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


"Alim Nassor" <alimnassor@xxxxxxxxx> wrote in message
news:15b1dfac-e4cd-4f30-82c8-0670e2300685@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
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

***
Nope
Beldin hasn't been a 'stock boy' for quite some time.

Beldin also took economics, finance, and practiced accounting for several
years.

Unlike Alim the retard, Beldin actually has a clue what the hell monetary
policy is.
***

John Lee is the founder and principal of Mau Capital Management and
the portfolio manager of a mining equity hedge fund.


***
IOW, someone with a versted interest in getting you to buy gold.
WOW, amazingly, he's pro-gold.

WHODA THUNK IT?

***
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.

***
IOW, he's been programmed by another reactionary fucktard, pining for the
gold standard.
Is this where I trot up articles by 50 or 60 people at least as qualified,
showing how fucked up the gold standard is?
I'm a trifle busy this morning, but if you're really simpleminded enough to
think there aren't at least as many people who think you're citing a puddin'
head, I'll be happy to pull a bunch of cites for Saturday night

Oh ***, let's leave you a small taste :

a.. The total amount of gold that has ever been mined has been estimated
at around 142,000 metric tons.[12] Assuming a gold price of US$1,000 per
ounce, or $32,500 per kilogram, the total value of all the gold ever mined
would be around $4.5 trillion. This is less than the value of circulating
money in the U.S. alone, where more than $8.3 trillion is in circulation or
in deposit (M2).[13] Therefore, a return to the gold standard, if also
combined with a mandated end to fractional reserve banking, would result in
a significant increase in the current value of gold, which may limit its use
in current applications.[14] For example, instead of using the ratio of
$1,000 per ounce, the ratio can be defined as $2,000 per ounce effectively
raising the value of gold to $8 trillion. However, this is specifically a
disadvantage of return to the gold standard and not the efficacy of the gold
standard itself. Some gold standard advocates consider this to be both
acceptable and necessary[15] whilst others who are not opposed to fractional
reserve banking argue that only base currency and not deposits would need to
be replaced.[citation needed] The amount of such base currency (M0) is only
about one tenth as much as the figure (M2) listed above.[16]
b.. Despite historical proof to the contrary, most liberal economists
believe that economic recessions can be largely mitigated by increasing
money supply during economic downturns.[17] Following a gold standard would
mean that the amount of money would be determined by the supply of gold, and
hence monetary policy could no longer be used to stabilize the economy in
times of economic recession.[18]
c.. Monetary policy would essentially be determined by the rate of gold
production. Fluctuations in the amount of gold that is mined could cause
inflation if there is an increase, or deflation if there is a decrease.
[19][20] Some hold the view that this contributed to the severity and length
of the Great Depression.[14][21]
d.. Some have contended that the gold standard may be susceptible to
speculative attacks when a government's financial position appears weak. For
example, some believe the United States was forced to raise its interest
rates in the middle of the Great Depression to defend the credibility of its
currency.[21]
e.. If a country wanted to devalue its currency, it would produce sharper
changes, in general, than the smooth declines seen in fiat currencies,
depending on the method of devaluation.[22]


HMMM, whose opinion do I think carries more weight.

***
Mine
Yours is backed by an idiot with a vested interest in getting your money
invested in a lump of metal.


.

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