The Golden Truth: Must-Watch Primer On Gold vs. Paper Currencies

Wednesday, September 30, 2009

Must-Watch Primer On Gold vs. Paper Currencies

"Why gold?" you ask. This video will be somewhat redundant for investors who already understand why gold does what gold does and why it's been a 5000 year store of wealth. But this is an excellent 5 minute explanation of how and why gold functions to preserve your wealth/purchasing power and why gold is the ultimate hedge against the daily erosion in value of the U.S. dollar (my friend and colleague Jesse of http://www.jessescrossroadscafe.blogspot.com/ brought this video to my attention):

6 comments:

EconomicDisconnectThursday, 01 October, 2009
Dave,
Nice video!

Did you catch Jesse's post today on empirical reasoning? As a scientist I loved it.
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Dave in DenverThursday, 01 October, 2009
Thanks for the heads up. Usually he emails me when he posts. He's a bright guy who likes to "tinker" with data and things - like fixing his sink instead of calling a plumber LOL.

Watching CU/W Va. game in ESPN. CU is a 17 point underdog and is only down 4 midway thru the 3rd.
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EconomicDisconnectThursday, 01 October, 2009
MONSTER NFL Sunday this weekend. I love the pure competivness this year!
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Dave in DenverThursday, 01 October, 2009
I'm ALMOST looking forward to the Monday night game as I am the Bronco/Cowboy game...here's the other must-watch game:

Ravens/Pats
Jets/Saints (the over/under must be 80 LOL)
Chargers/Steelers

Titans/Jags should be interesting too
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JRFriday, 02 October, 2009
Hi getyourselfconnected,

As a scientist, aren't you troubled by the attempt to use empirical reasoning in economics?

I thought that was easily one of Jesse's worst. Its OK to say we don't know. I've always thought admitting uncertainty and ignorance is far better than the alternative, thrust upon us by mainstream economics - conclusions couched in the faulty premises of faux empiricism.

"and a willingness to accept new data and act on it when it appears, even if it appears contrary to a current working hypothesis."

The use of the word "act" is the scariest thing he has ever written, and the essence of much of the failing of contemporary, mainstream
economics.

==========

"Finance, business and Trading" is not economics, so he really lost me in the second half of the article. They can't punt, they must act. But they aren't economics.

==========

Hi Dave,

Do you ever read FOFOA's blog? I'm curious about you take on it?

Cheers mates!
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Dave in DenverFriday, 02 October, 2009
JR, the only science that's less precise than economics is medicine LOL...

I have not been in the FOFOA blog, but I just pulled it up and will browse over it.

Thanks!
Dave "In Denver"
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Add comment

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.