Wednesday, November 18, 2009

Great Quote

With the dollar falling further each day and gold continually breaking new records, one might ask why. Well, this short quote sums it up nicely:

"Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves."

While the millions of debt slaves struggle just to survive and keep food on the table, their debt goes unpaid - creating defaults... The Gvt can't allow this "deflation" to happen so it tries to pick up the Debt slave's slack - with their monetary printing presses. This action however creates a whole new "inflation" dynamic (and potential currency crisis) which forces the kings and gentlemen around the globe to run scared - looking for ways to quickly divest themselves of the cratering paper nightmare called the US dollar - and into something that will save their purchasing power - Gold and Silver!

Keep your eyes on 72/71 folks, because when (not if) the dollar falls through it, you will see unprecedented gold and silver fireworks


Anonymous said...

A little off topic but gtk. There's an interesting article on 11/18/09 re "Cash for Caulkers".

BxCapricorn said...

Randy, as a fellow "Vegan", doesn't the situation with the Las Vegas budget, Cosmopolitan, Echelon, Station Casinos, Foutainbleu...just make you wonder how in the World this can end anything but badly?

These stories are given the same reporting "weight" as the topic of smoking in a casino. Who cares?

BTW, if you saw Virgin Airlines flying to Boston/NY for $99, and the other associated deals, along with the $49/room rate for locals at (insert hotel), and don't believe we have DEFLATION in some areas, you're missing the other half of the story. On this side, there's inflation. On this side, there's deflation. There's now a dividing line, based on...something...that I just can't put my finger on, between the two. That "divide" is what's fascinating, to me, anyway.

T Z said...

"..debt is the money of slaves."

True. So why does America collect so much of it? You'd think that the most advanced capitalist economy of the world would rather like to collect equity? Just like Socialist Sweden? :-) said...

Love the quote Randy. Sorry I haven't dropped in lately--- had to take care of other matters (and recharge my batteries) before going full-speed ahead with the blog again.

And I am a better man for it...


Anonymous said...

FANTASTIC QUOTE! I'm putting that on my email footer.


Willy2 said...

I don't agree. I personally expect the dollarindex to (continue to) go UP (!!!) in the coming days, weeks (months ?). A LOT OF folks are "short the USD", so when the trend continues (USD up against e.g. the Euro) a lot folks WILL have to cover their shorts and then we could see a VERY sharp upturn in the USDX. One has to look beyond the USDX. As mentioned before the USDX is for about 60% a USD vs. Eur game.

Take for example a look at the USD vs. AUD. In Australia interest rates are currently at 3.5%. So, one borrows in USD at, say, 1% and lends in AUD at 3.5%. Profitmargin 250% !! No wonder the AUD is going up. But it seems the USD/AUD is going up again.
See e.g. at here and use the code "USDAUD=X".

What happens to gold and silver remains to be seen. It depends on how many folks have gone "long" silver and gold "on margin" and in . So, we could see a sharp pullback in silver and gold as well.

Anonymous said...

Capricorn the dividing line is between the things you need like oil, food ,neccessities going up in price and things u can do without luxuries to the middle class going down in price.

Anonymous said...

The problem is not social ism capitalism or any other ism. The problem is a breakdown of the moral fabic of the US. All anyone cares about anymore (FOR THE MOT PART) is their own pleasure. Right and wrong does exist, everything is NOT realtive and moral absolutes do exist. To bad the so-called higher learning institutions don't teach it anymore.

BxCapricorn said...

It's going to be Tuesday, 11/24, for the next trading session, and Randy, if you're running the spreadsheet, you saw the wall that gold and silver hit early on 11/23. Should be interesting to watch. How about that OWVI.PK? Jamming.

Willy2 said...

Dubai to postpone payments on its mountain of $ 80 billion of debt.

And as a result the USD strengthened. What do you mean the USD is going to be trashed ?

Gary said...

To Willy 2
Ignorance comes out of the mouth of fools.

Willy2 said...

The USD WILL - IMO - strenghten in the coming days, weeks, months. We saw this bearish USD sentiment in the 1st half of 2008 as well. And we all know what happened after june 2008. e.g. the Eur/USD went down from 1.60 to under 1.30 in a matter of months.

Yes, in the long run the USD will go be trashed but the Euro and the Yen will be trashed as well.

Of course, I could be wrong but we'll see what the (near) future brings.
One shouldn't pay too much attention to perma USD bears, perma America bashers like Peter Schiff.
The reason the USD will be going up is the unwinding of the USD carry trade. I also believe the rising USD WILL signal the end of the bear market rally which started in march of this year.