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| Economy |
| $6 Trillion In US Bonds Seized In Zurich, Said To Pose "Severe Threats To International Finance |
| 2012-02-17 |
| Posted by:tipper |
| #17 Speaking of which - in the early Cold War - a year or two worth of crops were supposedly buried in the Alaska tundra for safe keeping... I wonder if it's still edible/safe and if anybody alive today knows where it is buried. |
| Posted by: Water Modem 2012-02-17 23:55 |
| #16 Back when the currencies were silver and gold, they also had runaway inflations and crashes. "You can't eat gold," they said then, and starved to death with their gold beside them. Money has no intrinsic value unless it is edible, but then it is subject to mold and rot. Or, seen differently, money is portable barter, which makes it only worth whatever people are willing to trade it for at a given moment. It never has intrinsic value, no matter whether paper, precious metal, or gigantic stone wheel with a hole in the center. The only thing of real value is a skill people need, or complete self-sufficiency in an area with perfect climate that's proof against invaders. |
| Posted by: trailing wife 2012-02-17 23:24 |
| #15 Scooter, the Fed has printed so much paper since 1913 that the dollar has lost 96% of its value since then. Most of that loss is recent and accelerating. 10 years ago, an ounce of gold cost about $300. Today, $1725. Over the same time frame, wages have been more or less flat. Metal can always be exchanged for paper. Paper can always be exchanged for metal too - BUT, how much paper will it take? Metal is regarded as a hedge against inflation for a reason. it puts control of the economy in the hands of mine owners. Which is why mining stocks are so hot right now. Unlike the Fed's printing press, you can own a piece of those. Stated differently, are you satisfied with who's in control of the economy now? |
| Posted by: RandomJD 2012-02-17 22:01 |
| #14 This is a good discussion. Are silver coins better than paper? I think paper has more faith than metal, but I could be wrong. At the end of the day, it's all about faith. And there are a lot of faithful, but stupid, people out there. But count me among the faithful, I have more paper than silver. |
| Posted by: Scooter McGruder 2012-02-17 21:08 |
| #13 >Fiat money is PAPER, we merely agree now that it means something. What tangible thing will the governemtn give you for it? You can pay your tax with it. Gold is fiat, just harder to expand the supply (which isn't as good as it sounds, as it puts control of the economy in the hands of mine owners). |
| Posted by: Bright Pebbles 2012-02-17 19:33 |
| #12 At the risk of being seen as smug and flippant, the only difference between counterfeit money and US treasury money is the location of the printing press and the quality of the work. Fiat money is PAPER, we merely agree now that it means something. What tangible thing will the governemtn give you for it? Aside from the increasingly meaningless "Full Faith and Credit" of the US government, what does it mean? Massive monetary crisis courtesy of the Fed and Bernake is on the way, and the Chinese hold that gun to our head in a not very subtle manner any more. Why be subtle or overly polite, they hold the mortgage to the entire farm and can destabilize the currency in a minute if they are willing to take the hit. Sadly, the proud American Dollar, like the skilled American worker, is a fading memory. The one through hyper inflation, the other, through "free trade" policy where everyone cheats except us. |
| Posted by: NoMoreBS 2012-02-17 17:51 |
| #11 AH yes, and they found several million in Mexico. Latin America is getting to be a concern more and more. Yes and high-quality. |
| Posted by: Dale 2012-02-17 17:39 |
| #10 I assumed all the "money printing" has all been digital (Treasury issues bonds, Fed buys them). But maybe not. Severe threat if they're the real thing? |
| Posted by: RandomJD 2012-02-17 17:38 |
| #9 "Severe threat my a***. Who would have redeemed those papers. Swiss banks? Please. This is like saying that those blackened Nigerian "dollars" present a threat to world economy. |
| Posted by: European Conservative 2012-02-17 17:22 |
| #8 ..yes, if your business is operated on food stamp script. |
| Posted by: Procopius2k 2012-02-17 15:56 |
| #7 come on folks, the economy is getting better, right? |
| Posted by: bman 2012-02-17 15:39 |
| #6 Remember a recession is three consequtive quarters of negative growth. A depression is six. Are we in a DEPRESSION? We may have to invent a new word for nine or twelve. How about a 'BARACKSION'? |
| Posted by: CrazyFool 2012-02-17 14:43 |
| #5 There is the situation of the known high-quality counterfeits of US $100 bills done by North Korea & probably others, and the possibility of counterfeit gold bullion - gold plated tungsten bars substituted for the real thing in vaults anywhere in the world. International finance could collapse any day for a wide variety of reasons, mostly not related to the WOT. If we're very lucky it won't. |
| Posted by: Anguper Hupomosing9418 2012-02-17 14:05 |
| #4 Are we in a DEPRESSION? Not as long as it hurts Obama's re-election chances to admit it. |
| Posted by: Anguper Hupomosing9418 2012-02-17 13:58 |
| #3 Terrorism does not have to be bombs or bullets. A really smart attack on our financial system could have devestating affects on our current condition. I personally believe the 9/11 attacks were aimed at our financial system and created some of the early instability in our financial system that was a precursor to the DEPRESSION we are now in. Remember a recession is three consequtive quarters of negative growth. A depression is six. Are we in a DEPRESSION? |
| Posted by: Bill Clinton 2012-02-17 13:47 |
| #2 Lots of bogusness in this story. Not sure if it's mistakes or intentional. |
| Posted by: Glenmore 2012-02-17 13:00 |
| #1 Is this the final conclusion to that 2009 bond smuggling deal? There has been so much cloak and dagger involved with this that it's hard to know what is going on. Originally it was, "Two middle-aged men with valid Japanese passports", and “The men were questioned, but not arrested.” |
| Posted by: Anonymoose 2012-02-17 12:29 |