First she says gold isn’t backed by anything?? And what is she talking about when she says, “about a year from now.”

–found by Tex Ligums

  1. Sheila says:

    THE MSM has lost all creditability


  2. smartalix says:

    Gold has been manipulated by speculators for years.

  3. Uncle Patso says:

    Don’t blame her, blame Todd Hirsch (, who bills himself as “Alberta Economist, Author and Speaker.”

  4. Uncle Patso says:

    What? says:

    “Inflation can only come if wages go up first.”


    Since about 1980, wages have been approximately static, while productivity has soared and prices have gone steadily up and up and up. The money is worth about 1/3 what it was then — in 1980, for example, I could buy a newspaper for a quarter that now costs 75 cents, and so forth. I’m sure many here old enough to remember 1980 can give a lot more examples.

    • What? says:

      You are right. If someone makes below the median income, their costs have gone way up with respect to that income. Minimum wage earners are especially squeezed. I figure minimum wage should be $20-$25/hr vis-a-vis 1980 dollars.

      If someone makes slightly more than the median income, their costs have appeared to remain in proportion to their income.

      If someone’s appetite for goods and services has grown, then their costs have grown (big house, fancy car, living large etc).

      My rule of thumb is that costs nominally double every ten years, and income (in the middle bracket) follows. Gas didn’t follow this trend for a time, but is back on track.

      In today’s world, many people want to live above their means, punch above their weight class – but are soon knocked out.

      • ReadyKilowatt says:

        If there is a net gain in the amount of something, it will be worth less. More dollars put into circulation (due to debt creation, either by consumers or governments) will make dollars worth less. The typical evil speculator understands this, and as such wants more dollars for goods/services he bought when there were fewer dollars.

        We should still be in a deflationary spiral, and in many real estate markets we still are. The run-up on gold is just plain old speculation that the pent-up dollars sitting in accounts at the FED will eventually be released and all hell will break loose. The problem is, the banks can wait much longer than we can. Eventually we’ll need to liquidate and/or take profits. It’s easier for us to do so when there’s net deflation still going on. I imagine there are plenty of gold bugs who are getting ready to dump it and get into rental property, because the prices seem to be stabilizing. Only then will the banks start to loan out all that cash they’re sitting on.

        • What? says:

          If all the banks in the world print more money, but wages are held constant, what do prices do (locally or globally?)

    • HUGSaLOT says:

      Well newspapers might be a bad example since 30 years later less people are reading them in favor of the internet (and TV). Newspapers are raising their costs to compensate for a business on it’s deathbed.

  5. bobbo, man enough to go first says:

    John Bolt with a quick thrust backed up with the red herring of a question unanswered says:
    6/19/2012 at 4:46 pm

    Did you just say gold is backed by merchants willing to barter goods and services? Do you understand what being backed by something means? //// No, I said much more than that. But I like your challenge.

    How would you explain the value of gold?

    -or – how would you define what “backing” means in economic affairs?

    Does backing up include a willingness to barter based on the presumption that others will too all BASED ON the further assumption there will not be a massive increase in the gold supply?

    Who understands economics?

    • ReadyKilowatt says:

      I’ll bet I can go to a pawn shop and trade my gold and silver for goods they have for sale.

      And have you ever asked if a merchant would take gold in a barter? You might be surprised.

      • Timuchin says:

        Transacting in gold, silver and copper? Yes, it has started to happen. The laws and the police can’t keep up with enforcing all the violations of out-of-date laws. Years ago they would give 25% mark down on the gold & silver. Today they give a 5% markdown on gold & silver. Copper will start going for a markdown — that is higher than the coin valuation. The Chinese and Arabs will always buy metals.

        Note that “ReadyKilowatt” has no identification, but calls honest investors “evil.” For years I have expected the cops to start calling us “evil hoarders” for what they want to rob us of. The government is becoming our enemy.

  6. The0ne says:

    You’re reading way too much into this and misinterpreting her.

    She said “some investors” think there’s nothing backing up gold. A year from now the dollar will still have backing of the fdic, whereas gold might not, hence the first statement.

    I’m surprise you posted this because you thought otherwise.

    • Somebody says:

      Do you mean the same FDIC that is in the red right now?

    • jimbo says:

      Gold doesn’t need “backing up”, since politicians can’t print or produce more of it by fiat.

  7. timuchin says:

    The government intends to destroy the Dollar in order to get out from under the unpayable debt. But not on this president’s watch. Thus it has been for decades.

    The Federal Reserve Inc. doesn’t care; its owners are German and British banks. They intend to own the United States of America and impose their socialism upon us.

  8. xjonx says:

    What backs gold? HUMAN GREED! Seems obvious to me.

  9. Love Deluxe says:

    like any other form of currency, gold is only worth as much as people are willing to exchange for it. and since gold, despite its many practical applications, has no survival value, it’s going to be just as worthless as paper money if the economy eompletely crashes and burns.

    then again, the u.s. dollar is only backed by the government’s word. as xjonx pointed out, gold is backed by human greed, which is a lot more consistent.

    personally, i’d like to see an economy based on bottle caps and soda tabs.

    • arbysauce says:

      As long as people don’t produce *everything* they need themselves, they will want money for trade. Need medicine? Spare parts? Electricity? Tools? Computer? etc etc etc. Money as a technology is extremely useful, and gold is the best material for it both because of its physical nature and its long history as money. As other currencies (especially the USD) lose their appeal, gold will rise in price because it is the king of all currencies.

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