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End of the Road: How Money became Worthless
Posted on 8/31/12 at 11:46 am
Posted on 8/31/12 at 11:46 am
Has anyone seen this documentary? I watched it yesterday.
While it made some solid points, it was hard for me to not view it as one big advertisement for buying gold.
Thoughts?
While it made some solid points, it was hard for me to not view it as one big advertisement for buying gold.
Thoughts?
Posted on 8/31/12 at 12:08 pm to poule deau
I have not seen it but am familiar with the claims of those who think you should own gold (preferably physical gold). Basically the argument goes like this - inflation erodes the value of your cash. Often a graph is shown to illustrate the point. Nobody doubts that claim, the only debate is over how quickly it will happen. Where shows like this fall down is exactly what to do about it.
The solution is simple - don't store your wealth in dollars. But hardly anyone does this and I bet you don't either. Most of us use stocks, bonds, own real estate, etc. instead. Those are much less vulnerable to inflation and often pay a regular divided on top of that. Gold just sits there.
Of course, in a true SHTF situation with total government collapse and armed gangs roaming the streets, stocks and bonds won't help you much either. But then bullets and canned goods are far more valuable than gold.
Conclusion: Yes, they're trying to sell you something you don't really need. Gold isn't an absolutely terrible thing to own but there are better choices.
The solution is simple - don't store your wealth in dollars. But hardly anyone does this and I bet you don't either. Most of us use stocks, bonds, own real estate, etc. instead. Those are much less vulnerable to inflation and often pay a regular divided on top of that. Gold just sits there.
Of course, in a true SHTF situation with total government collapse and armed gangs roaming the streets, stocks and bonds won't help you much either. But then bullets and canned goods are far more valuable than gold.
Conclusion: Yes, they're trying to sell you something you don't really need. Gold isn't an absolutely terrible thing to own but there are better choices.
Posted on 8/31/12 at 12:10 pm to foshizzle
In short, yes inflation is a good reason to invest your cash in something else. But gold isn't a particularly good choice.
Posted on 8/31/12 at 1:52 pm to foshizzle
Its how I feel when they say the markets are gonna crash and there will be chaos, so don't invest in stocks. If the world is going to shite, then cash, stocks, everything would be worthless besides food and weapons so I might as well keep on keeping on
Posted on 8/31/12 at 4:12 pm to foshizzle
This wasn't really an end of the world type of thing. It went into a lot of detail about the US going off the gold standard because it opened the door for the government to simply print more money without the need for anything to back it up. It also detailed how there is a concerted effort by certain governments (Canada, Mexico, and I think Spain, among others)to try and keep the price of gold down to discourage the buying of gold. One thing I found interesting was that if you don't physically have the gold in your possession, there are probably mulitiple claims on the same oz of gold due to the way governments sell gold without it actually changing hands.
The documentary definately had a "buy gold" undertone to it but it was also a condemnation of the current fiscal system and policies of most of the world's big governments.
I watched it on some Directv channel but I think the full video is on youtube.
The documentary definately had a "buy gold" undertone to it but it was also a condemnation of the current fiscal system and policies of most of the world's big governments.
I watched it on some Directv channel but I think the full video is on youtube.
Posted on 8/31/12 at 4:40 pm to poule deau
Yeah, that's kind of what I expected.
Like I said, it's true that inflation will erode the value of dollars, but all that means is that you shouldn't keep it in your mattress. Which you probably don't. So long as you're invested in something that pays a return you're probably better off with that than with gold. Of course, prices fluctuate with everything.
Probably true actually. But it doesn't really matter unless everyone suddenly wants to take physical possession, which is extremely unlikely. This is the same thing as a gold standard, btw. A gold-backed dollar is simply a certifcate.
Like I said, it's true that inflation will erode the value of dollars, but all that means is that you shouldn't keep it in your mattress. Which you probably don't. So long as you're invested in something that pays a return you're probably better off with that than with gold. Of course, prices fluctuate with everything.
quote:
One thing I found interesting was that if you don't physically have the gold in your possession, there are probably mulitiple claims on the same oz of gold
Probably true actually. But it doesn't really matter unless everyone suddenly wants to take physical possession, which is extremely unlikely. This is the same thing as a gold standard, btw. A gold-backed dollar is simply a certifcate.
Posted on 8/31/12 at 4:57 pm to foshizzle
The eauy of the "absolute currency devaluation" theory is that it has an invincible feedback loop.
The only way you can measure currencies whenever everyone is in a race to debase is by the price of gold.
If gold goes up, then the theory is true. If gold goes down, then it's banks "manipulating" the "intrinsic value" of gold.
The thesis, at it's core is: Gold is going to go up because the value of the dollar is going to go down compared to gold.
Which translates to: Gold is going to go up because gold is going to go up.
The only way you can measure currencies whenever everyone is in a race to debase is by the price of gold.
If gold goes up, then the theory is true. If gold goes down, then it's banks "manipulating" the "intrinsic value" of gold.
The thesis, at it's core is: Gold is going to go up because the value of the dollar is going to go down compared to gold.
Which translates to: Gold is going to go up because gold is going to go up.
Posted on 8/31/12 at 7:33 pm to TheHiddenFlask
frick gold, that shite will be worthless, bullets are the way to go.
Posted on 8/31/12 at 9:09 pm to poule deau
quote:
but it was also a condemnation of the current fiscal system and policies of most of the world's big governments.
Alls I know is that if the genius of mankind is producing the system, it's doomed to failure sooner or later.
Posted on 9/1/12 at 7:49 am to TheHiddenFlask
And what are your personal thoughts on Gold?
Posted on 9/1/12 at 1:54 pm to Meauxjeaux
quote:
mankind is producing the system, it's doomed to failure sooner or later.
This is the aspect of the documentary that interested me more than the "buy gold" slant. With the way the govn't and the Fed conduct business, how much longer can the current system last? They laid out some good points that it can't last much longer.
Posted on 9/1/12 at 10:07 pm to poule deau
quote:
With the way the govn't and the Fed conduct business, how much longer can the current system last? They laid out some good points that it can't last much longer.
People have been saying this since WW2.
Again, if you're worried about the stability of the dollar, the answer is simple - invest in something else. Buy a local business, real estate, etc.
Posted on 9/3/12 at 3:39 pm to foshizzle
You can never go wrong with land. And i surely dont trust banks and what is on a computer screen. If it crashes, the big wigs will get theirs and the peons will get f`ed. Why sure its "all insured" and that BS
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