Dr. Realist

Competitive Devaluations to Spur Gold- Richard Russell

There are a couple or more things to say about gold!
1) Most anti gold bugs say "Avoid Gold 'cause you can sit on gold but gold don't hatch!" i.e. pay interest.
2) But I have seen nowhere in any of this talk about gold --- That (give or take a few hours more or less depending on the richness of the 'lode' and the technical advancement of extracting it). from the old panning and golden fleece days right up to present time with its hundreds of inovations and billions in capital investment it take on average about 20 man hours or (woman hours if you prefer) to extract an ounce of gold on average. (YAMV)
3) Fiat currency ebolas (Electronic currency) can be produced in any denomination in a millionth of a second out there in ether land.
If you believe any of this stuff -- at least some quantum in the pondering mode has got to tell your guts something if not your brain.
But how is all that going to save your ass. I've seen situations where coffee and cigarettes were more in want than gold (During WWII)

If Gold Bugs' Fantasies Came True

Dr. Realist
The value in gold is that it takes labor to mine it -- there is labor value in it. It is objective.
The value of fiat currency lies in the mind of the beholder. There is no labor value embodied in it. It is subjective.
Ho Hum

How Does One Value Gold?

Eddy
To understand the 'worth' of any commodity one has to do a little study into.
1) Objective criteria: The labor theory of value.
2) Subjective criteria: The utility theory of value.
Most economists who champion the private ownership of capital are wrapped up in subjective criteria and thus stand on bowls of jelly from whence they propound their theories.
On the otherhand those who champion the public ownership of capital base their theories on the labor theory of value.
Using the last criteria. Gold (as well as other commodities) have certain amout of labor embodied in their extraction and creation. Whilst printing paper money has virtualy no labor content embodied in its creation. Hence the difference in their intrinsic value.
This of course does nothing to prevent, just as in religious experiences, all kinds of smoke and mirrors to cloud the issues in peoples minds and extract a little pay dirt in the collection plate. But over time (that could be eons) the truth will win out as faith in fiat crumbles. (That is the moment of epiphany in religion or for gold it's known as Eurika!.)
So it looks like whippet has got the relationship whipped with sound insight.
Bob

Seven Uncomfortable Predictions for the Economy

Take Heart All:- It's only capitalism working its painful way through history. Life goes on after the deluge c'est a calmer life. and another ho hum

Bernanke Desperate, Fed Out of Ammo

Ayn Rand
The White Russian Nazi who believes that the Superman in history is everything and the ordinary people nothing. Ho Hum. Ayn Rand = Public Capital sequestered and manipulated by private hands i.e.the Federal Reserve = Capitalism now being held together with haywire and spit. and another ho hum.

This Recession Is a Reset to a New Normal

Doesn't anyone read their Marx any more?

The Fed Will Not Succeed with Quantitative Easing

Dudes!
Go back and read your Marx. And find out about Surplus Value (Value added) and find about about all its permutations and how it is filtched and squandered. Then you will understand the whole dang thing. Do a little study! Gold is the last resort but even that won't save you in the long haul. Socity will be a changin' but its going to be a long tough haul Ho Hum
Bob

GDP = Going Downhill Precipitously

70% Chance that US will default on Treasuries by Dec 2009
80% Chance that the US military will have a high degree of intervention in our domestic problems by June 2010. "If your going to take over my house you better not just send the sherrif -- you better send the army!"

For those relying on God and for all you God fearing people remember every single one of us was born an atheist! Ho Hum. No Money in Atheism so we had to be changed and another ho hum. Just more bubbles and froth -- sorry to bust it.

Greece and Italy Suffer: Let the Game of EU Chicken Begin

Ho Hum. The Capitalis system held together with haywire and spit, and another ho hum

John Embry on Gold: 'I Can't Think of a Better Time to Buy Juniors'

John Embry:-
John I have a considerable Position in Sprott Gold & Precious metals Fund.
In all the talk about the price of Gold and the manipulation of markets I am thinking -- What is to prevent the collapse of Gold prices when we know that the US could throw 8,000 tons of it onto the market. The IMF could Throw some 3,400 tons of it at the market and there are other countries with considerable amounts of Gold. Gold production from all mines is some 2,400 tons per annum. What is preventing all this or some of this stuff coming onto the market next year? We also know that small amounts of it (35 tons or so) move the Gold prices significantly.
Regards Bob Rushton