Let's Play "Who Said It?"

215
Wed, May 23, 2012 - 10:21am

As you've probably figured out, I recently received another shipment of hats, so we might as well give away another one.

So we begin today with a game of "Who Said It?" The first person to correctly identify the author of these thoughts will win a genuine, authentic and autographed Turd Ferguson hat. Of course, with google and the like, this contest may end fairly quickly but so be it. All I ask is that you read the entire passage before entering your guess.

"Under a gold standard, the amount of credit that an economy can support is determined by the economy's tangible assets, since every credit instrument is ultimately a claim on some tangible asset. But government bonds are not backed by tangible wealth, only by the government's promise to pay out of future tax revenues, and cannot easily be absorbed by the financial markets. A large volume of new government bonds can be sold to the public only at progressively higher interest rates. Thus, government deficit spending under a gold standard is severely limited. The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. They have created paper reserves in the form of government bonds which - through a complex series of steps - the banks accept in place of tangible assets and treat as if they were an actual deposit, i.e., as the equivalent of what was formerly a deposit of gold. The holder of a government bond or of a bank deposit created by paper reserves believes that he has a valid claim on a real asset. But the fact is that there are now more claims outstanding than real assets. The law of supply and demand is not to be conned. As the supply of money (of claims) increases relative to the supply of tangible assets in the economy, prices must eventually rise. Thus the earnings saved by the productive members of the society lose value in terms of goods. When the economy's books are finally balanced, one finds that this loss of value represents the goods purchased by the government for welfare or other purposes with the money proceeds of the government bonds financed by bank credit expansion.

​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 illegal, as was done in the case of gold (in the 1930s). If everyone decided, for example, to convert all of his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payments for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. Therefore, the financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

​This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."

​OK, have at it. TF

About the Author

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  215 Comments

Tyler · May 23, 2012 - 4:35pm
The Green Manalishi · May 23, 2012 - 4:43pm

Copper ETF plan would ‘wreak havoc’

US manufacturers have attacked plans by JPMorgan Chase to launch an exchange-traded fund backed by physical copper, arguing that the product would “grossly and artificially inflate prices” and “wreak havoc on the US and global economy”.

http://www.ft.com/cms/s/0/a7d32d4c-a4fb-11e1-b421-00144feabdc0.html

Number 47 · May 23, 2012 - 6:01pm

For those who say don't sell.

Positive feedback rating

fast 07-Oct-11 21:26
  2001D Chinese 1oz Silver Panda. Graded PCGS MS69. (#120773368102) EUR 128.00  
Positive feedback rating Perfect Seller, Top Item, Fast Despatch, Excellent Comms, Recommend to everyone 23-Sep-11 11:43
  1997 5 yuan. Silver Panda Hong Kong expo. PCGS MS68. (#120773368896) EUR 37.00  
Positive feedback rating Great transaction, well packaged and as described 21-Sep-11 10:11
  1 oz generic silver bar. 999+ fine silver. Mint sealed (#120773227865) EUR 38.00  
Positive feedback rating Good ebayer++ 09-Sep-11 14:33
  1 oz generic silver bar. 999+ fine silver. Mint sealed (#120772093879) EUR 34.00  
Positive feedback rating 100% satisfied. Thanks. 15-Aug-11 01:27
  2001D Chinese 1oz Silver Panda. Graded PCGS MS69. (#120749548296) EUR 125.50  
Positive feedback rating nice coin ++++++++++++++++++++ 08-Aug-11 17:55
  1996 small date silver panda 10 yuan. Double sealed. (#120752090416) EUR 57.63  
Positive feedback rating Everything perfect. Highly recommended. Thank you. 05-Aug-11 13:30
  1986 Silver chinese coin set 5 yuan. Historical figures (#120752291482) EUR 204.50  
Positive feedback rating Perfect Seller, Top Item, Fast Despatch, Excellent Comms, Recommend to everyone 28-Jul-11 10:51
  1997 5 yuan. Silver Panda Hong Kong expo. PCGS MS68. (#120749549442) EUR 51.50  
Positive feedback rating Excellent 19-Jun-11 18:31
  1964 kennedy half dollar, 90% silver coin. (#120712853591) EUR 11.10  
Positive feedback rating Excellent 19-Jun-11 18:31
  1952 Liberty bell half dollar, 90% silver coin. D mint. (#120713052206) EUR 11.27  
Positive feedback rating Excellent 19-Jun-11 18:31
  1964 kennedy half dollar, 90% silver coin. (#120713050758) EUR 12.49  
Positive feedback rating really a super coins, thanks! 13-May-11 04:34
  5 x American dimes 90% silver coins. Assorted dates. (#120713054583) EUR 12.50  
Positive feedback rating good thanks 12-May-11 11:59
  2 x silver threepence UK coins. (#120707173273) EUR 0.99  
Positive feedback rating Thank you great service 10-May-11 08:29
  1925 south africa 3 pence silver coin (#120707128178) EUR 0.99  
Positive feedback rating great product, swift delivery, hope to do more business here in the future. 04-May-11 15:40
  1943 mercury dime 90% silver coin. (#120712861390) EUR 2.00  
Positive feedback rating GREAT SERVICE LOVELY COINS 03-May-11 14:41
  1964 kennedy half dollar, 90% silver coin. (#120712855063) EUR 15.02  
Positive feedback rating Great EBayer very prompt service !!!! 03-May-11 14:39
  1964 kennedy half dollar, 90% silver coin. D mint mark. (#120712854187) EUR 12.99  
Positive feedback rating Great Seller, quick delivery, item as described, would definitely buy again 01-May-11 22:48
  1954 Washington quarter dollar 90% silver coin. (#120712857705) EUR 5.15  
Positive feedback rating Fantastic ebayer. Great item. Well packaged. 30-Apr-11 08:31
  1940 mercury dime 90% silver coin. (#120712860981) EUR 2.59  
Positive feedback rating nice coins 29-Apr-11 21:11
  1964 kennedy half dollar, 90% silver coin. (#120712652396) EUR 11.00
Positive feedback rating Super fast delivery... thanks 28-Apr-11 18:32
  1953 Roosevelt dime 90% silver coin. (#120712862739) EUR 1.57  
Positive feedback rating Great ebayer. Recommended A+++++ 28-Apr-11 18:31
  1964 Roosevelt dime 90% silver coin. (#120712862189) EUR 1.57  
Positive feedback rating Super fast delivery... thanks 28-Apr-11 18:31
  1967 Austrian silver 25 Schilling coin. (#120712666560) EUR 7.70  
Positive feedback rating Perfect transaction, prompt delivery. Thanks. 28-Apr-11 17:17
  Sterling silver teaspoon inscribed 'Toronto'. (#120712864214) EUR 5.00  
Positive feedback rating Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
  1964 kennedy half dollar, 90% silver coin. (#120712854565) EUR 11.40  
Positive feedback rating Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
  1943 Washington quarter dollar 90% silver coin. S mint (#120712858315) EUR 5.00  
Positive feedback rating Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
  2010 Austrian Philharmonic 1Troy oz pure silver coin. (#120712646880) EUR 38.03  
Positive feedback rating Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
  2010 Austrian Philharmonic 1Troy oz pure silver coin. (#120712647027) EUR 38.53  
Positive feedback rating Nice coins, fast dispatch good ebayer 27-Apr-11 21:33
  2010 Austrian Philharmonic 1Troy oz pure silver coin. (#120712646687) EUR 40.00  
Positive feedback rating Nice coins, fast dispatch good ebayer 27-Apr-11 21:31
  2010 Austrian Philharmonic 1Troy oz pure silver coin. (#120712646530) EUR 40.00  
Positive feedback rating delighted with the coin and the prompt delivery good service, Many Thanks Rachel 27-Apr-11 21:02
  1943 walking liberty half dollar, 90% silver coin. (#120713051392) EUR 13.05  
Positive feedback rating Great coin great service great price, Many Thanks. Rachel 27-Apr-11 21:02
  1964 Washington quarter dollar 90% silver coin. (#120713049060) EUR 5.09  
Positive feedback rating Delighted with coin Great service Many Thanks Rachel 27-Apr-11 21:02
  1935 5 reichsmarks, Silver Third Reich coin. A mintmark (#120712663010) EUR 12.57  

That is one page of my feedback from the last run up, I've highlighted a few. Talk about selling into mania, I have 4 more pages from the same time. I made off like a bandit and reinvested into gold and numis. I was really just clearing out a lot of crap I had accumulated, some of the coins were nearly smooth, (I didn't con anyone, very good pics) I would post the rest but it takes ages removing all the usernames of buyers. Needless to say, I didn't pay anything like this for the bits and bobs, sure did well afterwards on purchases though.wink

thurd aye · May 24, 2012 - 8:00am

The Future. Just have a

The Future. Just have a little disagreement about this. Xty says no-one can predict the future.BePrepared says the future is just that. Ok,that is fine as far as it goes.

There are ,however,alternatives that may be included in one's thoughts on this subject.

You are in the present. You receive information from an analyst,who has a source.That's two steps into the future for you.You act / or not ,on that information. 

Or, they are in the present,therefore you are living in the past,until you catch up-to- speed.

So,each of us has a different time space from where we act,according to our knowledge of the moment.

Someone tells you that gold is about to explode.You buy all you can afford,gold then rockets to $5000 just afterward. Are you saying that all this happened in the present?

You have seen a future ,or have believed what you brought into your life by a future unknown that is now known.

These sequential events are time related.Call it present ,future or past,but future is affecting the present for sure, as past affects the present and the future.

Just another take on it. ;o))

HeNateMe · May 24, 2012 - 11:12am

@ thurd aye

Interesting concepts.

HeNateMe

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