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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: ssteamer who wrote (31589)	3/25/2008 2:55:22 PM
From: benwood	Respond to of 218131

I've heard more than a few including Faber who expect the finale will include the confiscation of gold. But then, I wonder, "Why?" In 1933, we were on the gold standard, and so confiscating at $21 and then raising the price per ounce to $35 allowed for a lot more money to be printed, in essence devaluing the dollar. Unless there's a return to the gold standard, there's no point in the Feds buying our gold (at gunpoint, or otherwise). Since the stealth tax (inflating the money supply and spending the newly printed money on various wars, bailouts, corporate giveaway du jour) relies on fiat, I see politicians kicking and screaming and throwing tantrums before they'd give way to sound money that does not allow them to get reelected with promises of something for nothing. Collapse of fiat would change everything. With competitive devaluations, it will be hard to find a point in time where it just all explodes, but it certainly could. In any event, I view any such possible event as being several years away at minimum. That's a longer time horizon than most of my investments.