Freegold Forum

Gold
17.2 Day Decline


People have been asking what if all the gold supply is filled with Tungsten? Basically, the reply is so what? Gold is not backing anything and government has no possible way it will ever return to a gold standard that failed before anyway. You cannot FIX the price on money for it is simply a commodity. If money is a flat line, that is communism. In a free market, it does not matter what is money. It rises and
falls against assets. Under a gold standard, the yellow metal DECLINES with inflation and rises with DEFLATION precisely opposite when it is a free floating market. So let’s get this straight. Gold rallied after 1934 because (1) Roosevelt confiscated gold, and (2) devalued the dollar raising gold from $20.67 to $35. Gold is a good investment NOT because of all the fiat nonsense, but because inflation has passed
it by and there will be a huge burst of price movement. That will come when the Sovereign Debt Crisis hits the USA and that does not seem likely until 2015.75. So back off of all the nonsense and you just might find a broader base for gold be disassociating it with all the false religious fervor that gold should be money. Be careful what you wish for. They confiscate money.

Australia
Down Under turning Upside Down

p.s. Martin updated his old website:
http://armstrongeconomics.com/

It's really a beatifull website right now.

BTW I'll quote this Martin-Jim misunderstanding-GAP, because that's what it is, on this thread also.

Rasta wrote:In today's "In The News Today"
Jim Sinclair’s Commentary

A man who the gold gang helped get out of the can with thousands of letters on his behalf is talking trash about the dedication of gold investors.

I firmly believe he is dead wrong, and shooting himself directly in the foot. I knew him in the 70s and I guess nothing really ever changes.

Respect and gratitude is not the long suit of many. Have no fear because we are here.

Regards,
Jim
There is no related article. Is Sinclair talking about Armstrong here, or who is Sinclair talking about?

Guess it is clear to me because there really are related Armstrong articles.

I made remarks here before that Armstrong is trashing goldbugs just because goldbugs think gold is going to play some role again in the monetary system (but they don't understand what precise role and they are confused about comexgold jumping up and down).
On the other hand Sinclair is predicting time related goldnumbers that are not coming true in his predicted timeframe. His father Bert Seligman could do that but Jim himself isn't as good in that.

Both giants make mistakes
-Jim and Martin lack an independant strong website editor and because of that the goldincrowd doesn't always understand what they really meant to say. The goldbugs get confused and they herass both giants with misplaced complaints.
-They both receive e-mail, fax and telephone calls from goldbugs who are looking for confirmation and they really should cut that service because it isn't doing anyone good.

-Martin is a trader and his cycle system seems to be proven. Martin looks upon gold as just a wealth commodity. So if you want to trade gold you'd better listen to Armstrong.
-Jim is also a trader but moreover a fundamental monetary specialist who is still a WallStreet incrowd member and is foreseeing a reintroduction of gold in the monetary system. He knows that and he knows that the big WS-financial firms know that as well.


And sure, it actually really doesn't matter at all if central bank goldbars are filled with thungsten or exist only in papercontracts. Just because the WS financial incrowd knows there is coming a BrettonWoods 2.0 some day in the near future where an agreement will be made to install a new digital world currency that will be exchangable between central banks only and will be controlled by some percentage of gold into that system. (an international day-to-day trade balance clearing )
In that case it doesn't matter where any CB gold is stored, because the only thing that is important is that governments believe the gold is actually where it should be.

The world leaders believed American fort Knox accountants during Bretton Woods 1944. During the next decennia they trusted that the unaudited gold was still there. Some countries only desired some gold for their dollars during the seventies because they didn’t trust the dollar purchasing power anymore (NOT because they thought the gold possibly wouldn’t be there). Many countries still believe that their own CB gold is stored safely in N.Y. (only some politicians and almost every goldbug doesn’t trust this). The Euro Union countries believe all separate states will keep their golden ECB promise, but NO participating country demanded for audit. Etc. Etc.
So the central bank gold stock promise is built upon mutual believe only. Why should that change within a virtual world currency unit system?
It could change if freegold was introduced, but that would certainly lead us into WWIII (China included). Therefore I don’t think a currency pricing freegold system will see daylight. Only when there’s no other way out.

What IS important is that your personnaly owned physical is genuine, because you are NOT a central bank. You can perform like your own central bank, but banks or precious dealers will check your gold over and over again if you want to exchange it.

So ....... I both respect these two giants for their hughe knowledge and I can see they are both making unnecessarily mistakes, but who cares ..... at the end they are just man like you and me.
Let them fight their battle and in the meantime: TAKE BOTH SERIOUS

Paul wrote:http://www.safehaven.com/article/24880/ ... ebt-crisis

Guess what: euro down, dollar up

also

euro there to stay but will inflate, germany has capitulated
another change for one who want to see it for what it is

yen. euro and dollar in the same boat
NO dollar hyperinflation because collapse will be to brutal
(as in NO economy left .........)

he is not euro bashing and he never was
he has insights very few people have and he is sharing
but only of importance for those who are willing to actually see

Paul wrote:also

euro there to stay but will inflate, germany has capitulated
another change for one who want to see it for what it is

yen. euro and dollar in the same boat
NO dollar hyperinflation because collapse will be to brutal
(as in NO economy left .........)

he is not euro bashing and he never was
he has insights very few people have and he is sharing
but only of importance for those who are willing to actually see

What if you put the wrong questions to the right man ? (like in this narrow minded interview)
I do agree with Martin about his dollar, yen and euro answers .... so what is bothering me ?

Nobody asks Martin about his opinion upon the dollar/s role as reserve and world trading currency and that's what'll break the dollar faster than it can hyperinflate. Because of that, this is where gold enters the stage like Jim is predicting.

This is what Jim tries to explain over and over again but nobody seems to understand (however I think Martin does understand IF confronted with the right questions). This is where the multi trillion derivative mountain comes in. The current monetary problem isn't just a bundle of domestic currency and debt problems (which in itself is already a big problem) but it is the devastating double bind IN the USdollar that'll push the world over the edge and 'll drive gold to the Himalaya tops.

Hera Research Newsletter: Martin Armstrong on the Sovereign Debt Crisis

A good interview, with some sensible questions for Martin.

HRN: Can the Euro survive?
Martin Armstrong: I don't think it will go off the boards. I think they will do everything in their power to keep it there. Politicians never want to admit a mistake. If they have to inflate they will inflate. Germany has capitulated.
HRN: Will this cause another financial crisis?
Martin Armstrong: The next crisis we're going to see will be from 2015 on. It doesn't take more than a three year old with a pocket calculator to see the long term trends.

....

HRN: Do you favor returning to a gold standard?
Martin Armstrong: We have to deal directly with the government spending. Eliminate the ability to borrow. That's more important than what you are going to call money. In theory, what are they trying to do with the gold standard? They are trying to say, if we put the gold standard in then you can't create money beyond what you have in gold, but they did that the last time. I don't see where that is some sort of magic bean that's going to stop them from doing it again. It gets to a stage where it doesn't matter if you use conch shells for money or gold. There is no fiscal responsibility in government. We have to eliminate the core problem and eliminate government borrowing except in time of war.

Rasta wrote: ........except in time of war.

War? Where? "we are at war" !!!

Is Paper Money Constitutional?