On Sun, 31 May 2009 23:26:20 -0500, "KLC Lewis"
wrote:


"Bruce in Bangkok" wrote in message
.. .
On Sun, 31 May 2009 19:54:24 -0700, "Capt. JG"
wrote:

"Larry" wrote in message
...
http://www.kitco.com/charts/popup/au0060lnb_.html

This week, we'll probably pass the $1000/oz magic mark......again.

Printing fake money has come home to roost and we're all going to get
screwed for what the bankers have done to save their own asses....

Watch this chart very carefully:
http://www.kitco.com/images/live/gold.gif

Scary stuff.....for a bankrupt country.



One can easily argue that gold is more fake than currency. Currency is a
reflection of relative value and highly liquid, has relatively predictable
purchasing power even in times of moderate inflation or deflation, and is
ubiquitous and well-understood; whereas, gold is just a shiny metal that
hardly anyone uses to acquire anything any more. You can make stuff out of
gold, but you can also make stuff out of wood, which for survivalists
would
be a whole lot more practical.


On the other hand we have the old folks adage "don't take any wooden
nickels".


Cheers,

Bruce in Bangkok
(bruceinbangkokatgmaildotcom)

And "Not worth a Continental." Fiat currency always becomes worthless over
time, unless it is revalued, which is the issuing bank's version of a
reverse split. "You used to have $1,000.000 which was able to be traded for
one loaf of bread. We have exchanged that $1,000.000 for 50 cents, which
will still buy the same loaf of bread. Have a nice day." Examples throughout
history are too numerous to mention, but include Germany, Yugoslavia, and
even the United States of America.

Devaluation is one thing, when it now costs 45 dollars an hour to hire
a man that used to work for a dollar a day.
Revaluation is another. The French did it in 1960 with New Francs
worth 100 Old Francs. Prices followed the new revaluation.


Cheers,

Bruce in Bangkok
(bruceinbangkokatgmaildotcom)