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View Full Version : The Measuring Stick Illusion !!!!!!!!!!!!! ##########



LETMYSILVERGO
1st March 2010, 21:27
The Measuring Stick Illusion

http://news.goldseek.com/GoldSeek/1267452897.php

BELOW ARE THE WRITER'S CLOSING WARDS.

I Thought this was a great artile.



Those who think Gold is no longer money think a 40 year reckless experiment can supplant common sense and thousands of years of collective wisdom. For even if we switch from a U.S. Dollar debt-based international monetary system to a new debt-based monetary system, Gold will continue to be the immutable measuring stick by which currencies are measured.

This is why paper debt peddlers (i.e. central bankstaz and governments) hate Gold so much and will continue to fight its rise with misinformation, slander and market manipulation. But they will fail to stop Gold's rise, as they have throughout history. This is because Gold is more reliable than the paper promises of apparatchiks and will continue to be a measure of people's confidence in those paper promises long after the current cast of characters is gone. Those in charge know this (i.e. central bankstaz and their respective governments), which is why they own much of the world's Gold and list it on their balance sheets as money!

Holding real money means much more than nominal gains. In other words, it is not just about being able to buy more paper debt tickets with your Gold, it is about the increased purchasing power Gold will continue to have relative to stocks, bonds and real estate over the next few years. Paper debt tickets may buy more real estate and stocks in a few years than they can now, but there are no guarantees (the inflation-deflation debate ain't over!). However, it will take a greater number of paper debt tickets to buy the same amount of Gold in a few years and thus one's "true" savings will increase to a much greater extent by holding physical Gold rather than U.S. Dollar cash if deflation is where we are headed. The secular bull market in Gold is not over and won't be close to over until the Dow to Gold ratio reaches 2, and we may well go below 1 this cycle.

nmreich
2nd March 2010, 10:49
The point you made about central banks hoarding gold is VERY important. If gold was useless they would put it on a rocket and send it to the sun so that nobody could ever use it.

DaBrownsRPhat
2nd March 2010, 11:06
The point you made about central banks hoarding gold is VERY important. If gold was useless they would put it on a rocket and send it to the sun so that nobody could ever use it.

Exactly. Whenever someone tries to say gold/silver is not real money, I always reply that is why all central banks and nations have and hold tons of it then.

Sadly most people do not know what real money is.