Wednesday, September 28th, 2016 MST

More disinformation about gold

U.S. Dollar Safer than Gold?I can’t remember the last time I watched the local news. It’s probably been at least two decades – and for good reason. It tends to consist of people repeating information on topics that they have little inherent knowledge of. Take a look at the clip below in which the reporter attempts to explain the recent drop in the price of gold. She claims that people are starting to see the dollar as a safer investment than gold, as it is backed by the US Government and the Federal Reserve. She notes that gold, on the other hand, is backed by nothing. Is it any wonder that Americans are completely ignorant as to the true nature of money and our monetary system?

So, is this the same US Government whose debt is so large that even a moderate increase in interest rates would render that debt unserviceable?  Or a Federal Reserve whose chairman has promised to dilute the purchasing power of the dollar to stave off a recession? A recession that is desperately needed, by the way, as it represents a healthy, corrective process. How would this reporter back up her comments when presented with a chart showing a 98% decline in the purchasing power of the dollar since the Federal Reserve’s inception in 1913? Or the fact that gold has actually increased in purchasing power over that same period?

Here’s a concept that is completely alien to Americans: How about being able to successfully save for retirement without any investment risk, or even the need to earn interest? This is how it once worked before the government forbade gold’s use as money. What a pleasure it would be to know that your savings would actually purchase more in the future. How unthinkable is it that you didn’t even have to earn a return on your gold money as it wasn’t constantly losing its value each year? How nice would it be to avoid the casino-like atmosphere of the stock market and your 401k?

And when gold was money, you didn’t have to pay taxes on its retention of purchasing power. Whereas with the dollar, when you are successful enough in your investments to cancel out the loss of purchasing power that occurs as a result of inflation, you are required to give some back anyway in the form of taxes. Don’t expect to find any of this on your local news, however.

8 Responses to “More disinformation about gold”

  1. Stan

    I definitely think that the reporter is either stupid, or does not consider that the fiat dollar has been reduced by the Federal Reserve. The implied backing by the Fed is really “Lucy” from the Peanuts cartoon, as “Lucy” pulls the rug from under Charlie Brown, or steals the football as he kicks. The Fed is really Lucy as we like Charlie Brown’s attempt to access our bank accounts, or receive pay for the work we have accomplished.

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  2. john sikoks

    Why anyone would still listen to the mainstream media and then heed anything they had to say as informative and close to the facts is beyond me. Nowadays journalists for the most part are all failed show business people who care more about appearence and advancement then they do disseminating information and fighting injustice. Watch the national news tonight on any major network; not only will they report on the same stories and in almost the exact same order, but most of the content of that programming will be irrelevant to the real problems that effect people’s lives. They have all become reactive rather than proactive. Reporting on tragedy instead of informing people how to avoid it will always be more salatious and better for the bottom line. Access to public figures weighs more heavily than holding these same people accountable for their actions. Why we’re at war isn’t as exciting as showing explosions and mangled bodies.

    I continually find it hard to discern between “Entertainment Tonight” and the content of any predominant national media news outlet. Most people in this country would rather be amused than informed and thanks to the likes of some influential yet inconsequential people such as Oprah Winfrey and others of her ilk, the general population will continue to value feelings over rational thought.

    With a little research people would realize that metals have been the only profitable investment over the last ten years and since the economic fundamentals of what comprises it’s underlying value have not been remedied in this consistently failing economic environment, they will continue to do well now and in the future.

    Turn off your TV and begin to read. Sure it takes a little more effort but the rewards will be that much greater and more profitable in the end.

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  3. darrell

    I have been buying, selling silver most of my adult life, and quite honestly have done quite well. You always win some, lose some but never at the rate at which my 401k has done in recent months. One of the things I see that is most apparent with purchasing gold or silver is the uncertainty within the mainstream public of where to get it, how much is enough and is the dealer/broker I am purchasing it from honest. My grandparents know more about precious metals then most of the college educated kids I deal with daily.

    Another thing worth mentioning is the fact that a $100 drop in something you have purchased with the intent of staving off higher inflation often in itself is enough to scare off new investors. BUT they seem to be complacent about a 30% loss in value of their 401k, touting that the market will adjust and things will once again even out. Go figure? I will put my bet on gold and silver, in the tangable form of course, therefore giving me instant access as well as control of how and when I sell.

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  4. Budd

    Wow, very bad main stream journalism on U.S t.v….who’d a thunk it could happen….this is very good for we physical bullion investors as it helps us buy and hold more gold and silver while the rest of mainstream media watching Americans miss the boat….the current fire sale prices of the p.ms is a great opportunity when the rest of the 99% of investors wake up to the real practicalities of owning physical gold and pshysical silver it will be too late…..these rare earth metals are disappearing off the gold and silver dealers’ shelves at an astounding rate….as for the reporter she probably is some exec’s daughter at the station….and fortunately for her she can almost read the que cards correctly….lol….Budd

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  5. George

    I was taught to read by John F.Kennedy at Camp David in 1962. He could read fast and remember everything as I can now. I get 2 daily news papers with different political bias. Sometimes I must read between the lines to understand what maybe truthful

    My wife and I have 7 good children but with little knowledge of financial ways and means. I have offered to pay for classes to teach them but they have little time except for TV. I have invested in Silver and some Gold in the past few years. It has paid off as this is value they don’t know about. I sometimes need to help with food or rent, (I don’t pay for gas), but that is what a Father should do when needed. I have told them to take 10% of their earnings after tithe and invest it in Silver. I know they only have their birth year U.S. SILVER sets that I gave them. Not much of a $1,000 emergency fund

    Hopefully they will spend less time watching TV and read this great information site. Which of my 7 adult children should I make the Trustee of my Will??? Maybe one of them will answer this note or maybe you will. THANKS, GEORGE

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