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Reno Chris

Real Money and Paper

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Prospectors and miners have a very real interest in gold and silver and the value they are accorded by investors and the public. They have been accepted as money for thousands of years - pretty much as long as civilization has been around. In fact in the French language, the word for money is the same as the word for silver - but things are changing. With governments all over the world printing and creating money to float world economies and intentionally reducing the value of their currency to increase exports, what will become of the paper money we all use? Will paper money survive? Will something have to be done to prevent politicians from creating vast sums new unbacked "money" whenever they wish?

 

Manufacturing money is an addictive thing - and like a lot of drugs, the longer and more frequently you do it, the more it takes to achieve the same desired effect. Its so easy for politicians to do all kinds of things with what seems to be "free" money - freshly manufactured. In the old days they had to make paper bills to create money, now we can do it with nothing more than the push of a button on a computer. All kinds of things can be done with home made money - its kind of like counterfeting, but for the government, its totally legal! With such a tempting attraction, you know money printing has been tried by politicians many times before, and I am afraid to say that whenever its been done on a large scale as we are doing now, whether its some little dictator or a major world power, its always ended badly. From the ancient Romans or the Weimar Republic of Germany to the Republic of Zaire in Africa, the end result of large scale money manufacture has been distasterous. These days we call it by a fancy name like quantitative easing, but no matter the name, its still the same. As large sums of money are printed, the remaining money in circulation goes down in value equal to the amount printed.

 

it is not a question that value is assigned to paper currencies and they are accepted as payment, the question is what amount of value should be is assigned to them? Paper currency is not worthless, but it is a confidence game. So long as its accepted by the public, it will be accepted, but if confidence fails the result will be an inflationary spiral. At the moment, paper is still well accepted, but its a precarious situation where the inflationary force of "quantitive easing" all around the world is balanced off by the deflationary forces of the world wide recession. The balance seems stable for the moment, but I highly doubt it will last for the long haul.

 

So which of these two versions of money will be more likely to hold its value in the future? Paper or gold?

Will we be seeing a lot more $100,000 bills in the future?

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"And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale."

Thomas Jefferson comment made in a letter to John Taylor in 1816

"Bank-paper must be suppressed, and the circulating medium must be restored to the nation to whom it belongs."

Thomas Jefferson's comment to John Wayles Eppes

Source: http://www.monticello.org/site/jefferson/private-banks-quotation

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I contend that if a government has to enact laws to force the usage of the medium of exchange, perhaps there is a problem with the medium of exchange.

 

A medium of exchange that is eagerly accepted world-wide tends to make me confident in its exchange value today and tomorrow.

eric

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Guest pitchak

I don't know how many people agree,but I'll go to my grave believing that the development of natural resources is the foundation of ALL economy.Mining,logging,farming,ranching and fishing.Everything else comes in as support to these industries,including what I refer to as the leech industries.Lawyers are an example of the leech effect.Environmentalists,homeland security and most other government agencies are also included.It boils down to good money turning to overspent money.

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Yes that's why they are banned,over regulated,restricted,and fined to high heaven. The guberment wants you poor and working paying them taxes so they can live like gods with lifetime benefits for a few years of playing god sic sic sic. Know a bud who just blew his brains out. Born in  a logger family-so he logged-them made illega/ungodly restrictionsl. Then bought a boat and went fishing-then made illegal/restricted to point of insanity. Sold the boat and took a huge loss and bought a 10" dredge and was happy for 1 1/2 seasons---then they banned dredging-well the rest is a messy history as a 45 does end the insanity once and for all. John

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Well, at this point, the dollar is still pretty much eagerly accepted as a universal medium of exchange. At least at the present time it still is.

Not any more. Several countries will not accept dollars. They have lost their faith in them. Germany wants the gold they own (it is being held here in the US). We can't deliver it. Something is rotten in Denmark!

http://www.globalresearch.ca/u-s-dollar-collapse-where-is-germanys-gold/5321894

RSJ

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Guest whipperbubba

I like the Gold and Silver Eagle coins.  You can buy the silver eagle coins at spot and the gold eagle coins at a discount through [advertisement removed by moderator].

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It's not just investors worrying about a safe haven to park their capital.

 

I, being a miner, need a safe haven to place my funds too.  I prefer to invest in myself and live within my means.  A working position in a profitable gold mine gives me a place to park my butt.  I've usually been able to live inside of my own bank, business, factory or vehicle. I've enjoyed the benefits of people investing in me, not because of profit potential, but because of my the ability to live right and hunger for freedom.  I guess it's birds of a feather, some have extra money and some have an adventurous spirit.

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