Gary North on Gold

Fortune Favors the Bold

Gary North was the chief drafter of the House Intelligence report from 1982 I cited in my post as proof that David Rockefeller was supplying military intelligence and critical supply material to Soviet Weapons factories during the Vietnam War.

HYDROMAN
Let`s see, my home value decreased by 28.5% and my gold decreased by 11%. Anybody want to swap some of that worthless gold for my house?

You will be pleased to note that my property taxes have not dropped any.
To bad they don`t allow me to pay property taxes on my gold.

North seems a bit narrow to me.

Whatever information he has concerning M1 and M2, he sees that the Fed is not currently inflating the money supply. He could be right about that, but that's only part of the story. His commentary doesn't touch upon the macroeconomic view.

People, or rather, countries, are dumping dollars, which inflates the money supply, so the Fed doesn't necessarily "corner the market" in inflationary pressures.

I like North's articles on gold, but not as much as I like Chris Laird's at Prudent Squirrel. Chris usually gives a good assessment from a macroeconomic point of view.

some of the time. Pay particular attention to what he says about the long bond prices. Want to see clear signs that the drop in bullion prices are manufactured?

http://www.silverstockreport.com/2008/crunch.html

In 1840 a Sunday go to meeting suit, "Black broadcloth with trimmings complete for a suit cost $13, and it cost $6 to get it made. The price of an ounce of gold was $20.
http://www.rootsweb.ancestry.com/~nychenan/raft-rr2.htm

Today the cost of a good suit is $1000. The price of an ounce of gold is
$1000.
"According to retailers, consumers have remained undeterred. Linda Hopler, the men's fashion merchandising director and a vice president at Saks Fifth Avenue, said that her store is doing ''astounding'' business with its highest-priced suits, which include Oxxford, Giorgio Armani, Hickey Freeman and Gianfranco Ferre.

''We don't sell suits that are $250 or $300,'' she said. ''Our average price point is $575 and $600, and we do an everyday business in $1,000 suits.'' Hopler feels that customers really are getting a better-made suit at these prices.

All you do by buying Gold or Silver and holding it is hedging against inflation. If the price of a good suit was to go back to $20 the price of an oz. of gold would go back to $20.
I am and have been buying and holding not speculating.
So what if the price of Gold went down yesterday and today, the value of the dollar went up in conjunction with it.
Been like this throughout history.
I believe that banking institutions are more dangerous to our liberties than standing armies.The issuing power should be taken from the banks and restored to the people to whom it properly belongs.
Thomas Jefferson

I could see a period of defaltion, just like during the Great Depression, occurring as a result of the Fed tightening the money supply. But that is not the situation we are currently facing. When the world is awash in dollars and the dollar spigot is wide open with no letup in sight, how is that deflationary? I admit that I am very skeptical of Gary North. I believe he seeks attention by being a contrarian. And how is a bubble created in precious metals? Can someone explain these things to me?

He's long-winded and sometimes "right". I prefer reading other speculators.

because it's going to be a wild ride. And hold on tight to your gold. Wannabe "traders" are going to get creamed. Buy gold and silver during the dips, and hold it. The dollar has been sacrificed on the altar of greed by the banksters. Now they would have you sell your gold during the price drops so that they can pick it up for themselves. Not only are they robbing us by debasing our currency, but they also want any gold we might be holding in order to leave us naked during the economic perfect storm that they are creating. There is no rational explanation for the drop in the gold price. This is a manipulation of the price by the banksters, the US Treasury Department, other govenment entities and their agents. They are criminals without conscience. Don't let them win. Don't listen to the spin. Hold on tight!

how could we have possibly seen the "bubble pop", when we haven't even STARTED to see the worst of the inflation yet?

I'm an amateur, but it seems to me it'll still be several months before we start to see the real effects of the lowered interest rates and money supply expansion/inflation.

All kinds of behind the scenes shenanigans are going on to artificially prop the market up and fool people into thinking things are going to be ok. The PPT has really been earning their money lately, so to speak. Pun intended.

Perhaps this latest dip is a back-door way to steal our gold and silver from us, by tricking us into selling.

I'm not falling for it, and i'll be holding on to mine and buying MORE while it's low. don't let these bastards get the best of you.

He could be right, that may be it for now. Gold has been skyrocketing, and may already reflect the tanking of the dollar. I think in the long run it climbs, but there will always be valleys among the peaks. It's a great hedge against the debased dollar, but people who thought they were going to make money "trading" it were in for a rude awakening.

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Good luck to us all,

Lisa C.

www.women4ronpaul.com