I highly recommend you check it out. Try these posts for starters:
From Debtors and savers:
1. Debtors - "The easy money camp" likes to spend (and redistribute) money it did not earn, either by borrowing it, taxing the savers for it, or printing it. They like easy money because it is always and everywhere constantly inflating, easing the repayment of their debts.and:
2. Savers - "The hard money camp" likes to live within their means and save any excess for the future. They prefer hard money (or in some cases "harder" money) because it protects their savings and forces the debtors to work off their debts.
Hard money regimes almost always end in bloodshed, when the easy money camp slaughters the hard money camp to avoid hard repayment terms. And easy money regimes almost always end in financial suffering when the easy money collapses.
Posts
Difficult to get my head around the point on the FOFOA post "Open Letter to Ron Paul"
ReplyDeleteIs he saying that the US is undervaluing an asset it genuinely honestly has at it's disposal. to the value of $390 billion. Seems to be a bit far fetched, but I dont understand the US Fed Vs Treasure Gold Stakes.
That article is probably not the easiest to start at. I've updated the post with some links that are better starting points. There are lost of heavy ideas at that site, so it takes some reading...
ReplyDeleteWhen a company pays for something, it records that asset in its books - generally as "book value". If the market price of that asset changes over time, the company can either "mark to market", ie, update the book value with current market value (like the Australian banks do for mortgages, as they need strong balances sheets to be able to loan more), or not, and leave the original purchase price on the balance sheet.
The gold at the US treasuries has never been marked to market, and so is still listed at the original book value - $42.22 per ounce. The current market price for gold is about $1500 per ounce. So, marking it to market is not really "far fetched" so much as as simple multiplication.