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WMARKW

WMARKW
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  • Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
    Alex...are you seriously saying that there was no such thing as "fractional" reserve banking under the gold standard? And....do you not consider that one can peg $35 to an ounce of gold or $35,000 to an ounce of gold and as has been done in the past, change that peg on a periodic basis. But ...... could it be that bankers and politicians don't want people to see, or understand how that peg is being changed and why?
    Jan 13, 2012. 11:01 PM | 1 Like Like |Link to Comment
  • Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
    Merlot....hopefully one such courtroom will be examining Mr. Corzine in great detail one day soon.
    Jan 13, 2012. 10:58 PM | 2 Likes Like |Link to Comment
  • Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
    John....I tend to disagree. The government has a number of means of influencing the flow of gold related to international settlement of trade transactions, not the least of which would be to impose tarriffs on imported products to force them into disfavor.

    Also....not for nothing, but I suspect if you and I wanted to enter into a contract for the sale and purchase of a piece of property and the transaction was to be settled in gold, I suspect we could do that without interference from the US government.
    Jan 13, 2012. 10:55 PM | 2 Likes Like |Link to Comment
  • Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
    rjordan....this is a very interesting point. Legal tender laws are the means to enforce the non-use of silver and gold as money. We used to have silver and gold coins. There is no reason, practically speaking, why they could not be used in commerce. They wouldn't even have to have a face value, only a specified weight....say 1 ounce, 1/2 ounce, etc.
    Any Point of Purchase system could be designed to handle transactions in gold or silver very easily. Allow gold and silver in commerce and let people decide what they want to use.
    Jan 13, 2012. 10:52 PM | 3 Likes Like |Link to Comment
  • Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
    Alex...just curious....explain how a gold standard - "restricts the ability of an dynamic economy to flourish properly"? I am not sure I can see an obstacle there that can't be overcome?

    I can sure see why lots of people wouldn't want there to be a gold standard.
    Jan 13, 2012. 10:44 PM | 2 Likes Like |Link to Comment
  • Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
    Sane, I'll jump in here. What if gold is not step three but post apocalyptic ability to jump start ones life again. Post Zimbabwe or Weimar, what did people do who had wealth stored in currency during the crisis. They were wiped out. Only physical hard assets survived. If you had a house before, you had a house after. If you had an ounce before, you had an ounce after. That ounce, just like that house, had some value afterwards that cash didn't. Holders of cash saw their "cash" wealth evaporate.
    Jan 13, 2012. 10:13 PM | 11 Likes Like |Link to Comment
  • Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
    And Recusant....in a gold backed currency where any currency holder can go to the bank and freely exchange currency for gold, then the PEOPLE will decide - using Gresham's law - whether they would rather hold currency or gold, based on their assessment of circumstances.

    In days of yore, that very fact re: international trade balances was a market correcting mechanism for currency values.
    Jan 13, 2012. 07:26 PM | 3 Likes Like |Link to Comment
  • Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
    "Now fast forward to 2012. Information can get from London to Los Angeles in fractions of a second over the internet, and because of this there is less of a threat of someone suddenly flooding the money supply without everyone knowing about it instantly."

    Two thing....first, tell me if you think we have transparancy on what Central Banks are doing today re: EU. I say no.

    Second, everytime I check out of the hotel in Shanghai, I give them my AMEX card and they charge my card in RMB and I pay a transaction fee and get billed in USD.

    There is NO reason we cannot have a gold backed currency with an open mint and the ability to conduct any transaction we want using currency or specie. If I take a 1 ounce gold piece to the department store to buy stuff, they can accept it based on spot price in their POP system and give me change in "currency" or specie at my choosing. That is so simple it could be implemented almost instantly.

    When the money supply needs to be expanded, then the conversion rate from currency to gold is adjusted.
    Jan 13, 2012. 07:24 PM | 4 Likes Like |Link to Comment
  • Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
    Billions of people want it. And....if the cost of gold goes to the cost of storage, you can rest assured, I will be happy to take if off your hands for cost of storage plus $10 per ounce. There....like Debutant below, I think we're pretty accommodating, right?
    Jan 13, 2012. 07:17 PM | 6 Likes Like |Link to Comment
  • Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
    Sane....what makes you think that those "preparing" for catastrophic events in the future don't have some gold, silver, cash, canned food, water, bunkers, solar panels, etc. In your mind set, there is no reason to have an automobile insurance policy either....right?
    Jan 13, 2012. 07:15 PM | 7 Likes Like |Link to Comment
  • Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
    John....the key word in your comment is "can". That doesn't mean they will. One would have said 30 years ago that Eastman Kodak was a long term winner and that no one could kill that company. Or American Airlines. All these companies have haydays....and they are all subject to the risks of competition, technology obsolescence, etc. I could pretty much guarantee you that 200 years from today.....the only company that will be left standing that we know of now....will be TACO BELL.
    Jan 13, 2012. 07:13 PM | 14 Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    James.....when is the last time one flew on an airline carrier and got off the plane saying, "My goodness, that was the most enjoyable experience of my life. I would gladly have paid a few $$ more for that experience."

    "Would you like peanuts or pretzels (only one bag sir....don't be greedy) and by the way, I'm sure you don't mind sharing your 1 square foot of seat with the rather healthy lady sitting next to you spilling over into your seat - do you?"
    Jan 13, 2012. 06:28 PM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    James...it's clear that the accountants and politicians in DC were products of the Department of (non) Education programs in public school systems.
    Jan 13, 2012. 06:23 PM | Likes Like |Link to Comment
  • Titled "Death of a Theory," a research paper from St. Louis Fed chief Bullard says decades of conventional wisdom are wrong, and that fiscal authorities should leave it to the Fed to stabilize the economy when tough times hit. "The monetary authority ... can operate effectively even at the zero lower bound," i.e. QE, if 0% rates don't do the trick. (pdf)  [View news story]
    Wyostocks....you mean Nightmare on "K" Street.
    Jan 13, 2012. 04:34 PM | 2 Likes Like |Link to Comment
  • Debt Chaos, Financial Repression And Gold [View article]
    Plan B....that's the point. Example Japan. How do you force "savers" to spend money on stuff? You don't (I guess unless you can inspire some inflation). Japan's society is a society of savers. The Japanese government can't spend more money than the savers will turn around and scoop up and save as debt.

    I suspect most holders of Treasuries are "savers" and if you printed money to pay them off they would just go find another way to save it. Of course some competition for assets would create some inflation in asset classes (yielding capital gains tax to offset capital losses on Treasuries). What are the Chinese going to do with their ~$3 Trillion? They will look for other investment vehicles - perhaps many dollar denominated.
    Jan 13, 2012. 04:30 PM | Likes Like |Link to Comment
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