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  • The United States Has Two Choices: Depression Or Bankruptcy [View article]
    That's fine UI. We have a different perspective on what the implications are. I see your perspective as a veneer. That's what it appears to be. But I see the government as the puppets in the big game, being led around by the central bankers - i.e. FED, ECB, IMF, etc. They're certainly integrated, but I perceive the head to lie with the elite, removing them from the spotlight that enriches them.
    Because of this, I don't think it's merely semantics. I think it's foundational to the perspective. It might come to a point where the debate is trite though, because they're gonna do what they're gonna do regardless of our comprehension.

    jhooper - I don't know how to answer your question. The FED is a privately held entity. There's simply no refuting it. I think your debate is whether or not it is privately run, regardless of who owns it, or an extention of the government. I would assert the former, while you appear to espouse the latter.
    Mar 13 03:21 PM | Likes Like |Link to Comment
  • 324 Years Of The Gold-To-Silver Ratio And $195 Silver [View article]
    Very interesting research NL. Thanks.
    Mar 12 11:40 PM | Likes Like |Link to Comment
  • The United States Has Two Choices: Depression Or Bankruptcy [View article]
    We don't need to reason through whether they're private or not. They come right out and say so. This isn't some conspiracy theory or fringe idea. It's really quite simple. In this sense, they've been very transparent and honest, even if their system is corrupt.
    Now, think about this. How much does it cost to print a dollar (or make one up electronically)? They loan these to the US Treasury, charging interest. Then they magnaminously pay a portion of that interest back to the US Treasury. Of course, the US Treasury then turns around and uses that manufactured wealth to borrow more, with interest. It's like giving a free snort to a coke adict.
    Me thinks there is a misunderstanding in who is wagging whom.
    Mar 12 11:38 PM | Likes Like |Link to Comment
  • The United States Has Two Choices: Depression Or Bankruptcy [View article]
    You'll want to do some research on this jhooper. Even the FED makes it clear that they're private. Just go to their website and snoop around.
    You'll want to read Jefferson's comments on central banks, as well as the events that led up to 1913.
    The reason people are punished for not paying taxes is because the government charges us taxes. FED or no Fed, that's just the way it is. Inflation and interest charged by the FED are a form of taxation, but it's done through government power. All the info is out there for you to find with a little research.
    Mar 12 12:36 AM | Likes Like |Link to Comment
  • The United States Has Two Choices: Depression Or Bankruptcy [View article]
    I'm not so sure jhooper. Semantics issues would suggest that the meaning is the same. But I would heartily disagree with that. The Federal Reserve is privately owned. This is why I stated later, "In fact, the vast majority of evidence would suggest that it's the government that's part of the central banks." This way the government is the fall guy for central bank mechanisms.
    Read the 1913 Federal Reserve Act. It makes it clear that the FED is a contract, not a government agency. They print on behalf of the US Treasury... for a slight fee of course. In this sense, we pay taxes in the form of interest and inflation on a regular basis, to the FED via the IRS, whether we like it or not.
    Mar 11 02:50 PM | Likes Like |Link to Comment
  • Silver Update: Correction Will Be Completed Shortly [View article]
    Hey Ed,
    You'll see from my comments and writing that I agree that there is manipulation in the markets. I've discussed this with Avi before as well.
    There's no problem disagreeing. But discrediting Avi without really looking into and attempting to understand what he's saying is a bit disingenuous. He studies hard and has a good track record.
    Frankly, I think both are possible. There's no reason why manipulations in the market cannot fit within waves. I can't know for sure, but the theory certainly seems to fit.
    Avi has challenged my understanding of the markets. I'll disagree with him where I think he's irrefutably wrong, but have gained a great deal of respect for his analysis.
    Disagree if you must. But at least be civil and amiable about it. None of us has it all figured out.

    Mar 11 02:43 PM | 4 Likes Like |Link to Comment
  • The United States Has Two Choices: Depression Or Bankruptcy [View article]
    Hi jhooper,

    A correction... or at least adjustment - A central bank is not part of the government. There are countries where this is so, but in western countries the central banks are private institutions. In fact, the vast majority of evidence would suggest that it's the government that's part of the central banks. Once that's understood, the insidiousness of the fiat currency ripoff is more apparent.

    You are right about taxing power though. It's called inflation. And CBs wield it well. Other than that, only government agencies have the power of taxation. Of course, it's only supposed to be taxation with representation, but that illusion died many years ago.

    As for your vision, it's worked in the past, without a central bank. The mint struck gold and silver coins, which were THE legal tender. There was still inflation and deflation, but it worked out through natural means rather than being exacerbated through manipulative efforts. Taxes were very limited during certain periods, with the government having no issues with revenues. But governments like to make war in order to consolidate power and wealth. The first clear instance of this in America that I'm aware of was the Spanish American war.

    Part of the equation that would spark great debate is in regard to exactly what "its legitimate functions" are. Currently the truly legitimate functions of government are buried in pork.
    Mar 10 10:13 PM | 1 Like Like |Link to Comment
  • The United States Has Two Choices: Depression Or Bankruptcy [View article]

    Thanks for the interaction and sage observations. It was that event regarding the BRIC and South African nations that I was thinking about when I offered my perspective. I see this as a nail in the USD reserve status coffin. It's just another nail though, as you intimated. But I do think it'll be a momentum thing, gaining steam exponentially with each hammer stroke. Kinda like compounding interest :).

    Silver is a bit perplexing, isn't it? As a monetary asset whose supply is diminishing, we'd expect it to rise as supply is consumed. Eventually something must give. I'd expect industrial use to simply diversify into other elements. And it certainly could be a viable replacement for a gold standard.

    Keynesianism is simply a systemetization of ancient methods of stealing wealth. I don't know who originated it, but Rome certainly gained a great deal of proficiency in destroying their own currency. Eventually the can gets so heavy that toes break; game over. It's more than a monetary decadence though. It permeates society, which is something I don't think most folks are ready to seriously consider; let alone do anything about.

    I think eventually the Keynes fad will die as well though. It'll be rinse and repeat for a while. But I'd expect globalization to eventually establish a common system that preserved wealth better. What do I know though? I'm just Another Joe; thinkin' out loud. :)
    Mar 10 06:50 PM | 1 Like Like |Link to Comment
  • The United States Has Two Choices: Depression Or Bankruptcy [View article]
    Nicely developing conversation.

    UI - I wouldn't expect a straight PM currency, for the reasons you've listed. While I think it would be best for stable economies, elitists simply won't allow it, because it inhibits manipulation (doesn't stop it though). But some sort of tie to gold could certainly offer some stability. Lawmakers are incredibly creative. So who knows what'll happen?

    I would disagree with you that hard currency "broke down" though. It worked quite well and provided incredible stability. But the movers and shakers couldn't manipulate it as well. And it didn't lend itself to robbing the populace through fiat interest and inflation. Wilson supposedly admitted that signing the FED into being was the biggest mistake of his administration. We reap the benefits today.

    Interestingly enough, it appears that Germany is inventorying their gold. Why? Switzerland is being called to account for all of their gold reserves as well. This isn't coincidental.

    I would perceive any idea of an energy based credit as untenable, if for no other reason than energy is consumed. It's impossible to maintain a steady value system with a consumable. It would probably be better than fiat though.... hrmmm.

    PFK - you'll get as many different answers to that one as there are people on SA. :) My two cents, since you asked about the long-haul, make sure you have a nice pile of silver. Gold is good - best if you think you have to bolt. But for hoarding purposes, I would expect silver to outperform. Make very good friends with a local coin dealer.
    Some are advocating various currencies, opening accounts in Australia, Singapore or someplace that appears to have a stronger outlook for the local currency.
    Having said that, Avi's observations certainly can't be divorced from volatility. Basically, he tracks volatility as it relates to mood/sentiment, unless I've missed something.
    Mar 10 05:45 PM | 1 Like Like |Link to Comment
  • The United States Has Two Choices: Depression Or Bankruptcy [View article]
    I think a few months ago I would have agreed with you investor. But I think some recent actions are speaking louder than words.
    The petrodollar is still strong, but countries are starting to show resistance; especially in light of the Iran embargo. Even allies like India are willing to take oil in exchange for commodities, apparently.
    China's percentage of USD in reserves is much lower than it was just a few years ago. Furthermore, they've entered into an agreement with BRICs and South African nations to loan them remnibi or their local currencies, rather than greenbacks. Japan and China have been trading outside the dollar for a while.
    Building resentment of the U.S. certainly doesn't help.
    I think the reserve status - or at least the near monopoly of it - is starting to unravel. If so, it'll gain momentum as it goes along, 'till all of a suddon one day it's reduced to a barbarous relic.
    Then we'll have some sort of gold backed system for long enough for us to grow comfortable with it. At that point it'll go fiat again so the elite can fleece the serfs.
    Mar 10 02:45 AM | 1 Like Like |Link to Comment
  • 324 Years Of The Gold-To-Silver Ratio And $195 Silver [View article]
    Thanks for the article Plan B. Good info, with some nice contributions in the comments. It's also interesting to note that, due to industrial usage, the ratio of mined gold and silver available is likely below 5/1. This is based on the fact that 15% of all silver mined in the past decade has been consumed. I shared some of these figures recently here on SA, along with a purdy graph. :o)
    Mar 9 07:07 PM | 1 Like Like |Link to Comment
  • You Can't Eat Your Gold [View article]
    Mar 8 09:36 PM | Likes Like |Link to Comment
  • You Can't Eat Your Gold [View article]
    Sturm and Ruger guard my gold.
    Mar 8 09:30 PM | 1 Like Like |Link to Comment
  • The United States Has Two Choices: Depression Or Bankruptcy [View article]
    Ahh, but only if it fits in a wave. :)
    Mar 7 12:09 AM | 1 Like Like |Link to Comment
  • The Real 'Price' Of Gold [View article]
    I appreciate the article Paul. Your figures regarding what silver and gold confuse me a bit. If a $20 gold coin weighed almost an ounce and a silver dollar weighed about the same, how could their ratio relate to today, at about 50/1?

    "It'd take about the same amount of gold today to buy a bushel of corn or a barrel of oil as it would of have in 1800. And if we paid with silver at the pump we'd be paying about the same for gas now as any other time in our history."
    Mar 6 10:41 PM | Likes Like |Link to Comment