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View Diary: Glenn Beck-touted Goldline charged in criminal complaint (115 comments)

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  •  PM's are about PRESERVATION of 'wealth' (0+ / 0-)

    In case you haven't noticed your $US is losing buying power rapidly.  It's worth half today what it was in 2000 and will be worth half again as much in another 5 years.

    The Fed has a DELIBERATE policy of inflation - and lies like mad about by understating the actual rate with bogus CPI numbers.  If you buy food you KNOW that inflation is far higher than the official numbers.  LBJ demonetized US coinage - reducing silver content (in fact a crime of debasement punishable by death according to US law).  That old 90% silver quarter is now worth $6.17 for its metal value - and an old all copper penny is worth 2.36 cents today.

    Something is VERY WRONG when a country's metal coins are worth more for their metal value than their monetary value - reducing the value of the metal in coinage is a form of currency DEBASEMENT and has been viewed as a crime for thousands of years.  This is a sign that a government is FAILING to preserve the buying power of its money.

    The house my grandparents paid $12,000 for in the 1940's  cost my parents $29,000 in the 1960's and sold for over $500,000 not too long ago.  ( Incomes have not gone up at a comparable pace so none of the 'everything has gone up nonsense).  They buying power of our money has gone DOWN.

    Any country that has been through severe episodes of inflation has seen savings become worthless.  Weimar was an extreme example but we have seen severe inflation in Argentina, Brazil, Russia, Yugoslavia and Zimbabwe - all due to government printing and excessive debt.

    There is NO other currency large enough in circulation at this point to accommodate demand for a 'safe haven'.  The Swiss deliberately devalued their money by linking it to the Euro because the increase in value (from safe haven buying) was killing exports.  When Yugoslavia fell apart and their money hyperinflated the german Mark was the preferred 'safe' medium of exchange and savings.  There is NO place large enough to meet safe haven demand for the $US and Euro.  

    And yes, in a real melt-down you will be bartering for food and ammo, what do yo do in the long run?  A few years down the road what will still be worth SOMETHING?

    That hoard of gold and silver found buried in Britain a couple thousand years back would still be worth something for its metal content even if not for its artistic value.  

    Forty-fifty years ago it was common for anyone with a portfolio of investments to have 5-10% invested in gold or gold mining stocks as protection against loss of wealth.  Now few people do so and those wanting to do so are steered into GLD and other ETF's which are 'paper' holdings and may themselves turn out to be holding only borrowed metal.  Coincidentally, these EYTF's are managed by soem of the largest SHORT sellers of PM's on CCOMEX markets.

    Gold may be a 'barbaric relic' but its one that has been viewed as 'real' money having 'real' value for thousands of years.   When millions of Marks wouldn't buy you a loaf of bread one gold coing could buy you a hotel.  In Zimbabwe, people pan for gold to buy food - a pinch of gold dust is now worth more than hundreds of trillions of now worthless Zimbabwe dollars.  And while you may not be able to eat gold or silver there may very well come a time when your $US100 won't buy you a loaf of bread.  

    I don't see the $US hyperinflating - that would mean a true worldwide economic collapse but the erosion in buying power is continuous and increasing.  

    China, Russia and other nations have been INCREASING their holdings of gold and reducing their holdings of $US denominated debt.

    Ironically, even those scammed by Goldline and others may end up breaking even in the long run while those holding T-Bills may lose their shirts.  

    And while we saw a recent slam down in PM prices I suspect that was an attempt to keep paper money looking better and was only a limited duration event.   The Silver Eagles I gave to my son and friends for HS graduation  is still worth double what I paid (and he has yet to finish college).

    The few gold proofs I bought years back are the best performing 'investments' I ever made while the PM part of my portfolio has outperformed any other holdings.  Energy and commodities are other long term safe havens as well.

    And silver may have far better upside than gold as it is consumed in industrial applications - less now exists in unmined form than 20 or 50 years ago while usage has increased.

    Given the folly of governments increasing money supplies to unheard of levels - adding more debt onto debt, I think it wise to have some of my savings in a 'safe haven' - and so far that part of my portfolio has performed far better than any other.

    'Liberals' believe in government and don't seem to think it could ever turn on them or destroy itself.  They are optimistic - too much so in my opinion.  Conservatives fear what government can do - and are paranoid that government will do the WRONG thing - be it in taking away their rights or destroying their hard earned savings.

    History has shown there is valid fear - best to be prepared.  

    Sadly I suspect the 'survivalists' deep in Idaho or wherever may just be on to something.  

    Progressives may find themselves broke, hungry and outgunned if they believe it could never happen here.... it IS happening in case you haven't noticed.

    Your savings are losing value, food is getting more and more expensive and unemployment is at Great Depression levels.  The Democrats are as bad as the Repubs at using smoke and mirrors.... we're not seeing REAL progress on any of these issues (and it doesn't matter whose to blame).  

    I think it wise to prepare for the worst even if hoping fervently it never occurs.

    Life isn't fair but you should try to leave it fairer than you found it.

    by xrepub on Wed Nov 02, 2011 at 11:54:08 AM PDT

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