Friday, December 11, 2009
Monday, December 7, 2009
Buying Gold is Great! Hommel
Silver Stock Report
by Jason Hommel, November 28th, 2009
One of the ways we know that the gold bull market is just barely getting started is when we find so many myths and errors about gold being reported in the media. When even a "positive" article on gold comes out, there is usually some sort of comment buried later in the article that slams gold as being inherently "bad". Multi-generational anti-gold propaganda that people learned in "Fed-funded" Universities, media and culture needs to be opposed and refuted because it is like a cancer on a civilized and free society.
USCivilflags- Based on the original Treasury flag of a Sovereign Republic.
The latest gold myth comes from James Saft, a Reuters columnist, whose opinions are his own.
His article was titled, "Fed audit push gives impetus to gold rally"
http://www.reuters.com/article/governmentFilingsNews/idUSN2326178720091124
The article starts out positive:
"HUNTSVILLE, Alabama, Nov 24 (Reuters) - Auditing the Federal Reserve may or may not be a good idea, but one thing seems pretty sure: just discussing it seriously will tend to drive the price of gold higher."
For the record, I didn't think the Fed audit had a chance, but I support it. If Government thinks it has the right to probe into every nook and cranny of our finances when it makes us pay taxes, why can't the Fed come clean on its finances? Kind of a double standard wouldn't you say?
Later, the invalid anti-gold diatribe comes:
"It has to be said; the very idea of buying gold, which adds nothing to the creation of wealth or innovation and is only conceivably a hedge against bad actions of other people, is dispiriting. If you buy gold you cannot tell yourself that you are doing well by doing good, as perhaps you can with a biotech or fertilizer company. You are simply limiting the damage that can be done to you, and then only in very particular circumstances. What's more many of the people who advocate it as an asset show a disconcerting monomania; the type who if they sit next to you on a commuter train makes you consider pretending the next stop is yours."
Every statement in that paragraph shows a misunderstanding of gold, and it is those misunderstandings that are "dispiriting", and are the cause of James Saft's angst. He says he would not want to sit next to anyone who advocating gold. That's perfectly understandable. After all, it is generally uncomfortable to sit next to someone who continually explains why most of your beliefs are wrong.
He says that buying gold "adds nothing to the creation of wealth or innovation"? How untrue.
In the last thirty days, gold's rise in price has created $868 billion of new wealth among all holders of gold. Details to back up that statement? Gold has moved from a low of $1025.90 to a high of $1194.80, for a gain of $168.90 per troy oz. It's estimated that there are 160,000 tonnes of gold that have been mined in all of human history and remain on the earth, in many different hands. There are 32,151 troy ounces per tonne. That's 5.2 billion oz. of gold in human hands. The increase of $168.90 per ounce, times 5.2 billion ounces, has thus created a measurable wealth creation of $868 billion dollars, in the last thirty days. All the world's gold has increased in that much purchasing power in the last thirty days. If that's not wealth creation, then what is?
It's also quite innovative as far as wealth creation goes, because that much wealth did not originate in the hands of the Federal Reserve who will only waste it, but rather, all of that new wealth was created among all the various savers of gold, so the wealth was widely dispersed, instantaneously, like the speed of light, coursing through everyone's ounces of gold simultaneously. No distribution system yet invented by man has the capacity to distribute so much wealth, so widely, so fast.
Next, James writes, "If you buy gold you cannot tell yourself that you are doing well by doing good." But there are so many good side effects of a rising gold price, of course you are doing good, in the following ways.
1. Buying gold creates wealth among all gold holders, widely distributing wealth all across the world to many people simultaneously.
2. Buying gold reduces monetary fraud, and fraud is bad.
3. Buying gold reduces oppressive government power, and it does so without any violence.
4. Buying gold makes gold mining more profitable, and thus, increases high paying mining jobs that range from administration, refining, minting, production, mine development, to exploration and much more.
5. Buying gold increases gold mining by-products such as silver, copper, zinc, lead, and many other less well known metals that are needed for modern life.
6. Buying gold increases freedom among men, specifically by reducing the debt load of people who owe devaluing paper money, which increases humanity's overall productivity, and especially inspires and enhances freedom for yourself.
7. Buying gold increases wealth among savers and long term planners, which are the best and most productive class of men among humanity.
8. Buying gold prevents others from stealing your wealth, ("limiting the damage done to you", and a "hedge against the bad actions of other people" which James thinks is bad?) and that is a good thing, as it rewards defenders, and thwarts (but does not harm) would-be thieves.
9. Buying gold preserves capital in your own hands, your own town, your own nation, so that you, and the people to whom you will give it when you spend it, will all be better off after a currency collapse.
10. Buying gold can prevent mass starvation that can result from a complete economic meltdown that may come. The preservation of capital can be used to purchase and preserve farms or food production facilities or distribution networks that may go out of business in an economic collapse. Buying gold is more honorable than hoarding food or buying food staples on leverage with futures contracts, which can cause mass starvation by driving up food prices out of the range of the world's poor people, since paper money is worth perhaps hundreds of thousands of times more than the existing food supply.
11. Buying gold saves lives by preventing and limiting wars which can only be funded by paper money.
12. Buying gold saves lives by increasing the standard of living of poor miners in many poor nations who can barely afford the basics.
13. Buying gold can lengthen your own life, as it benefits your own personal finances which can enhance the quality of food that you can buy and eat, and it can enhance your notion of personal responsibility for your own health as well as your own finances.
I'm sure if you think about it for just a little bit, you can recognize a lot more of the good that buying gold can create. Why not pause now, reflect, and email me some of the things that I might have missed. Email: j@silverstockreport.com
If buying gold is noble, virtuous and good for so many reasons, then buying silver is perhaps 10 to 60 times as excellent, beneficial and uplifting for mankind. Why? Because of the leverage inherent in silver's smaller market. Silver's smaller market means that the price of silver is more easily moved upwards with every purchase.
So if buying gold is good (and buying silver is better), then lying about gold to prevent men from buying it is bad, as that causes the opposite of every good that I listed.
Lying about gold thus causes death by starvation & wars, encourages fraud, rewards theft, encourages slavery, destroys productivity & wealth or capital, causes unemployment, causes misallocations of wealth, encourages oppressive government, creates misery, rewards laziness, and ruins lives.
So let's forgive James Saft, the reuters columnist, whose opinions were his own. I'm sure he didn't mean to encourage all those bad things and destroy all those good things by bad mouthing an inert, innocent substance that can cause so much good. The learning curve for gold is steep, and none of us have perfect knowledge. Some of these things are difficult to learn, especially when so few teach them these days.
For Physical Ownership of Silver there is Monex- The low cost precious metal retailer. Paul Bea 800-949-4653 x2172 Use Kevin from UScivilflags.org as a referral
by Jason Hommel, November 28th, 2009
One of the ways we know that the gold bull market is just barely getting started is when we find so many myths and errors about gold being reported in the media. When even a "positive" article on gold comes out, there is usually some sort of comment buried later in the article that slams gold as being inherently "bad". Multi-generational anti-gold propaganda that people learned in "Fed-funded" Universities, media and culture needs to be opposed and refuted because it is like a cancer on a civilized and free society.
USCivilflags- Based on the original Treasury flag of a Sovereign Republic.
The latest gold myth comes from James Saft, a Reuters columnist, whose opinions are his own.
His article was titled, "Fed audit push gives impetus to gold rally"
http://www.reuters.com/article/governmentFilingsNews/idUSN2326178720091124
The article starts out positive:
"HUNTSVILLE, Alabama, Nov 24 (Reuters) - Auditing the Federal Reserve may or may not be a good idea, but one thing seems pretty sure: just discussing it seriously will tend to drive the price of gold higher."
For the record, I didn't think the Fed audit had a chance, but I support it. If Government thinks it has the right to probe into every nook and cranny of our finances when it makes us pay taxes, why can't the Fed come clean on its finances? Kind of a double standard wouldn't you say?
Later, the invalid anti-gold diatribe comes:
"It has to be said; the very idea of buying gold, which adds nothing to the creation of wealth or innovation and is only conceivably a hedge against bad actions of other people, is dispiriting. If you buy gold you cannot tell yourself that you are doing well by doing good, as perhaps you can with a biotech or fertilizer company. You are simply limiting the damage that can be done to you, and then only in very particular circumstances. What's more many of the people who advocate it as an asset show a disconcerting monomania; the type who if they sit next to you on a commuter train makes you consider pretending the next stop is yours."
Every statement in that paragraph shows a misunderstanding of gold, and it is those misunderstandings that are "dispiriting", and are the cause of James Saft's angst. He says he would not want to sit next to anyone who advocating gold. That's perfectly understandable. After all, it is generally uncomfortable to sit next to someone who continually explains why most of your beliefs are wrong.
He says that buying gold "adds nothing to the creation of wealth or innovation"? How untrue.
In the last thirty days, gold's rise in price has created $868 billion of new wealth among all holders of gold. Details to back up that statement? Gold has moved from a low of $1025.90 to a high of $1194.80, for a gain of $168.90 per troy oz. It's estimated that there are 160,000 tonnes of gold that have been mined in all of human history and remain on the earth, in many different hands. There are 32,151 troy ounces per tonne. That's 5.2 billion oz. of gold in human hands. The increase of $168.90 per ounce, times 5.2 billion ounces, has thus created a measurable wealth creation of $868 billion dollars, in the last thirty days. All the world's gold has increased in that much purchasing power in the last thirty days. If that's not wealth creation, then what is?
It's also quite innovative as far as wealth creation goes, because that much wealth did not originate in the hands of the Federal Reserve who will only waste it, but rather, all of that new wealth was created among all the various savers of gold, so the wealth was widely dispersed, instantaneously, like the speed of light, coursing through everyone's ounces of gold simultaneously. No distribution system yet invented by man has the capacity to distribute so much wealth, so widely, so fast.
Next, James writes, "If you buy gold you cannot tell yourself that you are doing well by doing good." But there are so many good side effects of a rising gold price, of course you are doing good, in the following ways.
1. Buying gold creates wealth among all gold holders, widely distributing wealth all across the world to many people simultaneously.
2. Buying gold reduces monetary fraud, and fraud is bad.
3. Buying gold reduces oppressive government power, and it does so without any violence.
4. Buying gold makes gold mining more profitable, and thus, increases high paying mining jobs that range from administration, refining, minting, production, mine development, to exploration and much more.
5. Buying gold increases gold mining by-products such as silver, copper, zinc, lead, and many other less well known metals that are needed for modern life.
6. Buying gold increases freedom among men, specifically by reducing the debt load of people who owe devaluing paper money, which increases humanity's overall productivity, and especially inspires and enhances freedom for yourself.
7. Buying gold increases wealth among savers and long term planners, which are the best and most productive class of men among humanity.
8. Buying gold prevents others from stealing your wealth, ("limiting the damage done to you", and a "hedge against the bad actions of other people" which James thinks is bad?) and that is a good thing, as it rewards defenders, and thwarts (but does not harm) would-be thieves.
9. Buying gold preserves capital in your own hands, your own town, your own nation, so that you, and the people to whom you will give it when you spend it, will all be better off after a currency collapse.
10. Buying gold can prevent mass starvation that can result from a complete economic meltdown that may come. The preservation of capital can be used to purchase and preserve farms or food production facilities or distribution networks that may go out of business in an economic collapse. Buying gold is more honorable than hoarding food or buying food staples on leverage with futures contracts, which can cause mass starvation by driving up food prices out of the range of the world's poor people, since paper money is worth perhaps hundreds of thousands of times more than the existing food supply.
11. Buying gold saves lives by preventing and limiting wars which can only be funded by paper money.
12. Buying gold saves lives by increasing the standard of living of poor miners in many poor nations who can barely afford the basics.
13. Buying gold can lengthen your own life, as it benefits your own personal finances which can enhance the quality of food that you can buy and eat, and it can enhance your notion of personal responsibility for your own health as well as your own finances.
I'm sure if you think about it for just a little bit, you can recognize a lot more of the good that buying gold can create. Why not pause now, reflect, and email me some of the things that I might have missed. Email: j@silverstockreport.com
If buying gold is noble, virtuous and good for so many reasons, then buying silver is perhaps 10 to 60 times as excellent, beneficial and uplifting for mankind. Why? Because of the leverage inherent in silver's smaller market. Silver's smaller market means that the price of silver is more easily moved upwards with every purchase.
So if buying gold is good (and buying silver is better), then lying about gold to prevent men from buying it is bad, as that causes the opposite of every good that I listed.
Lying about gold thus causes death by starvation & wars, encourages fraud, rewards theft, encourages slavery, destroys productivity & wealth or capital, causes unemployment, causes misallocations of wealth, encourages oppressive government, creates misery, rewards laziness, and ruins lives.
So let's forgive James Saft, the reuters columnist, whose opinions were his own. I'm sure he didn't mean to encourage all those bad things and destroy all those good things by bad mouthing an inert, innocent substance that can cause so much good. The learning curve for gold is steep, and none of us have perfect knowledge. Some of these things are difficult to learn, especially when so few teach them these days.
For Physical Ownership of Silver there is Monex- The low cost precious metal retailer. Paul Bea 800-949-4653 x2172 Use Kevin from UScivilflags.org as a referral
Ron Paul: Time to Rout out the Enemies of the Republic
This guy is like 74, he is the energizer bunny. There is a reason.
The Founders' inspired vision of limited government has been kept alive by the hard work and generosity of Americans who truly cherish individual Liberty average people like you and me.
In the toughest times times like we are facing right now in the life of our nation freedom fighters have always stepped forward for America—armed with whatever it takes and at whatever sacrifice—to answer the call to defend our liberty. That's how America was born and how we, as a free and sovereign nation, have survived.
I have not known a time when the threats to our Liberty and the Founders' vision have been greater than they are today. For Liberty to survive, it is imperative that we confront these new threats, in all of their ugly forms, both foreign and domestic.
We continue to see a major economic crisis unfolding in our nation. New government programs are started daily, and future plans are being made for even more costly government expansion. All are based on the belief that we're in this mess because free-market capitalism and sound money failed. The obsession is with more spending, bailout of bad investments, more debt, and further dollar debasement. Many are saying we need an international answer to our problems with the establishment of a world central bank and a single fiat reserve currency.
These suggestions are merely more of the same policies that created our mess and are doomed to fail.
At least 90% of the cause for the financial crisis can be laid at the doorstep of the Federal Reserve. Their manipulation of credit, the money supply, and interest rates caused the various bubbles to form.
Congress added fuel to the fire by various programs and institutions like the Community Reinvestment Act, Fannie Mae and Freddie Mac, FDIC, and HUD mandates, which were all backed up by aggressive court rulings.
The Fed and US Treasury have perniciously doled out trillions in subsidized loans to troubled banks and other financial institutions, and that number is growing through a revolving TARP slush fund which the Feds are using to bail out their huge corporate buddies. The Federal Reserve and Treasury constantly brag about the need for "transparency" and "oversight," but it's all just talk — they want none of it. They want secrecy while the privileged are rescued at the expense of the middle class.
It is unimaginable that Congress could be so derelict in its duty. It does nothing but condone the arrogance of the Fed in its refusal to tell us where the trillions in bailout money have gone. All Members of Congress should be outraged that conditions could deteriorate to this degree. It's no wonder that a large and growing number of Americans are now demanding an end to the Fed.
The Federal Reserve created our problem, yet it manages to gain even more power in the socialization of the entire financial system. The whole bailout process this past couple of years has been characterized by no oversight, no limits, no concerns, no understanding, and no common sense.
Similar mistakes were made in the 1930s which ushered in the age of the New Deal, the Fair Deal, the Great Society and the supply-siders who convinced conservatives that deficits didn't really matter after all, since they were anxious to finance a very expensive deficit-financed American empire.
All the programs since the Depression were meant to prevent recessions and depressions. Yet all that was done was to plant the seeds of the greatest financial bubble in all history. Because of this lack of understanding, the stage is now set for massive nationalization of the financial system, and even the means of production.
The Feds not only own and control car companies and financial institutions, their lust for power and control now extends to their malevolent scheme to nationalize our healthcare system and thereby take over one sixth of our entire economy. This will be a disaster if it happens!
I could go on but I know that you understand the crisis that we face and agree with me on what must be done to turn our nation around.
I hear from Americans like you who are up in arms about what is going on in our nation. Messages come into my congressional office morning, noon and night. Taxpayers are outraged by the huge bailouts, the massive expansion of government and the refusal by Congress and the leaders of both parties to follow the Constitution.
Many Americans are frustrated—many are outright angry—about failed government policies that just tighten the government's noose around our necks. Many millions of fed up taxpayers have taken to the streets and town hall meetings in recent months to make sure their voices were heard by the uncaring Washington elites.
Since the financial crisis has become more and more apparent, and the attempts by the Fed and Treasury and Congress to solve the problem have become more desperate, my phone has been ringing off the wall with calls from media outlets wanting interviews and to get my opinions about what is going on and how we need to deal with it.
Several books that I have authored with the help of FREE have become instant best sellers as patriotic Americans search desperately for the intellectual and political ammunition they need to fight for the future of our country and to take back our freedom from the fascists who despise our Constitution and those of us who defend it.
During the presidential election, do you remember how the media scoffed at my suggestions that we were facing economic disaster? They laughed at my calls for limited government, for abolishing the Fed and the IRS, for cutting federal spending at home and abroad to balance our budget, and my call for a sound monetary system. Today, we are well into this economic crisis and they are not laughing any more.
The time is ripe for us to be at the forefront of offering workable solutions of calling for a return to limited, constitutional government, the need for honest money and low taxes, and the absolute need to expose and abolish the Federal Reserve which has done so much to undermine our currency and destroy one of the most productive economic systems in the history of the world.
My bill to audit the Fed has made tremendous progress. Together we have led the fight to get congressional hearings, 308 cosponsors, and unprecedented attention around the country for this legislation. Yet the banksters and a few of their weasel allies in Congress continue to do everything they can to water down or outright kill our movement to audit this monstrous institution.
I'm outraged at every such attempt to stop our bill in order to enable the secrecy and disruptive power of the Fed to continue. Some days I am so angered by the banksters' underhanded shenanigans that I'm reminded of the famous battle cry of central bank foe Andrew Jackson as he moved to abolish the central bank: "By eternal God I will rout you out!" Jackson shouted as he demonstrated the courage to go against Congress and the Fed.
Ron Paul helped out with the New Hampshire Sound Money Bill.
The Founders' inspired vision of limited government has been kept alive by the hard work and generosity of Americans who truly cherish individual Liberty average people like you and me.
In the toughest times times like we are facing right now in the life of our nation freedom fighters have always stepped forward for America—armed with whatever it takes and at whatever sacrifice—to answer the call to defend our liberty. That's how America was born and how we, as a free and sovereign nation, have survived.
I have not known a time when the threats to our Liberty and the Founders' vision have been greater than they are today. For Liberty to survive, it is imperative that we confront these new threats, in all of their ugly forms, both foreign and domestic.
We continue to see a major economic crisis unfolding in our nation. New government programs are started daily, and future plans are being made for even more costly government expansion. All are based on the belief that we're in this mess because free-market capitalism and sound money failed. The obsession is with more spending, bailout of bad investments, more debt, and further dollar debasement. Many are saying we need an international answer to our problems with the establishment of a world central bank and a single fiat reserve currency.
These suggestions are merely more of the same policies that created our mess and are doomed to fail.
At least 90% of the cause for the financial crisis can be laid at the doorstep of the Federal Reserve. Their manipulation of credit, the money supply, and interest rates caused the various bubbles to form.
Congress added fuel to the fire by various programs and institutions like the Community Reinvestment Act, Fannie Mae and Freddie Mac, FDIC, and HUD mandates, which were all backed up by aggressive court rulings.
The Fed and US Treasury have perniciously doled out trillions in subsidized loans to troubled banks and other financial institutions, and that number is growing through a revolving TARP slush fund which the Feds are using to bail out their huge corporate buddies. The Federal Reserve and Treasury constantly brag about the need for "transparency" and "oversight," but it's all just talk — they want none of it. They want secrecy while the privileged are rescued at the expense of the middle class.
It is unimaginable that Congress could be so derelict in its duty. It does nothing but condone the arrogance of the Fed in its refusal to tell us where the trillions in bailout money have gone. All Members of Congress should be outraged that conditions could deteriorate to this degree. It's no wonder that a large and growing number of Americans are now demanding an end to the Fed.
The Federal Reserve created our problem, yet it manages to gain even more power in the socialization of the entire financial system. The whole bailout process this past couple of years has been characterized by no oversight, no limits, no concerns, no understanding, and no common sense.
Similar mistakes were made in the 1930s which ushered in the age of the New Deal, the Fair Deal, the Great Society and the supply-siders who convinced conservatives that deficits didn't really matter after all, since they were anxious to finance a very expensive deficit-financed American empire.
All the programs since the Depression were meant to prevent recessions and depressions. Yet all that was done was to plant the seeds of the greatest financial bubble in all history. Because of this lack of understanding, the stage is now set for massive nationalization of the financial system, and even the means of production.
The Feds not only own and control car companies and financial institutions, their lust for power and control now extends to their malevolent scheme to nationalize our healthcare system and thereby take over one sixth of our entire economy. This will be a disaster if it happens!
I could go on but I know that you understand the crisis that we face and agree with me on what must be done to turn our nation around.
I hear from Americans like you who are up in arms about what is going on in our nation. Messages come into my congressional office morning, noon and night. Taxpayers are outraged by the huge bailouts, the massive expansion of government and the refusal by Congress and the leaders of both parties to follow the Constitution.
Many Americans are frustrated—many are outright angry—about failed government policies that just tighten the government's noose around our necks. Many millions of fed up taxpayers have taken to the streets and town hall meetings in recent months to make sure their voices were heard by the uncaring Washington elites.
Since the financial crisis has become more and more apparent, and the attempts by the Fed and Treasury and Congress to solve the problem have become more desperate, my phone has been ringing off the wall with calls from media outlets wanting interviews and to get my opinions about what is going on and how we need to deal with it.
Several books that I have authored with the help of FREE have become instant best sellers as patriotic Americans search desperately for the intellectual and political ammunition they need to fight for the future of our country and to take back our freedom from the fascists who despise our Constitution and those of us who defend it.
During the presidential election, do you remember how the media scoffed at my suggestions that we were facing economic disaster? They laughed at my calls for limited government, for abolishing the Fed and the IRS, for cutting federal spending at home and abroad to balance our budget, and my call for a sound monetary system. Today, we are well into this economic crisis and they are not laughing any more.
The time is ripe for us to be at the forefront of offering workable solutions of calling for a return to limited, constitutional government, the need for honest money and low taxes, and the absolute need to expose and abolish the Federal Reserve which has done so much to undermine our currency and destroy one of the most productive economic systems in the history of the world.
My bill to audit the Fed has made tremendous progress. Together we have led the fight to get congressional hearings, 308 cosponsors, and unprecedented attention around the country for this legislation. Yet the banksters and a few of their weasel allies in Congress continue to do everything they can to water down or outright kill our movement to audit this monstrous institution.
I'm outraged at every such attempt to stop our bill in order to enable the secrecy and disruptive power of the Fed to continue. Some days I am so angered by the banksters' underhanded shenanigans that I'm reminded of the famous battle cry of central bank foe Andrew Jackson as he moved to abolish the central bank: "By eternal God I will rout you out!" Jackson shouted as he demonstrated the courage to go against Congress and the Fed.
Ron Paul helped out with the New Hampshire Sound Money Bill.
Subscribe to:
Posts (Atom)
Posts
