GOLD

[warpig 0]

Return of the Gold Standard as world order unravels

 

On one side of the Atlantic, the eurozone debt crisis has spread to the countries that may be too big to save - Spain and Italy - though RBS thinks a €3.5 trillion rescue fund would ensure survival of Europe's currency union.

 

On the other side, the recovery has sputtered out and the printing presses are being oiled again. Brinkmanship between the Congress and the White House over the US debt ceiling has compelled Moody's to warn of a "very small but rising risk" that the world's paramount power may default within two weeks. "The unthinkable is now thinkable," said Ross Norman, director of thebulliondesk.com.

 

Fed chair Ben Bernanke confessed to Congress that growth has failed to gain traction. "Deflationary risks might re-emerge, implying a need for additional policy support," he said.

 

The bar to QE3 - yet more bond purchases - is even lower than markets had thought. The new intake of hard-money men on the voting committee has not shifted Fed thinking, despite global anger at dollar debasement under QE2.

 

Fuelling the blaze, the emerging powers of Asia are almost all running uber-loose monetary policies. Most have negative real interest rates that push citizens out of bank accounts and into gold, or property. China is an arch-inflater. Prices are rising at 6.4pc, yet the one-year deposit rate is just 3.5pc. India's central bank is far behind the curve.

 

"It is very scary: the flight to gold is accelerating at a faster and faster speed," said Peter Hambro, chairman of Britain's biggest pure gold listing Petropavlovsk.

 

"One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money."

 

 

 

[LauraB 0]

Interesting gold std/banking thread at ykw. Contains this from 'Traktion'

 

There doesn't need to be any gold standard. There just needs to be the freedom to use whatever people want, from grams of gold/silver, through to e-currency (like Bitcoins). There doesn't need to be a government stamp on it or the queen's head. My main hope (and expectation) is that if/when the government fiat currencies collapse, that there will be free market infrastructure in place to take up the slack - gold money, bullion vault, bitcoins etc are already examples of this, never mind physical alternatives.

 

We also have little need for banks to be involved in all of our savings/spendings. We have grown used to using banks to store our money, transact in it digitally and so forth, but we don't need FRBs to organise this - a simple non-lending bank could do this just fine. Whether people want the choice to risk their money for interest is another, different, decision to make. We don't need these two different functions wound into one. There are also numerous alternatives in between.

 

As for credit, we can also use the likes of ripplepay, for a distributed mutual credit arrangement. This cuts out the banking middle men and webs of trust are built up, instead of being centralised around the banks. That doesn't mean banks can't do this, but they aren't the only option.

 

It's the obsession with trying to over organise and control everything which drives governments towards their fiat currencies, but we don't need it. Regulating against risk has proven only to hide the risk, until the point where it is devastating - I'd much rather live with a little daily risk, than with a savage, life crushing, risk periodically.

 

Let's be clear about this - the governments want paper backed by some standard, but the people do not need this. The governments can control their fiat money, borrow against future generations and then print more when they screw up, bailing out the rich and influential, at the expense of the poor. It's high time that individuals dictated to the government what we want to use as money and it isn't their crappy paper.

 

Cut the fiat heart line and the banks will whither on the vine; they would have to earn trust and the abuse of it would see them collapse. This would curtail the ability of the governments to force paper on the banks, in order to plunder future generations even further. Sure, it wouldn't stop them trying, but it means tax strikes, bank runs etc will be a force to reckon with. Perhaps people would even realise that the government isn't their friend either (the violence should be a clue) and we can move onto a post-democratic model (IMO, something more like anarcho-capitalism).

 

We don't need one perfect money. We can do fine with a few globally competing/accepted alternatives, as decided by individuals, not bureaucrats. We already have layers of free market money, hiding in the shadows of government money and many people have savings in it - everything from bonds, through shares/equities, to PMs - so why do we need to be told what to exchange with daily? It makes no sense, other than as a tool for control... they can stick it!

 

http://www.housepricecrash.co.uk/forum/index.php?showtopic=166616

 

Me? Anything beyond banking being a publicly owned utility would always be suspect.

Note the triple six in the link

[Carlton 0]

Re: LauraB's quote:

 

Monetary chaos is not the answer, accounting and fair taxation would be difficult if not impossible under such a scenario. I still prefer goverment-issued or intergovernmentally-issued currency; however, there need to be strong safeguards ensuring monetary stability.

[lupercal 0]

Interesting gold std/banking thread at ykw. Contains this from 'Traktion'

 

 

 

http://www.housepricecrash.co.uk/forum/index.php?showtopic=166616

 

Me? Anything beyond banking being a publicly owned utility would always be suspect.

Note the triple six in the link

 

Good ideas a free market in banking.

[InternationalRockSuperstar 0]

Re: LauraB's quote:

 

Monetary chaos is not the answer, accounting and fair taxation would be difficult if not impossible under such a scenario. I still prefer goverment-issued or intergovernmentally-issued currency; however, there need to be strong safeguards ensuring monetary stability.

traktion was calling for a free market in money; not for monetary chaos.

 

no such thing

 

threatening people into doing what you prefer is evil

 

so what?

http://en.wikipedia.org/wiki/Henry_Ford

...

Ford did not believe in accountants; he amassed one of the world's largest fortunes without ever having his company audited under his administration.

...

[hockeyplayer 0]

The Golden Touch

[fitkid 0]

smart phones my ar*e.

[fitkid 0]

Double post

[fitkid 0]

Au moves through $1600 an Oz.Another milestone taken out.

[andrew 0]

Au moves through $1600 an Oz.Another milestone taken out.

 

£994.50 on Kitco's 24 hour gold chart!

 

http://www.kitco.com/market/bp_charts.html

 

[TrueNorth 0]

Where's that rocket pic when you need it?!

[warpig 0]

gold $1,600 and silver $40... cha-ching...

[harvipark 0]

Gold in Sterling £976

 

Pandas are now £996, Brittanias are £986 in CID

 

Whats betting we see £1000 gold by weekend?

 

£1000.31

 

We have a winner!

 

Gold stocks looking like they are finally moving. Noticed that the HUI has decoupled from the broad stock market....Dow -146...HUI...+8

[goldenbee 0]

$1,600 and £1,000.00 I no expert but if this is the summer doldrums the autumn is shaping up to be rather spectacular.

[LauraB 0]

[BelfastBoy 0]

 

[aardvark 0]

gold price on the bbc news front page.

[Pixel8r 0]

gold price on the bbc news front page.

http://www.bbc.co.uk/news/business-14195981

[goldenbee 0]

....and now a pinned 'trial' Gold thread on the HPC main board.

 

http://www.housepricecrash.co.uk/forum/index.php?showtopic=166806

[fitkid 0]

Always worth a listen from the Patrick Timpone One radio network Radio Show, Andrew Gause appears twice weekly.Usualy covering Gold and other topical monetery issues.

 

 

http://www.oneradionetwork.com/the-real-world-of-money/andrew-gause-the-real-world-of-money-july-16-2011/

 

Andrew Gause – The Real World of Money – July 16, 2011

 

The Real World of Money

featuring

 

Andrew Gause

 

You create the money with your signature on a loan,

the interest is not created…this keeps the party going.

Ben Bernake says ” Gold is not money…….”.

 

The profits of war and why it will not end.

Saturday July 17

 

Andrew Gause may just be the top man anywhere for the

 

highest quality analysis into the world of money we all

 

live in. Andrew is a currency historian, an internationally

 

recognized expert on the United States monetary system.

 

He’s written two books, “The Secret World of Money” and

 

“Uncle Sam Cooks the Books”. You can order these books

 

as well as speak to Andrew personally. As a One Radio

 

Network listener, you’ll have highest priority in his phone

 

time. His # is 800.468.2646.

[fitkid 0]

Gold has NOT YET even reached its inflation ajusted high of 1980 circa $2500.

I wonder how long it will take to reach that milestone.?

[azazel 0]

....and now a pinned 'trial' Gold thread on the HPC main board.

 

http://www.housepricecrash.co.uk/forum/index.php?showtopic=166806

 

Clearly the public phase of the gold bull is here.....All the years they have tried to discourage discussions about gold and now that what the goldbugs have said is proving to be correct, they are encouraging gold to be discussed!! Three years too late!!

[Bart of Darkness 0]

All the years they have tried to discourage discussions about gold

By giving it its own forum?

 

I could hypothesize that goldbugs have RSI and can't use the scroll wheels on their computer mice, but as a goldbug myself, I know that isn't true.

[warpig 0]

Was anyone listening to Radio2 at about 5pm yesterday? I heard Patrick Kielty say he thought of buying some gold.... I couldn't quite believe my ears.

 

http://www.bbc.co.uk...onsole/b012hkj0 06:00 --> 06:40

 

Clearly the public phase of the gold bull is here.....All the years they have tried to discourage discussions about gold and now that what the goldbugs have said is proving to be correct, they are encouraging gold to be discussed!! Three years too late!!

[G0ldfinger 0]

Please tell the decision makers on HPC greetings from their former poster "Goldfinger" (+5,000 posts or so), and please tell them that they are f**king morons. They could have had this 4 years ago. But no, they banned everything related to gold, and in due course lost out on a 200% profit.

 

F**king morons.

 

But I guess the longer this bull market goes, the more of that kind will come to surface.

 

....and now a pinned 'trial' Gold thread on the HPC main board.

 

http://www.housepricecrash.co.uk/forum/index.php?showtopic=166806