Archive for the ‘Gold’ Category

The Treasury Bubble Blows On

The Treasury Bubble Blows On“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.” — Alan Greenspan

Before he sold his soul and renounced free market economics, Alan Greenspan was one of my heroes, and the above quote exemplifies why. Read On…

Bitcoin vs Gold

bitcoin vs goldSince its inception in 2009, Bitcoin’s controversy has raged. Its libertarian proponents see the digital currency as the killer of central banks everywhere. Its detractors have labeled it a binary bubble — calling it the most elaborate Ponzi scheme of all time. Most often, the latter arguments center on the misplaced belief that anything of value must be “backed” by something else – whether a stream of earnings, a commodity (like gold or oil), or the full faith and credit of a government.

Regardless of which camp you subscribe to, if you are reading this article, you too are undoubtedly curious about this question: what does make a digital currency (or anything else, for that matter) valuable? And how does the “bitcoin vs. gold” analysis stack up? Read On…

Hedging Against Inflation

Hedging Against InflationInflationary price increases are not coming… they are already here. The Fed wants you to believe that we are still experiencing falling prices, but the Fed also wants to tell you that food (commodities) and energy don’t count. The Fed is lying to you. Let’s have a look at three areas in which you need to start hedging against inflation. Read On…

Fighting the Recession: An Ill Wind Indeed

Fighting the Recession: An Ill Wind Indeed“[It is an] ill wind which blows no man good.” – William Shakespeare

Fighting the recession: an ill wind indeed!

I don’t know what I did before YouTube. With just a few mouse clicks, I can pull up literally hundreds of interviews, editorials, and broadcasts about anything that suits my fancy. And lately, my fancy consists of interviews with some of the most vocal and compelling philosophical, and financial minds daring to speak out against the atrocious fiscal policies the U.S. is employing to battle this economic crisis. Read On…

Gold is Safer Than Treasuries as a Hedge Against Inflation

Gold is Safer Than Treasuries as Hedge Against Inflation“Truth, like gold, is to be obtained not by its growth, but by washing away from it all that is not gold.”  — Leo Nikolaevich Tolstoy

Any time an asset increases in dollar terms, you have to ask yourself two questions:

1. Is the asset rising alone, relative to the rest of the economy?

2. Or is the asset rising in value along with everything else in the economy?

These two questions have led me to believe that gold is safer than Treasuries as a hedge against inflation. Read On…

The Intrinsic Value of Nothing, Part One

Intrinsic Value of Nothing“Action is purposive conduct. It is not simply behavior, but behavior begot by judgments of value, aiming at a definite end and guided by ideas concerning the suitability or unsuitability of definite means. . . . It is conscious behavior. It is choosing. It is volition; it is a display of the will.” – Ludwig von Mises

Reach in your wallet, and pull out a dollar bill. Look at it for a moment. Now ask yourself, what is this worth? Next, consider the intrinsic value of nothing — because the idea that anything has “intrinsic value” is a fallacy. Read On…