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  • Gold: A Bad Investment and Getting Worse Part I [View article]
    Iben Hadd's elision of and departure from the exact words of Article 1, Section 10 [1] is VERY misleading. As elided it seems to say that a State may "make no coin except gold or silver." This article actually says the opposite by forbidding any State to "coin Money." In its language forbidding any State to "make anything but gold and silver Coin a Tender in Payment of Debts," it essentially forbids States to legalize "debased" money as legal tender.
    Jan 18, 2011. 10:25 PM | 3 Likes Like |Link to Comment
  • Gold: A Bad Investment and Getting Worse Part I [View article]
    Yes it did. Check the 36 year gold price history chart at The graph shows that the over $800 peak in 1980 was not regained until 2008. After going down near $300 in 1982 there were recovery peaks to near $500 in 1983 and 1988, then languishing in the $300s until it began a rather steady rise in 2005.

    Very few people are clever enough or lucky enough to get out near the top or buy at the bottom in any investment or speculation. If you bought during the roughly 20 years of low gold prices, you would have had a longer wait for your investment or speculation to turn positive than most people can handle.

    20% interest rates of 1980 were aimed at breaking 13% inflation. Today the prime is at 3.25% and deflation is a real if uncertain danger.

    If I had been lucky or clever enough to buy gold at $400, I would be taking some profits now while the taking is good. The higher it goes the farther it has to fall (just like stocks). I think that a lot of the passion of gold bugs comes either from those who want people like me to buy it (or their goldmine or their ETF) from them or from people probably like Screwloose who want to persuade more people to come to the demand side and bid the price higher.
    Jan 18, 2011. 09:54 PM | 4 Likes Like |Link to Comment
  • Gold: A Bad Investment and Getting Worse Part I [View article]
    I just followed Gold2's urging us to READ our constitution. It does not say what he tells us.
    Article I, Section 8 [5] states "The Congress shall have Power...To coin Money, regulate the Value thereof..."
    Article I, Section 10 [1] states "No State shall...coin Money; ...make anything but gold and silver Coin a Tender in Payment of Debts;"

    As one can see, reference to "gold and silver coin" is only made in reference to powers denied to individual states. The Power of The Congress to coin money does not say of what it is to be coined. And no practical reading of this provision can limit money only to that which is an actual coin.
    Jan 18, 2011. 06:31 PM | 5 Likes Like |Link to Comment
  • Gold: A Bad Investment and Getting Worse Part I [View article]
    After gold's last big runup into the $800s it crashed into the $300s or $200s and stayed low for many, many years. Anyone who buys gold at its present lofty price, as if it were "real money" or "savings" representing a safe cash position, risks a similar massive loss at some unpredictable time.
    Jan 18, 2011. 02:31 PM | 7 Likes Like |Link to Comment
  • 1983 Redux [View article]
    MainStreet's comment is nonsensically inconsistent. Reagan more than doubled our national debt in the greatest ever Keynesian economic stimulus through tax cutting and deficit spending. Is this what MainStreet means by "failed Keynesian principles"? Or are they only prejudged to be failed when used too sparingly in Obama's only partly successful staving off of economic collapse to rival the 1930s?

    The Obama administration has not raised taxes and has only proposed raising them on the richest sliver of our population, some of whom feel entitled to pay even lower taxes than they do now.

    The Reagan administration did not meaningfully shrink the size of the federal government, but rather ultimately grew it by carrying out Reagan's promised massive increase in our already bloated military spending. That this probably accelerated the end of the Cold War, with Gorbachev pulling the Soviet Union back from an unaffordable arms race, is the one good thing that can be said in its favor.
    Nov 28, 2010. 11:20 PM | 1 Like Like |Link to Comment