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US Dollar, credible sources of information and immigration

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July 5, 2014
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Discussion
73 Comments
    Jul 05, 2014 05:31 AM

    Regarding segment one…..has it occurred to anyone that there can be no bank runs under a pure electronic system? Think about it. Not possible. The choke point is always printed cash or physical gold. In the absence of those forms of money there is no possibility of any bank ever running out of money (provided a backstop like a Central Bank or the IMF exists). Just recently we saw an Eastern European bank run. Old fashioned stuff. People wanted their money and they wanted it in the physical printed format. That is impossible in a modern monetary system though during a bank run when little more than a few percent of all money is ever created in physical form in the first place. If that is not a reason to get rid of the stuff once and for all I don’t know what is. Under a pure electronic system there could not be ‘panics” as we saw in times past. No more line ups and riots. No ore people freaking out in public on TV. Just a nice controlled means of distributing money or credit to where is needed most to flatten out the highs and lows and keep all the campers from getting worried the supplies will run down before help arrives.

      Tom
      Jul 05, 2014 05:42 AM

      Of course there can be a bank run…when you try and access your banks homepage it will say this page does not exist….then what you gonna do?

      Jul 05, 2014 05:55 AM

      Turn the population into instant serfs in a NY minute. Population control at it’s finest.

        Jul 05, 2014 05:08 AM

        Excellent point Matt. But the again, we let it happen didnt we!

          Jul 05, 2014 05:50 AM

          Yes,Al.
          That is where independence comes in to being.
          Financial independence facilitates freedom.
          That is a lesson we all can learn from our sordid past.

            Jul 05, 2014 05:23 PM

            Financial independence means paper money? Wait just a second….is this still a gold site?

            Jul 05, 2014 05:22 PM

            Collectable porcelain dolls, Bird!

            Jul 05, 2014 05:58 PM

            No,Bird,this is a reality site of financial survival.
            Fiat is the enemy of all people,fails all people,always has and always will.
            Electronic fiat will do it faster and in much more fascist fashion.

            Jul 05, 2014 05:17 PM

            I am only pointing out the obvious about where we are heading. The evolution of currency is taking us to a pure electronic world and it is happening fast. It is up to others to determine if that new system is just or fair or equitable. So I won’t quibble with you about the potential impacts on freedoms because there are indeed drawbacks. We had best get used to it though. It is the future.

            Jul 05, 2014 05:27 PM

            Of course it does Matt.

          Jul 05, 2014 05:02 PM

          don’t include me on that……….

            Jul 05, 2014 05:24 PM

            Sorry Jerry, on what?

          Jul 06, 2014 06:52 AM

          No Al if Americans had tried to interfere with the elites plans for America the people stepping out of line would have been picked off just like JFK. The dead would be labelled terrorists and lone nuts and discredited by the media. The majority would take the media’s word for it. That is how it works for now. Bringing down the PTB is going to take more than a few people acting on their own.

        Jul 05, 2014 05:49 AM

        So you are saying physical paper money means freedom, Tom?

      Jul 05, 2014 05:07 AM

      How about when the electronics are turned off Bird?

        Jul 05, 2014 05:00 PM

        Mobile phone money operates even when the power is down Al. As long as you have a working battery in your cell phone and the cellular provider has generator backup for their system and towers then transactions would not cease.

        But if you mean what happens if a solar flare vaporizes the satellites and our basic grid and electrical systems I guess the answer would be nobody really knows except we would have bedlam. As it stands it is already the case that we cannot go shopping if a stores till and computers go offline and the lights are out.

        It does not even matter what money you offer either. Gas pumps won’t pump fuel without power. Ice Cream machines would go warm and melt. Chillers stop functioning meaning veggies and sandwiches would have quite a short shelf life. Hot food would not be available. Do you think you can get gas or propane or ice cream or pizzas with no power?

        Do you really think gold would help make what is broken work?

          Jul 05, 2014 05:26 PM

          Yes, to a certain extent it would, Bird.

    Jul 05, 2014 05:36 AM

    Just a second point that is partly related. Do any of you realize that the current efforts to counterfeit gold and silver coinage might in fact be tantamount to creating so much distrust in the buyers market that NOBODY will trust it anymore? How can you ever sell that which is in doubt? Even rare numismatics are being cranked out by sweat shops in Asia. Every piece you come across these days leaves you wondering if you just got ripped off or not. Sometimes you did. What happens when you discover your hoard is all base metal crap and your investment in metals just went up in smoke? I suggest that you people NOT DOUBT that efforts are underway to create so much suspicion in the metals markets that it is effectively destroyed.

      Tom
      Jul 05, 2014 05:44 AM

      Counterfeit gold has always existed…ever heard of fools gold?

        Jul 05, 2014 05:10 AM

        Bird and Tom, you both make good points.

        Jul 05, 2014 05:05 PM

        Childs play Tom. What the counterfeiters offer now are coins so perfect that a novice cannot tell the difference. Even the pros get fooled unless they perform tests. Kind of makes the whole liquidity thing a problem if nobody will accept gold and silver coinage without an assay first. In other words…..97% of the population will not touch the stuff if they harbour doubts that precious metals coinage and bars offered for sale are forgeries.

    bb
    Jul 05, 2014 05:49 AM

    You might have a point about the bank runs Bird. Would mean we are entirely cashless tho.
    I use cash for everything and there are others that do as well, there are charges with plastic and cash avoids those.
    But you have an interesting point, the only impediment could be the machines themselves, we actualy wouldn’t even need the atms.

    This idea of phoney gold coins I cant go with, if we had to we could always go back to biting the coins.
    Ive watched coins pretty much all my life and should it ever get to the point people need to actualy understand their investments in coins it wouldn’t be long and most people could figure it out.

    KInda makes me think of people buying “recognisable” gold, like a maple leaf, paying a premium over a plain ol pce of gold.
    Like the people involved in the gold industry cant recognise gold when they see it?
    I just find that funny, I don’t know, maybe people have to be told their looking at gold when thy buy a wedding ring from a jeweller, well, we could all start carrying testing equipment I guess.

      Jul 05, 2014 05:14 PM

      You are a rarity bb. The majority of people are using electronic currency already whether it be Mastercard, Visa, Debit, online banking, ATM payment services, electronic transfers, Western union, automatic deposits and the many other payment systems like Paypal, online shopping or loyalty cards etcetera. We are already there. Even flea markets are going off cash. There is now only a small bridge between us and a totally cashless system and once we cross it there is no going back.

        Jay
        Jul 05, 2014 05:56 PM

        i stick to cash 90% of the time (unless making large credit card purchases. I disagree about not having a bank run, it happened in cypress, and began to in england briefly a couple months ago. As soon as the system looks unstable the herd ALWAYS resort to the physical, tangible imo

        bb
        Jul 05, 2014 05:12 PM

        Your right bird, it is rare now to find someone like myself that uses only cash. But every till likes getting it. I originally tried not to be followed with digital transactions, believeing cash afforded some anyonimity, then I tried to avoid charges, actually pretty easy to use cash in canada, its also faster than plastic, I carry change as well so can pay exactly. Cash is actually pretty easy and convenient.
        The ocassional math skill is required tho, which may be too much for some people now tho.

          Jul 06, 2014 06:56 AM

          Not to mention that the retailers don’t have to pay a percentage to the bank for an electronic transaction. Canada is known for having some of the highest transaction rates.

    Tom
    Jul 05, 2014 05:39 AM

    A lot of places in the states don’t take plastic.

      Jul 05, 2014 05:12 AM

      Gotta disagree slightly TOM as I have only seen a couple where we live and travel.

    Jul 05, 2014 05:53 AM

    In Asia many people purchase financial protection from tyrants and thieves in the form of gold.
    There are districts of gold stores in most cities and one purchases gold bars and ingots or grams from the largest,recognised manufacturers,from a shop that has been in business for generations with a full guarantee of return at spot minus a few % points.
    Nobody is so stupid to believe their government will protect them because thousands of years of experience tells all the reality of history.

      Jul 05, 2014 05:18 AM

      I believe everything I see and read in the newspapers.

      Then I know for certain I’m making the right decisions.

      When people agree with me its very comforting. I sleep
      well at night knowing I’m in good company and they too
      end up at the bottom of the river with me gasping for air.

      Signed,

      Average Joe, Aunt Susie and even Uncle Charlie

      Pssssst… don’t tell anybody ( but all these same people have no interest in gold
      and the publics partispants are at a all time low)…. keep it a secret.

        Jul 05, 2014 05:54 AM

        I did forget to tell you how much it makes me….

        LAUGH….you know whys its very funny.

        All this debating and charts..snake oil
        when the most important fact is right
        under all your noses. The professionals
        can’t even get out of their own way.

        HALLARIOUS and its got me bustin out laughin.

      Jul 05, 2014 05:16 PM

      You made my point for me Matt. When you have to go to extremes to be assured of confidence in the purchase and ownership of gold and silver coins then the day has come you cannot spend them anymore because the public will not be willing to accept what is uncertain. Hell, you can’t spend them now. Ever tried it?

        Jul 05, 2014 05:08 PM

        I have no idea what you are promoting ,Bird.
        I own gold in various denominations and buy and sell them freely for spot 16 hours every day of the week.It is safe and secure.
        I can also do my buying and selling on the web with a physical phone call to back up the purchase,sent to me snail mail with a real person delivering it to my door.
        How much has the latest world fiat dissolved in our lifetime?
        95%+
        How much is gold worth over the same time frame?
        Yeah.Winning with independence over the fascists.

          Jul 05, 2014 05:20 PM

          I meant….trying spending some at the local 7-11. NOBODY will take it. It is dead money.

            Jul 05, 2014 05:31 PM

            No 7/11’s where I live but if I want cash I trade gold for whatever fiat zone I am in.
            Try spending a dollar in a convenience store in Bangkok,Delhi or Perth.
            Banks limit your withdrawal amount abroad,charge $5 per transaction,1.5-3% exchange punishment and can cease the function of it any minute they like.
            I have lost two debit cards inside machines abroad.Gold is your only saviour.
            Fiat always renders the sheeple impotently irrelevant for ever more. Dead.

            Jul 06, 2014 06:30 AM

            I may not be the world traveler that you appear to be Matt, but I will say that on occasions even in Canada I have felt very stranded when our debit card will not work. That is why I always carry either an Amex card or a Diners Club/Mastercard.

            Credit cards don’t seem to go away.

            Jul 05, 2014 05:38 PM

            Matts not shootin from the hip.

            In the real world making transactions.

            Gold is real money. These comments
            bashing gold on a consistent basis has
            no merit.

            Very irritating.

            Jul 05, 2014 05:12 PM

            I have spent the majority of my adult life outside North America. Europe,North Africa,MidEast and Asia.
            I have completed endless transactions.
            I send fiat abroad when in N.A. in part to make purchases of gold.
            $300 maximum per withdrawal within Indonesia. $5 per transaction.1.5-3% exchange hit. 5% average hit on every dollar withdrawn.
            Thailand limits,withdrawals and charges are similar.Same in Malaysia,same in Viet Nam,same in Cambodia,same in Laos and so on.
            With gold you get hit a percentage on the purchase that changes with the amount you purchase,grade of gold,bar or jewellery. Cash it in for spot + the same percentage costs.Jewellery is far less cost effective.
            If you are talking to me HH .pls explain what is incorrect,how I bash gold and what irritates you.

            Jul 05, 2014 05:46 PM

            Not you Matt.

            You seem to have it wired. True honest
            hands on experience dealing with gold in
            many places in the world.

            So no, kudos to you Matt.

            Jay
            Jul 05, 2014 05:59 PM

            matt, thats itvin a nutshell. gold / silver are international and timeless and will always be ableto be traded for the fiat of the times

            Jul 05, 2014 05:04 PM

            thanks for the info MATT……..appreciate…………j

        bb
        Jul 05, 2014 05:16 PM

        Again your right Bird, almost impossible to spend or even trade gold/silver except thru dealers.
        There are u tube videos showing what the value of gold/silver coins really is without a dealer, last 1 I saw was 3 hot dogs for an once of silver, but a coffee at a drive thru could not be purchased with an once of gold.

          bb
          Jul 05, 2014 05:19 PM

          Guess I gotta say spending in Norh America, just read you guys talking about asia etc, Ive never been there or anywhere actually so wouldn’t have a clue about those ends of town.

            Jul 05, 2014 05:01 PM

            It is a real racket over here BB. Quite different in many ways. There are lots of tiny one-man gold and silver shops. They melt old coins and make new material themselves. Mostly it is jewelry and you really have to know your stuff because purities vary widely and almost none of it except European imports has stamps or markings. The busiest time of year is after the harvest when the farmers come in and exchange their cash for jewelry or historical coins. Then through the year they sell some if needed although most try to save if they can. Their bank on the farm is typically just an earthen jar buried out on the land where nobody will find it. Mostly silver, old coins, wedding bangles etc although imported jewelry is pretty popular now because it is verifiable, easier to sell and holds value. The shops offer just a fraction of melt value to sellers and then put on a huge premium for buyers. I am talking premiums that start at 60% and rise from there. Yet they offer farmers a mere 50% of spot when they come to sell. The spread they earn is the largest I have ever seen and the only way to compensate for the differential is to hold for a long period of time (like a lifetime) or avoid the shops altogether and buy privately. I won’t pay it so I don’t own any. It is just not worth it despite the high inflation. If you want to avoid inflation risk here it is far better to buy a car, motorcycle, generator or equipment that is in current demand because you always get more at the time of resale! So much for precious metals.

    Jul 05, 2014 05:14 AM

    People who think electronic banking is wonderful haven’t looked down the road towards what they are embracing and need to consider this, the genie is out of the bottle and you’ll never stop this revolution: http://www.businessinsider.com/louis-del-monte-interview-on-the-singularity-2014-7

      Jul 05, 2014 05:26 AM

      Cyborgs aspiring to immortality DT. Already human creativity/initiative is fast being eroded by technology. There’s no better vision of hell that I can think of.

    bb
    Jul 05, 2014 05:11 AM

    Well, DT, I cant see ai doing any worse than people.
    Heck, some Isreli guys just burned alive a 16yo arab in retaliation for some arab guys killing some Isreali kids.
    Lets hope the creators of this ai don’t program religions, that really would put an end to the human species as a possibility.

    Jul 05, 2014 05:21 AM

    bb Even Netanyahu’s running scared at this killing of a Palestinian youth. Israel’s biggest fear right now is of a third intifada, more so as the settlers are starting to mistrust their own army to protect them. This is what always happens to neo-con paranoids….in the end they trust no-one.

      Jul 05, 2014 05:14 PM

      Want to meet Kathy and I there for a vacation?

      Probably not unless you are crazy!

        Jul 05, 2014 05:40 PM

        If I was living in Israel, I know what I would do and that is GET OUT!

          CFS
          Jul 05, 2014 05:44 PM

          It is still pretty safe in Israel; even now.

          I usually always have a small back pack on. It mat be searched three or four times a day if I walk about Jerusalem. But in daytime I never feel unsafe.
          I try not to do dumb things and I’m almost always travelling by myself.

      bb
      Jul 05, 2014 05:26 PM

      Your probly right Andrew, Notice more and more eruopian nations are recommending not doing business with Isreal?
      I just read off 321 gold the true story of Lawrence of Arabia, what an incredible story of an incredible person, I never knew he was trying to prevent all the crap that’s going on there today. Wow, did he ever have forsight, truly unfortunate he failed, but the odds against him were huge, insermountable as it turned out.

    Jul 05, 2014 05:48 PM

    I spent six months on a kibbutz in the Negev many years ago now.
    Great country and super people.
    Went down the Nile,into Lebanon,across Turkey,Greek Islands,into what was then Eastern Europe.
    One of the best experiences of my life.
    Historically intoxicating.

      Jul 05, 2014 05:08 PM

      Small world Matt. Same here. It is how I learned Hebrew.

        Jul 05, 2014 05:27 PM

        Shabbat Shalom,Bird.
        Might be a few hours late for that but I digress…
        Getting back to the Devil’s advocate stance-I hear what you are saying as certain goods and services can and do maintain higher valuation levels unique to each locale.
        Problems with cars,generators and motorbikes,etc. is that they risk being stolen and storage,maintenance and operating costs eating into the pocket. Got to have an item that can be carried easily and cashed in anywhere for the global market price wherever you are. Gold fits these requirements and has met the test of time.

          Jul 06, 2014 06:44 AM

          Not so easy to carry it through customs on airlines anymore though. Anything other than a few pieces of personal jewelry like a ring or necklace seems to be suspect. No idea why. This is a new thing I noticed a few years back when I came here. I was coming to a wedding and the gift was gold and silver jewelry. The customs agent in London was demanding what the hell it was for and why I was carrying it. I honestly thought they would confiscate the lot after a group of them peered over the pieces one by one with serious suspicion. I told them the truth. The wedding was mine and the gift was for my wife-to-be. I won’t repeat the experience though. Those agents have the power to take anything on a whim and then just try getting it back from a foreign jurisdiction. So if you think you can travel with a pocketful of gold coins maybe think again. I have been hearing other similar stories. Over here the new thing is to carry semi-precious stones and diamonds in trade because they go through the metal detectors without problems and don’t arouse the same level of hostility as gold. I met a guy on a flight to Singapore with a pocketful of stones. It was his full time business just portering about between countries. He also said the days of trading gold was ending because it was such a hassle and drew all the wrong kinds of questions after going through the metal detectors. The world is changing. Anyway, why would you come here with gold……you will just get screwed on price so it is a waste of time.

            CFS
            Jul 06, 2014 06:51 AM

            I agree with Birdman. It is high risk trying to travel with anything approaching !0,000 dollasr, euros or pounds worth of gold or silver ..(Silver is too heavy anyway) But travel with close to the legal limit on gold and they will also go through things to check currency notes and I have no doubt confiscation of everything if you are over the legal limit. It is extremely difficult to move significant assets in these times. I started two years ago moving assets and today it is near impossible, unless you are very careful on choice of airports. It is slightly easier if you are “in transit” at bigger airports and finally enter your country of destination through a small airport. It is also slightly easier if you are carrying bold/silver coins that are also legal tender.

            Jul 06, 2014 06:27 AM

            You are truly a man of the world CFS. Good to hear others with first hand experience speaking up.

          Jul 06, 2014 06:54 AM

          About the cars and bikes and generators……in a high inflation environment a very strange thing happens. They are virtually assured to appreciate over time. Toyota’s (minivans especially) are huge here. They are quite literally a store of wealth. Nobody ever sells for less than what they paid. So unlike home where cars and trucks can drop to almost zero after ten or fifteen years. Here, they can be absolute wrecks and still command prices that are shocking. Supply and demand though. There are always shortages of vehicles and import taxes are as much as 100% for new equipment so old vehicles command dear prices.

            Jul 06, 2014 06:12 AM

            Is non-perishable food & livestock an option for you then Bird ?
            Although I’d guess you’d still have to protect both ?
            Just as you would generators and / or vehicles.

            Jul 06, 2014 06:04 AM

            Our lives revolve around perishables, Skeeta. It is the age old tradition that has worked for tens of thousands of years. In Africa preservation systems for the most part involve sun-drying of foods. Meats, seeds and grains especially. There is hardly any tradition of using vinegar for example (as in Europe) nor are cured cheeses manufactured in large quantity. Even foods preserved in oils are rare and as a general rule nobody eats food from cans as most produce can be acquired fresh daily. Cheese is usually soft and fresh and intended to be used within a few days. Meat comes on the hoof. In other words you buy it and kill it yourself. For cattle which are too large for a single family it is normal for a group such as 8 or 10 families to share a single animal. There is ritual involved and it is taken seriously. These days though there has been a massive surge in the number of supermarkets opening that did not exist at all just a few short years ago. They are brimming at the seams with imported foods, oils, crackers, biscuits, jams, preserves and canned foods which are still mostly foreign for average families. This is a huge change here and speaks to how quickly the middle class is growing. A lot of these people have lived outside the country and are now demanding foreign fare so the market for imported foods is growing rapidly. Refrigeration is still scarce though and in the small towns it is a novelty. So when you ask is non-perishable food an option I guess the answer would be yes. With some conditions. We can travel to the capital to buy overpriced imported foods but really…we can’t be bothered. My wife dries spices, tomatoes, meats, garlic and so many other things for a fraction of the cost and virtually 100% of it is organic. They still don’t use chemicals here due to lack of money. So the food is clean and I prefer it that way.

            Jul 06, 2014 06:49 PM

            Whats the fresh water situation like where you are Bird ?
            Is it plentiful ? Or in short supply ?
            Is it drinkable straight out of the tap / well ? Or do you have to boil or purify it first ?

            Jul 07, 2014 07:01 AM

            Good water. Then again I might be insane because I drink the stuff in Cairo right out of the tap. Yeek…big mistake. Maybe I should learn some Arabic so I can hear the boil water advisories!

            Jul 07, 2014 07:07 AM

            Don’t let water worries intimidate you from traveling here, Skeeta (in case that was your worry). The fact is I rarely drink bottled water except in restaurants but that is only because some of them do such a poor job of washing the cups and glasses they offer. So I prefer to drink from a water bottle. And it is cheap too. Fifty cents buys two litres or more.

    Jul 05, 2014 05:59 PM

    The biggest problem with most people is they don’t want to understand what the future holds and how it may affect them. You will never be successful as an investor if you don’t study future trends.

      Jul 05, 2014 05:55 PM

      The tough thing is though DT,
      There are so many conflicting reports of what the future holds for us that it becomes difficult to try to prepare for whatever does eventuate ?
      Maybe thats where some sort of diversified investment portfolio is somewhat protective ?

      I have no idea what the future will bring…but it does look concerning on many fronts.

      I hope everyone on this board gets through it OK.
      Cheers.

        Jul 05, 2014 05:28 PM

        I sincerely doubt it.

        Its time to duck and cover

        Hide in your closet or under the bed.

        Have a good supply of milk and cookies.

    CFS
    Jul 06, 2014 06:52 AM

    Do you have to be German to recognize a Nazi State?
    http://www.zerohedge.com/news/2014-07-06/one-germans-take-latest-us-spying-scandal
    Wake up!

    Jul 06, 2014 06:02 PM

    Banned! Who is next?
    http://x22report.com

    Jul 06, 2014 06:22 PM

    Me? 🙂