Thursday, May 22, 2008

Gold Doing Its Job

Gold doing one of its jobs; as a safe store of value.

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Good thing because the USD is falling down on the job particularly as a reliable measuring stick, let alone as a store of value. Since the USD is failing at a faster and faster rate, at some point they're going to tell it to "go sit in the truck". It gets told that when it can not do its medium of exchange job anymore.

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“... sound money protected the citizenry against the predatory inroads of Government.” - Von Mises

"When nothing happens for a long time, people begin to assume that nothing ever happens. But, sooner or later, something always happens." … Steven Lagavulin
"In many ways, as will appear, the folly of the lender has exceeded the extravagance of the borrower." - A BUBBLE THAT BROKE THE WORLD, Garet Garrett


Some recent tidbits:

About bags of junk silver ... 10,000 dimes in each bag of $1,000 face value:

" ... If things get really dicey, and we have to live through a currency
crisis or a bank holiday, you can always barter a silver dime for a
gallon of gas. In 1980, when silver hit $50, there were gas stations in
every major city in America offering to swap a gallon of gas for a
silver dime. That will happen again."

"The story that appeared on Monday referring to the Oregon gas station
accepting silver quarters as payment reminds me of the time I took a
trip to visit my parents in Florida during the last energy crisis in the
late 70's. All along the route (Montreal to Miami) we had to wait in
long line-ups on the American side of the border for gas, but as luck
would have it, I was always able to get some. While in Miami I found it
strange that many stations were not open for business, but I never gave
it a second thought. A few days into my visit, radio announcements were
talking of emergency rationings and that car plates with odd last
numbers could line up at the pumps on odd numbered days, while even
numbered on even days. Waiting in a long line-up for my rations, I saw
the gas attendant approaching all the cars ahead of me and talking to
the drivers. I remember thinking that he probably was telling everyone
that there may not be enough gas to go around. When he got to my window
he asked if I had a silver dime. I asked him why and he said that if I
had one, he would pull me out of the line-up and fill me up. I asked if
this was a joke, but no, he was serious,a dime for a total fill-up.
Several minutes later I saw through my rear view mirror a car pulling
out. The attendant led it to the next available pump and filled it up.
There were a few clients cursing, but the attendant ignored them.
Needless to say, I was not able to get gas that day.With just four more
cars to go, the tanks ran dry. That was my first exposure to the
barbaric metals. It's amazing just how precious, precious metals really
were in a crisis. Even the gas jockey understood."


"Without some attachment to harder values, the half-life of paper money is Hobbesian -- "nasty, brutish and short"."

"It is well enough that the people of the nation do not understand
our banking and monetary system, for if they did, I believe there
would be a revolution before tomorrow morning." ... Henry Ford


Gold, "... taking care of business.", on the job, doing its job, on time, doing it right.

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