Lester

Ignore the Hype - Gold as Currency is Dead

Hail the Wisdom of this writer! And buy his metal!
As a kid I once found my GrandMother's old purse in the hayloft. It was full of pre-WWII money. Millions and milliards of notes. It is probably used up by now lighting up the fireplace.
Now, if it had been full of goldcoins, where do you think it would be today?

Is Gold A Sucker's Bet?

If gold doesn't earn interest or income, then what is the premium on options? Am I missing something?

Is Gold A Sucker's Bet?

It is interesting to keep reading the claim that gold (or silver) doesn't earn interest, costs storage fees, perhaps insurance, causes anxiety, etc. If so, why am I seeing option tables in the business paper?
What am I missing?

Independence Day: Decoupling Gold and Silver from the Dollar

Dear Mr.Conrad and Other Readers!

I am not an economist, but I study von Mises. I was born after the Great Depression. Would someone kindly explain to me why the govt was "forced to expropriate gold from the people"? What role did gold play in the declared "national emergency"?

Did gold somehow mismanage the economy? Or was it someone else?
Was gold ownership an obstacle to production, i.e. feeding the people? Or was it an obstacle to govt control of the economy?
Did gold in govt vaults become harmless to the economy? Or did it become harmless to govt policy-makers?

The reason why I pose these questions is because watching history repeat itself, I concluded that gold ownership renders the individual a little bit sovereign. Not wholly, but some. An economically independent individual is more than likely politically independent as well. At least by using gold-enforced accountability of govt, a sovereign individual can extort valid political rights from govt.

I say "extort", because rights are not granted by the goodwill of govt, but by threat of forcible removal from office. I trust most of you would agree with that process. Any thoughts on that?

Sorry, There Is No Silver Conspiracy

I have a little concern here for all the good and thinking people to chew on. It's all fine to know the value of PMs and to have some at home. But... What good is it if we can't use it, trade with it?
A desperate and devious prez has made it illegal before, what's to keep him from doing it again?
Those shadowy spooks, who pulled off 911 have achieved the ultimate goal of putting all of us under the yoke of the patriot act, can and would confiscate it again. Those forces are not accountable to anybody's Law, only to their own aims.
We can't make use of PMs in the concentration camp.
Houston, we have a problem!

Is the Price of Gold Artificially Depressed?

I see an amendment coming! In the inevitable event of greater national emergency, the Patriot Act will be used to again confiscate physical gold held by citizens wherever US marshals can reach with their grubby hands.
Given the extent of US military presence all over the world, that's pretty far and wide. Given that Washington was able to invade Iraq to gain greater control over the oil supply lines - which is not even the only line - what's there to stop the clandestine robbery of gold wherever it may be stored? Obviously neither international law, nor any other factor can stop this army on the march!
Nobody is going to threaten a nuclear standoff over gold! Ultimately, Washington is most likely to use clandestine methods to ensure the survival of the dollar. The existence and operation of Guantanamo proves that the US military IS the law.
Anyone to the contrary?

Is the U.S. Banking System Safe?

What I don't understand here is if a bank is insolvent, how can a CEO expect a paycheck, let alone $50 million for one man?
I know enough about small-business accounting to not expect to get paid from an empty till! It's the old blood-from-the-stone type effort.

No Atheists in Foxholes - No Libertarians in Financial Crises

Given that Spitzer was blown out of office for offending the bush administration, when the public comes to recognize who was fighting on their side against the manifest financial evil, Spitzer might just be re-born as the Champion of the People. That ought to grant him lots of political capital for future roles. Who knows, he just might become prosecutor of the current criminals in the White House.

Gold Stocks: Five Points to Remember

While we all worry about our future economic security, using known principles of economic analysis, none of it will be valid when all OECD governments will resort to changing the rules (as they are used to doing), and start confiscating wealth, money and/or property - also as they are used to doing. Nothing of value is safe from rapacious and desperate governments.
Where do we turn then?

M3 Money Supply and Inflation: Got Gold?

All those unfortunate retirees present and future, who have their nesteggs managed by a mutual fund manager, need to compare their own standard of living with the fund manager's lifestyle, and then they will learn who benefits from mutual funds!
And when the "Fund" doesn't make enough profit or income to cover operating expenses, the manager's payroll is met from the capital account! Whose money is that?
Trust the System and get screwed.

What’s Driving Oil Higher? It’s the Dollar, Stupid!

Why the confusion? Ever higher money-printing WILL result in ever higher prices for anything in demand. Put an icecream addict in charge of the money-machine and icecream will go to the moon too. Then everything else needed to make icecream will follow, milk, sugar, eggs, i.e. other commodities, even refrigerators and power.
Once the wave of demand has swept the whole economy, the media will most likely to blame the commodity producers for high prices, reduced living standards, i.e. INFLATION! Can it get any simpler?

Five Reasons Gold Bullion Could Reach $1000

Of course the Chinese people don't trust paper money. Kublai Khan taught them that lesson hundreds of years ago!

Credit Crisis: Worthless Billions Won't Solve A Problem Worth Trillions

Hello Toni!
My understanding of derivatives is that these are a variety of options sold at a price based on the Black-Scholes formula. That price is the max that can be lost. Even that money is not “lost”, it just changes owner. If nothing pans out as hoped, that is the end of the default. The hopeful “winner” just can’t collect what was bet on. If the bet was as ephemeral an amount as the much touted trillions, it is still just imaginary money, nothing real about it.
An accountant would say, money doesn’t disappear, it only changes pockets. So, where is the loss? Bunker Hunt didn’t step off the fifth floor ledge, Myron Black of LTCM fame is still calculating, so the current players only need to decide how many and which of them should go out of business.
Pray tell what the problem is!