At 10/7/12 09:57 AM, leanlifter1 wrote:
More bad news for the "PetroDollar" and I say good riddance. What do you think of a Gold standard ?
First off anyone who says the gold standard isn't pertinent in todays economies , doesn't know jack shit about it.
A gold standard keeps governments from destroying your economy.
Keeps government from OVER SPENDING money they don't have.
What you need to grasp is, inflation is caused by the Government with of course their good friends assistance at the Central Banks.
Inflation is a way for them to steal you money, without actually taking any of it.
A simple example of this is to look at what a dollar would buy in 1912 ( I use that example because my Great great grandma turned 100 this year & is still coherent & has a memory that is working great)
What you could buy for a dollar when she was young would cost you up to 100 dollars today.
More to this time period, it takes more money to buy today , what you could buy with that amount in 1982 !
THis inflation hits & hurts the poor first, it robs the middle class & anyone with retirement savings , savings of any type as well. The money you put away 10 years ago will not buy as much today as then & more often than not will not have earned enough interest to offset its losss of purchasing power.
Working people who's salary/pay cannot keep up to inflation lose purchasing power as the money becomes worth less & less
Physical Gold & Silver rises above inflated fiat currencies. along with anything else of real value
Never forget .... in 5000 years every single fiat currency on this planet has failed. Often catastrophically .
A 1 dollar federal reserve note costs approximately 6 cents for materials printing costs.
A 100 dollar federal reserve note costs exactly the same amount &
A 100 Billion Reserve Bank of Zimbabwean note also cost 6 cents to make & today is worth nothing ,
Like a federal reserve note it came with a promise to pay.... not a guarantee.
Because It has nothing of value backing it, & hyper inflation was caused by the governements fiscally retarded practices, similar to what is going on in the USA & Europe today
unlike gold or precious metals which is finite & cannot be mass created, the printing presses are on high speed and are eroding the purchasing power of your money. causing more & more paper to be needed to buy less goods !
Never forget it is a political ploy aka LIE that inflation isn't under their control.
Governemtn tells you that precious metal/gold based economy is no good....
IF THIS IS TRUE ,why then do Central Banks & Government have large holdings in Gold ?
What is NO GOOD about it is it makes them have to practice restraint, it forces them to be responsible governments & to spend within the means of the country to afford what it can pay for in social programs, Government infastructure & military expenditures.