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

To: TobagoJack who wrote (80007)	9/21/2011 10:49:04 PM
From: Hawkmoon	3 Recommendations Read Replies (3) \| Respond to of 218531

There are pros and cons for both gold and paper.. But as far as I can recall, no one engaged in wars of conquest over paper money. If anything, Fiat was issued to pay for wars of conquest to obtain hard assets. The reality is that money, once obtained through sale of assets, or compensation for services rendered, is nothing more than a medium of exchange for facilitating the transfer of wealth and value from one form of asset to another. I could use that money to buy gold, or buy oil. Or I could buy the debt instrument of another party, feeling secure that the debt will be repaid with interest. I could buy land, certain in the knowledge that they aren't making any more of that. Money that is stuffed into a mattress gains no return. Money must be invested as it provides the momentum to sustain economic growth. Hoarding assets, and/or money, impairs economic growth and denies credit to entrepreneurial businesses. Likewise, money hoarded in a low-yielding bank CD, or a PM that pays no interest, is not conducive to economic growth. And the bottom line is, as your suitcase story relates, very hard to transport, and store. And in a world where rule of law is second to economic greed and increasing desperation by the masses, your ability to transport and store that gold will incur substantial security risks/costs that may dilute it's value. Hawk

To: TobagoJack who wrote (80007)	9/22/2011 9:11:17 AM
From: Cogito Ergo Sum	Respond to of 218531

by analogy... sounds like the GW debate temporarily lost value within a 20 years span out of its 6000

To: TobagoJack who wrote (80007)	9/25/2011 2:39:38 AM
From: elmatador	1 Recommendation Respond to of 218531

Money is belief. Instill belief on it and populaces work for it as if it was a real thing. Governments job, right now, is to re-instill belief in paper monies. Why governments are hard at work in the instilling trust business? Because of risk of bank runs. People (lots of people at a single go), lose trust in paper monies and to take those paper monies they have deposited at the bank and exchange it to real hard assets. This is panic money on the move. This panic money movement is what people have being doing in the EU (EU out of the core countries). And it was that money that flew into CHF and gold. That was panic money on the move. Call gold 'panic money on the move'. Not your own gold. Your own gold is not panic money in the move because you pragmatically invested in it. What governments are doing? They say: Greece is you tomorrow. Better to instill trust in your paper money. This is not protect the currencies. This is: We don't want to get to a point where people does bank runs. This must be concerted action and that is what the G20 is trying to engender in the next couple of weeks.