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.




I used to have a collection of one hundred dollar bills.
You know the type... Picture of Ben Franklin on the front...
Guaranteed to make friends anywhere on the planet!

I was trying to collect the whole set (save the $100 bills).
I had a collection almost an inch thick!
They were sorta fun to play with.

Then I bought a boat.

Now I have a boat.
And I don't have to worry about what $100 bills are worth any more.

A boat is supposed to be a depreciating asset.
But I'm not so sure at the moment.
If the value of money craters, the boat will be worth a lot more
that the stack of $100 bills it took to buy it.

If the price of new boats causes new boat sales to sink, the
companies that make boats could fail.
That also would drive up the value of used (experienced?) boats.

All in all, I'm enjoying the boat a lot more than the little stack of
$100 bills.


Richard