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140 years of Monetary History in 10 minutes - Currency vs Money


mdehaan

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I will just go with Warren Buffets view on Gold. But then again, what would he know about currency? http://money.cnn.com...rtune/index.htm

Fixed for ya. Didn't you learn anything from the video?

What WB is basically saying is, don't trade your currency for money, trade your currency for more stocks.

What did you expect him to say? Buy gold sell stocks? His company is a component of the S&P 500.

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So you feel like hes trying to sell you gold and its a scam?

That or he's just flat out wrong. But definately someone I would suspect in having a vested interest in wanting others to buy gold. By why so be so vague? I am so interested I am listening to it twice. Just to remember how many things that are wrong.

Error 1: He gets upset that dollars stop being a claim check on gold. By why is gold a claim check on anything? If I was in a war economy I would just as soon have a pile of bullets and bombs to back up my currency. Last I checked the states has that.

Error 2: Having every currency pegged together is a bad idea. If you want a current example, look no further than the Euro and how much the different financial ideas the Greeks have totally please the Germans.

Error 3: Just because some old French guys think gold is the only available currency doesn't make it true. I wouldn't be exactly taking economic advice from the French. The basis of what determines as wealth is completely arbitary as is the picking of Gold. I would just as soon be paid in farmland as Buffet would seem to prefer! And the US wasn't forced off of the gold standard, they simply elected to not honour their commitments! And the reason they didn't run out and do anything about it is they couldn't! Funny how having the worlds largest economy and military let's you do that!

Error number 4 (the biggest): Apparently the monitary system changes every 40 years. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RETURNS.

Error number 5: I hope the video is not very new. Gold is down like 35% over the last year.

And of course it follows with an add to learn about investing in gold and silver. I guess silver also counts as money now.

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I will just go with Warren Buffets view on Gold. But then again, what we he know about money? http://money.cnn.com...rtune/index.htm

That link you posted is from nearly 3 years ago, when the Federal Reserve was pumping unprecedented amounts of stimulus into the economy and had made it clear their end game was to inflate assets. So of course buying stocks then was the right move. I'm pretty sure Buffet could see that a mile away.

Also the article you linked to was written by Ben Stein who is probably one of the dumbest guys out there.

Start the video at 3:57 (though the whole thing is good. Especially the moron immediately before Stein)

Ben Stein in 2007 :

Sub prime is a tiny problem.

The financials are probably the cheapest I've ever seen them in my entire life. <--------- That was about 6 months before Bear Stearns collapsed and many major financials had to be bailed out to avoid bankruptcy.

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Fixed for ya. Didn't you learn anything from the video?

What WB is basically saying is, don't trade your currency for money, trade your currency for more stocks.

What did you expect him to say? Buy gold sell stocks? His company is a component of the S&P 500.

I guess it has to be shiny to be considered money to you? Do you disagree and would take the giant cube of Gold in lieu of all the farmland, the ten biggest oil companies in the world, and a billion dollars (of I suppose in your eyes worthless) currency? If so you have some very bizarre investment ideas.

I prefer assets that pay me to hold them.

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That link you posted is from nearly 3 years ago, when the Federal Reserve was pumping unprecedented amounts of stimulus into the economy and had made it clear their end game was to inflate assets. So of course buying stocks then was the right move. I'm pretty sure Buffet could see that a mile away.

Also the article you linked to was written by Ben Stein who is probably one of the dumbest guys out there.

Start the video at 3:57 (though the whole thing is good. Especially the moron immediately before Stein)

Ben Stein in 2007 :

Sub prime is a tiny problem.

The financials are probably the cheapest I've ever seen them in my entire life. <--------- That was about 6 months before Bear Stearns collapsed and many major financials had to be bailed out to avoid bankruptcy.

Do you think Ben actually misquoted Buffet? You don't suppose if he did Warren Buffet, as the CEO of CEOs, might say somthing about that?

Regardless, do you not agree? Owning productive assets is better than owning just about anything else.

Also, even now, the Fed is going to keep on printing money until the US inflates it's way out if it's debt situation. It's the proverbial five billion dollars in a suitcase for the next state trip to China.

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Do you think Ben actually misquoted Buffet? You don't suppose if he did Warren Buffet, as the CEO of CEOs, might say somthing about that?

Regardless, do you not agree? Owning productive assets is better than owning just about anything else.

Also, even now, the Fed is going to keep on printing money until the US inflates it's way out if it's debt situation. It's the proverbial five billion dollars in a suitcase for the next state trip to China.

Sorry, when did I say Stein misquoted Buffet? I missed that part.

I recommend owning land over things like gold. Especially when the financial markets are so completely rigged. For example, How else can anyone explain JP Morgan being short more silver than has ever been mined out of the Earth?

I agree the Fed is never going to stop printing. How can they?

As for the "proverbial five billion dollar suitcase". You must have posted this at least five times over the last 6 months. It wasn't very clever then and it still isn't. Please stop.

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That or he's just flat out wrong. But definately someone I would suspect in having a vested interest in wanting others to buy gold. By why so be so vague? I am so interested I am listening to it twice. Just to remember how many things that are wrong.

Error 1: He gets upset that dollars stop being a claim check on gold. By why is gold a claim check on anything? If I was in a war economy I would just as soon have a pile of bullets and bombs to back up my currency. Last I checked the states has that.

Not sure how this is an error. When dollars are no longer backed by anything, it allows governments to take advantage of the supply of thier currency.

Error 2: Having every currency pegged together is a bad idea. If you want a current example, look no further than the Euro and how much the different financial ideas the Greeks have totally please the Germans.

This is besides the point and also not an error.

Error 3: Just because some old French guys think gold is the only available currency doesn't make it true. I wouldn't be exactly taking economic advice from the French. The basis of what determines as wealth is completely arbitary as is the picking of Gold. I would just as soon be paid in farmland as Buffet would seem to prefer! And the US wasn't forced off of the gold standard, they simply elected to not honour their commitments! And the reason they didn't run out and do anything about it is they couldn't! Funny how having the worlds largest economy and military let's you do that!

You'd like to be paid in farmland? LOL. The second time too and the third? Does everyone get paid in farmland?

Error number 4 (the biggest): Apparently the monitary system changes every 40 years. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RETURNS.

So the USD is going to be reserve currency forever? With the Federal Reserve printing 85 billion USD per month?

Error number 5: I hope the video is not very new. Gold is down like 35% over the last year.

All the more reason to exchange Federal Reserve Notes and Bank of Canada notes for money. You know buy low sell high.

140 years+ remember? And you want to discuss the last year??

And of course it follows with an add to learn about investing in gold and silver. I guess silver also counts as money now.

Yes, learn. Got an 1967 or earlier canadian coin? Ya, thats money.

Responses posted above.

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I guess it has to be shiny to be considered money to you? Do you disagree and would take the giant cube of Gold in lieu of all the farmland, the ten biggest oil companies in the world, and a billion dollars (of I suppose in your eyes worthless) currency? If so you have some very bizarre investment ideas.

I prefer assets that pay me to hold them.

I have to pick one or the other?

Wealth management and investing is all about diversification isn't it?

So cash, stocks, bonds, real estate and savings accounts are all eligible asset classes but gold/precious metals aren't?

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I have to pick one or the other?

Wealth management and investing is all about diversification isn't it?

So cash, stocks, bonds, real estate and savings accounts are all eligible asset classes but gold/precious metals aren't?

Of course gold/precious metals all eligible asset classes. Heck, I own shares in gold miners (heck I should be cheering you on) but it's only a small portion of my portfolio. The message of the gold lovers isn't about investing and diversification, it's to not trust the system and pile a bunch of gold in the basement in the hopes that the system collapses. I am sure you can see the difference.

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Not sure how this is an error. When dollars are no longer backed by anything, it allows governments to take advantage of the supply of thier currency.

Dollars (or Yen, or whatever) are backed by their respective governments and valued by the market. If you or the market don't have faith in it's value it's value will drop. Every currency is convertible into whatever you want it to at market rates. If you want to convert your money into gold and silver you still can but it should be noted that recently it's been a bad investment and few analysts expect it to rise much in the even medium term future. Even the drivers that get doomers llike Schiff excited are significantly better - there's been significant deleveraging so the long term need to stimulate inflation is significantly reduced. (All that fiscal cliff and sequester drama did have a bright side.)

This is besides the point and also not an error.

You either want all your currencies connected to each other at fixed values (which includes any kind of gold standard) or you don't. Advocating a gold standard worldwide is to advocate a single world currency.

You'd like to be paid in farmland? LOL. The second time too and the third? Does everyone get paid in farmland?

I would rather own farmland than gold. I am fine getting paid with money (er my bad, currency) it's easily convertible into other forms of weath.

So the USD is going to be reserve currency forever? With the Federal Reserve printing 85 billion USD per month?

It depends on what the market wants. If one's (be it a person, company, pension plan, or government) wanted to accumulate weatlth I wouldn't suggest having large amounts of gold or dollars. I like having debts in dollars - inflation really is my friend.

All the more reason to exchange Federal Reserve Notes and Bank of Canada notes for money. You know buy low sell high.

140 years+ remember? And you want to discuss the last year??

It's much easier to buy anything you can dream of from beer to bonds to Berkshire Hathaway with Bank of Canada notes. If it makes you feel better I don't keep a lot of cash hanging around. Funny thing though, your not really doing anything different keeping shiny metal around. Accumulating "money" is not an investment strategy. It's a hoarding strategy.

Yes, learn. Got an 1967 or earlier canadian coin? Ya, thats money.

Why would someone want to teach me something. I suspect their motives. You can go with hoarding shiny metal. I will go with owning a stake in the entire worlds economy. If my bet goes wrong their won't be anything for you to spend your shiny metal on.

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Of course gold/precious metals all eligible asset classes. Heck, I own shares in gold miners (heck I should be cheering you on) but it's only a small portion of my portfolio. The message of the gold lovers isn't about investing and diversification, it's to not trust the system and pile a bunch of gold in the basement in the hopes that the system collapses. I am sure you can see the difference.

How do you know what the message of 'the gold lovers' is? There are only gold haters. How many people on this message board own gold or any other precious metal? I don't think I'd be exaggerating if i said less than 1%. It is not a socially accepted financial asset class. WHY?

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