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Post by sigurdur on Dec 16, 2015 16:47:09 GMT
Silver/Gold is considered a commodity, hence priced in dollars.
IF there was no other use for silver/gold it would work fine as a currency. However, being there is, it will never establish a stable platform to be used.
The old system relied on "barter". An ounce of silver/gold would be bartered for food, shelter etc. Even at that time, the prices fluctuated based on the availability of silver/gold. Hence, the commodity classification.
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Post by flearider on Dec 16, 2015 21:13:06 GMT
So if I buy an ounce of silver today I can be assurred in 50 years it will be worth the same? I assume the same in terms of trading value. I think his argument is that the value of items such as precious metals and land serve as an insurance policy against the possibility of a radical depreciation of the fiat currency. So, if your weekly groceries cost 5 ounces of silver (in todays fiat currency value), then the same 5 ounces would buy a weeks worth of groceries if the fiat currency value declined by 50%. Or so goes the argument. We buy insurance for everything else. you know i would'nt mind if anyone came over here dressed as we do followed our rules and just became british .. but they don't they setup in there own areas push out the home folk .. and start using there laws .. if you walk in a muslem area of the nw your prob going to get stoned or beat up .. your now trespassing on there area .. don't get me wrong i know quiet a few that just don't live like that .. they live like brits .. shame the others wont ..
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Post by missouriboy on Dec 17, 2015 2:23:35 GMT
I assume the same in terms of trading value. I think his argument is that the value of items such as precious metals and land serve as an insurance policy against the possibility of a radical depreciation of the fiat currency. So, if your weekly groceries cost 5 ounces of silver (in todays fiat currency value), then the same 5 ounces would buy a weeks worth of groceries if the fiat currency value declined by 50%. Or so goes the argument. We buy insurance for everything else. you know i would'nt mind if anyone came over here dressed as we do followed our rules and just became british .. but they don't they setup in there own areas push out the home folk .. and start using there laws .. if you walk in a muslem area of the nw your prob going to get stoned or beat up .. your now trespassing on there area .. don't get me wrong i know quiet a few that just don't live like that .. they live like brits .. shame the others wont .. To me, what you describe is the difference between an immigrant and an invader. The immigrant adopts many of the customs of his / her new home, obeys its laws and respects its customs. The invader sets up shop with their cultural baggage in segregated communities where they become the law ... with one expects the ultimate goal of becoming the new master as their numbers grow. In my humble opinion, those that will not naturalize need to be exported ... forcibly if necessary.
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Post by missouriboy on Dec 17, 2015 22:05:24 GMT
She is exactly correct ... the question, however, becomes ... what are European nations going to do about the segregated pockets they have allowed to grow within their midst??? The new immigrants will logically gravitate to concentrations of their own people. Birds of a feather and all.
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Post by sigurdur on Dec 17, 2015 22:30:39 GMT
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Post by missouriboy on Dec 18, 2015 3:46:46 GMT
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Post by walnut on Dec 18, 2015 13:28:51 GMT
Another possible take on the rate increase, and our populist tendency to criticize the Fed- QE ended about a year ago. For about one year, the Fed has not meddled in the economy, they have been watching and waiting like everyone else. Many people have been saying that i rates have been set unnaturally low by the Fed. But in saying that, aren't those people acknowledging the need for a central bank like the Fed? How can rates be "unnaturally" low. If the money supply has been fixed for a year, won't supply and demand for money govern the current interest rate? Isn't a Fed set interest rate a form of government intervention, and a brake on the economy, determined by whoever is in charge?
I think I read Ben Bernanke say something to this effect a few months ago. And I had been thinking sort of the same thing.
And so, who do we pick as that person smart enough to dictate the correct interest rates? Someone, or almost everyone, will be dissatisfied. Would we prefer that there was no Fed discount window? A truly fixed money supply governed only by how fast we can mine gold and silver?
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Post by missouriboy on Dec 18, 2015 14:33:14 GMT
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Post by sigurdur on Dec 18, 2015 15:04:09 GMT
I think we will have a correction. Reasons: 1. Energy sector of economy being devasted. 2. Ag sector of economy suffering under over production 3. Misdirection of resources in regards to energy. By raising the cost of energy, it has a 100% ripple effect on the economy. It is an "artificial" raising of prices.
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Post by nautonnier on Dec 18, 2015 16:00:24 GMT
So after a fuss about a lesson where children were required to write out in Arabic: "There is no God but Allah", the school closes on Friday.... presumably for Friday Prayers?
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Post by walnut on Dec 18, 2015 18:19:29 GMT
I think we will have a correction. Reasons: 1. Energy sector of economy being devasted. 2. Ag sector of economy suffering under over production 3. Misdirection of resources in regards to energy. By raising the cost of energy, it has a 100% ripple effect on the economy. It is an "artificial" raising of prices. We will have a market correction, because the stock market is ridiculously high, and if you look at the long term pattern, it is about to come down in a biblical way. And it might be starting to fall right now. That could trigger a recession. I have noticed many times that our sales reduce when the stock market drops by much, like clockwork.
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Post by sigurdur on Dec 18, 2015 21:33:20 GMT
I think we will have a correction. Reasons: 1. Energy sector of economy being devasted. 2. Ag sector of economy suffering under over production 3. Misdirection of resources in regards to energy. By raising the cost of energy, it has a 100% ripple effect on the economy. It is an "artificial" raising of prices. We will have a market correction, because the stock market is ridiculously high, and if you look at the long term pattern, it is about to come down in a biblical way. And it might be starting to fall right now. That could trigger a recession. I have noticed many times that our sales reduce when the stock market drops by much, like clockwork. This may sound crazy, but the wholesale price of potatoes has become an excellent leading economic indicator. Right now, the wholesale price of potatoes is in the basement. This hasn't failed me numerous times now. During times of a recession, if the wholesale price goes up, I am almost 100% certain that a recovery is well underway. During times of apparent prosperity, if the wholesale price of potatoes tanks, a recession is not far in the making. I know, a goofy observation/correlation but it works.
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Post by walnut on Dec 18, 2015 21:46:42 GMT
You'd probably better get those potatoes out of the basement soon or they will dry up and grow eyes... nobody likes to use those.
I believe your potato indicator, if you have observed it. Stuff like that sometimes works
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Post by sigurdur on Dec 18, 2015 23:10:19 GMT
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Post by nonentropic on Dec 18, 2015 23:41:47 GMT
Well Sig if our global cooing friends have it correctly then the commodity cycle could start to lift quite soon.
Potatoes are quite sensitive to freezing and general season shortening.
Will the hypothesized cooling be a good thing after all?
Joe B is of the view that the winter in the primary usage regions will harden a lot soon that may yet give energy prices a shove.
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