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Tuesday, 18 August 2015

Stability? The 'short' and the 'long' con....................from Rico

Anyone who has been keeping an eye on the equities markets, commodities markets, and in particular the monetary metals markets does not need to 'hear' about their volatility (price instability)....especially lately.
 
The 'short' con.
Looking at Gold and Silver, from Sunday night at about 10pm where Gold spot/ounce climbed to $1116 and Silver spot/ounce climbed to $15.27, only to be capped back to $1116.4 and $15.23 respectively Monday (am) is to be distracted by the 'short con' and entirely miss the 'long con.'
- But do 'note' the prices in Dollars per ounce for later comparison.
 
The 'long' con.
Let's instead consider the Federal Reserve's stated goal which ostensibly is "to promote/preserve price stability."
- Before the FED. wholesale prices in the US were essentially 'stable' from 1795-1933.
- By coincidence, the price of Gold in Dollars was also essentially 'stable' at $20/ounce from 1795-1933.
 
The Mint Act of 1792 provided for coinage.
- The Gold "1/4 Eagle" was used from 1796-1933 with a face/actual value of $2.50
- The quarter-ounce Gold "1/2 Eagle" was used from 1795-1929 with a face/actual value of $5.00
- The half-ounce Gold "Eagle" was used from 1795-1933 with a face/actual value of $10.00
- The one-ounce Gold "Double Eagle" was used from 1850-1933 with a face/actual value of $20.00
 
Arguing that the price of Gold (or Silver) goes UP or DOWN is to fall for the con job. It does not change.
- It is the price of the Dollar that changes (what the Dollar can 'buy' aka its purchasing power), and that 'change' is constantly going DOWN......about 98% down since the Fed was created by a midnight vote of Congress in 1913 until now.
 
Does the cost of anything in Dollars from 1913 to today look anything remotely like "price stability?"
- An ounce of Gold bought the same thing from 1792 until 1933, and compared to the Dollar today it does a pretty good job of retaining value (purchasing power). The Dollar? Not so much.
- It takes increasingly larger amounts of FRN's (Federal Reserve Notes mis-identified as 'Dollars') to buy the same things today.....about 98x times more of them than were needed in 1913.
 
The privately-owned, for-profit, banking entity called the FED has by now almost milked the country dry.
- I can't wait to see the next 'scam' to replace it.



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