To: Bearcatbob who wrote (155516 ) 8/16/2011 11:15:47 AM From: ChanceIs 6 Recommendations Read Replies (1) | Respond to >>>anyone who thinks the debt ceiling should not have been extended like Ms. Bachmann is IMO nuts.<<<James : Well, you hit the nail on the head not only explaining why gold is going up, but something to me that's very important. You know, the sentiment indicators. For something to go exponential, there has to be a change in psychology of various participants around the world. So you're implying that sentiment is going to change negatively for national currencies and positively toward gold in such a way that it will just keep running.Jim : Lack of management. Something on its own. Situations developing without any plans on how to handle them, but rather just reacting to circumstances as they come.James : Yeah.Jim : The absolute embarrassment of the compromise that allowed the debt ceiling to rise in the US. Anyone who had any part in that arrangement should be embarrassed. It's becoming clear to the world that we react to circumstances in North America, in the US, without any plan whatsoever for what they might be. James : Yeah. Understand completely. So policy makers are, they don't have the political will to do the right thing. They don't have the political will to turn around and get back on the right road and stop this train wreck that looks like it's going to happen?Jim : This is a slow train wreck. It's going to go on, in my opinion, right through 2015. This train wreck is circumstances creating decisions reactively. This train wreck is an out of control economic circumstance. This train wreck is exactly the same as if you and I spent everything we had, borrowed on our credit cards and lost our job on a national basis. Credit is gone wild and it's coming home to roast. James : But, you know, this is something different. You know, I've gone to countries like Argentina in 1991 to study the problems with the currency and hyperinflation. But, you know, we're talking about the world's reserve currency here.Jim : Yes.James : So what you're suggesting is this is going to have a profound impact, not just in the United States, but everywhere?Jim : For exactly that reason. The reserve currency, the currency upon which other central banks have taken comfort, that reserve currency is broke. That reserve currency has debt that can't be controlled. That reserve currency is going to transmit its problems throughout the Western world.James : You know, you probably remember from the 1970s when John Connally was President Nixon's secretary and we were having one of the many crises, probably 1973, with regard to the dollar. And Connally said, "Well, the dollar is our currency but it's your problem," speaking to the rest of the world. Is that still the same attitude today?Jim : That madness still continued, but I don't think continues anymore.James : Because?Jim : I think that madness has been brought into the light of reality by the increase in the debt ceiling based on nothing whatsoever. On a very poor compromise. On doing nothing. On just making a piece of paper. Of just doing theatrics for TV. James : Well, this is interesting because what you're basically saying is the debt ceiling process, where they finally did increase it after all of this political posturing and whatnot. That was sort of a wakeup call? Not only in America, but also the rest of the world as to...Jim : It was a total shock.James : Yeah.Jim : I don't think any economic event in modern history has been as embarrassing as the so-called compromise, the so-called bill and the so-called lauding of that accomplishment. And the market the next day looking at it and defining it as totally fallacious. James : Are you comfortable talking about the euro and what the implications of the dollar are going to be on the euro?Jim : It's not just simply the dollar on the euro or the euro on the dollar. That's day to day trading. Our problem is not a problem of just the US dollar. It's in the entire Western world.James : Fiat currency?Jim : Fiat currency of the entire Western world. What we lose others gain.James : Yeah.Jim : There was a time when we had it all and there was a time when we gave all of that back.James : Yeah.Jim : It's not simply what is Greece going to do today or tomorrow. It might be what is New York state going to do today and tomorrow.James : Or Illinois or California.Jim : And media, media has focused on the euro and our rating agencies are totally euro-phobic. While if they were to turn the mirror around and look the other way, they'd see the exact same thing. The trading that will take place between the euro and the dollar are purely mirror images reflecting whatever the flavor of the day is. It's an entire Western world currency problem that is endemic because of the dollar, which transmitted the problems of debt not simply from the US, but to the world.James : Yeah. So they've all been bitten by the fiat currency disease and, you know, we can't just talk about the dollar...Jim : Greed.James : We've really got to talk about everything.Jim : Greed.James : That's human nature, right?Jim : But human nature to the extreme. Who needs enemies when we have the financial leadership we have? goldmoney.com
