantage over the others who are also attempting to destroy, or at least inflate the value of the other world currencies. Interest rates are being kept artificially low, printed (inflated dollars) are being "pumped" into the economy of the US on a monthly basis with no end in sight, and spending by the government is increasing, not decreasing. None of these portend a "good ending" to this situation.  Our stock market is hitting new highs. Not due to business being good, but due to the money being pumped in "for free" which is raising the stock market. When the pumping stops.....hold on. 

Going back to a "gold standard" where every dollar or yen or yuan is backed by an equivalent amount of gold is totally out of the question since doing that would create it's own problems.... equally not good. 

We are sitting in that proverbial place where we are between a rock and a hard place. If we turn right there are major repercussions to deal with and overcome...... same thing if we turn left... and if we simply sit still and continue on the same course, we will encounter problems. So for now, the powers that be continue on the same course hoping to find a good way out where there appears to be none forthcoming. 

As citizens, we are along for the ride. There's not much we can do except prepare the best we can to survive, perhaps in a very literal way.... food, water, shelter, you know, the basics of life. 

I do certainly hope I'm wrong. 

"interestingly, the Byzantine empire (I think I'm getting the right name here) used gold as their currency standard and for over 500 years prices and wages hardly budged... there was a slight increase of inflation of a few percent over that time span."


That is an empire that had an endless supply of conquest and slaves.


It went kaput when it ran out of conquest and slaves.


I don't think I want to be part of that business model.




One thing I find interesting is that there is no actual tradition of a gold "standard" in the United States. Just a series of periods where it has been used in different ways to back up the currency. We've used Silver too.


When people in USA talk about the "gold standard"...  it's a good idea to ask "which one are we talking about?"






best regards,
mike

mike_mccue


It [the Byzantine Empire] went kaput when it ran out of conquest and slaves. 

Maybe, but who among us hasn't had that same problem?

I don't necessarily believe the 'end of the worlders' but we always grew our own food up to a  point here.

Now, if'n you be talkin' 'bout the real end of the world...it would be because of Niburu....

Well, the end of the world is real.  Except for the fact that it will be 3-4 billion years into the future when the sun turns into a red giant...

I would guess that the most likely cause of an extinction level event for humans, would probably be a comet or large asteroid strike although an eruption of the super caldera at Yellowstone is predicted to wipe out 94% of human life.

In 1999, my Dad called me and asked what I thought about buying gold Krugerands. Some dickhead was pushing them as a hedge against the upcoming end of the world on 1/1/00. If the world did come crashing down, I said, who'd need coins? I advised him to invest in something that would still have value: farm implements and seeds.

I'm still kicking myself for not cashing on the YTK hysteria. Oh wait, I did. I made half a million dollars writing YTK-ready software for ignorant government bureaucrats.

bitflipper


In 1999, my Dad called me and asked what I thought about buying gold Krugerands. Some dickhead was pushing them as a hedge against the upcoming end of the world on 1/1/00. If the world did come crashing down, I said, who'd need coins? I advised him to invest in something that would still have value: farm implements and seeds.

I'm still kicking myself for not cashing on the YTK hysteria. Oh wait, I did. I made half a million dollars writing YTK-ready software for ignorant government bureaucrats.

I used to do a lot of commodity trading and, back in September of '99, I had a LOT of gold trades going on (controlling several million dollars worth).  I had more than one day with six-digit gains but, unfortunately, had picked too aggressive of a target and missed it by only a couple of dollars so I lost most of my gains (including one day with a large six-digit loss that was more than my mortgage!).  I still came out over $80k ahead not counting the money I made with all the extra IT consulting I was doing because most of the staff were fixing the so-called "Y2K Bug."  If I had only been a bit more conservative on my exit target, those trades would have netted me at least $400k - oh well...

Well... whatever. I just typed a reply and for some reason the page refreshed and everything is gone.

Nutshell: the FED's policy is really hurting the elderly (WW II vets) who worked regular jobs, saved their money and planned to suppliment SSI and be self sufficient. They cannot do it with 1.5% interest. The FED's policy of printing money is hurting us ALL and is building a dam against market correction. You cannot stop a market correction, you can only postpone it and make it much worse... and (in their minds) somene else's problem. We have some truly evil people in charge I think... but we sit back and let them do it to us, sort of the story of minkind IMO.

Governments fail but the people remain. I'm sure some of our British friends remember the years after the British Sterling lost it's place as the World Reserve Currency and the US dollar took it's place. 1970s. we are quickly headed toward a time when the US dollar will lose out as the WRC and then the USA will have some really hard times. Power blackouts, gas prices through the roof, food will be really expensive and all the people who are accoustomed to someone else taking care of them will become outraged and will be coming for anything they think they can take... so be ready.

I know where a couple of local springs are, know how to cook poke salad, dandelion greens, have an abundance of small game in the woods and am stocking up on both hunting an defense ammo. I happen to like fried squirrel... I guess that is a plus.

J