Saturday, March 21, 2009

Obama Printing Money Into Hyperinflation - U.N. To Recommend Ditching U.S. Dollar


Average Joe said...

Hi Randy:

I found your blog a couple of months ago and have been back each day since - great articles and info!

Anyways, Gold seems to be a definite safe haven in todays economy and something I am interested in pursuing. However, I have limited knowledge about purchasing gold.

What options are available for the average joe - I'm not asking for financial advice but a "process" on how I could research this.

Randy said...

Average Joe - I would suggest purchasing physical bullion (Gold Eagles, Buffalos, Austrian Philharmonic, Krugerrands, Canadian Maples, Swiss Franc, etc). Stay away from Numismatics (much higher premium) until you better understand the market and what you are doing. That's not to say they aren't worthwhile (I own quite a few), but you can easily be raped without even knowing it. Learn much more before playing with these.

With that said, Silver (the poor man's gold) is also likely to be a safehaven market w/potentially larger gains than gold... However, understand silver typically experiences wilder swings in price, but when it rockets up, there is nothing else like it! BTW: Silver/gold price ratios have been 16/1 for hundreds of years, yet today the ratio is ~ 75/1 - much more upside potential.

Suggest you use one of the dealers listed on the right side of my Blog for either or both. Know however that I get absolutely nothing out of it by refering you and you are free to use whoever you want, but believe me when I say that I've used others and have had to learn the hard way (paying too much)... By using some of the major dealers that you see/hear on TV and Radio you will likely be pressured by commissioned sales folks who will prey on your lack of knowledge and they will try to sway you into products with premiums as high as 30-40% -- stay away!!!

Dealer Recommendations:

With that said, I've had very good luck with non-commissioned Ken Slater at (link on right) and David at superior Silver (link also at right).

Price structure:

Understand you can rarely IF EVER find physical gold or silver at SPOT prices. There is always a premium.

Additionally, there is a buy price (what the dealer will pay YOU for your gold or silver) and a sell price (what you will have to pay for the dealers gold or silver)


Friday Closing SPOT price for gold was 953.60oz, but if you were to look at their "BUY Price on a 1oz Eagle (what they would give you for it) is $996 and their "Sell" Price for the same Eagle is $1036.

Hope all this makes sense and was useful.


MoneyAsWealth said...

"B" as in B, "S" as in S.
Pure and utter misinformation.

There are so many errors in this video that my head hurts.

"Print Money", indeed. Do you really think that (despite them showing the printing presses rolling, as usual) that they are going to "print" $1 Trillion?

No, they are not. They are going to purchase Treasury Securities with electronic bookkeeping entries (don't look surprised, that's how all money is created) - driving the US into deeper debt. As if $147 Trillion (documented on the blog listed below) is not enough.

Beware when you hear people parrot the phrases "print money" and tell you that damn story about Germany. You are about to get misinformed. You have got to ask yourself, why does everyone know that story (misinformation) and NO ONE seems to understand that banks create ALL of our money as debt (loans) and therefore there is no money EVER created in the system to pay the interest owed, thus creating a system that requires continuous and ever growing loans to operate? Why don't they ever know how the system works but they never miss a beat to tell the Germany story? More on Germany below.

You were lied to in college and your smart friend is full of crap like a young crow (gasp!). Think about it, if they can "print" money why does it drive up the debt? Because they are loaning it out, not printing it up. BIG difference. If you could print your own money, would you b in debt?

Propaganda. You buying?

Unpayable interest causes inflation. Interest in the hundreds of percent causes hyperinflation. The interest rate in Germany was 900% (documented on the blog mentioned in this post) and the interest rate in Zimbabwe was 800% the last time it was reported. The overnight lending rate in Zimbabwe was 10,000% 10,000%!! Do you imagine that you would have to raise your prices several times a day, if you were a shopkeeper with a loan? Of course you would. Interest rates in the hundreds of percent are what cause hyperinflation. In Zimbabwe the banks manipulated the interest rates and refused to make payment for the gold they took, in order to shut the mines down and buy them at pennies on the dollar – then take the gold, platinum and diamond mines. Read it on the blog noted in this post. I am not making this up.

If you want the truth dig for it here.

If you want to ape the rest of the "experts" that could not predict this, do not understand what it is, have no idea how long it will last, how much it will cost or how to fix it - go ahead. They are clueless. I can prove it. You will be able to as well. You have to learn the difference, because you're up. It's your turn to fight for your country - fight with knowledge. Grandma can't and neither can the school kids. Tag, you're it.

When everyone is following economic theory from guys born in the last century who could NEVER have imagined trading debt around the world at the speed of light, what do you expect? These horses of economic theory are ready for the glue factory.

THINK! IF all of our money is created as loans (loan principal)- THEN none of our money can be available to pay interest - it is obligated as a principal payment.

Hey, you've taken out a loan, right? Did they give you the principal only? Or did they give you the principal AND the interest - so that you could pay them back principal and interest? Nope. Just the principal, right? Where does the interest come from? Where? Don't say "work" or "production" - the banks do not take that as an interest payment. They only take money. Answer: The interest comes from another loan. You can never borrow yourself out of debt.

EXAMPLE: Me, you and three others in a room. The door is closed. The 4 of you are playing poker - I am not playing. I am the only one that can give you chips. I only loan them out - at interest. I loan the four of you 10 chips each and charge 10% interest. 40 chips are out. 44 are due. No one has dealt a single card and already the debt (44 chips) is greater than your collective ability to pay (40 chips)!

Play on. I'll guarantee that no matter how hard you "work" or what you “produce" you still only have 40 chips. I will only except 11 chips from any one of you, as payment - that's what each one of you owes, right? At least one of you will go bankrupt - GUARANTEED - to cough up the chips so the others can pay me back. The amount of chips will NEVER increase until I loan more out. The group will ALWAYS owe more chips than they have. Always. That’s our economy. As long as a new guy pulls up a chair and borrows 10 chips, it all looks like it will work. But it does not.

This economic downturn, and all of them that we ever have, is as predictable as the poker game describes. And the answer is obvious. There needs to be chips that do not enter the game as a loan.

So, too, there needs to be money in our economy that does not start as a loan. Now, there is NONE.

Minnesota has bills before its legislature that will fix this glitch in the economy. It can be done state by state, is constitutional, will help the people and the banks, will create many, many jobs, will eliminate every single tax that is used for roads and bridges (fuel tax, wheel tax, some property taxes) and is one of the easiest fixes imaginable.

Don't say "it can't be done" - we do what we decide to do. Whether it’s climb Everest, find the Titanic or build an artificial heart. Make it happen. Pass the law. Otherwise your economies are going to collapse and you will have NO money.

Your country's sovereignty could collapse - many countries are already calling for a world currency. More folly. It too will be a debt pyramid and collapse.

The calamity that will be caused by ignorance, pride and greed will be immense.

There is enough information about the solution here:
For some answers: Money As Wealth, Read Bottom to Top

If you use debt for money, that means that you have to borrow to pay interest - THINK ABOUT IT. It cannot work.

Randy said...


I believe (for many of us here)you're preaching to the choir.

Yes, I and many others here are well aware of your main point and for those who are not, I urge them to watch the following videos:

Money as debt

How money is created

Fiat empire

Money As Wealth said...

I need the choir to send emails to Minnesota legislators - you can do it through the blog listed in the previous post. It took me all of 2 minutes to send to both committees that would hear the bill.

Help us out - it will help you out.

If Minnesota gets this passed, other states will follow and we can turn this around.

Even though you are not in Minnesota, urge them to have a hearing - the first state through is the tough one. We are very close.

A lot of people can agree on the problem.
This is a viable solution.

We could use the support.

Average Joe said...


Thanks much for your response. It was very helpful and appreciate you taking the time.

- Average Joe