The Fed has no choice but to raise interest rates and crush the market

[fhl]

Neither do you win one just because you say so.

Gold is not currency.

Is that right?


"Utah became the first state to introduce its own alternative currency when Governor Gary Herbert signed a bill into law [in 2011] that recognized gold and silver coins issued by the U.S. Mint as an acceptable form of payment. Under the law, the coins — which include American Gold and Silver Eagles — are treated the same as U.S. dollars for tax purposes, eliminating capital gains taxes.

Since the face value of some U.S.-minted gold and silver coins — like the one-ounce, $50 American Gold Eagle coin — is so much less than the metal value … the new law allows the coins to be exchanged at their market value, based on weight and fineness."

 

[Tsing Tao]

"Say it with me - Gold is not money. Gold is not money."

- Keynesian Battle Chant

Meanwhile, as the euro plummets...

Or the Loonie..

 

[Ricter]

"Say it with me - Gold is not money. Gold is not money."

- Keynesian Battle Chant

Meanwhile, as the euro plummets...

Or the Loonie..

Relative price movements do make non-money, money.

 

[Tsing Tao]

Relative price movements do make non-money, money.

So if I purchase gold at 1000 euros an ounce, and then sell my ounce when it hits 1200 euros an ounce, I have 200 additional euros. Sure sounds like more money to me! Just like if I exchanged euros for dollars before the euro took a giant dip and then changed it back. More euros!

Relative price movements due to currency devaluation are quite relevant. Price movements because of market technicals, not so much.

 

[Ricter]

So if I purchase rapeseed at 1000 euros a container, and then sell my container when rapeseed hits 1200 euros a container, I have 200 additional euros. Sure sounds like more money to me! .

Sure does! And you'll no doubt want to spend those additional EUROS on other things you want to buy, because it is the EUROS that are the money, not the rapeseed.

 

[fhl]

Sure does! And you'll no doubt want to spend those additional EUROS on other things you want to buy, because it is the EUROS that are the money, not the rapeseed.

And if he took a loss, he wouldn't want to spend the euro's, right? Because the rapeseed deflated. Ok. Right.

 

[Tsing Tao]

Sure does! And you'll no doubt want to spend those additional EUROS on other things you want to buy, because it is the EUROS that are the money, not the rapeseed.

Me, personally? I'd exchange the currency (Euros) for the money (gold).

 

[Ricter]

Me, personally? I'd exchange the currency (Euros) for the money (gold).

Because you have already paid for the necessities of life with Euros.

 

[Tsing Tao]

Because you have already paid for the necessities of life with Euros.

You can pay for the necessities of life with Visa, too. Doesn't make it currency. Or is credit currency as well?

http://www.thenewamerican.com/econo...ahoma-affirms-gold-and-silver-as-legal-tender

In OK, LA, TX and UT, gold and silver is legal tender.

 

[Ricter]

You can pay for the necessities of life with Visa, too. Doesn't make it currency. Or is credit currency as well?

http://www.thenewamerican.com/econo...ahoma-affirms-gold-and-silver-as-legal-tender

In OK, LA, TX and UT, gold and silver is legal tender.

When you use your (US) Visa, you're paying with dollars. Your obligation to repay is with dollars. And your statement will be in dollars.

And maybe some day in the future the federal government will, like those state governments, decree by FIAT that gold is legal tender. And then it will be.