United States Heading towards a Depression?

Let's see:



The Swiss Frank is actually not moving up. Same like gold which has had the same buying power for 2,000 years. It's simply that the USD is crumbling so rapidly, that it looks as if the Swiss currency is just skyrocketing.

Could it have something to do with 20% of Swiss assets being backed by gold?





Yes, the Euro is equally screwed.



Gold is money. Currency is paper.

 

It doesn't appear to be that kind of book. At least so far, I haven't read anything about "Republican" "Democrat" -- They say that they published a book "America's Bubble Economy" in 2006, that warned about what would happen late 2008.

 

Gold was at 287 USD in Sept. 2001. Now 1,827 USD. Again: The buying power of gold has not changed. Only the currencies of the world went down the toilet. That includes the Swiss Frank btw. when you compare its growth to the growth of gold value compared to the other currencies.

It just hasn't declined as badly. This is just to show the optimists a little bit of reality in a world of hope and change speeches.

Using the high and low numbers from the chart above, gold is 7 times as high as it was 10 years ago.

This means that the value of the USD has decreased by 86% in 10 years.

And for those who want to blame this on the previous administration, take a closer look at when the current spike started.


Anyways, waiting for BreezeWood to breathe some positive thinking my way, because I am not sure how to keep the faith.

 

If Obama had of let it fall when Bush finished (as he probably should have done), it probably would all be over by now and you coulda blamed Bush forever, but you would have had no idea what Obama saved you from.

The next president should just let it fall imho. That will diminish the two-stage economy - 1 for the rich and another for the poor because when it all falls down, as it will soon enough, noone will have anything.

 

Money doesn't just disappear. It goes somewhere. The banks are winning. It makes no difference if Obama or Bush is in office. Both administrations saw the Dollar falling except for a short time during the last election.

 

Ahh, but where does fake money go?

 

Fake money goes back to zero. Question is: What is in Ft. Knox?

 

K, so we create a whole pile of fake money to kick the economy. At some stage it has to appear, as nothing. Surely? My point is the economy we're living in is all hyperflated - faked. So, at some point reality has to kick in and the fake money has to be turned into it's real worth. Nothing.

 

Exactly. Gold is IMO the only way to go at this point. Swiss Frank is at least backed by something and Asian currencies appear to do quite well and will likely do well for a while longer. But of course, not for forever.


In a world of credit ratings and student loans we have lost complete track of what we owe and what we own. Best is to keep things simple, so nobody can smokescreen us with confusing numbers.

 

Agreed, but by increasing the cost of gold it is bringing you closer to turning the fake money into real money, because it's all based on gold, even if it's not. The increase in gold is making the landing softer, it's just as faked imho but now its backed with gold. Gold will be an excellent investment for a while to come imho.

 

My question is in whose hands the physical gold really is. The amount of gold being traded and gold certificates in circulation exceeds the amount of physical gold available en masse. As far as I know, Ft. Knox has never been audited. Could it be that the real gold is in the hands of the companies controlling the Federal Reserve and that when things hit the fan, those with certificates in their possession are not going to get the gold those supposedly represent?

More here: Federal Reserve has a 99 year term expiring in Dec. 21 2012

 

I can't say I know the answer to that but I would have thought it was overseen by multiple countries and would be too hard to fudge figures though I certainly wouldn't claim to be an expert on that. I have no idea who does the checks and balances there.

 

Found this:


The One "Audit" Of Fort Knox

The only audit that has ever been done of the gold inside Ft Knox was done days after Dwight Eisenhower became President in January of 1953. After 20 years of Democratic presidents, the American public wanted to be sure that the gold confiscated from them was still there. Thus, the new President ordered an audit within hours after taking office.

The central problem was that it wasn't much of an audit. To sum it up:

Representatives of the audited group were allowed to make the rules governing the audit. No outside private experts were allowed.
Those government bureaucrats involved were inexperienced in their tasks, by their own admission.
The entire audit of the largest gold hoard ever concentrated in history lasted only seven days.

Only a fraction of the gold was actually tested. Later, the officials put this fraction at just 5%.
Based on that fraction, the official committee reported that, in their opinion, all the holdings would have matched their records if they'd all been tested.
If the audit was accurate, the fact remains that almost 80% of it went overseas in the coming years. If the audit was not accurate, the amount of gold lost could have been even more.
This one and only audit reassured the America of 1953. But that America was still used to accepting official government statements at face value. In later years, after all the lies connected with Vietnam, Watergate, and so many things ever since, Americans today have lost much of their respect and belief in the words of their government. (In fact, few today even view it as "their" government.) An audit such as the one of 1953 would today satisfy almost nobody.

The years after 1953 saw hundreds of millions of ounces of gold fly out of the US. It is absolutely certain that wealthy Americans, operating behind foreign institutions, were able to accumulate gold at what are clearly now bargain prices. But more important, America's enemies were able to do the same: exchanging the paper dollars for gold at $35 an ounce.

http://www.lewrockwell.com/orig11/weber-c1.1.1.html

 

Thankfully, it does not take an economics degree to understand what is going on with the economic terms people like you use. All it takes is common sense. Who in their right mind would continue to rebuy something in the future when they know without a doubt that it always have less value? The federal reserve failed. Admit it. They do not think gold is money. F A I L ...


No one who wants to stay in business is going repurchase something ( dollars ) when they know they will lose money. China
no longer deals with the dollar. China and Russia now deal in their own currencies to avoid what you are promoting. Those who look at history know people like you are promoting a house of cards that is designed to fall. Is it a coincidence that World War II came right after the Great Depression ? Bankers love wars because they finance them. You sir, are promoting evil.


Repurchase devalued dollars ? Who is that dumb ?

 

Hey Breeze Wood, what do you have to say about that statement ?

 

China is currently buying up precious metals. The catholic church is still receiving gold from Lima, Peru, from their days
of the conquistadors. I have seen the insides of catholic churches where much of the interior was lined with gold.

 

Supply and demand. Let's see: Unlimited supply (print, print, print). Decreasing demand. Let me think this one through ...

 

There is not an unlimited supply - what can happen is if the supply becomes concentrated by a few holders the remaining dollars are "Superficially" insufficient to support an economy.

If the supply of Dollars is to heavily concentrated in savings the remaining dollars again are insufficient to support a "Vibrant" economy.

Both instances are cases of "Illiquidity" and the solution whether liked or not is to print additional dollars to alleviate the constriction of capital flow - the dollars can then be repurchased at a later time and if done correctly balances to a 0 net difference. - Simply put the Federal Reserve is capable of preventing certain parties (Middle East - Banks - China - Speculators) from manipulating the currency for unearned reward.

but you would have had no idea what Obama saved you from.

That is the problem - Obama and the Federal Reserve did save the Country and World from a Great Depression and the public has shown very little appreciation however I do believe the appreciation is there and will grow when conditions will allow it. Obama and the Federal Reserve have executed their Offices properly for the public Wellbeing.

 

So outrageous debt, super high unemployment, destroying the American Dream, creating a nation dependent on government handouts... are good for "public wellbeing" ? You are spreading evil in the world Breeze Wood. If you understood what it means to be an American, you would never say what you do. That is why true Americans never believe you.


You also do not know the purpose of government and are ignorant of national law.

 

Very well put.

Hey, remember when the Democrats told us the stimulus was necessary to keep unemployment below 8%? It's at 9.1%. The economy created no jobs in August.

The money is in the banks. They aren't lending. American banks are so horribly over-leveraged they need to accumulate cash. There is a real fear among banks that if there is another mortgage crisis and the bank begins to fail, that Obama won't bail them out, resulting in total bank failure.

Obama is begging banks to lend, while his own regulators are telling banks to accumulate capital. Yes, many banks claim to be posting record revenue, but that revenue is going into improving their leveraged position.

Simply put, the banks and Washington are at odds. In this economy, if the banks lend money it's good news for Obama but it puts the banks at risk. If the banks hold money their leverage is healthier but it hurts Obama.

Oh, it came out today that Obama created 340 new regulations that cost $65 Billion.