Re: An opinion on the fate of the US economy from the other side of the globe.

On Sep 10, 8:56 pm, "Beldin the Sorcerer" <beldin...@xxxxxxxxxxx>
wrote:
"Alim Nassor" <alimnas...@xxxxxxxxx> wrote in message

news:6b7e1cf7-12ec-48ff-9b20-c11e9d40c557@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx>http://www.atimes.com/atimes/Global_Economy/KF04Dj03.html

The author takes a look at the US situation in comparison to other
countries whose economies collapsed.

IOW, he shows he's an ignorant idiot.



Excerpts;

Debt-based monetary systems are inherently unstable. Money is created
out of thin air by the banks and lent to government, consumers and
businesses. In order to service and repay those debts, the borrowers
take on more debts. Asset prices are inflated, and the vicious cycle
continues until the debtors are unable to borrow or the banks are
unwilling to lend.

Ignorance number one.
Money is not created by debt at all. It is borrowed, against the assets
purchased, usually, and on the strength of future earnings.
One asset that morons pining for the gold standard generally leave out is
the value of future work.



At that point the system snaps, everything is sold off, and we have a
financial crisis at hand

So long as people can work, we do just fine.
So long as ENOUGH of them work, the system is stable.



"The US is privileged to have its dollars serving as the world's
reserve currency. America's debt is denominated in dollars, which can
be printed at will by the Federal Reserve - and print is what the Fed
did, and continues to do, creating more than $1.5 trillion to bail out
various groups. "

It dfidn't create a fucking dime.
It borrowed the money. And people lined up to make the loans.

And, so far, the return on government investment in the 'bailouts' is
positive.



Where does the dollar go from here? When foreign investors took flight
from Russian rubles and Argentine pesos, the dollar was the
beneficiary. When global investors take flight from the dollar, which
currency benefits?

They won't. Because they can't.
They need us to feed them. They need us to protect them. If the US starts to
break down monetarily, the country will restructure long before the country
is allowed to fall into chaos.



Gold is the ultimate antithesis to the dollar. Gold is liquid,
universally recognized and limited in quantity.

Gold is a lump of metal that morons who failed history think is valuable
just because.

Gold (and silver) were currency, and instead of monetary policy being
created by people with a clue (hopefully) it was created by people with a
pickaxe and shovel who stumbled upon a vein of metal.

 Just like Russians and

Argentines trying to anchor their currencies to the dollar, the US
government devised various ways to slow down the rise of gold prices
to maintain the dollar's soundness. However the massive money printing
by the Fed and fast-eroding confidence in the dollar by international
investors might just be the key to drive gold past the ellusive $1,000
per ounce level and not look back.

Alim the retard, ladies and gentlemen!
Adjusted for inflation, gold's price is nowhere near the 1980's peak.... and
it plunged from there, losing about 75%.

Buy high and sell low, if you're an idiot.



I'm guessing Alim is really a speculator, who's trying to play pump and dump

Let's see Beldin is a 3rd shift stock boy who can comprehend the
written English language and the author if this piece is John Lee

John Lee is the founder and principal of Mau Capital Management and
the portfolio manager of a mining equity hedge fund. He is a CFA
charter holder and has degrees in economics and engineering from Rice
University. Lee has a keen interest in the history of money and
economics, and has previously studied under James Turk, a renowned
authority on the gold market.

HMMM, whose opinion do I think carries more weight.
.

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