The Golden Truth: Quote Of The Month

Thursday, April 28, 2011

Quote Of The Month - From James Turk

The dollar is in trouble and the Federal Reserve has its head buried in the sand. Washington's politicians are spending money they don't have and the federal government's credit rating is being called into question, I could go on, but you get the point. We're at an historic moment. Years from now we will look back and point to 2011 as the moment in time when the flight out of the US dollar accelerated leading to its eventual collapse. A simple and safe way KWN readers can prepare for this catastrophe is to own physical gold and physical silver. LINK

10 comments:

AnonymousThursday, 28 April, 2011
ECU seems to be following in the path of Silver Dragon is it really your policy to recommend stocks you are selling? If so it's worked.
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AnonymousThursday, 28 April, 2011
Hey Dave,

Any recommended sites to find information on mining stocks?

Thanks.
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Dave in DenverFriday, 29 April, 2011
re: ECU - LOL. Actually increased the position in the fund by 20% two days ago. Quite frankly, I'm probably the most honest and ethical person you'll find in this business. That's why I don't work on Wall Street anymore. I don't appreciate those accusations and it makes you look quite juvenile.
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Dave in DenverFriday, 29 April, 2011
re: sites to find information on mining stocks: i do my own research and i try to stay away from sites like that. i usually get shown ideas and then I research them myself. working on two right now. you should search this site and take the names and research them yourself. Here's a link: http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=117802&sn=Detail&pid=102055

That site has articles all the time with stock ideas. I completely ignore newsletters because those are typically pump n pump. Don't trust the NIA at all and I know that it pumps and dumps. It's really just a function of immersing yourself completely in the sector and maybe once or twice a year you find a new idea that might pay off.
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AnonymousFriday, 29 April, 2011
Greg said... Hi Dave, Thanks for your willingness to continue to give your insight on all things financially related. Always enjoy your blog...
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AnonymousFriday, 29 April, 2011
Turks's comments miss the mark a bit. The death of the Dollar is inevitable, if not deliberate. There is no Paul Volker in the Fed establishment or in the Federal government to raise rates as required. And even if there were it simply is not possible, as raising rates by even a few percent will bankrupt the U.S. Treasury in a matter of months. The Dollar must die.

The death of the Euro will keep Dollar on life support for a while, but it will die nonetheless. A new currency regime, at least partially backed by PMs will be installed. PMs under the ground will be nationalized and hefty capital gains taxes will be levied on the exchange of PMs held privately.
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Dave in DenverFriday, 29 April, 2011
Anonymous, the Fed could and should rates if defending the dollar were the goal. The problem is, in a globalized world, how do you compete with a strong currency and a middle class lifestyle that is substantially higher than most of the goods-producing world? Either that world's lifestyle has to increase substantially or the lifestyle here has to decrease substantially. Water always finds its own level and it's easier to kick the can down the road until the market forces the issue. The dollar would probably have to be closer to 30 (just using that as an example) in order for the various imbalances to balance out. Imagine what life would be like if that actually happens...unfortunately there will be a world war or peasant revolution here before that happens...

Thanks Greg! Appreciate it.
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AnonymousSaturday, 30 April, 2011
The coin shop I go to is normally empty with only one or two cars in the parking lot. Yesterday, the parking lot was packed. People were lined up back to the door, SELLING their jewelry, silverware, 90% coins, etc. When the attendant told one lady what all her jewelry was worth, she started acting like she had just won the lottery. When asked if she wanted to sell all of it, she hesitated and asked if that would be stupid. After a few seconds, she made her decision and sold it all.
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QueenbeeSaturday, 30 April, 2011
I don't comment here often, but I appreciate Dave's hard work. Running a blog is very time consuming. Anon said "When the attendant told one lady what all her jewelry was worth, she started acting like she had just won the lottery. After a few seconds, she made her decision and sold it all." This is why America is doomed. Ignorance is the norm. Dealers usually pay 10-20% below spot so she is just giving her money away and will go to Walmart and buy Chinese junk with the windfall.
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AnonymousSunday, 01 May, 2011
http://www.youtube.com/watch?v=GTQnarzmTOc

A great rap video about economics-- I was impressed!

Justin from Canada
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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.