posted by tazadar
The Euro is to replace the currently US dollar as the world's currency reserve. Then the Euro moves to be the one world currency. There are talks of
an Americas currency, Amero. Depending on how events will transpire and how well manipulation of currencies and economies work out, plans change.
[Edited by Don W]
But you do need to have a plan. “Free Market” reminds me of a fisherman. He baits his hook with a tantalizing lure and then casts about who he
can ensnare. This idea - Free Market - has gained much unmerited popularity - as Bush43's new word - Robust - but like so many slogans, “Free
Market” means one thing to the hearer and another to the sayer. I’d like to know where there is a free market. As opposed to a manipulated
market.
“Free Market’ is just a neo con euphemism for NO regulations of their market. Which puts the “little” guy totally at the mercy and whim of the
“big” guys. Not my vision of a good world.
We are talking about the US dollar and its value. I heard a “dinosaur thinker” yesterday say a dollar was 371.5 grams of silver, itself .999 pure.
He said that law had not been repealed. I ask, “So what?” Those of you not so long in the tooth as I don’t recall when the Treasury’s seal on
our currency came in Red - United States Note - blue - Silver Certificate - green - Federal Reserve Note and - yellow - a Gold Certificate.
The “advisory” printed in the upper left on the face of the bill begins with “lawful for all debts, public and private” and following, said
such reassuring things as: Redeemable in lawful currency at any bank” for the greens; Redeemable in silver for the blues; Redeemable in gold for the
yellows and some words like “this is an obligation of the US Treasury” on the reds.
The value of money came to a presidential level issue in the 1896 election when William Jennings Bryan, Democrat, opposed William McKinley,
Republican. America, like most of the West, was on the Gold Standard. The value of gold was $20 an ounce. Silver was much more plentiful than gold.
At that time, silver coinage was minted at 8 to 1 ratio to gold minted.
Democrats who represented farmers and laborers, wanted a “cheap” or plentiful supply of money, that is, to mint silver at 12 to 1 compared to
gold. Republicans who supported the bankers and other capitalists, wanted to keep the 8 to 1 ratio, or maintain the high value of money despite its
scarcity. Tight money versus plentiful money.
Bryan made a famous speech in 1896 which ended with these immortal words, “You shall not press down upon the brow of labor this crown of thorns; you
shall not crucify mankind upon a cross of gold.”
www.pbs.org...
The United States went off the gold standard in 1933. It was one of the first things FDR did as part of his New Deal for Americans. He set the value
of gold at $35 an ounce, up sharply from the traditional $20, to assuage the holders of the yellow paper. There simply was not enough gold to sustain
the growing population and economy. Those who ramble on about returning to the gold standard just don’t get it. There is not enough of it. (The US
Fed Reserve has printed $400 billion worth of dollars, and $260 b. are in the US, $140 b. are used outside the US.)
I have read the intrinsic value of gold is about $170 an ounce. That is, based on the cost to produce and its usage in the jewelry and electronics
business, the primary customers of gold today. Yet it trades at $500-$600 an ounce. Once, after Nixon stopped the US supporting the price of gold,
it went to $800 an ounce. For decades it traded at $300-$400 an ounce. The trading price over the intrinsic value is based on the public’s love of
gold. It is the most beautiful metal and is enduring through the ages. Just look at King Tut’s face mask. Remember, all sellers of gold think the
price has peaked, all buyers think the price will go up. Or, at least that they can make more with easy to spend currency than with hard to move
metal.
PS. Don’t overlook that owning gold is a dead-bang loser. Most of the world’s supply of gold is in the basement of the Federal Reserve
Bank in New York City. Each country has its own storage bin. When Nigeria, for example, wishes to pay for grain and meat bought in Argentina, they may
settle accounts by transferring a certain amount of gold from the Nigerian vault to the Argentine vault. America has the largest supply of gold.
About 20 million ounces. 7 million are at Ft. Knox, 7 million at or near West Point, NY and 6 million in the NYC bank.
When I said gold was a loser, I was thinking of the difficulty of owning, selling and storing a large quantity of gold. The $25 million in rewards
offered for various persons around the world, like Saddam and Osama, is about 3,500 pounds of gold. If you came to me to sell gold, I would have to
have it assayed. To make sure you are not selling me gold clad lead. That costs money. You have to pay for storage if you have a lot of it and your
buyers are very much limited. Not a good idea to own it. Sure, when you have a Krugerrand or two, you don't have it assayed, but if you were planning
to buy 10,000, then you'd want a verification that it is gold and not gold plated lead.
[edit on 9/20/2006 by donwhite]