Investing In Inflation

Will Rogers understood how inflation works. The only thing that really goes up by inflation is inflation. Prices of goods remain relatively the same. The only difference is the number on the paper you pay for goods with. The amount of work and the amount of silver or gold you pay for the goods remains relatively constant.I remember when I first began paying into Social Security. Then I paid 23 to 25 cents a gallon for gasoline with money backed by valuable metal such as silver and gold. I could buy a gallon of gasoline with one silver quarter. Today a silver quarter will not buy quite a gallon but is peaking at highs which approach a gallon.Then I worked an hour for three or four silver quarters.
The link below is Howard Ruff's commentary on what is happening today. He and others have warned for many years of what is happening monetarily today.Will Rogers: “Invest in inflation; it’s the only thing that’s going up.”Kitco Commentator's CornerABE: Perhaps this could go to the coffee shop for discussion as to whether it would be wise at this time to add gold and/or silver or gold and/or silver stocks to one's portfolio and if so how to do it.What else would it be wise to have on hand in the event of monetary hyper inflation or panacea relative to monetary crashes in the financial sector?Are there other better alternatives of safe investment than precious metals in light of the recent financial turmoil? Edited by Buzsaw, : No reason given.Edited by Buzsaw, : Complete OPEdited by Buzsaw, : Add discussion suggestions

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.

Thanks for your reply, Modulous. For nearly two centuries the nation's economy grew from nothing to be the greatest on the planet with relatively insignificant inflation.Problems began to arise primarily due to the creation of the Federal Reserve when the central banks took over creation and management of money from Congress. But things remained quite stable until 1964 when the people were conditioned by the paper money scheme to accept paper as money. This was the last year you could take your paper to the bank and bring home silver for what the paper was suppose to represent. From there we had nothing but growth of the amount of paper required to bring home a piece of silver or whatever you wanted to buy. It was then and ever since that I and a minority of conspiratist believers like Howard Ruff were warning our friends, relatives and others that some day the bubble would bust. I wrote a letter to the local editor back in the 1970s to the effect that you had to find, mine and refine the only safe and bona-fide medium of exchange, i.e. money.

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.

Yes I do. It's like gas released from a cylinder. You can't put it back in. For it to be reinstated it would have to be done globally for it to work because if one nation implemented it all paper unbacked currencies would immediate gobble up such currency. Not now, but when it did represent gold and silver the $$ was relatively stable as to it's buying power, relative, that is, to what ensued after it became unbacked. 1. The metals backed $$ once represented payment for everything purchased , i.e. goods and services.2. During the gold standard era it was illegal for private ownership of gold bullion. There's over a hundred thousand tonnes above ground as of 1996 and modern tech has been increasing the supply.3. I'm not advocating a return to the gold standard as it is not going to happen nationally. However the possibility of a global monetary system as the Bible prophesied 2000 years ago backed by called in global gold bullion is not beyond possibility as aspects of national economy continue to emerge globally.

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.

That's irreverent to this. I never said they did. That was relegated to Congress under the Constitution. The problem with the Federal Reserve Act of 1913 is that this power was relegated from Congress to private central banks, i.e. the Federal Reserve Banks (privately owned) and now rather than Congress creating money, we, the taxpayers must pay private central banks interest to do what Congress was suppose to do for the cost of the paper. The bankers who hold our money empower and enrich themselves by this privilege. That's how I understand the system. Correct me if I'm mistaken.

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.

Reread carefully and this time, thoughtfully and you will see who slipped. (embolding added to make it easy for you.}

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.

Jesus put it in proper perspective. "Render to God what is God's and to Caesar that which is Caesar's." Government should be limited to what the Constitution advocated. Woodrow Wilson, liberal Democrat and Co, on Christmas eve, 1913 after most had left, ignored the Constitution and signed off what belonged to the government of the people to the few wealthy bankers to enlarge their already bulging coffers with the folk's money.

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.

Why then did the nation function quite efficiently as pre-eminent leader during the Industrial Revolution for 137 years before the Federal Reserve Act was signed? That's what's nice about the gold standard, in that fluctuation in the currency value was not a major problem. Foundational precious metal limited the expansion and contraction of currency so as to keep economic conditions relatively stable.
-------------------------------------------------------------------------------- Keep it simple. Let Congress (Caesar) do their thing, as the founders advocated and let the banks do theirs, serving the folks. Congressional oversight, in the interest of the people at large should manage the currency, relative to the amount created and it's oversight relative to major monetary problems which may arise. OTOH when private interests are placed in charge, the tendency is for private interests to enrich and empower themselves, as appears to be what happens.

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.

I agree, but not before careful research and keeping in mind that the bottom may be down the road a spell. I would say, perhaps, begin to accumulate sound companies with good price/earnings ratio.
Perhaps call options on sound companies would be a relative safe strategy at this time so as to limit loss to the price of the option and so as to maximize the amount of gain in the event of a rebound by controlling a large block of a given stock.

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.

Nationally can be applied relatively to globally or applied to being relative to states. My usage clearly was relatively to globally as I have taken the time to reiterate.Are you here to harass or are you here to contribute constructive dialog?

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.

Duh. Not national but perhaps globally. Nothing to do with states in my message in question. I was relating nationally to globally and not relating it to states in my message. Get it? Kuresu, if you don't get it, bloviate on to yourself but this is not the free for all. I've got other things to do.

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.

Answer to Subbie's questions: /

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.

One strategy for cashing in on a possible rebound in stocks is to buy S&P future calls on the commodity market. You can buy them for the short term or long term. Like other commodities, you can control large blocks of stocks, again, limiting possible loss to the cost of the option. Also you can buy calls on stocks you sell so if the stock rebounds after you sell you can redeem some, all or even more than you lost when you sold. Adversely you can buy stocks and hold puts on the ones you buy.Had folks kept some relatively cheap out of the market future puts on the stocks they held or on the S&P index, they would have protected themselves from loss from the crash.This strategy would likely be more for folks holding a lot of stocks or mutual funds etc related to the market.As well, options have always been available on currency, like puts on the $$ would protect from inflation of the $$. I'm not sure, but there may be a ban in place on shorting the $$ at this time.This is also another strategy for getting into the precious metals market without buying the metals themselves. One can buy gold or silver calls which may offset further stock losses.Be advised that I'm not advising anyone to get into the commodity market without previous study and professional advice, especially when buying the futures themselves rather than options where loss is limited.

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.

The Federal Reserve is unconstitutional. I highly recommend a read of the whole page here which walks you through precisely how central bank systems empower the few bankers and impoverish the folks. By their power to raise and lower interest rates they position themselves to control the economy for their own profit, being in the insider position to prepare for the ups and downs of the markets and cash in.I guarantee that you will be enlightened by a reading of this page if you're not aware of how the Fed Reserve which is private bankers gets rich. This is what enriched the Rockefellers, the Rothchilds and the Warburgs etc at the expense of the folks. This UTube clip is also good.

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.

The House had passed the bill on the 22nd of Dec with a number absent but not enough to have blocked House passage. However the Senate did not have a majority of support for it. On Christmas Eve, as I understand it, a surprise vote was held with members of the Senate absent for the holidays (more than enough to block the passage) Had the other Senators been present the consensus is that it would not have passed the Senate.The numbers absent etc were on another site. I believe there were 43 Senators which would be a minority present, voting aye. It appears that roughly half of the naysayers were absent for the holidays.The link on my previous message answers your Constitutional question. I would remove the word, support, and insert the word, enrich, in Wiki's first paragraph here.I believe the Fed gets 94% if I understand correctly. Do you have any idea how much that 6% that the bankers get after their meager expenses of creating the money? After expenses it's still astronomical. Their interest rate manipulative power works to expand and contract the money supply etc. Anyhow, read the link in my last message and you get an idea of how they rob the folks.Information about the income and expenses of the Federal Reserve Board can be found in the Board of Governor's Annual Report. The UTube link in my last message has it in it.

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.

Subbie, it's time for you to stop hurling personal insults at your counterpart and do some supportive evidence yourself. I've produced some facts which you're denying. It's up to you to refute some of those facts with some support of your own position in some of these areas. You're the one challenging them. I see we're a percentage point off on the profit the banks get from the nearly free money they create from paper and the printing press. Do you realize how much that amounts to? Cite your source that my percentage figure is wrong and yours is right.You didn't directly refute my assertion that the Constitution relegated Congress the power to create money. Your stuff did not refute that fact.

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BUZSAW B 4 U 2 C Y BUZ SAW.
The immeasurable present eternally extends the infinite past and infinitely consumes the eternal future.