Originally Posted by
socal
First of all, if you think you are going to escape turmoil because you have no gold, think again.
Nobody excapes, if it comes to feit falure...and another depression.
Depressions do not destroy all capital in the world. They only consolidate capital. Gold is the best consolidator of capital. Look at the unemployment in the US. This is already a depression, it has been since 2008.
What I am failing to communicate is that this system is only a mind game...
"surviveing capital" is a nominal value attributed by concensus to those that have power...political or force of arms...or who control of the basic resources necessary to life...
then....there has to be an acceptance by those that participate, that it is beneficial to participate in that system...this ethos is strained, everywhere in the world today....evidence the riots and civil disobiedence.
Gold is certainaly the flavour of the times we are in....with a competition to the bottom for all feit currency....but neither counterfete currencies or sterile gold sustain life....
now that statement will draw ire.....but here is the proof....bring to mind the most productive land you have knowledge of....and then go and offer your ozs of gold for one acre of that land....the seller must weigh one ozs of gold against the future production of a living asset...
Strangely convert your gold to feit and you will get a seller...but for how long...
now there is no comparision between the future means of sustaining life...the land...and gold or feit.
Originally Posted by
socal
The Euro FLOATS gold on the asset side of its balance sheet marked to market. It is just holding its gold as a wealth reserve asset. The Euro currency itself is completely severed from gold. It is not backed by gold or convertible at any fixed price and it never will be. There will be no new gold standard.
The Fed has no gold and the US treasury has their 8000 tons market at $42. In the dollar/fiat system, gold is a competitor to bonds, in the Euro system, gold is the store of value. To put it better, it is up to the market to decide if gold is the store of value.
In every main Euro center bank you can exchange Euro's for gold at the market price with no tax.
The above is caught up in the idea that either the gold or the paper sustains life...that concept is elearly wrong in the final analysis...
You are pricing gold in the fiat currency. Price everything else against gold. The price of everything, copper, gas , oil is getting cheaper against gold. Because it is turning into the store of value. For daily or monthly expenses, fiat usually stores purchasing power good enough.
That at best is an over simplefication, it is erronious to confuse priceing in gold or feit with a store of value....if you had sway over all the oils under the Arabian sands...that would be a store of value.
All the riches of Africa and the new Americas...that was a store of value....and all the Gold in the world can not bring that "store of value" back to this present day.
There doesn't need to be a store of wealth in a transaction. When you walk into a store and buy a chicken, no equity really changed hands. You just bartered your time for a chicken using a fiat number as a numerator.
So here we have moved on to aultristic motives...the guy selling the chicken is doing it because he needs the practice...not to increase his net worth...his store of wealth.
No denying that...Government sponsored Ponzi Schemes....worked very well in a time of demand, production and expansion...but now "dead man walking" one may say....the world bussiness model has changed for many reasons...we've run out of customers, battlers and believers.
Fiat works fine for medium term transactions. Nobody saves any capital in the Jamaican dollar but it still works as a meduim of exchange. Jamican millionaires hold foreign currencies or bonds. There is no equity behind a currency like the Jamican dollar.
If there are sellers of productive land for Jamican currency...yes it still works...even if there are sellers for USD it still works...and from your statement, there is a world exchange that still works...
Foreign currencies, bonds, the Jamican dollar and even gold are not stores of wealth..
wealth is self perpetuating....it reproduces itself...hence the concept of capital earning interest.
Here this idea goes all wrong....how can value be attributed to Gold, if it is not mandidated...that is fixed...how can it be a store of value if it is not exchangeable for say land or livestock....and if it is exchangeable the value of Gold, land and livestock is nominal and therefor negiotable....for the dianamic in exchange is nominal and an exercise in relative value...as it allways is.
It is up to the market to decide if gold has value. Nobody is forced to hold it. Under the dollar system, it is just the opposite. They have fractional reserve bullion banking to suppress the price. Gold is exchangable for any fiat currency in the world right now. You can buy anything with gold, you just have to convert it to a medium of exchange first.
That doesn't present a problem...in your mind...conversion to a feit ...in a feit crises....
now if you are lucky enough to be on the Gold express...don't leave your run to late to convert to real tangable assets.....the staff of life.
Originally Posted by
socal
This is nothing you can understand in a few paragraphs. Its a deep subject.
I am indebted to you for your caution, for your admonishment to understanding....
I have worked in this field for over forty years as a self employed, self funded trader....and increaseingly the complexity and the simplicity of the discipline continues to amaze my understanding, and apparently I am not alone....greater men with greater minds than mine are confused...and I might add with greater salaries, to ease that confuseion....
You indeed, are a standout...to have confidently cracked the code...no word on the end game...as yet...
or is that a work in progress...you'll know when you get there.
Read the FOFOA blog. I have been reading it for 3 years. After a while you will realize that it is the only thing that can happen. Nothing is stopping it.