Let's Play "Who Said It?"

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

215 Comments

zman's picture

GDX up 1.9%, gold down big

GDX up 1.9%, gold down big and stock market down big, yet the hated gold miners are having a solid green day!!

s1lverbullet's picture

Totally agree Turd.  Don't

Totally agree Turd.  Don't you think this new exchange opening in the east will really start to put pressure on these shorts?  This is still going to open right?  I mean TPTB aren't able to prevent its open like PAGE are they?  If it does open it could force feed the Cartel a steaming pile of shit.  

boatman's picture

TF

care to hazard a ballpark guess of what is "sooner than you think"?

if the trolls throw it back at us someday i will personally 'cane' them.

LaMachinna's picture

Turd

Can you expand on that a little?  Can you share? 

And trust me, The End Game is coming a lot sooner than you think.

beardeus's picture

Needing help...

This guy I'm talking to on another forum says Ron Paul is a liar. Blah blah blah. Anyways, he says that Ron Paul talks about physical metals yet claims that he owns none. I'm saying you wouldn't know if he does or not.

Can I get some clarification on this? Does Ron Paul have to list his silver and gold assets being a Congressman? I know they must list a bunch of items about their wealth but how would they actually report physical? Any info would be great.

RTMoney's picture

@ beardeus

Well we know he has at least one silver eagle... He pulled it out of his pocket a couple months ago in a committee meeting and silver went on sale. 

beardeus's picture

From the article: "Paul's

From the article: "Paul's financial disclosures reveal no holdings of physical gold, gold coins, or gold equivalents".

thesandbox's picture

the last time he had any

the last time he had any mention of coins in a disclosure was in 2002....don't think it is required to be on there as he has mentioned numerous times he buys and holds both. Don't see why he would list one that is required on forms and then just lie about holding the other...

" in 2002, he continued to say he owned them in interviews. In an interview with Fox Business Network in 2010, for example, he had this exchange at about the 1:35 mark:

Host: Congressman, do you buy the coins or do you invest in gold-mining shares or do you put your money into a gold mutual fund? How do you do it?

Paul: I over the years have bought coins because I like to, you know, have possession, but no, I’ll buy some gold shares too. Now that’s closer to an investment, because you’re dealing with management and, you know, dealing with…maybe they hit a strike. So that’s an investment and you have to evaluate it. But coins and buying gold … I see it as not so much buying gold and betting on the price of gold going up but betting on our government ruining the value of our money.

That interview would seem to suggest that he still owned and bought coins in 2010."

He sees his actual coins and bullion as money and not an investment which is why he does not list them anymore and I am sure he has had legal advise on this as well.

tpbeta's picture

An ideological question

Do you think that exchanging all your physical silver stack for $  fiat at $49, with the benefit of hindsight, would have been a good idea or a bad idea?

Anyone?

beardeus's picture

I personally love Ron Paul

I personally love Ron Paul and I don't see how anyone could not see how he defends our Constitution but this man claims that Paul who has introduced bills to stop gold manipulation doesn't hold physical. Rather, as far as we know, he just owns paper and we all know how dangerous paper is.

silverdick's picture

more dips please

Made a decent purchase today at $27.20. I ain't complaining.

recaptureamerica's picture

A good read

recaptureamerica's picture

Tpbeta, it would be nice to

Tpbeta, it would be nice to go back in time .. Hindsight is 20/20

recaptureamerica's picture

It's still friggin printing!

World Gives Uncle Sam A Five Year Loan At Record Low Yield
http://www.zerohedge.com/news/world-gives-uncle-sam-five-year-loan-record-low-yield

Broke and broker and brokest countries lending to another broke country...Bizarro world it is

Mickey's picture

Dr G: the end is near

I respectfully (and unfortunately) disagree with your conclusion.

I believe we see a sudden run up due to some sort of political or financial event. When the train leaves the station, many of those missing it will be afraid to buy into PM. Its human nature. I probably have some years on you  but more relevant I have a bunch of acquaintances who at gold 600 said no--wait till it pulls back--same at 740, 850, 1000, 1200, and so on. Now that we have a pullback to 1530 from 1900, these experts say they will buy at 1000.

Some of us will have sold and not buy in afraid to get whipsawed.

As for the mess we are about to enter: Tell me whats going right? Tell me how are the problems going to be fixed without some sort of overhaul. Tell me about the middle class--already pissed off by having to support the lower and upper classes AND find a way to support the family without huge tax breaks or entitlements, how the middle class is not eventually say the hell with it and rebel in some manner.

Tell me how many public employees will react when told their retirement benefits are being reduced. Tell me how that middle class will react when told their social security--which they really paid for, is being reduced and medicare also. Tell me how medicaid recipients react when told they are SOL and they wil not get food stamps any more.

Of course, that only happens if and when the US of A runs out of money and nobody to fund us anymore.

Of course, hyperinflation will not help either.

Someone, anybody (Buehler) tell me where I am wrong in the big picture and everything is going to be alright.

I just cannot see a happy ending.

Marc Grail's picture

Re: An Ideological Question

Sure, if I'd have KNOWN that silver would retrace by 50%, then I would have converted to fiat and then doubled my stack at $27. However, there is no way to KNOW those sorts of things and I don't gamble with my stack.

My biggest question now is, what sort of real goods to turn my stack into when the price does take off and the world economic structure collapses: real estate, food, weapons, alternative energy?

apex101's picture

@ Stock_Canines

Yes 1200 seems highly unlikely. Maybe 5 % chance of that happening. Anything is possible though. You really shouldnt care about the price unless you trading or buying on margin. When im not trading the metals i dont even look at the price. Its really irrelevant. Right now im long two contracts with a stop at 1500. I would prob go once a week glancing at the price if i didnt have open positions on the futures market. BTW all this Bullshit about QE3. Let me just say the NSA and SA M2 money supply are increasing. Its important to note whats going on the excess reserves how they have been draining. Recently the money supply has tamperted off a but its still increasing and growing at decent rate. The excess reserves is what can make the US look like Zimbabwe in a short time frame. 

recaptureamerica's picture

FUBAR and Scary beyond all

FUBAR and Scary beyond all reason..

‘Barcode everyone at birth’
http://www.bbc.com/future/story/20120522-barcode-everyone-at-birth

onealpha's picture

Tbeta

If I knew the train was going to go into reverse and head back down to Argentina in the middle of the summer and then stay there until an unknown date in the future, I certainly would have sold my winter gear during a stop at the New York station and used that money to purchase new stuff for half price in the sweltering heat of South America.  However, I thought for sure that we were headed for the North Pole and didn't want to risk having to buy new cloths for twice the price or leave myself naked to the freezing weather of the north.  In hindsight I think I would probably have done the same thing.  The only thing I would have done differently is maybe traded some of my silver for gold at the low ratio.  Hindsight is truly 20/20.  Live and learn.  Education is never free.   However, I still buy regularly and never viewed this as a short term investment, but as a long term insurance policy.  Starting near a bottom will insure that in a few years you never worry about going negative.  At least that is how it has worked for me.  Preserving that money is more important to me than a risk for return.

Mickey's picture

More

tell me why the CEO of Bear Stearns  who said on a friday  with bear stearns stock at 53--people should buy the stock, its fine--then monday we see $4 (or something like that) and why he is not in prison (like madoff and Enron guys--who must have not kissed butt over the years).

Tell me why Corzine is still on the loose and Sheriff Joe is being attacked by Justice Dept.

Tell me why if I get caught doing 42 in a 35 I get treated like crap, but if corzine does what he does nothing happens, Tell me why the FB and MS guys and gals  are not being indicted in the media RIGHT NOW for all the bullsh*t they handed down over the last week.

This is why I have PM--to protect myself and family and I wished I knew where a safe place to move to would be without ticking off the Honorable Senator Schumer. (who by the way is being joined by other legislators. Maybe they would prefer to be paid based on the amount of legislation they pass.

Heaven forbid they get paid based on performance and deliverables like most of us have to do (this includes our President who has kind of missed the key objectives--the critical success factors.)

Back to locking in some of the rebound profits.

Xty's picture

I say

bad.  Hindsight being 20/20, I absolutely believe it. There is no way to know what would have happened between then and now if you had sold all your silver then (which would have been difficult, what with the sailing expedition and scuba gear).   But now (if you didn't sell it) you do still have it.  It would be difficult to replace, even with a fist full of green paper.  Much happier as is.  Only thing that lets me sleep.

recaptureamerica's picture

From infowars

Mark of the Beast: Bilderberg Pushes Mandatory Internet ID for Europe
http://www.infowars.com/mark-of-the-beast-bilderberg-pushing-internet-id-in-europe/

foggyroad's picture

ZH - Charles Biderman's Trim Tabs Blog latest

Daily must watch for Me 

http://www.zerohedge.com/news/biderman-bad-data-and-chinas-recession

Credits to Tyler and Charles Biderman.

recaptureamerica's picture

The Happiest Countries in the

tpbeta's picture

Re: An Ideological Question

I ask the question because only an idiot would hang onto their stack knowing it will halve in value. The next question is - under what other circumstances would you sell your stack? For example, would you sell it if you think it more likely than not it will drop in value in the next 12 months?

recaptureamerica's picture

My IRA...KEEP STACKING!

Prize Fighter's picture

If I had sold my silver a

If I had sold my silver a year ago at $48........I probably would have bought it back in the 30s.  So what.

What you should be asking is, "TODAY silver is $27.50.  What will you say you did on this day a year from now?"

Irksome's picture

@RTMoney - RP silver coin

you say:

"Well we know he has at least one silver eagle... He pulled it out of his pocket a couple months ago in a committee meeting and silver went on sale"

Not true, actually.  He held up a 1 oz silver coin, but it was not a silver eagle.  It was a 'round', a movie prop for an upcoming movie about 'real money'.  See details here:

http://silverunderground.com/2012/03/get-one-of-your-own-silver-coins-just-like-the-one-ron-paul-waved-at-ben-bernanke/

QE to infinity's picture

@Starlight

My biggest question now is, what sort of real goods to turn my stack into when the price does take off and the world economic structure collapses: real estate, food, weapons, alternative energy?

I am thinking real estate and shares, and maybe some gold, as less volatile than silver but it's really impossible to know until we get there. As to food, weapons and alternative energy, I suggest you do that BEFORE SHTF, as in a collapse scenario those things, especially food, will be more valuable than silver, until some kind of normality returns.

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