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The Value is in What you Own

I sent an email basically saying that Fiat Currencies have a 100% failure rate historically with a bunch of quotes about the dangers of money supply being in private hands. I received an email back that I'd like to get your feedback on.

I'd like to get your feed back to this statement.

"Primitive man bartered to obtain what they needed. Rare metal coin
(e.g. gold) made this process more convenient. Then came paper
substitutes. Now it is electronic funds. But ultimately it is what you
own of value which can be gold, real estate, stock ownership of a
company, bonds issue be government or a company.

Given inflation if you invest too conservatively, you end up losing
value."




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This is babbling nonsense.

"Given inflation if you invest too conservatively, you end up loosing value."

Gold, silver, and the other commodities are the only things that are absorbing the monetary inflation. At this point, if viewed as an investment, gold is up over 49% in one year. Ask him to show you any debt-based investment that can provide that kind of return.

His little history of monetary systems is lacking as well. Paper money is just the symbol of fraud of fractional reserve banking practices--i.e. under our "modern" banking structure, there can never be enough cash to pay off the debt; thus putting us in a situation where we could never pay off the debt, even if we wanted to. To do so would result in no more currency being available in the economy. Both paper and electronic funds are worthless; but with the currencies, you can at least burn the paper to keep warm. The e-funds just disappear.

This guy sounds like he's destined for the soup lines. I strongly advise you to disregard his arguments.

--------------------------------
"the only thing that keeps the banking system from failing is general ignorance about how the banking system works."
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I just ran into something

I just ran into something along these lines today, what good is owning things if someone can just make a policy to take it away? Even the school systems are teaching it is ok to just take things away.

Is Inflation Robbing You?

Is Inflation Robbing You?

Check This Out:

http://www.richdad.com/RichDad/RichContent.aspx?cpid=63

Then this:

Many individuals have posed the question to me... How do you

protect yourself against inflation?

As a response I would like to share the following:

I have been purchasing (1) ounce silver eagle dollars with my

fiat money... Two (2) per month... As a retiree living on SSN

that is all I can afford...

Recently I have come across this company

http://silversnowball.com/75 from which I am now making my

purchases... If you feel comfortable with this program feel free

to participate... If not, do as you wish... Yes I benefit from

this post as most of you will if you take advantage of the

program... However, I felt confident that many of you will

welcome this information... Thanks... And have a great day...

Joel...

I don't see anything wrong with the statement

It's a little too simple. I mean, paper money and electronic are the medium of exchange, but the critical missing link is whether or not they represent anything real. Gold is a real thing that could be used to fill teeth, or conduct electricity. Paper money can't be used for very much.

The Liberty Dollar paper certificates had a value based on something real.

He is correct: owning things is a good idea. Land you can farm and live on. If you invest too conservatively, you are losing value.

I don't know if I would trust government bonds anymore. Voters need to stop issuing them! Investing in companies depends on the company.

IMissLiberty

What do you think? http://consequeries.com/

The author is a NUT

Equities are very dangerous now. Food and metals are the coming storehouses of wealth.

Give us clear vision, that we may know where to stand and what to stand for - because unless we stand for something, we shall fall for anything.
~ Peter Marshall, US Senate Chaplain 1947

I someone trying to sell you something?

Research everything VERY carefully

Family Member

Actually, the one who wrote this is a person I have a lot of respect for and is the Vice President of a a very successful computer company. (He is in my wife's family) This is a very successful individual. He respects Alan Greenspan. I'm trying to communicate clearly that our monetary policy is ruining our country. No he isn't trying to sell me anything.

It doesnt sound like he is resisting the argument ..

It reminds me of when I used to have similar conversations with my father.
He had trouble grasping my point for having the conversation to begin with.
What you are trying to discuss with him is the macro economic effects of bad economic policy.
What he has written back to you is more generic personal advise , along the line of value is in the eye of the beholder ..
While what he writes is accurate in a sense, it has little bearing on the overall conversation. It didnt pay to be the best poker player on the Titanic.
I think he will understand that while one can shield themselves to some degree from an overall economic rout, in the end we all wind up having our prospects reduced.