Crisis Prices

Sel, Well put. I am right with you as for the loss of sovereignty. Our country is too great to let this happen. It will be a said day if we ever stop being the shiny city on the hill.

Ozzie, has the dollar not made any recovery say form 2000 to now, where gold has climbed form 250 an oz. to 1537, and it is down 7 bucks on the day?

To think gold will fall back down now is wishful thinking too most....

Does anyone here in this forum really think in 10 years, gold or silver will be worth less than it is now? Sure it will go up and it will go down, bu in the long run it is gonna keep climbing, is that how the nature of things work, with all commodities, via inflation?

I was so naive as say an eight year old child, I looked at the gas read out on the pump, and associated a dollar of money, as a gallon of gas. I recall the day, when my father bought 10 bucks worth of gas, but the read out only showed say nine and a half gallons of gas, so I asked my father why, and he explained how things work. Gas, was like a dollar and five cents a gallon then. Does anyone think they will ever see gas for a gallon again?

It has went up, to never come back down. Not below say $2.50 a gallon for a few of the coldest non travel months of the year perhaps, and that is wishful thinking....

The development of a world currency might not necessarily require an EOTWAWKI situation. Like a lot of things, it could well develop slowly with a few nations participating in it as a trade booster. Those nations would prosper and other nations would be interested in joining in order to have a share of that prosperity. No one would be putting a gun to anyone's head. They could freely join or leave as they see fit. At some point, the trade advantages could become so great that no nation would want to not be in it.

The entire length of human history has been a process of coming together and merging into larger and larger units. Individuals coalesced into families, families became tribes, tribes became clans, clans became nations, and nations became associated together in leagues for trade, knowledge, and defense. Europe is uniting economically, if not quite politically, under the banner of the Euro, for the 1st time ever and we are all watching this history unfold. It is truly significant as it is a first... the birth of the Super-Nation. At some point, other world regions will do this. At a later point, all of them will combine into a single economic entity... a United Earth, if you will. The political part will trail but will eventually follow the economic part into a single unified human civilization with a common language, most likely English, and a common economic system, most likely regulated capitalism.

I understand that this is a HUGE concept and that not everyone is ready to embrace it... and that's OK. I'm not completely comfortable with it either... but, I DO see it coming and, barring complete disaster of some kind, it is inevitable.

I am referring to the generally accepted trend of how gold and silver and USD behave. Fundamentals I believe don't play such an important role anymore. Political manipulation is a far more important factor.

I do not want a super nation. Sure it sounds nice and peaceful, who doesn't want that. Unfortunately man has flaws and human nature will eventually take over with power grabs and struggles. I want a STRONG America. Ultimately I feel the dollar is on the way side and may not recover. If this happens gold and silver will surely sky rocket. Too what extent I dont know, thats the reasoning for my post.
We desperately need some sort of monetary reform, whatever that may be. One thing is certain, Fractional Banking is seriously flawed.

Ed_B, I don't deny being on that path one bit. I'm not sure as to what exactly you meant in your last sentence so forgive me if I misunderstood, but are you insinuating giving up some of our freedom to fix this economic discourse? If so please elaborate.

In 2008, when all those big banks merged and handed over control to the feds under the tarp program, seems like they opened up the doors Ed speaks of perhaps....

That movie I had mentioned...."To big to fail" let me sum to the best of my ability to how I interpreted it....

Average Joe was given loans by the bank to buy a house, the American dream. In my opinion, signing an adjustable rate is just a bad idea, but average Joe figured he could pay the loan, figuring if the bank gives it to me, I must be able to keep up with the payments right? Wrong, the banks knew the rates would change and many would loose their house, but they did not care (this is that greed that brings a nation down), as AIG was covering all those bad loans via insurance policy's on those loans, so the banks could not loose. Problem was, they set up way too many of those policies across the entire planet, so if they all were fore closed on same day, it would have basically created a domino effect that would bring the entire market crashing down, like in the late 20's....

The part I liked the most, was when one of the key figures spoke of studying the great depression for the past 30 years. He said it was not the market's crash itself that hit middle America so hard, it was the total in-ability for anyone to get any credit. To buy a home, or stock ones shelves. I asked my grand father about this in his last days now, and he lived through it all, and agreed that that was indeed the major problem for most of America, total lack of any credit, as all their banks obviously collapsed....

What did the government do to fix all this mess in 2008, take 7 billion and inject it back into the system via more loans to create capital, or at least they were hoping they would loan it all out, or did they?

Today I see an email from "money morning" saying the Chinese housing market is about to collapse, and how will it effect gold, was the title to article. It said their housing market is down 40% and the bottom has not been seen yet. This is gonna make our little scare seem like small potatoes....

My point for all this, I feel the events of 2008 were just a short fix, temporary band aid if you will, and who knows what repercussions we still may see from all that yet. I wonder, could decisions then have any affect on what is going on in China now, via their housing market issues?

Great points Hock, esp the first and last sentences....