Robert Nabloid

Citigroup Report Further Fuels Debate About the Future of Gold

I'm one of those Dean! We've had so much inflation in the past 100 years... no way are we back tracking all that all the way down to undue all the inflation they've put us through. I highyl doubt I'll be able to buy a coca cola for a nickel anytime soon - the same coca cola my grandpa could buy, I now must pay almost 50x more money. The government is using the short-term deflation that is happening (ONLY IN CERTAIN ASSETS!) to give them a reason to give money to the Federal Reserve banks in unprecedented numbers. The power is being centralized in the hands of a few banks. Either way, inflation will be the long-term threat they aren't talking about. Deflation will happen in the short-term in certain assets... I doubt most of the items you buy will come down in price. They come out and say, "OMG, you might get deflation!!! It's really bad!" and then they start doign things to increase inflation out of the ballpark. If you buy gold to store wealth - the price goes up in USD terms because the USD falls, not because gold rises. Then when you sell you have to pay capital gains? What? SUre the gold price went up, but other things went up in proportion and you can still only buy the same amount of stuff you could earlier, except you must give some of the money to uncle sam becuase you have "gained".

I don't know abotu you, but the prices of everything I buy (besides stocks, houses, and other long-term assets) is up!! Go to the local store and see hwo many prices decrease. My bet is not many. Go see how many lawyers, doctors, mechanics, etc, etc, etc, lower their rates... Not many! But the long-term things we need to buy, like homes, is decreasing. That is actually good for people just starting out in the game of life and will make them have more discretionary spending since they will spend less on accomadations...

Why should the price of a fixer-upper be half a million dollasr in some areas? Why should people go in to debt and spend a lifetime to pay for their home? Why should it be that way? Wouldn't it actually be better if Americans could buy homes and have the home paid off in 10 yeras instead of 30? Wouldn't that increase discretionary spending for other things and enable Americans to save money for retirement?

The government has two tools to use to take our money - taxes and inflation. Don't worry about deflation - the government will ensure that never happens with the policies you see them already implementing. Everyone keeps screaming about deflation. They've encouraged us to take on debt of massive proportions so that we FEAR deflation and beg for inflation - the same inflation that has made it so that every home must have 2 full-time wage earners just to get by - when it used to be 1 wage earner. The same inflation they purposefully UNDERSTATE in official figures - so that wages never seem to keep up over time. Inflation is a robber - It is the slow theif that steals just enough so you barely notice it each year - but when you look back 20 years later you wonder why you aren't any better off...


On Nov 30 11:00 AM Dean Plassaras wrote:

> Some thinkers consider the deflation argument a hoax and a cover
> for inflationary policies.