Tuesday, May 27, 2008
Why commodities are rising
safehaven: Monetary Stuff
"As far as we can tell, most people attribute the large increases in commodity prices to NON-monetary factors such as strong growth in China, price gouging by greedy corporations, OPEC, the Iraq War, government stupidity, and the weather (including "Global Warming" and natural disasters). Some of these non-monetary factors are significant, but our assertion is that few people appreciate the key role being played by the systematic debasement of all national currencies."
Posted by sold 2 rent 1 @ 08:10 PM (497 views) Add Comment
9 Comments
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1. harold said...
Yep, inflation here we come. We should all prepare to get a lot poorer. Thanks bankers.
2. harold said...
This guy seriously rocks:
http://www.kitco.com/ind/schoon/may272008.html
Disregard at your peril. It seems so obvious, I don't know why I didn't get it before: credit is not money.
3. planning4acrash said...
Harold. Our currency is fiat, it is ALL credit, and NONE of it is real money!!!!! Only notes exchangeable for a real commodity, such as gold, is true money. If you can't exchange cash for anything but more cash, then, fundamentally, it is worthless, and only retains value on sentiment and belief in the currency. This is why I keep banking on about a 100% gold standard. The last gold standard was fractional in the USA, where 1 note could be exchanged for 25% its worth in gold, in that situation, 25% of money is real. We need a 100% gold standard.
documentary makers.
4. Dbc Reed said...
For a completely different perspective on the Gold Standard in operation read the Introduction to Alan Crisp's "The working-class owner occupied home of the 1930's" available on the Net.This states that all those semis built in the 30's, incredibly over six years '33-'39, came about when we came off the Gold Standard ,which led to lower interest rates and mass building. A lot of building must play some part in getting the housing market in order. Crisp also points to the big difference between now and then:cheap land.
5. sold 2 rent 1 said...
P4AC is right
"The money was never there in the first place. Money had been replaced by credit in the shell game introduced by the Federal Reserve in 1913 when the Federal Reserve began issuing credit-based Federal Reserve notes in place of the savings-based money from the US Treasury."
Money is debt.
6. sold 2 rent 1 said...
I think we might be arguing over terms.
Both statements can be seen as correct:
Money doesn't exist. You only have debts and credits
Money is debt.
7. sold 2 rent 1 said...
Great article harold,
QUOTE
"Those running the shell game, the central bankers and their codependent brethren, investment bankers, are terrified of losing their day jobs, They have lived well for three hundred years (since the establishment of the Bank of England in 1694) leveraging the productivity of others and we can be assured they will do everything in their considerable power to keep their lifestyle intact.. "
A ponzi scheme 300 years in the making
8. sold 2 rent 1 said...
"At Session III of Professor Fekete’s Gold Standard University Live in February, I discussed the possibility of a sequential or simultaneous hyperinflationary deflationary depression, the economic equivalent of having both a severe heart condition and a possibly fatal cancer at the same time. Such is not impossible; in fact, it is increasingly likely."
Sweet dreams folks
9. Gardeniadotnet said...
I don't get it.
What use is gold in the long term?
Ray
Gardenia.net