Well, we’ve heard from Warren Buffet and Charlie Munger on the subject of gold. Looks like it’s time for their young protégé Bill Gates to jump in the ring and throw a few wild punches. Next time though, guys, how about a few dry runs off camera first?
A friend of mine, who was struggling with the idea of buying gold, lamented that gold only had any value if someone else perceived it to. Yes that’s true. As it is for everything, whether you’re talking about a share of Apple stock or a 1977 Chevy Malibu.
I highly encourage you to read the latest interview with Hugo Salinas Price. Mr Price is a retired billionaire who made his fortune via a chain of appliance stores in Mexico. He is also a tireless advocate of sound money. His plan to reintroduce silver as a competing currency in Mexico would make it the most sought after money in the world bar none. It is well worth your time to understand the details of how he proposes to do this.
Fractional reserve banking is one probably the least understood aspect of money; further misunderstood is how fractional reserve banking—when it is used to expand the money supply—impacts our economy and causes the business cycle, which, if it runs to extremes, results in recession at best, depression at worst. People who want to protect savings and
It’s little wonder that so few people in the United States and Europe can think straight about basic economics with the constant flow of misinformation coming from the media and universities. Here’s an interesting piece out of Scotland from an Oxford and Harvard trained editor titled “When inflation could be good for you”.
The 99% and the 1%. We see it all over the news. There are protest movements in almost every major city focused on it. We all know that something is wrong, but almost no one can put their finger on the root cause. The reason is that the vast majority of people have no idea how banking works or where money comes from.
Various reports coming out of last week’s G20 meeting in Cannes are suggesting that some member countries had proposed Germany use its gold reserves as collateral for a Eurozone bailout fund. This brought a series of quick and unequivocal responses:
Last week, the History Channel’s series Decoded, took on the question of whether Fort Knox actually contains any gold. It is available on Youtube in three parts, in case you missed it. Admittedly I had pretty low expectations for the mainstream media’s treatment of the topic. Of course the question is never answered, but by the time it was over…
Asahi recently posted a story about Japanese pensioners who are selling their gold. Remarkably the perception of gold has been quite a bit different in Japan than around the rest of the world. The country as a whole has been a net exporter of gold since 2006 and according to the World Gold Council, Japan is the only major economy where the demand for gold is decreasing.
Perhaps you’ve noticed that gold was under attack before the $165 price drop 9/22, 9/23. So what, isn’t gold always under attack by the Establishemnt? What’s particularly interesting is that the most recent attack occurred precisely as the the Swiss National Bank announced the peg of the franc to the euro. What should normally be immensely bullish news for gold, is being held in check. Even the illustrious Paul Krugman has joined the fray with his latest blog piece for The New York Times: Treasuries, TIPS, and Gold (Wonkish).