SCHIFF

[clinton]

[rich]

Everything he says is true

commodities will go higher

gold is a no brainer, oil likewise

it's just a question of when

[clinton]

Virginia Coin Moves Closer To REALITY

A proposal to study whether Virginia should adopt its own currency passed the state House of Delegates on Monday after gaining support from a number of conservative economists.

Del. Robert G. Marshall (R-Prince William) has been fighting for the bill for three years as a safeguard against what he believes is a central banking system that has swung out of control. But until Monday, the plan seemed little more than a quixotic quest. The House voted 65 to 32 to approve the measure.

“Our nation’s most fundamental principles — equal rights, rule of law, private property rights, individual liberty — still require a dependable dollar to be meaningfully preserved,” the bill reads.

[clinton]

[maxi]

Feb 5, 2013 17:05:11 GMT -5 clinton said:

Virginia Coin Moves Closer To REALITY

A proposal to study whether Virginia should adopt its own currency passed the state House of Delegates on Monday after gaining support from a number of conservative economists.

Del. Robert G. Marshall (R-Prince William) has been fighting for the bill for three years as a safeguard against what he believes is a central banking system that has swung out of control. But until Monday, the plan seemed little more than a quixotic quest. The House voted 65 to 32 to approve the measure.

“Our nation’s most fundamental principles — equal rights, rule of law, private property rights, individual liberty — still require a dependable dollar to be meaningfully preserved,” the bill reads.

Could someone explain to me how having their own currency would work? Would it be based on the spot price of gold? And what would the exchange rate be or would they NOT accept payments from persons residing in other states? How would they pay suppliers from other states?

[maxi]

How many hours are being spent on these bills? How much is that costing the tax payers of Virginia?


Section 8 - Powers of Congress

<...>
To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
<...>

Section 10 - Powers prohibited of States

<...>
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
<...>


(Looks like there's a loophole there, but any thinking about state coinage is insane-- no state has any way to control the value of silver and gold, so there's no way to know what your state coin is really worth from day to day.)

But, even if a state did manage to legally issue paper money, the states are in such lousy shape now that no sane person would buy the money.

[maxi]

Another thing. If they base it on gold, where's their gold to back the notes with?
They can't have it both ways. Either they are part of the USA and the Federal laws or they are not. They can't base a private currency on gold they do not have physical possession of or they will be in the same place as the FED they are complaining about...

[maxi]

Great thread on the subject. Especially the little cutie that thinks there are 57 states.....

www.datehookup.com/Thread-1109704.htm

[clinton]

[clinton]

schiffy until China comes out with a currency based on gold the dollar is cleanest shirt on laundry day

[novie08]

Will be interesting to see what Germany does...Italy has big problems now with France not far behind. Have a friend who left Spain things are so bad. Of course, Japan has major issues too. with 3D Printers, where are the global manufacturers' employees going for jobs?

[maxi]

Mar 2, 2013 19:12:24 GMT -5 novie08 said:

Will be interesting to see what Germany does...Italy has big problems now with France not far behind. Have a friend who left Spain things are so bad. Of course, Japan has major issues too. with 3D Printers, where are the global manufacturers' employees going for jobs?

3D printers are not that advanced yet Novi. They are okay for single item mock ups and that is all.

[novie08]

Oh, was thinking past my lifetime. But maybe by then humans will all be machines as predicted by Ray Kurzweil (sp?). Fascinating books, his. He's MIT, invented lots of AI.

[clinton]

[maxi]

It still doesn't answer the question why can't Cypress just GIVE their gold to whoever they owe to? Why do they have to sell the gold for er um uh USELESS FIAT PAPER??? How do you justify that? And if like Schiff is saying traders feared that other countries would have to sell their gold - same question. Why can't they just pay with the gold?

[clinton]

Apr 16, 2013 23:04:58 GMT -5 maxi said:

It still doesn't answer the question why can't Cypress just GIVE their gold to whoever they owe to? Why do they have to sell the gold for er um uh USELESS FIAT PAPER??? How do you justify that? And if like Schiff is saying traders feared that other countries would have to sell their gold - same question. Why can't they just pay with the gold?

I think he sort of answers that when he says Cyprus gold will never really hit the market. I dont think it will either, it makes no sense

[maxi]

The part that does make sense is that GS made that short call AND that the stock market has been going up so much that probably has them convinced that the FED will raise the rate.

But my response to that is - Just who are these "traders" they are talking about? Really it is the same old thing. stuff goes up stuff goes down. It is the reason stops are used. And why people buy put protection. The sad part is as usual the uninitiated will be selling at the bottom along with the smart asses that will be shorting at the bottom
Lose Lose.

[huh]

I agree with Schiff in the very long term perhaps, but in the short term I think he is making a very dangerous assumption. And that assumption is that QE has been about the economic numbers.

I've believed all along that QE has been instead about capitalizing the banks for another possible downturn. Basically a pre-bailout since the public wouldn't support an obvious & normal bailout. And now that the banks have passed the stress test (which tests based on another economic downturn) then QE may not be needed any longer. We will see...if economic numbers continue slowing and we begin to hear talk from those in charge about austerity for the US & a slowdown of QE, that would support this theory.

Also, Cyprus having to sell gold likely has nothing to do with the gold price falling. Nearly all the commodities, especially the hard commodities, have been falling...well, hard. Cyprus, or any other countries or central banks selling gold should have very little to do with the price of copper, oil, palladium, etc. And in the example of copper, it's been falling for more than 2 years now.

[clinton]

Apr 18, 2013 8:38:02 GMT -5 huh said:

I agree with Schiff in the very long term perhaps, but in the short term I think he is making a very dangerous assumption. And that assumption is that QE has been about the economic numbers.

I've believed all along that QE has been instead about capitalizing the banks for another possible downturn. Basically a pre-bailout since the public wouldn't support an obvious & normal bailout. And now that the banks have passed the stress test (which tests based on another economic downturn) then QE may not be needed any longer. We will see...if economic numbers continue slowing and we begin to hear talk from those in charge about austerity for the US & a slowdown of QE, that would support this theory.

Also, Cyprus having to sell gold likely has nothing to do with the gold price falling. Nearly all the commodities, especially the hard commodities, have been falling...well, hard. Cyprus, or any other countries or central banks selling gold should have very little to do with the price of copper, oil, palladium, etc. And in the example of copper, it's been falling for more than 2 years now.

Im with you, QE was for giving free money to banks

[novie08]

Apr 16, 2013 23:04:58 GMT -5 maxi said:

It still doesn't answer the question why can't Cypress just GIVE their gold to whoever they owe to? Why do they have to sell the gold for er um uh USELESS FIAT PAPER??? How do you justify that? And if like Schiff is saying traders feared that other countries would have to sell their gold - same question. Why can't they just pay with the gold?

Would this have anything to do with the dollar being the Reserve Currency? You don't think we would want to let go of that status do you? That alone will kill our economy for good.