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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (99485)	11/8/2008 3:16:20 PM
From: Robin Plunder	3 Recommendations Read Replies (1) \| Respond to of 110194

"Robin, The problem with gold is that tying the financial and economic growth of a nation to an increasingly rare shiny metal just doesn't make logical sense. For one, it take economic resources to mine gold, thus there is a cost involved in its discovery, exploitation, and refining. Secondly, there is a limited quantity of it available, yet there is no limitation on human population growth. One of the reasons that gold fell out of fashion as a currency is due to the tremendous population growth seen over the past 100 years. When population levels drastically outpace the ability of gold miners to increase the monetary base through new discoveries, the financial system become inherently unstable. Thirdly, it's just inane in principle to dictate economic growth by tying it an increasingly rare element, especially one that has industrial uses beyond monetary. Economic growth should be dictated by the productivy and innovation of a nation's populace. That said, I certainly understand why gold bugs are so fond of it given their historical distrust of the Fiat system. But let's not forget that the Spanish discovery of Incan gold led to one of histories greatest INFLATIONARY spirals during the 1500's. It stifled economic diversity and manufacturing and created tremendous and long-lasting dislocations of the economy. Military force has often been used to conquer, colonize, and exploit a natural resource to increase a nation's financial wealth. And that's not a direction that I think we should encourage. Hawk" in my discussions with others on this topic (mostly outside this list...seems like most here are very well informed), it is absolutely astounding to me that so many could be so happy to hold nothing but an electronic blip as their wealth..ie, it is nothing, as can be verified by the folks in iceland or argentina, or a host of other similar places. yes, gold is an existent, and as such has specific characteristics that affect its value...nonetheless, it has a value, much more than can be said for an electronic blip...and if some other physical existent possesses better characteristics for money, pls bring it forward, no doubt humanity will be glad to find it.... in cramers words, what do holders of fiat have? "...they have NOTHING!!...they have NOTHING!!....they have NOTHING!!.." thx jim....:) robin

To: Hawkmoon who wrote (99485)	11/8/2008 3:35:59 PM
From: forceOfHabit	2 Recommendations Read Replies (1) \| Respond to of 110194

Hawk, Military force has often been used to conquer, colonize, and exploit a natural resource to increase a nation's financial wealth. And that's not a direction that I think we should encourage. Too late. (You do know that there is oil in Iraq don't you?) habit

To: Hawkmoon who wrote (99485)	11/8/2008 5:06:56 PM
From: Little Joe	5 Recommendations Read Replies (3) \| Respond to of 110194

"The problem with gold is that tying the financial and economic growth of a nation to an increasingly rare shiny metal just doesn't make logical sense." Yes and it is perfectly sensible to tie the financial system to what?? computer entries created at will? Paper printed on a printing press? the integrity of politicians? Gold isn't perfect but its supply can't be manipulated and so far has maintained value throughout history. It imposes a discipline on the system that prevents the kind of problems we are having today. Little joe