Dave Wrixon

Is the U.S. Dollar Headed for a Mighty Crash? Part II

I think for the foreseeable future you must assume US Government Statistics are pure fabrication unless proven otherwise.

Plunge Protection Team Attacks BofA: This Ends Now

Sure, when America gets into the same mess as Zimbabwe, and note the when not an if, then you will be able to buy bread with Gold. But by then the US will account for less than 1% of the World Economy, so who gives a damn?


On Apr 30 06:56 PM Glen L. wrote:

> Gold standard... golden opportunity... good as gold... golden anniversary...
> golden parachute... black gold.
>
> The last one tells you something. People don't refer to gold as
> "yellow oil". Nor do they say "oily anniversary", "wheat standard",
> or "mahogany parachute". Gold is the near-perfect money because
> of its beauty, durability, maleability, purity, portability, yes...
> but first and foremost because people LOVE it as MONEY. Likewise,
> to a somewhat lesser extent, the other precious metals, which also
> can be used to make coins that make that pleasant jingle in your
> pocket, or toss them in your hand. Something extra satisying about
> that heft, too.
>
> Oh, here's one other expression: paper anniversary. The first anniversary,
> the least of them all. Paper money printed with the phrase "full
> faith and credit of the [insert name of lying government here]" is
> worth the LEAST of all forms of money, as proven over and over throughout
> history.
>
> In Zimbabwe, thanks to the rich gold streams in that country, poor
> people are able to buy bread by panning for tiny grains of gold.
> And what is a loaf bread selling for? About a gram of gold -- and
> 1/28 of the spot price is somewhere between $2.50 and $3.50 these
> days, precisely what it's worth to us.
>
> Gold is money. All of you doubters need to accept that fact and
> get over it. Or see how many of your paper dollars I'll charge you
> to buy a gram of my gold when Zimbabwe comes to America.

Plunge Protection Team Attacks BofA: This Ends Now

The problem for gold is that provided guarantee of authenticity before the rise of the Information Age. Basically, the computer has rendered and the rise of the modern finance industry have rendered it obsolete,

Another device that was used for the same purpose was tally sticks. Do you seriously believe they have a chance of coming back as well?

en.wikipedia.org/wiki/...


On Apr 30 10:42 AM Carlos Lam wrote:

> On Apr 30 09:46 AM biodummy wrote:

Plunge Protection Team Attacks BofA: This Ends Now

The real lie is:

Gold = Money

It doesn't, it isn't used as the means of exchange and it never will be.

At best it is a valuable commodity.

Are We More Like 1932 - or 1923?

Volker has already been rolled out to provide the necessary confidence that they know what they are doing.

My doubt is whether he still does?

Are you sure it is not just a cardboard cut-out?


On Apr 09 11:22 PM Conan the Barbarian wrote:

> High Inflation, probably. Volcker will be brought back into the limelight
> to soothe the savage inflationary heart. Probably by the end of the
> year.

Are We More Like 1932 - or 1923?

Possibly a reasonable assumption, but I think you will find that the crisis will descend very suddenly and with almost no warning, and is farily imminent. This is no time to play silly beggars!


On Apr 10 03:47 AM Steven Hansen wrote:

> the dollar will not crash in the next week. >

Are We More Like 1932 - or 1923?

<Only gold will play its traditional role as a protector of savings against inflationary onslaught. >

Everything makes perfect sense until you make this comment.

Yes, Gold may well hold a role but inflation will be reflected in tumbling exchange rates.

Assets and currencies of others outside the dollar system will be largely immune to the effect of dollar inflation, particularly as its role as a reserve currency would evaporate overnight. Investments in economies such a Russia and China that will be largely immune to the dollar crash may well provide a better haven than Gold.

Also most of the demand for Gold will be in the US. It may well be that others are prepared to sell some by then. Of course the US Government and large US Corporations may have to resort to using Gold as currency, and that really would have an impact. I would think it will pretty soon be made illegal for anyone else to hold the stuff.

Are We More Like 1932 - or 1923?

And just how long do you think that will last?


On Apr 09 05:50 PM Conan the Barbarian wrote:


> USD still too strong to allow inflation. Palladium might approach
> parity with platinum, $2,500 cars will not use Platinum.

Gold as a Truly Last Resort

Welcome to the Flat Earth Society.

Gold was valuable when people equated it to money. Gold was money for most of recorded history. That hasn't been the case for a while now and people are a lot more sophisticated than they used to be. The psychological link lingered for a while and some still hold a flame, but essentially the show is over.

Gold of course is an interesting curio and will always have its place in the jewelers shop, but to go back to a fully gold based system in the modern World you would need a lump about the size of Cuba.

Philosophize all you want, but the bottom line is Gold has not moved as some might expect because most intelligent people have come to realize that there is no return from a lump of metal that just sits there. Indeed, maintaining a Gold hoard is quite an expensive business, unless you decide to do it on the cheap and bury it at the bottom of the garden. As for persuading the banking system to return to Gold, you surely have to be kidding. How many of them want to surrender their right to issue money against debt and being able to store their value in virtually reality to go back to the old days when they were constantly getting blown up with Dynamite?