Blog-IT-o ergo sum

	12/12/2005

Gold is Sexy

Had to do some banking today at my local Wachovia branch on Battleground. While chatting with the bank officer, I jokingly asked how much gold they were selling these days. She replied, "You know we've been getting a lot of requests lately from people looking to buy gold." I was intrigued, "Really." She continued without noting the irony, "Of course we don't have any gold here (or anywhere in Greensboro), but if someone really wanted some, I suppose we could order it for them."

I mentioned that banks in Canada usually keep some gold laying around for customers who prefer their money that way. The officer who has recruited for her soroity at Wayne State University in Detroit got excited about Canada, "You know I've been to Detroit now four times over the last couple of years and always wanted to go over the the border to Windsor. This last time, I really thought about it but then found out that while I could get over to Canada without a passport, I couldn't get back in without one."

I guess the moral of this post is; grab that bullion with both hands and keep your passport within easy reach.

5:28:42 PM

comment []

GOLD RUSH!

For the morbid I have added a chart to the right to track the daily collapse of the fiat US dollar versus an ounce of physical gold. (Daily MSM news reports don't retail the daily dollar plunge versus gold but you can get a rough idea of the scope by noting the price of a barrel of oil which is religiously reported in order to provide Americans a reason to support the foreign policy of the US government.)

Unfortuantely, our federal government can only inflate the supply of US dollars so much to fight Iraqis and pour down the hole in New Orleans before everyone finally figures out these dollars may not be worth the paper they are printed on. (Note: After terminating the presence of real silver in coinage for dimes and above in 1964 we have recently had to switch pennies and nickels out of real copper and nickel to plated versions made of zinc.)

Folks, greedy businessmen are not raising prices, our government is stealing the value of our money from us. This process of the government creating new fiat money for itiself out of thin air, thereby debasing the value of the existing dollars we as hapless subjects hold, is known as "the hidden tax."

This is not rocket science or vodoo economic jargon. The more there is of something the less it is worth. Most everyone can understand this principle. If you double the amount of dollar bills floating around, what happens to the relative value of those already in existence? If you are not sure of the answer ask someone who collects Beany Babies or fine art. If someone has something of intrinsic value like an ounce of gold, a barrel of oil or a dozen eggs they are going to want double the amount of dollars for them if you just halved the dollar's value by arbitrarily doubling the amount in circulation.

10:39:48 AM

comment []