Ron Paul Argues with Some Guy Over the Fed Reserve on CNBC

Here is a point I actually agree with you here, I believe the reason is our politically system is based on survival hence promising people things now, knowing full well we can't afford them over the long term since in 20 years it will be somebodies else's problem

 

Doesn't matter. It's just speculators fleeing gold, not investors. Gold will probably be back over $1000 by May.

All political systems are based on the same survival conditions.

The reality is, the government has zero fiscal accountability, and it hasn't for almost a century.

But the day of reckoning is coming. It's inevitable.

 

Wasn't it speculators who drove the price of gold to $1000 in the first place up like 50% in the last 6 months

 

I don't believe so. What was gold 6 months ago? 2008 summer futures for gold were around or over $1k. Everything is playing out per expectations so far.

Remember, gold doesn't produce a return. It's a hedge against inflation.

 

In sept 2007 Gold was selling for less then $750 a troy ounce, the same time the bond market stopped functioning Gold takes off to $1000 a troy ounce,

In March 03 Gold was selling for $350 a troy ounce it has tripled in price in less the 5 years when homes did that they called it a housing bubble.

 

There is a difference. Gold and oil have tripled in USD. This is due to the dollar debasing as much as demand.

Check out Soy Beans, Silver etc. Commodities always reflect hedges against currency weakness.

I keep saying, watch the dollar. Not GDP, not gold, not the DJ or S&P. The dollar. It will tell you when we have hit the trough.

 

http://money.cnn.com/2008/03/25/pf/soc_sec_trustees_report/index.htm

Paulson: Action needed on Social Security
Treasury secretary says program is 'financially unsustainable.' Trustee report says government will have to pay back what it owes starting in 2017.

This excerpt is crazy

Basically, the government spends the surpluses which should be invested at treasury rates, then when it runs short, they will claim not enough people are in the scheme. But in reality, the fund was plundered and mismanaged.

It's a very careful way of shaping perception. It's not their fault the scheme is failing (it is their fault), it's our fault because not enough of us are working (which is totally bogus).

This is why there is a push to allow illegal immigrants to get full amnesty. These schemes are not sustainable without fresh bodies.