What do Rising Gold Prices Mean?

http://www.house.gov/paul/tst/tst2005/tst120505.htm

What do Rising Gold Prices Mean?

December 5, 2005 ?
Gold is history’s oldest and most stable currency. CENTRAL BANKERS AND POLITICIANS DON’T WANT A GOLD-BACKED CURRENCY SYSTEM, BECAUSE IT DENIES THEM THE POWER TO CREATE MONEY OUT OF THIN AIR. Governments by their very nature want to expand, whether to finance military intervention abroad or a welfare state at home. Expansion costs money, and politicians don’t want spending limited to the amounts they can tax or borrow. This is precisely why central banks now manage all of the world’s major currencies.

Yet while politicians favor central bank control of money, history and the laws of economics are on the side of gold. Even though central banks try to mask their inflationary policies and suppress the price of gold by surreptitiously selling it, the gold markets always cut through the smokescreen eventually. Rising gold prices like we see today historically signify trouble for paper currencies, and the dollar is no exception.

President Nixon finally severed the last tenuous links between the dollar and gold in 1971. Since 1971, the Federal Reserve and U.S. Treasury have employed a pure fiat money system, meaning government can create money whenever it decrees simply by printing more dollars.

THE "VALUE" OF EACH NEWLY MINTED DOLLAR IS DETERMINED BY THE FAITH OF THE PUBLIC, THE MONEY SUPPLY, AND THE FINANCIAL MARKETS. IN OTHER WORDS, FIAT DOLLARS HAVE NO INTRINSIC VALUE.

What does this mean for you and your family? Since your DOLLARS HAVE NO INTRINSIC VALUE, they are subject to currency market fluctuations and ruinous government policies, especially Fed inflationary policies. Every time new dollars are printed and the money supply increases, your income and savings are worth less. Even as you save for retirement, the Fed is working against you.

INFLATION IS NOTHING MORE THAN GOVERNMENT COUNTERFEITING BY THE FED PRINTING PRESSES.

[BOBT12]

To say that I agee with the article, would be an understatment!

Of course, the situation will likely get worse as the various wars and interventions ( Iraq, Iran, etc.) drag on around the world.

Additionally, the Federal dept is off the charts, almost nine (9) Trillion and growing. This is after taking into consideration of the IRS' two (2) trillion dollars (FRN) extortion racket.

Foreign investors will likely get cold feet.

The public is taxed to the limit. They have little in savings. And many are maxed out on credit.

Who will be left for the government to steal from?

In any event, I think gold, silver, and other things with intrinsic value, will continue to rise.

It seems that the fools (FDR through GWB) have taken over the asylum long ago, and this is the result.

I read that Buffet was ‘diversifying’ out of US $$ and for such a sage investor to do so, must know that there is economic trouble ahead. He said the derivative monetary system appears to be devised by madmen and I fully agree with him.

Experts such as George Soros, Sir John Templeton, and Warren Buffet have been diversifying their currency portfolios away from the dollar. http://www.goldfingercoin.com/newsletter.htm

Who will be left for the government to steal from? Good question, but there are creative ways undreamt of as of yet … like the window tax of yore.. who knows, next we know there will be a tax on the use of toilets …? LOL

[masterduke]

Yes and those "sages" of finanical investments are members of the same "team" that is working feverishly to destroy this "country"! The same creeps who promoted NAFTA and GATT and all sorts of other schemes that enriched them beyond measure. Corprate vultures picking the carcass clean and then moving on to the next market (China, India?)
These people along with their cohorts in gov. are truly seditious and treasonous in their buisness "ethics" They could all care less what happens just as long as their caviar is chilled and the champagne has bubbles.

[J.W.]

When the price of gold goes up the value of the dollars required to obtain gold have been devalued.

The true price of gold seems to be never changing but the amount of dollars etc. required to obtain such are always in flux.

[charlesa6]

Originally Posted by Jason Whitney

When the price of gold goes up the value of the dollars required to obtain gold have been devalued.

The true price of gold seems to be never changing but the amount of dollars etc. required to obtain such are always in flux.

Absolutely correcto!

[FreeFromContract]

My bet is the gov is thinking 12-15 million (depending upon who's numbers you believe) illegal immigrants is a good place to start.

Originally Posted by free_martha

Who will be left for the government to steal from? Good question, but there are creative ways undreamt of as of yet … like the window tax of yore.. who knows, next we know there will be a tax on the use of toilets …? LOL

[BOBT12]

As has been suggested, I think gold, silver, and other things with intrinsic value, will continue to rise.

Reuters | May 10, 2006
By Atul Prakash

LONDON - Gold jumped to a new 25-year high above $704 an ounce on Wednesday as a weak dollar prompted fresh buying, while investors lifted platinum to a record peak.

Sharp gains in recent weeks have left prices vulnerable to deep corrections lower, but dealers saw no big sell-off in the immediate future.

"There is further room to the upside and the market will continue looking for big round numbers," a precious metals analyst in London said.

"The weakness in the dollar is likely to continue. Overall uncertainty in the macro-economic environment over global imbalances, particularly in the U.S., is keeping interest (of investors) in the gold market."

http://infowars.com/articles/economy...ew_25_year.htm

[masterduke]

When frontman Nixon "took" the U.S. off of the gold standard a Jag XKE automobile cost $5600.00! Now the Ford version of the Jag XK is going to cost around $75,000.00. So much for the "elastic" money produced by the Fed having any value