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Avery Goodman

 
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  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    I think you misunderstand what I am saying. The 40 year wandering is enough time for a generational change, and with generational change, societal change is possible That is what the Bible tells us, and it is still true. Most of the new gold bugs, for example, are in their 30's, 40's and 50's. There are only precious handful who are older than 60. That is because most of the older folks were brought up in a world where fiat money was unquestioned, and have difficulty conceiving of another kind of world.

    I remember my father's view, which was that gold should not be invested in "because it pays no interest or dividends." He was quite an old father when I was born. Two generations removed from me, under ordinary circumstances. Almost all people in his generation believed that because they were taught to believe that way. He was a brilliant man in so many respects, and I miss him terribly, but he was incorrect in this viewpoint toward gold. Indeed, the generation that came after his, people like you, have not only given up this anti-gold argument, but are now arguing that gold is rare, in shortage, that people won't part with it because they love it too much, that they will keep it in mattresses, that it is always rising in price over the long term, and that these characteristics make it unsuitable as money.

    The next generation, mine, and the next two generations after mine, contain an increasing proportion of people who want gold to become the monetary standard again. Three generations, and a progressive but dramatic change in views. About 40 years for the first two generations before the dramatic turnaround occurs. That is exactly what the Bible teaches.
    Dec 4 01:33 PM | Likes Like |Link to Comment
  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    "TBTF my ass"

    I'm glad to find we finally agree on something. But, Tim Geithner and Ben Bernanke, who you obviously admire, do not agree. They think some banks are too big to fail, and have stated this publicly. That's why they saved some, while letting others go belly-up.
    Dec 4 01:08 PM | 2 Likes Like |Link to Comment
  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    What is wasteful about it? The Bible is clearly a book containing a lot of wisdom whether or not you adhere to it in terms of religion.
    Dec 4 01:06 PM | 1 Like Like |Link to Comment
  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    Hopefully, not, unless that one world "currency" turns out to be a certain yellow precious metal...
    Dec 4 01:00 PM | 4 Likes Like |Link to Comment
  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    In the arena of ideas, taking an incorrect, but well argued position is not bad or mean-spirited. All people have the right to express their views, and I think Mr. Kramer honestly believes what he says. I have always found, as a decision-maker in cases where, often, huge sums of money are at stake, that the arguments of both the claimants and the respondents are very important. In fact, Anglo-American jurisprudence requires someone set forth, in the best way possible, both sides of the case.

    So, I thank Mr. Kramer for his interest. Even though he is incorrect, by presenting the Keynesian argument against gold in a clear fashion, he has helped me, and everyone who reads this article, to enhance our ability to refute the big flaws in the Keynesian arguments. This helps refine their own thoughts as to the correct view held by the Austrian school of economics. After all, Austrian economists were able to predict the 2008 Financial Crisis, long before it occurred, even as Keynesian economics were blindsided by their incorrect, yet strongly held, views. Understanding, and being able to explain why Keynesian economic theory doesn't work is very important.
    Dec 4 12:51 PM | 3 Likes Like |Link to Comment
  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    If no effort is made to hold down the price of gold (and the dollars based upon it) the facility of dividing the more valuable commodity will simply increase, leading to more value storage for a given unit. In simple terms, that means more money in the supply. The problem occurs only when the government tries to unnaturally control the price, as it did under the gold exchange standard. In that standard, the price of gold is defined as a sum of dollars, rather than the price of dollars being defined as a weight of gold or silver. That is what leads to the problem you note.

    The lesson here is the old maxim that "you can't teach an old dog new tricks." The Children of Israel were required by God, according to the Bible, to wander in the desert for 40 years, because the older generation was so rooted in slavery that only a handful could think clearly as free men. God supposedly waited for 40 years, to allow the older generation, steeped in slave mentality to die off, before he led the Children of Israel into the Promised Land.

    The biblical analogy may apply here also. It will be 40 years in 2013, since 1973, when the last vestige of the gold standard was unilaterally terminated (in violation of international treaties I may add) by our late and discredited President Richard M. Nixon. Many of the people who are so steeped in Keynesian economics that they cannot understand anything else are gone. Given that the fiat debt based currency system the world now has is already in the process of imploding by inflation or deflation, there will probably be enough clear thinkers to change the status quo. Let's hope so.
    Dec 4 12:31 PM | 1 Like Like |Link to Comment
  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    You seem to think that people should be forced by unelected Politburos to part with their money, using stealthy fraud and deceit. I do not agree. Money should not be put at risk simply to avoid debasement by an American Politburo. It should be put at risk only in ventures that are very likely to have a positive return on investment.

    Your logic has become flawed by blind adherence to what you've been brainwashed to believe. Loans already supposed to increase in cost over the amount that is borrowed. That is what people who lend their money are told. It is called interest. Most people who put money up to be borrowed are brainwashed into believing that they are getting a positive return on investment. This is done through falsification of the reported rate of inflation, through CPI manipulation, and other techniques.

    The idea that loans provide a positive rate of return has, of course, been a lie for many years, and is only supported by built in fraud and falsification of government statistics. The current system rewards debtors and punishes creditors by the stealthy and continuous theft of money from creditors. Banks, of course, are NOT the creditors. They are simply intermediaries. They skim a percentage off the top of every deal that passes through them. But, the real creditors are Mom & Pop... basically, the deposit holders and bond holders.

    A system based on lies is NOT a good one and will not survive. In a gold based system, we have honesty. Part of the "interest" paid can be the increased value of gold if there is a shortage of gold. Everyone knows that. The level of interest, therefore, must take account of that, The rates are not set by a group of unelected Politburo members who reward friends and punish the innocent who are not well-connected. The market demand for funds, and the earth itself, to some extent, set the exact interest rate.

    There is nothing complicated about that, and nothing that will cause anyone to be solitary, poor, nasty, brutish or to have short lives. That is all nonsense. Social programs can still be passed into law, and taxes to pay for them can still be levied properly, through the consent of the People's elected representatives. People who borrow and lend will simply add the cost of gold into their calculations. Plenty of loans were made in the gold specie era.

    There were far fewer problems with dealing with the cost of repaying debts, in fact, back then, because money was honest and easy to understand. People avoided excessive debt loads. Fewer people were forced into bankruptcy, with all the attendent misery and embarrassment that it brings with it. It is, in fact, the over-borrowing and over-lending is now going to end your beloved debt-based currency system.

    What has happened, recently, in simple terms, is that some people have finally woken up to the fact that they are being screwed. The debt load has gotten so high that the manipulators are now forced to take such overt and extreme action that their manipulations can be easily seen. They have been forced to become open and obvious. That is causing a very small minority to wake up. This is the genesis that has created so many so-called "gold bugs". Their ranks are increasing day by day.

    Societal work-product is essentially what people call "money", and that is true whether we use gold or fiat paper. The form of the money is simply a representation of that work-product, and the choice of form defines how easy it is for people in power to steal it. Gold is better than paper because it provides fewer opportunities for the powerful to steal from the less powerful. Human work-product is what really fuels all versions of money however.

    Work product has been "lent" to the casino bankers in the form of "money" and to the world's governments. Recently, because of the open and obvious nature of the current manipulations, the working people, or, more accurately, their representatives, who are caring for this "money", are waking up to the theft situation. So far, most of them are still confused and don't know how to respond. So, instead of buying precious metals, they are foolishly moving money out of stocks and into bonds, which is just about the worst place anyone can possibly park their funds right now.

    People are just beginning to realize that the money they lend will never be paid back, and, if paid back, will be paid back in deeply depreciated paper representations. That is why many are refusing to lend further, even as fools buy US government debt paper. Once a majority awaken, hyperinflation begins, the paper money becomes worthless, and it is the end of the current regime.

    That is why gold prices are not in a bubble. Over the next decade, as people continue to wake up, and as faith in paper money crumbles, under the weight of the continuous episodes of money printing, now needed to prevent total implosion, the price of gold will rise to heights that even the most ardent gold aficionado cannot imagine.
    Dec 4 06:07 AM | 3 Likes Like |Link to Comment
  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    I should add that there is certainly nothing whatsoever wrong with a little deflation. When prices go down people have more money to spend. The standard of living goes up because they can buy more.

    For more than half of this nation's history, substantial deflation was always part of the business cycle, and that was essential. it fueled the creative destruction needed to weed out incompetents, and to insure that quality people hold power.
    Dec 4 12:26 AM | 3 Likes Like |Link to Comment
  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    I'll tell you what, Mr. Kramer, there are too many people who believe like you do for the current endless debasement of the dollar to end prior to total implosion of the system. I'd like to stop the implosion, or at least help the working folks of America, who are not foolish, to adequately prepare.

    Let's just decriminalize the act of minting coinage for the purpose of using that coinage as money. Get rid of the legal tender laws. Let folks like the Liberty Dollar Mint coin their dollars. We can force them to call the things Tolars, if you want, but don't put innocent people in jail for challenging the worthless paper money system. Let's just allow an alternative currency for whoever chooses to use it.

    That means we will have Ben Bernanke and Timothy Geithner printing up official Federal Reserve Note dollars, and Liberty Mints printing up precious metals coinage. Let that competition exist for 10 years or so without pointing machine guns at the heads of the people who are running the mints, and raiding their homes and offices like the police state that this nation has become.

    I guaranty you with that competition in place, people all over the world, not just in America, will demand gold, silver and perhaps platinum coinage in settlement of virtually every contract. They will refuse to sell homes, businesses, offices, or any other major item in irredeemable paper money. They will demand settlement of all contracts in precious metal, and NOT in any form of irredeemable paper currency, if given a chance, so long as the police state gun is not being pointed at their heads. We would see, very quickly, just how much of a primitive "archaic relic" gold really is.
    Dec 4 12:19 AM | 2 Likes Like |Link to Comment
  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    I'll tell you what, Mr. Kramer, there are too many people who believe like you do for the current endless debasement of the dollar to end prior to total implosion of the system. I'd like to stop the implosion, or at least help the working folks of America, who are not foolish, to adequately prepare.

    Let's just decriminalize the act of minting coinage for the purpose of using that coinage as money. Get rid of the legal tender laws. Let folks like the Liberty Dollar Mint coin their dollars. We can force them to call the things Tolars, if you want, but don't put innocent people in jail for challenging the worthless paper money system. Let's just allow an alternative currency for whoever chooses to use it.

    That means we will have Ben Bernanke and Timothy Geithner printing up official Federal Reserve Note dollars, and Liberty Mints printing up precious metals coinage. Let that competition exist for 10 years or so without pointing machine guns at the heads of the people who are running the mints, and raiding their homes and offices like the police state that this nation has become.

    I guaranty you with that competition in place, people all over the world, not just in America, will demand gold, silver and perhaps platinum coinage in settlement of virtually every contract. They will refuse to sell homes, businesses, offices, or any other major item in irredeemable paper money. They will demand settlement of all contracts in precious metal, and NOT in any form of irredeemable paper currency, if given a chance, so long as the police state gun is not being pointed at their heads.
    Dec 4 12:18 AM | 3 Likes Like |Link to Comment
  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    The purpose of gold in the financial system is not to eat it, wear it, or otherwise use it. It is an item that is desired by the heart of man and always has been, not for what it can do, but for what it is. Who knows why the love of gold has been placed inside the heart of man? It has always been worth more than many metals that are far rarer. All we know is that it is there, and men desire and trust the precious yellow metal. Maybe, there is some as now unknown reason for this love, but for our purposes metaphysical speculations are irrelevant.

    It is also a limited resource that can and does bring discipline to the inherently corrupt mind of men. They cannot print it, so the value of it cannot stolen from the working population in a stealthy way, because thieves cannot raise their heads up with pride and claim to be leaders of a nation, even as they steal. That can only happen in a financial system based on irredeemable debt based fiat money where printing occurs with the aim of transferring the assets of one class of persons to another. That is why we call gold "honest money".

    The main function of gold is to insure stability and faith in the value of money. The dollar would be linked to gold as a measure of weight, as the Founding Fathers intended. The dollar was originally linked to a dual standard, with a set weight of silver, or set weight of gold, but it is better to use one standard, rather than two. I would choose gold over silver even though silver is also desired by men's hearts, because silver is essential to modern industry whereas gold is not.

    As the value of gold rises, the buying power of the dollar would also rise. That means there is more value units to divide, not more physical dollars. That is how the money supply increases. Not by printing more units, but by increasing the value of each unit, so that less of them are needed to accomplish the same goals. Money would sequentially buy more each year, and the standard of living would rise because of that, as it did during the gold specie standard years.

    Since those who already hold gold would need less to satisfy their lifestyles, they would invest the remainder, and that part would circulate into the economy to be handed out to others. Some would be sequentially lost through business losses, other parts would be spent in consumption, and, in this process, gold would change hands. Some additional gold would be mined each year, and would be traded for paper dollars representing the gold that government would keep safe in vaults like Fort Knox.

    The precious metals specie standard is the natural manner of transacting business by and between humankind. It was the standard, along with silver, and a combination of the two (electrum) for ten thousand years of human history. After the invention of the printing press, paper was distributed to represent piles of precious metals, held more safely in vaults. That is the only function paper should play in the monetary system. Irredeemable paper money is an aberration in human history, and has been around, in partial form since 1933, and in pure form, only since 1973. The gold specie standard has always been the rule. As we can observe around us, the irredeemable paper money system has failed.
    Dec 3 11:31 PM | 2 Likes Like |Link to Comment
  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    I think not.

    If we have a shortage of physical gold, the price of gold rises. That means, essentially, that new money is "created" through the price increase. It is new money in terms of other goods and services. The unit value of gold, therefore, is infinitely expandable, based upon its supply versus other goods. The key is that new "money" units are only created as a result of demand and supply, not from the capricious whims of a Soviet Politburo-like organization, such as the FOMC committee. Similarly, interest rates on gold-denominated bonds were set by the free market, during the gold specie standard era, not by a committee of unelected men.
    Dec 3 06:07 PM | 4 Likes Like |Link to Comment
  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    It worked until a group of greedy people decided that the pure gold standard was not profitable enough for them. They then lobbied Congress to create the Federal Reserve, an issuer of debt-based currency. Since 1914, the bank has been engaged in siphoning work-product value from the rest of society, and into the pockets of connected speculators. This process has become more crass, open and obvious lately, and that is why so many people are becoming offended by it. The system toddles on the edge of a cliff. Connected speculators are not even putting up a pretense anymore. They are desperately attempting to get as much as possible before the scheme implodes. Hence, the QE, et. al.
    Dec 3 05:53 PM | 4 Likes Like |Link to Comment
  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    The gold specie standard was tried, and was highly successful for most of the history of the USA. It was ended with the introduction of the Federal Reserve Act in 1913, and the opening of the doors of the Federal Reserve in 1914. The Federal Reserve was created by Congress under pressure of the large international banking houses, for their benefit, not for the benefit of the American people.

    The gold specie standard has not gained traction because it makes stealthy theft by governments, and the acquisition of high levels of "rent" by bankers, much more difficult. Under the specie standard, if governments want to create programs to pay off voters, they must raise taxes somehow. Raising debt is not sufficient, because under the specie standard it is impossible to repay debt with newly printed funny money. Similarly, bankers cannot afford to make liars loans, send checks for $10,000 to credit card customers, or fund worthless industrial or internet schemes, because once such deals fall apart, they cannot serially socialize the costs to a government that cannot print money unilaterally, or raise taxes without the consent of Congress. Economic foolishness, under the gold specie standard, is punishable by bankruptcy, being swept out of power, and being replaced by smarter wiser people. That is why economies, including the USA, have done so well under it.

    The gold specie standard will gain traction when people regain the wisdom they had already acquired at the founding of this nation, but, later lost. The current debt-based money system is going to implode. It is no longer a question of "if" but merely of "when". It may implode through through runaway hyperinflation, if central banks continue to fight it, or through a Greater Depression, much worse than the one in the 1930s. My guess is hyperinflation.

    When all this foolishness finally implodes, it will do so in a spectacular manner that will make the 1970s "Great Inflation" and the 1930s period of "Great Depression" look very tame. After that, people will remember what our Founding Fathers already knew, and they will back the reintroduction of honest money.
    Dec 3 11:40 AM | 4 Likes Like |Link to Comment
  • The Fed Makes Sure U.S. Dollar Collapses With The Eurozone [View article]
    The gold specie standard has never been "discredited". The gold exchange standard, whereby the Federal Reserve backed only 40% of the dollars with gold has been discredited. That system began in 1914, with the opening of the Federal Reserve, and collapsed in 1933 when too many Americans wanted to exchange their dollars for gold. The Fed panicked, because it was running out of gold, and it began withdrawing previously over-printed liquidity from the financial markets, precipitating the Great Depression of the 1930s.

    Had the Fed never been able to over-print dollars, and been forced to obey the discipline of a strict 1 for 1 gold specie standard, the vast credit expansion of the "Roaring 20's" could not have happened, and the subsequent Great Depression could also not have occurred.

    The gold specie standard, when adhered to, and not departed from for the convenience of governments and bankers, insures stability and quality growth, as was seen between 1870 and 1893. There are frequent small upturns and downturns, but people's faith in gold keeps the system running smoothly over the long run.

    The same cannot be said of fiat money systems, like the current regime. Under the current system, money-printing is used to levy stealth taxes, raid the bank deposits and bond holdings of the innocent, and to reward well connected speculators with unjust enrichment at the expense of the productive members of society. Debt-based money is being discredited very quickly, right before our eyes, as the structurally corrupt financial system collapses. But, it has been discredited since 1914, when the Federal Reserve opened its doors, as evidenced by the 98.6% decline in value of the US dollar against the price of gold.
    Dec 3 03:41 AM | 10 Likes Like |Link to Comment
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