that's fine ... in order for there to be a "manic" phase later, there need to be disbelievers now.
_________________ "Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan "Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson “Gold is money. Everything else is credit.” -J.P. Morgan, testifying to Congress in 1912
Just as the government is trying to prevent people from investing in anything other than T-Bills by raising taxes on taxable interest and dividends to confiscatory levels, it's also trying to prevent you from parking your wealth in assets, like gold, that compete with the paper dollars issued by the Federal Reserve and the Treasury. A press release from Rep. Anthony Weiner, Democrat of New York, not yet (as of this instant) posted on Mr. Weiner's Web site, announces that a September 23 hearing of the Subcommittee on Commerce, Trade, and Consumer Protection (a subcommittee of Rep. Henry Waxman's Commerce Committee) will focus on "legislation that would regulate gold-selling companies, an industry who's [sic] relentless advertising is now staple of cable television."
From the press release: "Under Rep. Weiner's bill, companies like Goldline would be required to disclose the reasonable resale value of items being sold." That's great. Are Mr. Weiner and Chairman Bernanke also going to agree to print on every dollar the reasonable expectation that its value will be eroded by inflation?
Gold investors (or speculators) are already punished by the federal government by having their investment, even in a gold exchange-traded-fund, taxed at the higher rates that apply to collectibles rather than long term capital gains.
Not to mention the fact that Mr. Weiner's regulatory push seems as much aimed at conservative journalists as at the gold-dealers. The press release says, "Goldline employs several conservative pundits to act as shills for its' [sic] precious metal business, including Glenn Beck, Mike Huckabee, Laura Ingraham, and Fred Thompson. By drumming up public fears during financially uncertain times, conservative pundits are able to drive a false narrative. Glenn Beck for example has dedicated entire segments of his program to explaining why the U.S. money supply is destined for hyperinflation with Barack Obama as president."
Imagine the uproar if a Republican-majority Congress started investigating and having a regulatory crackdown on big advertisers in liberal outlets such as the New York Times. The First Amendment freedom-of-the-press crowd would be marching in the streets.
The whole situation is amazing. If Mr. Weiner really wants to calm fears about hyperinflation, the last way to do it is to have a government hearing cracking down on the people warning of it.
The press release reports that "invitations to the hearing have been sent to the representatives of Goldline International, the Federal Trade Commission, the Consumers Union and other potential witnesses, including former Goldline employees." Mr. Weiner might also consider calling John Paulson and George Soros, who have also reportedly been buying gold lately, though Mr. Soros was also quoted as calling it a bubble. But Mr. Paulson saw the housing bubble coming so he might be right about the inflation risks, and Mr. Soros is a big funder of left-wing causes, so neither of them would fit with the objective of the hearing.
Anyway, we are looking forward to the hearing, which should be quite a show.
_________________ “Debt and deficits are not inventions of ideology. They are facts of arithmetic.”
Hey there,
Gold hit some a record the other day. I'd like to broaden my picture here; Why do you think that (the rise in value) is? Will it continue? If so, why? If not, why not? Why did it rise in the first place? What are your views?
bdc63 Schumpeter Reincarnate
Joined: 16 Feb 2007
Posts: 4392
Location: Maryland
that's right - and when the demise of the dollar becomes apparent to EVERYBODY, gold will inflate like no bubble you have ever seen before in the history of the world.
... nobody ever said you weren't allowed to make money in bubble times. the trick is to know when to walk away.
_________________ "Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan "Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson “Gold is money. Everything else is credit.” -J.P. Morgan, testifying to Congress in 1912
bdc63 Schumpeter Reincarnate
Joined: 16 Feb 2007
Posts: 4392
Location: Maryland
Hey there,
Gold hit some a record the other day. I'd like to broaden my picture here; Why do you think that (the rise in value) is? Will it continue? If so, why? If not, why not? Why did it rise in the first place? What are your views?
gold will continue to go up because the dollar, like all other fiat currencies throughout the history of the world, is dying. when currencies die, hyperinflation sets in, and people RUSH to hard assets that can revalued in other currrencies (or in the newly inflated dollars at a future date) - it's all about wealth preservation.
_________________ "Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan "Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson “Gold is money. Everything else is credit.” -J.P. Morgan, testifying to Congress in 1912
bdc63 Schumpeter Reincarnate
Joined: 16 Feb 2007
Posts: 4392
Location: Maryland
_________________ "Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan "Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson “Gold is money. Everything else is credit.” -J.P. Morgan, testifying to Congress in 1912
Last edited by bdc63 on Mon Sep 20, 2010 5:19 pm; edited 1 time in total
dreamer Demolition Man
Joined: 09 Aug 2007
Posts: 2101
Location: Northern California
that's right - and when the demise of the dollar becomes apparent to EVERYBODY, gold will inflate like no bubble you have ever seen before in the history of the world.
... nobody ever said you weren't allowed to make money in bubble times. the trick is to know when to walk away.
Yes, that is correct. Have to know when to walk away.
Gold is a nice placeholder for money. Limited upside, and the retrace is a mofo. 20% upside is about 1560. If the stock market recovers, the upside is much closer to a 50% gain. Which do you choose?
I just might be jumping on the bandwagon with options if it still looks good in a bit. But, my caution on gold is due to its recent spike. I think the recent run is due to the fear of the FED intervening and buying T-Bills and or mortgages again. FED meeting tomorrow could be a bullish signal for gold, and a positive outlook could also create that "giant sucking sound" Collapse of the gold market, back to 1200.
_________________ “Debt and deficits are not inventions of ideology. They are facts of arithmetic.”
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