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2009-01-31 Home Front Economy

Gold price could treble if China divests dollars, warns mining boss

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Posted by tipper 2009-01-31 15:35|| || Front Page|| [4 views ] Top

#1 Trying to create business by fueling fear. Fact of the matter, there's not enough gold to support the world economy anymore. Just scroll down to the story about Zimmies who only want SA Rands or US dollars to work their economy. There is an incredible amount of paper dollars, real and counterfeit, that make both internal and external commerce possible. It is the lingua franca of small business whether you or anyone 'pegs' a value to it. Anyone [that includes Mr. Soros] who thinks there's something else to replace it will only find out attempting to substitute both the implicit entity and the international recognition of the dollar will result in the possible near complete collapse of the market system beyond local subsistence for the near future.

Posted by Procopius2k 2009-01-31 17:01|| 2009-01-31 17:01|| Front Page Top

#2 In the US, however, it would be a very good idea if the individual States created plans for the printing and distribution of State scrip.

Scrip is not legal tender, but when the national currency is vacillating wildly, scrip has a stabilizing influence. Some municipalities used it during the Great Depression, and it helped them enormously.

If a dozen states created their own scrip, commerce, local and State government would continue, and the marketplace would recover much faster, with a lot less pain.

No matter what happens to the dollar, scrip retains its value and liquidity, keeping the marketplace lubricated.

Posted by Anonymoose 2009-01-31 18:35|| 2009-01-31 18:35|| Front Page Top

#3 Sure why not.
Bottle caps FTW.

Posted by .5MT 2009-01-31 18:55|| www.cybernations.net]">[www.cybernations.net] 2009-01-31 18:55|| Front Page Top

#4
If China were to start dumping dollars, the dollar would tank, leaving the chinese holding lots more worthless dollars. Not a very good strategy for the chinese.

About 6 to 7 trillion was lost in the dow crash, about 4 trillion in housing. That means that the dollar is much stronger (by virtue of their being fewer of them) The reduction in credit lines also reduces flow of "credit dollars" which pumps the value of physical dollars.

The bailouts look like they are heading to 4 trillion, which is still a lot less than the losses.

Now lets say the chinese went with gold. They'd have to move it and store it - far too likely to loose their new gold reserves to their own people. Remember these people are willing to risk death by just using cheaper paint on toys.

If we had inflation, sure its a good plan, but we are heading into layoffs and dropping gdp, and that means deflation.

Posted by flash91 2009-01-31 19:05|| 2009-01-31 19:05|| Front Page Top

#5 I'm stocking up on Java scrip.

Posted by Mike N. 2009-01-31 19:27|| 2009-01-31 19:27|| Front Page Top

#6 #5 I'm stocking up on Java ~~scrip~~.
Posted by Mike N. 2009-01-31 19:27|

There, fixed it for you, Mike. I think I'll have a _/} too.

Posted by Old Patriot">Old Patriot 2009-01-31 19:46|| http://oldpatriot.blogspot.com/]">[http://oldpatriot.blogspot.com/] 2009-01-31 19:46|| Front Page Top

#7 ;-) Mike N.

Posted by Frank G 2009-01-31 20:04|| 2009-01-31 20:04|| Front Page Top

23:36 Seafarious
23:35 Glenmore
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20:46 Abu do you love
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