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Wednesday, September 28, 2011

Gold Stupidity

By Staff Report
21
 


In this video, a reporter tells the anchor that gold has moved down in part because people may be getting suspicious of the yellow metal since it isn't "backed" by anything. She then goes on to explain that US Treasuries and the dollar itself are backed by the United States government and by the industry and manufacturing efforts of the entire American people. Therefore, the US dollar and Treasuries are a good deal safer than gold (or silver, presumably).

This is an emergent subdominant social theme that has been offered elsewhere lately. Over and over, the mainstream media presents the idea that there is a flight to safety going on now, and that the beneficiary of this occurrence is the US and its bonds. Gold and silver usually go unmentioned or are merely mentioned as an afterthought. American paper is supposed to be where the action is.

The lead story in today's DB issue Depression Leaves Investors Feeling 'Like a Dog Without a Bone', deals with this issue. Financial planners and advisors are unwilling to offer gold and silver as part of a larger asset allocation program and this is depriving investors of the ability to organize their portfolios for the entire arc of the business cycle.

It is of course one thing to ignore gold and silver and quite another to imply that investors are nervous about gold (which is up near tenfold from its lowest-low about a decade ago) because the yellow metal isn't "backed by anything." Do you believe a business reporter could make such an utterance about a substance that has been a store of value for thousands of years? Watch the video and hear for yourself.




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  Posted by Col on 10/28/11 12:37 PM

Darn, not anymore, still haven't seen it.

  Posted by goldandsilverbug on 10/03/11 01:26 AM

Yikes just another reason to sell your television!

Click to view link

Still able to see it at the above link

  Posted by Col on 10/01/11 02:20 AM

damn they pulled the video, never got to see it.

there was an economist on a survivalist forum some years ago who quite accurately predicted market trends, he saw the 2007-2008 crash & the skyrocketing Gold price, he stated that he believed that at some point the elites would try to crash gold, in the panic everyone would try to offload it & then they would buy it all up.

  Posted by Pete 8 on 09/29/11 08:02 PM

Warning, this woman could be teaching your children.

  Posted by haha on 09/29/11 05:11 PM

OMG I might die of laughter. Please please stop it!

  Posted by Adrian W on 09/29/11 07:32 AM

Anyone willing to lend me, say, $100 billion for a few months? Wonder when the next "launch" on the price of gold will commence?... ...

  Posted by aikishugyo on 09/28/11 11:32 PM

That is awesome. At least it does bring to light clearly that TPTB prefer debt and slavery to unfettered wealth.

Once one wakes up to the fact that language is manipulation, nothing is the same ever again.

  Posted by Von on 09/28/11 11:26 PM

Hilarious.

Along with a couple of re-runs of "Arrested Development", and some news about the Feds restricting gun sales to medical marijuana card holders in the US ... this video was one of my biggest laughs of the entire day.

  Posted by clark on 09/28/11 11:19 PM

I saw a note that said, it's strange that it is tough to tell the difference between the headlines on CNN vs. Survivalblog lately, or something to that effect.
This is a bit like seeing the phrase, "Housing Bubble" after it had been denied for so long.

Also, did you all see this?:

The Fed Responds: We Don't Own Any Gold

The Federal Reserve has responded to one of two "Herman Cain Letters" I have sent (See here and here). The response was to my inquiry relative to the Fed's listing on their H4.1 weekly release of a line item: "Gold Stock" 0f $11.041 billion. I had asked to see the gold, or have it audited. The Fed responded: "The Federal Reserve Board does not own gold." ...

Click to view link

  Posted by DickFitz on 09/28/11 10:05 PM

Timur, barring all out nuclear war, gold and silver will be valued by most. If you have 200 gold coins, someone will be willing to sell you some of their food (until the next crop/culling) for a few of them. In a worst case no-war scenario, with the elite marginalized due to their overreach (temporary condition in their mind) as long as the regulatory state collapses, the recovery will come quicker than you would think. Trade would continue, the communications and transport infrastructure would be intact, and life will go on.

Although the fiat system has destroyed much of our liquid capital, the fruits of it (highways, refineries, factories, communications systems) are in place, and will be re-organized.

But, I'm an optimist (even though I consider the future that I've presented here to be fairly likely to occur) and believe that, absent coercive gov't "The Law" would quickly reassert itself. In fact, the only thing that will save us is a total collapse of the current artificial and corrupt regulatory and financial systems in place today. It will be tough, and not soon forgotten, and many millions will perish... but the sun will rise.

  Posted by sparky on 09/28/11 09:03 PM

Yep I guess that authoriative piece on the gold markets settles it for me. I guess our "friends" in The City of London are just looking out for our best interests.

How silly of me to assume that thousands of years of monetary history really have no bearing on our present conditions. That journalistic forray ranks among the wierdest torturings of logic and common sense I have yet to see. I'm just shocked that the commentator was actually saying this non-sense in Canada of all places.

However, since our friends in The City of London are looking out for us like this do you think they will dump some more of their Central Bank gold holdings in the market for us. That way we can return back to them some of those "Valuable... Backed" dollars? Just asking.

  Posted by TimurTheLame on 09/28/11 08:44 PM

@ John Danforth
In a Mad Max world how many farmers would be thinking of planting next years crop? My point is if you and your family are literally three meals behind and have no prospect of eating and you quite logically seek out someone who is hoarding sustenance and you approach him with some precious coins- what are they worth?
I am using extremes to try to get an understanding.

  Posted by John Danforth on 09/28/11 08:26 PM

Right now gasoline is 10 cents a gallon. (In silver.)

  Posted by John Danforth on 09/28/11 08:21 PM

Even in a total collapse, trade will resume fairly quickly. Cigarettes and booze are money too, but are only worth so much. The PM's are for carrying substantial wealth over to the other side. A farmer might welcome them, for instance, to finance next years' crop. I like silver quarters and dimes. (I'm poor.)

  Posted by TimurTheLame on 09/28/11 05:31 PM

Financial analysis of the current turbulence is not my strong suit and therefore I rarely post but I do read with great interest the articles and comments of people much wiser than I on these topics at DB and elsewhere. However it becomes tiresome to read the PM's vs Fiat toilet-paper vs bullet and beans crowd where no real solution of value is agreed upon.

In a Gordian Knot type way I see it as being quite simple. If the collapse is partial and a great renaissance will come about, the PM people will be the winners . If the collapse is total, my cord of wood, my side of beef and or my sack of potatoes will trump anyones gold brick. The currency will be petrol, ammunition and to the buccaneers among us a comely daughter. The crux of the issue should be how severe will the collapse be.

Cheers-

  Posted by David_Robertson on 09/28/11 03:24 PM

The reporter believes that the dollar is backed by the "good faith and credit" of the United States. The "United States" is a corporation. This corporation has declared the American People to be "enemy combatants" who are therefore without any of the protections of the Bill of Rights of the original Constitution for the united States of America that in any event was replaced in 1871 by the Constitution of the United States Corporation. Click to view link

This corporation has essentially sold the People and all their land, goods and chattels into slavery to the offshore international bankers who are responsible for creating the bonds which bind the People. These bonds are the basis of the money of the United States which is the only legal tender in the country of America. The total value of these bonds and all the many types of money that depend upon them and all the promises to pay made by the People and the States and the businesses of America now amounts to an estimated two hundred trillion dollars. These debts and obligations are the only "security" underpinning the value of the US dollar. As these multiply and grow the value of the dollar falls commensurately because the value of the collateral securing the debts is being destabilised by the weight of debt it is supporting.

When the reporter states that gold has nothing backing it she is referring to the fact that gold has no debts on which it relies for its value (good faith and credit). It can be readily seen from this that she is actually viewing the situation through a looking glass and the relative values of gold and the US dollar are in fact the opposite of what she is perceiving. As the dollar inevitably falls in value as the debts supporting it grow the only standard against which its value can be measured, gold, must increase in value. This truth must be hidden from the People just like everything else.

The international bankers who create the bonds that bind the American People will naturally wish to continue to blind the People to their true predicament for as long as they can so that they might steal all the underlying collateral upon which the value of their bonds is predicated. Click to view link

They are also accumulating as much gold as they can so it is important for them that they are able to do this as cheaply as they can even though it costs them next to nothing to create the money that they use to exchange for their gold and all their other real property. Click to view link

  Posted by turtle on 09/28/11 03:22 PM

Just reread my post. Ironic that I can't even write. Guess I was laughing too much.

Seriously though, the bull market trend in gold is well in tact. Check out John Hathaway on King World News for an explanation.

Click to view link

And if you are looking at gold price charts make sure you use log scales and not straight scales.

  Posted by turtle on 09/28/11 03:13 PM

This is hilarious.

It remind of those beauty queen pagents where the contestants suddenly have to talk.

  Posted by Bischoff on 09/28/11 01:48 PM

The networks, the cable channels and the print media are all in on it. Gold is just another commodity. It doesn't pay interest. It makes no sense to invest in Gold. They way to go is to buy equities in "good", "dividend paying" corporations.

Of course, we know who owns the MSM.

Trying to put Humpty-Dumpty (central bank currency) together again after its fall in 2008, is simply impossible. The media may play the public for dummies a little while longer, but it will never allow enough time to put Humpty-Dumpty together again.

The plain truth is, as J. P. Morgan told the U.S. Congress, "gold is money, and nothing else". Therefore, if you want to "save" money, you turn fiat currency into gold.

A "savings account" denominated in Humpty-Dumpty currency, paying less than 1/2% interest, is simply not a justification to forego keeping your "savings" in the form of real "money".

  Posted by kenn on 09/28/11 12:49 PM

That 'reporter' is on her way to becoming a MSM economic advisor with the likes of Kruger and Summers...

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