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  • $1163

    and major move have not even started yet raising interest rates is not going to help much either we need to default and establish new currency immediately the longer we delay the stronger our adversaries become

  • @tuktukktotam If only you were in power tuktuk

  • Puulllllllllllleeeeeeeeezzzz..­.The dollar is not going to collapse. If it did, China's economy would collapse--not gonna happen.

  • @ashlhann good joke.

  • You are correct sir.

  • The bankers that run Obama and pull his strings are working on destroying the American dollar they hate it cause it has our four-fathers on it they want to destroy it and our Constitution. Then they can save us with their new "bank of the world & world currency". Watch YouTube Video: Fall of the Republic explains it all very clearly its then easy to see their plan unfold.

  • it cant go any farther than you can throw it sadly :/

  • our econmic system is a joke...Zeigiest part I and II...watch...and learn

  • Word to the wise

    time to prioritize & downsize

    Spend no more than you can afford

    the dollar has been put to the sword

    The cause of it's demise

    is the effect of well rehearsed lies

    Have you not been told?

    we have all been bought & sold.

  • Comment removed

  • Anyone ever heard of the Amero? The dollar is being destroyed by design. Ameros are already being printed currently. They just have not been put into cirrculation. Death to the NWO!

  • the dollars been beaten up so badly its asked the euro for a safe word.

  • visionvictory got me hooked on silver investing. Everything has been panning out: gold/silver is up, dollar is down, and the jobless recovery gets more jobless by the minute.

    I started in a silver investing program recently that gets me silver below spot price. i'm now getting my silver $7/oz including shipping! message me how and i can sign you up for the program.

  • Central banks are using gold to kill the dollar. They are buying up all the gold so it's scarce. As the dollar falls and dies the Amero will come to "save" the economy and you won't be able to buy gold cause it will be hard to find and to much for the average person to buy, but the average person will be to busy trying to payback loans for their cars, houses, boats, bikes, and all that other stuff they can't really afford but must keep up with the jonses.

  • I totally agree with you, the new money is running to other places because of two reasons I believe. One is that these other countries are again being looked at as a good investment because of resources (minerals, food production etc.) and individuals low or almost non-existant credit debt. And two Americans and our govt. are so indebted that their is no way to pay back this debt. Why invest in a country that is truly going into a 3rd world condition for a few decades.

  • dollar prolly bottoming now & due for a retracement ( too much bearishness). (jmo)

  • Five Stars*****

    Congrats to Daniel and wife upon their New Arrival*******

    Being a parent is the best and most important event that will ever happen to you in the world this side of heaven!

    PS:

    Forget catching up on sleep....

    Lord Bless All

  • LOL....Know how to make moonshine? Or wine? If so, you'll be doing great in the near future. There's some barter items for ya.

  • I have $60k in cash and $60k in IRA's...should I cash it all out and pay cash for a small house? At least that way if/when the shit hits the fan I'll have a roof over my head? Seems less risky than betting on dollars vs. gold. What do you guys think?

  • Yeah thats the best investment u can make, jus choose the neighborhood and everything wisely cos u could end up losing out if u dont.

  • US Dollar will go lower and lower until December. Dollar will gain it's strength only in 2010. Whole this scenario is already set up.

  • dimaxx23: What makes u think that it will gain in 2010 and waht makes u think its set up already?

  • Because that's what economy does. It goes up, then it goes down. Dollar is weak and now nobody don't even lift a finger to help it. It's hard to explain with 340 characters left to type, but next year we will see changes. In the beginning of this year "one guy" said - oil will be 85$pg by the end of this year. Its not 20, not 120. How did he know? Coz he knows. Is't that strange? Makes me think that markets are moving like mr.Big wants. And he has a plan. Just my thoughts.....

  • as usual vision victory ' great subject ' with great truth'

    thanks craig

  • Thanks for making this video sir, these issues are always on my mind but I feel like no one is discussing them. This credit thing we have in the US has gone too far and thats why it collapsed. Theres no other country in the whole entire world that gave so much money on credit to so many people. Thats the real problem, everyone is living this dream where they think they own a house and think they own 2 or 3 cars but the real owner is the bank and when they miss payments guess what. They wake up.

  • If we had to rely on oil from coal or oil shale, gas prices would have to run at $7 to $8 a gallon (and rising with each trillion the Fed prints) and it would crush our fragile economy like a peanut shell.

  • CHECK OUT OUR VIDEOOOS!!!

    and this is a very good video

  • The USA could get all of it's oil from the coal that we have a huge supply of.

    Unfortunately, we also have an unlimited supply of dollars.

  • Very good, five stars, widely shared. I said to a professional contact here in France recently that I didn't think the manufacturing jobs would ever return to the USA. He seemed doubtful, and then I added, well not in my lifetime. But this still seemed to bother him. Huh? What does he think?

  • We have to raise rates. If not, we're just gonna kill ourselves another way.

  • Interesting the jobs report has had no negative effect on the stock markets.

    At this point the only thing I see is lower 4th qrtr earnings announced in Jan./Feb. If that doesn't bring it down I think it's safe to say the markets will keep going up for some time, nominally that is.

    This is just an amazing thing to watch, with the markets so divorced from reality. Unemployment now 10.2% and they're still shrugging it off saying it could have been worse.

  • "divorced from reality"....The guys with money can't stand to sit idly by...It's like an addiction to them. I too, was surprised by the reaction of the markets. TIME will tell all...

  • Wall Street,with help from our government has created a brand new bubble,and this time when it bursts we will indeed have a depression,much worse than in the early 1900's.You would have thought that our recent problems would have made people see what was really going on,I guess not.

  • gold breaks $1100 barrier

  • ★★★★★

  • Comment removed

  • Comment removed

  • Hahhahah. Note the word economy isn't listed in your paragraph. Also note that most of the stuff you listed, is dependent upon the economy.

  • Lexyota: true, only God Himself can dethrone this country, but remember prophecy that when the Anti-Christ/Beast/the System rules for one hour, there is NO ONE to stand up to him/it.

  • @spoiledbrat1440001

    u buggin.

  • @lexyota

    lexyota, you are a tool. You proved it with this comment. Without fuel, no military, and everything else will fall accordingly. Stupid lexyota.

  • Comment removed

  • Yes, infact you are. As well as stealing the oil in Iraq. Stupid where do you think oil comes from.

  • Comment removed

  • @Lexyota: So because this was predicted ages ago that means that we shouldn't fight against it?

    Screw that, I would rather fight.

  • too many people defend the system that oppresses us and ruins our lives. why would anyone want the economy to recover, when the whole system is corrupt, and its completely against the divine and natural laws of life. there is a lot of bad karma in the air, things are going to get interesting between now and 2015. well I didn't expect it to be any different, as people get more selfish and materialistic as time progresses the Earth is more imbalanced, and humanity pushes its existence on the Earth

  • IT sounds like congrats will be in order soon!!!

  • Just spoke with VisionVictory.

    Wife is in labor. Details on visionvictorymanifesto website. Look under discussion board then Misc.

  • Great news to hear about the new baby coming tonight. Thanks for the update jcwitness.

  • Great news everybody. Jobless claims just fell to 10 month lows. Yeah, man! They're just a smidge above a half million. Recovery, baby! Yes!

  • Keep in mind that a 'commodity' doesn't pay interest or dividends. A commodity is ALL about buying low and selling high.

    Everyone SHOULD have gold/silver, but no more than about 25%.

    Unfortunately, the Banksters (primarily the Fed & Goldman Sachs) will dictate just what happens to the dollar.

  • next stop for gold 1040

  • Now, check UUP and my commence before

  • In March, this guy promised that by November these Wall Street guys will get hammered, where is it? "Let them have their party, let them have their fun", well that's what they're doing.

  • Peter Orszag, the Administrations Director of the Office of Management and Budget (OMB), delivered a speech yesterday morning at New York University, in which he said that the federal deficit during the current fiscal year will match last years record high of $1.4 trillion.

    Buy and hold PHYSICAL PM'S and store food.

    G20 meeting should be interesting. Exporters are getting pissy about the weak dollar. Will there be Central bank intervention?

  • The key is unemployment. As long as it remains high, interest rates won't go up. The only thing left is inflation, which is really a TAX in disguise. Inflation is the only way for our gov't to get back what they printed. Obama's jobs that he claims to have created are gov't jobs! Again, paid for by taxpayers.

  • We are in a Depression and very few people with clout have the courage or clarity to admit it. All of the BS going on is a scramble to slow its pace. Its just more water being held back via a faulty dam.

    I'm bullish on Greed and Vanity. If there was a ticker for it I'd be rich. And that is why we will suffer.

  • Anything of real value with skyrocket ...

    Gold, Gas, Electricity ... and the

    real big ones ... Water and Food.

    People now have to use their own money to buy good and services, and taxing mainstreet won't work any longer to prop up this phony economy.

  • UUP doesnt wont to go below 22.45. $ Will go higher

  • Gold will go up to $1600-$1800.

    Inflation of another 12-15% will take place.

    But the real problem is that there are no jobs and there aint gonna be no new jobs, plus many more jobs are going to be lost.

    The Fed are out of control and so is the democratic administration in Washington DC.

    Pelosi, Reed, Obama run our country and they are doing what they want.

  • Our phony economy WILL return, as soon as the new carbon derivative bubble begins.

  • As long as the government keeps getting the fed to print money backed by nothing the dollar is going to fall.

    The banks wont lend money because they know they will never get that value back because the dollar is falling so fast.

    Not long now until the dollar collapses completely.

    You'd best stock up with food and water and buy yourself a gun.

  • great commentary.....thank you!

  • Comment removed

  • heading over to the VisionVictoryManifesto. com discussion board, hope to see you there. :)

  • The dollar value is more than just faith in credit as a country. It's essentially backed by oil. The dollar is on the verge of a major rally. Very soon it will experience a huge short squeeze, which will cause equities and commodities such as gold to tumble. Go w/ the opposite of the herd and you'll know your on the right track. Prepare for deflation!

  • That doesnt make sense then, everyone is buying treasuries and talking about deflation on CNBC and Wall St.

    So your with the herd buddy.

  • What? All you hear on CNBC and other media is the risk of Inflation and the falling dollar.

  • You actually hear both. I don't think anyone has a clue WTF is going on anymore.

  • @jeff0516161 interesting,.. "essentially backed by oil". ? What currency do they print in saudi arabia? And shouldn't we be printing that form ? What about "BLUE GOLD" ? I heard it"s more valuable than gold. (water) I think we all need to re-think our entire financial systems. I'm sick of having it so complicated. It's not "convenient" the set-up we use now. What a mess. Tricky people make it tricky so they can rip you off ! I hate it .

  • I agree, there is simply no market for a credit expansion! No market (buyers) for our mortgage debt! No huge credit limits = no huge spending = true GDP reduction = retail/commercial collapse = higher unemployment = wage reductions = huge default rates = banking collapses = dollar collapse = USA DOOMED

  • Absolutely excellent! Thank you Daniel.

  • I remember this poindexter on Anandtech forums stating with certainty that gold would not hit 1,500.  It might suffer a bit before it touches that mark in a massive deflationary bout, but that will be short lived.

  • How low will the Dollar go,

    have you bought a wheelbarrow yet??

    India just bought 200tons of gold, china planning to buy another 400tons.

    A year ago gold was @ $700 now @ $1090 thats an 56% increase!!

    At that rate I give the Dollar no more than 2 years

    But don't worry: IT'S OKAY

    This way the US can pay off it's debt and soon every American will be a Millionaire

  • Is this the SAME Paul Monica that 2 years ago said Gold 1,000 would NEVER happen? Inerest rates going up? You vid is what smart people already know. The minute we raise our rates - the "green shoots" recovery comes to a hault.

  • I tried to post this same post on Paul Monica's article and getting blocked...

  • interesting

  • Carry trade,u-shaped recovery and fundamentals are not in place-so interest rates rising will kill the economy.

  • lightning bolt recovery is more like it

  • Question: "How low will the dollar go?"

    Answer: Wallpaper, firelighter or just the blunt ZERO!

    And the £ is not too far behind...

    Also the Euro is backed by zip... Not that many currencies are looking too smart anymore...

  • Daniel, just an not-economic question: Will ju take the swine flu vaccine?

    Myself: no.

  • no, I hate shots.

  • when the baby do

  • No later than Monday, the Dr will induce if the baby doesn"t come naturally by Sunday night.

  • Dude,

    I didnt know you were expecting??

    CONGRATULATIONS!!!!!!

  • You will be in all our thoughts on sunday Daniel. Good luck. Remember to keep telling her everything is going good, and that she's doing great.

  • check out the volume on the UUP. We will find out soon if the dollar will break down or if the shorts get squeezed.

  • 356 ratings & 302 views? wtf..nope no censorship here..Tell me the count needs to reset,yada,yada,

    I know better..How long till cooking shows etc are censored,anything that teaches independence and free thinking..I mean really VV needs censored? Is he really a threat or something and needs suppressed? lord help us with this ever growing corruption in our govt,chem trails,atheism..this world is nuts..911 official story lie..

    thats what it is nothing more than a story..

  • come back in 24 hrs. this happens to every vid with alot of hits

  • Damn fine post. Don't forget the lack of reserve currency status. That will guide the downfall of the dollar. America is under attack financially, but no one understands money, so no one knows. Sad but true.

  • I heard the US Dollar is made out of paper that comes from trees.....

    if you are lucky enought to see a tree -

    whatever you do - don't tell anyone where it is - cause you'll be the richest man in Babylon!

  • You are preaching to the choir, my new-found friend! I'm living in Vietnam, and taels of gold are becoming more scarce at the dealers. True, people here have been holding their savings in gold since time began. However, with the local currency pegged to the dwindling dollar, gold has become even more important. Good luck to us all, for it's going to be a rough ride.

  • Reset on ARMs to a high 12 to 14 percent was the catalyst to all this mess. So how will raising it again is supposed to help.

    The answer is to have rates up all the time always and not be low for a long time then raise. Its the droping low and raising it is what causes this bubble. Just maintain 5 to 8 FOREVER!

  • Again in owr coin store we are having trouble keeping any gold or silver bullion.

    As soon as we get in any gold or silver bullion it is soon gone. People who are buying are both scared and frustrated.

  • You said it dude. Can interest rates go up?

    With all thats going on with the econ how can Peter Schiff talk about raising interest rates. I'm a lil confused. Like you said under normal circumstances that sounds logical but these ain't normal times weez livin inn.

  • They're going to slowly walk the USD down the stairs before they push it off in 1.5 - 2 yrs is the talk. Gold isn't a head fake. Countries are converting their paper assets into real money... Gold. When they do up the new world reserve currency Gold will take center stage. The IMF just sold 200 tons to India without congressional approval... Hmmm. I'd bet the IMF doesn't even have any Gold. People are demanding physical delivery of their Gold and the ponzi scheme is coming to and end.

  • the folks at TwitterPeak don't think the US credit based economy is over... lol

  • hey vision, it is because of your foundation, that the vision in this vid. is so clear. thank you for the clarity and sharing.

  • thx for the comments

  • Marc Faber says hyperinflation in the coming years because the Fed will refuse to raise interest rates.

  • It's like someone buying a nice truck on credit. Sure they have a nice truck but they also have a huge debt. They can drive around the neighborhood and look cool in their nice truck, but then the bills start coming in, and then the headaches, collection calls, then the drinking problem and hangovers, and then the repo man comes knocking. That's basically how the American economy works in a nutshell.

  • Gerald Celente said that the American people will be "completely unprepared" for what is coming. What's happening with credit is just the beginning.

    In some ways, it could be a positive thing, but I know it's hard for many who are used to living a certain lifestyle. Still, humans are adaptable and we will adapt and prevail. I don't need a new Chanel bag every season to be happy. Those who do are going to be the most miserable.

  • VisionVictory, I agree with everything you've said.

    Gone are the days when you can just get "another credit card" and not worry about how you are going to pay it off once you charge it a few times.

    Most of us are trying to pay off all our debts now so that we can "start fresh." Less money from either reduced hours at work or risk of lay offs, etc.

    Of course, there are those who are still living beyond their means just to stay with the status quo as someone told me recently.

  • Comment removed

  • I understand some of the animosity towards Americans, many of us are shallow and stupid, but to generalise as a whole and say that everyone in America "deserves" what is happening is kind of an offensive comment, and I think those who are posting this kind of vitriol should not be the first to cast the stone so to speak. There are still *some* good people in the USA and not everyone "deserves" bad things to happen, so please, think before you post a comment.

  • Of course they have value but the degrees in question here at business degrees which, in the world of business, can only be learned with real world experience. I bet Buffett didnt learn how to become rich in school.

  • I see. It's true, they don't really teach people how to be rich in school from what I've observed.

  • And business degrees, especially economics, teaches flawed Keynesian economics where Govt spending is a great thing!! Austrian economics, what Schiff subscribes to, isnt taught at all!!! Ludwig von Mises was completely against government intervention in every aspect. Govt spending breeds inefficiency and corruption, fat contracts to fat friends and the expulsion of Free Market Economics.

  • Limbo beat! ya mon how low can ya go! LMAO

  • The government should allow competing currencies so people can opt out of this dollar system to something backed by gold or silver. Of course they won't allow that because they need to steal peoples purchasing power to fund their reckless spending.

  • nailed it! Again..., as usual!

    Keep it up, thanks focusing on the hard questions our main stream media failed to learn in college!

  • thank you

  • I am hoping that the gold:silver price ratio decreases a bit as it will make it easier for me to switch between these metals and possibly get a little more of each.

  • Question: other than for adjustable rate mortgages, are there any existing loans whose interest would change should rates go up?

    Say that I pay X% on a certain loan and rates go to 5%. Do I pay 5+x%? Or is this just for new loans?

  • If its fixed its fixed.

  • I see interest rates low for a long, long time.

    Japan has had 0% interest rates for how long now?

  • I still need 2 more years to get ready. Dollar, don't fail me now!!!

  • lol

  • Daniel...many are saying that gold is the next bubble. Do you think this is true?

    If so, what will the signals be when it is time to jump ship?

  • When the people in my family who bought mortgage companies in 2007 start buying gold, I'll let you guys know. hehe

    Gold is being used as a global currency again, we are a LONG way from the bubble.

  • I agree. That's also what Schiff says. We haven't seen the mania yet.

    I am not looking at it as a way to get rich quick but rather a store of the wealth I have left.

  • Tracy, I saw another video where that same question was asked. What's the exit strategy for PM's? The answer given was there is none. Cash them in if you need to, but hold them indefinitely and leave them to your heirs if you must. I liked that answer. They are insurance for dark days ahead.

  • You said the faith and credit of the USA is already at zero. The first question that came to my mind was, "Is it as high as zero?"

  • lol

    Well its hard to say, because I know that they will screw me. So my faith in them screwing me, lying, and stealing is very high for the federal gov.

  • technical chart of usd looking bullish, seems ready for huge lift-off (RSI breakout, bullish falling wedge, little outbreak and crawling down now, macd, stochastics bullish divergence and MACD histograms falling and falling and getting positive) As bullish as it can get! my deep-out of the money EUR/USD put options expiring late March are ready to ten-fold (or lose my little investment on it)

  • thanks

  • The destruction of the dollar is a planned event. What a perfect way to bring about a bloc/one world currency by causing a currency crisis. Ever heard the saying "desperate times call for desperate measures"?? Well reverse it... "If you want to implement drastic measures, create desperate times"!!

  • As a side note, it's rumored the recent Gold purchase by India from the IMF was a short covering. They don't have any Gold. Noone has any... LOL!

  • USD is expected to get to the 40 to 50 range before they finally pull the plug in late 2011. In the meantime, keep on stackin'!

  • Really?? Do you really think the world will continue to sell their precious resources, oil included, in exchange for trash paper?? The collapse in the USD will come when the world finally grows a pair and says no to the dollar for resources extortion.

  • It's really hard to say how it will play out. The 40-50 range and then pull the plug is what I've been hearing. A currency can collapse when people just simply refuse to accept it any longer. In theory It could happen tomorrow with the USD. Once all that paper comes back the US will experience a hyperinflation of prices.

  • sorry what is the 40 to 50 range in reference to ..

    thanks

  • It's when the USD index is in the 40-50 range. Right now it's 75.

  • energy cost will substantially increase with the decline of the dollar..this presure could easliy collapse what remains of the american economy...it cannot take the strain of 4dollar gasoline..

    its quite a brilliant way to wage a war.....never fire a shot...drive a nations currency down to zilch and watch it impode.

    we cannot buy gold because it would be an admission of NO CONFIDENCE in our own dollar..

    looks like weve painted ourselves in a corner.

  • I know that $4.19 a gallon hit me hard...BAD HARD. IMHO, I think when that happened, it put a lot of strain on everything. It's going to reach that price again....unless we start tapping our own reserves and become independent....and in the meantine, figure out a GOOD alternative source for our cars.

  • There will be no alternative but a repudiation of the dollar and the debt to be replaced with a functional currency backed by something real and it doesnt have to be gold but it does have to be tangible. I might add that prosecution of the criminals that caused this problem would be a cornerstone of any real reconstruction

  • Hi Daniel, I deleted my old account. Is it ok if I attach my video to your video just so people know my new screen name? if not just delete it. Thanks!

  • Makawi??

  • Yes

  • yt will no doubt inform me, you have reached your limit in comments. guess they will charge per comment/rating etc next. good information Danial, as always.

  • I was wondering what you think the economy will have to grow off of when since we don't have manufacturing anymore.?

  • Well done... I read that article and thought it a tad naive. But, for the MSM, its a good start. Maybe Paul R LaMonica will become a radical gold bug once he puts the pieces of the puzzle together.

  • this is good question. I actually want to call Peter Schiff during his Wall Street Unspun that will government actually have the courage to increase interest rate? if yes, the not just all the financial institutions collaspe. but also there will be no money to pay for the government debt. I think US will stay at zero rate for at least 18 more months.

  • In Goldman Sachs We Don't Trust

  • Thanks V

  • The dollar will end up around 60 to the Euro in the next year, then 50 in 2-3 years. The Euro backed nations are far more in debt that the USA. Britain, France, Germany, Ireland, Finland, Switzerland, and other major Euro nations (not necessarily Euro currency countries)  are swimming in Debt. Ireland has 8 times the debt of the USA. Each citizen in Ireland is responsible for $800,000 of debt, France is more like $100,000+

  • can you give me source for Ireland data. I found only 73bn or 20k per capita national debt

  • The good news is the data is in the link attached, the bad news is even after you divide to total debt by 4 million people its still a number that's too big to recover from. cnbc (.)com/id/30308959 just remove the brackets.

  • it was posted on the CNBC and Bloomberg web sites. Just google "worlds most in debt nations"

  • HEY DANIAL!

    Sorry needed your attention. ;)

    As I told you before, we are in the process of buying a house. We have cash, and you won't believe whats going on! The bank is stalling on selling us the house. I don't know why, but I feel something is up. Any idea's?

    Quite frankly I'm shocked...

    Peace...

  • not sure, please keep us posted. If you don't mind, please send a PM to me as well with updates. Would love to talk with you, leave your number if you have time.

  • The fundamentals of America have never been good.

  • For some strange reason i get an image of a linbo dance... The dollar trying to see how low it can go under a rod made of gold... Weird thing is... as the Dollar passes under the Gold rod it is raised higher for the next pass... and still the dollar passes lower than before... Strange Little Dance we got going on here!!!

  • Daniel, when do you see the dollar collapse?

  • Check the Dollar index, the collapse is happening now.

  • Soon, but couldn't put a date range on it. It could happen in 5 minutes or make it 5 more years.

  • All eyes on Japan ! The country is on default too

  • The other scenario is...

    If the Fed hikes short term interest rates to 5% with inflation steady at 3%, then more people will sell gold and save more in banks and that could get back down to the $400-600/oz in a hurry.

  • Anyone smart enough to buy gold is not going to be stupid enough to sell because of interest rate "hikes".

  • I agree, I'm just wondering when the "inflation" kicks in? Will it kick in before the Fed hikes interest rates next year? I would think so when all those dollars come home to roost.

  • Even inflation can be manipulated by the power to not appear at all. With all the money creation occuring most people think rampant hyperinflation will take hold of our economy, and it may, but the destruction of money can also occur because of mark-to-market scams, war overseas or any other of the countless methods. The world will eventually stop selling their oil in dollars and that is when the dollar will collapse, not when China stops buying. Oil is our strongest supporter.

  • The problem i see with that senario is that uneployed people cant save...

  • The dollar will be worth less than tiolet paper.

  • Very bad for a good man

  • that's "toilet paper" and you're wrong. I invite you to go buy toilet paper and see how much food it buys you in the grocery store.

  • For Gold, the question is 2 variables:

    1.) Interest rates

    2.) Inflation.

    If inflation goes up without a hike in interest rates, then we will see gold in the $3000/oz range and higher.

  • Less us not forget the variable of manipulation. Search Gold Anti-trust Action Committee.

  • Right now pretty much everything is deflating relative to gold. Gold has been doing just fine even though we are "told" that inflation is almost nonexistent.

    Gold will continue upward so long as people are loosing faith in

    1) the US dollar,

    2) fiat currencies in general,

    3) government solutions

    When it comes down to it, the whole gold issue is based only upon people's faith in government.

  • Terrible response sir.

  • Then by 1981, Fed Chairman Paul Volker had driven short-term interest rates to 15% and inflation to 6%, so the real interest rate was almost 10%.

    By 1982, gold was back below $400.

  • one thing to remember is gold only went above 800 on two seperate days. yet everyone uses the 850 number to make a point against gold.

  • Back in 1979, short-term interest rates were 8%, but inflation was 13%, so real interest rates were -5% a year.

    Is it any wonder the people rushed into gold and away from paper fiat money?

  • Anybody jumping INTO the dollar is crazy.

  • The dollar is going to make a come back because the world is going to go into the greatest deflationary depression in recorded history within the next 5 years.

  • How do you figure that will happen and why?? What do you suppose will happen to the USD when OPEC stops selling oil in dollars?? What about when Russia, China, India and Japan finally figure out a way to replace the dollar as world reserve currency like they stated??

  • I was only taking inflation and interest rates into the equation.

    But indeed, the "Wild" card is...

    1.) US dollar being replaced as the world currency.

    Then owning gold is a no-brainer...

  • it's like a game of Limbo for the USD