tag:blogger.com,1999:blog-8839412.post7287849661638503167..comments2024-03-19T07:48:54.021-06:00Comments on Gus Van Horn: The Power of Fiat MoneyGus Van Hornhttp://www.blogger.com/profile/05126749051688217781noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-8839412.post-82134430390242314232008-10-15T00:15:00.000-06:002008-10-15T00:15:00.000-06:00Agreed.The more I learn about this, the more it so...Agreed.<BR/><BR/>The more I learn about this, the more it sounds like the <I>de facto</I> socialization of the banking sector.<BR/><BR/>This is something a Democratic President could have never accomplished in his wildest dreams.Gus Van Hornhttps://www.blogger.com/profile/05126749051688217781noreply@blogger.comtag:blogger.com,1999:blog-8839412.post-79155653748228461522008-10-14T22:44:00.000-06:002008-10-14T22:44:00.000-06:00I found this particularly disturbing:Some of the b...I found <A HREF="http://www.news10.net/news/national/story.aspx?storyid=49102&catid=5" REL="nofollow">this</A> particularly disturbing:<BR/><BR/><I>Some of the big banks had to be pressured to participate in the program by Paulson, who wanted healthy institutions that did not necessarily need capital from the government to go first as a way of removing any stigma that might be associated with banks getting bailouts.</I><BR/><BR/>Disgusting.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8839412.post-54167264659699417962008-10-14T13:39:00.000-06:002008-10-14T13:39:00.000-06:00I am completely at a loss. The scope and pace of e...I am completely at a loss. The scope and pace of events over the past few weeks are both so rapid that there is almost no basis for making a decision as to what to do. I am already developing a far better understanding of how government force can negate the value of one's own mind than I'd ever really hoped to have.<BR/><BR/>On a lighter note, you could say that not having much money to confiscate has a silver lining, but don't: Hank Paulson will hear you and try to confiscate it.Gus Van Hornhttps://www.blogger.com/profile/05126749051688217781noreply@blogger.comtag:blogger.com,1999:blog-8839412.post-17838825706173690042008-10-14T13:21:00.000-06:002008-10-14T13:21:00.000-06:00Dismuke writes:"Of course, wherever I put my money...Dismuke writes:<BR/><BR/>"Of course, wherever I put my money, I am at huge risk of its purchasing power being looted away by inflation."<BR/><BR/>Do you have any gold, or other such hedges against inflation? Gold carries its own risks, of course -- it must be stored securely, and there is the precedent of government confiscation -- but then again, they didn't do that when people were hedging against inflation in the 70's.<BR/><BR/>The nasty thing about fiat currency here, is that in order to preserve your wealth, you are forced to put it into illiquid forms. Gold, having not been seen as money by the mainstream for decades, could be money, but everyone would have to gain the same sense of "priced in gold" that they have for dollars now. Until that happens, you could keep your wealth in gold or another commodity, but you have to turn it into dollars first before using it to by food, pay bills etc.... if you offer to trade gold, everyone has to recalibrate on the fly to get a sense of what a good price is -- and today, that is usually done by converting to dollars first.<BR/><BR/>And rest assured, if that adjustment process started happening, the confiscation risk becomes very, very likely -- because gold is a shield against the inflation tax.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8839412.post-84374980886942831912008-10-14T11:45:00.000-06:002008-10-14T11:45:00.000-06:00That "forced nationalization" you describe is abo...That "forced nationalization" you describe is about the only thing that could have made this picture uglier. Who would have imagined a bunch of bad loans to dead-beats as a precipitating factor to such a huge lurch towards dictatorship? Under capitalism, the vast majority of the loans being now used as an excuse for more government control of the economy would never have even been made!<BR/><BR/>God help us if the Democrats win as big as some say they might, and for exactly the reason you say.Gus Van Hornhttps://www.blogger.com/profile/05126749051688217781noreply@blogger.comtag:blogger.com,1999:blog-8839412.post-5465753139885297312008-10-14T11:31:00.000-06:002008-10-14T11:31:00.000-06:00Here is something scary I read from an AP article ...Here is something scary I read from an AP article on the bank stock "purchase"<BR/><BR/><I>"Executives of the country's biggest banks were summoned to a remarkable meeting at the Treasury Department on Monday to be briefed on the plan. Paulson basically told the bank CEOs that they <B>had to</B> accept the government stock purchases for the good of the U.S. economy.</I><BR/><BR/><BR/>If this is true, then this "purchase" is nothing more than a forced, compensated nationalization of major banks.<BR/><BR/>I am seriously considering moving my savings out of Bank of America to a local credit union. I have read that credit unions are in much better shape than the banks and very few of them participated in sub prime loans. I am not sure if this makes them a better safe haven or not. But having my money in a government owned banks sounds pretty scary to me. Of course, wherever I put my money, I am at huge risk of its purchasing power being looted away by inflation. So that is something else I am having to look into in terms of what I can do to minimize the impact of the horrible assault our economy is going to be subjected to. <BR/><BR/>If Obama wins and the Dems get a veto proof senate - well, we are REALLY going to be screwed as they will use this "emergency" as a pretext for one of the biggest power grabs seen to date. That is their nature and what they have been wanting to do for years. And the precedent for it will have already been established by the "emergency" measures already being enacted by the Bush Administration. If that happens - well, there will be very little that we can do via the political process to stop it as I am sure they will shut down whatever recourse is left through that and clamp down on media outlets via the reintroduction of the Fairness Doctrine. I am more frightened of Democratic gains in the House and Senate than I am of Obama winning the presidency.Anonymousnoreply@blogger.com