no third solution » gold bugging
Comments on Comments #25
About a month’s worth of comments! +++ Kip Esquire responds to my 401(k) conundrum: I would hope that your 401(k) has a money-market option. There is a money-market option. I should have allocated more to that, several months ago. I didn’t. In any event, my 401(k) is rebalanced as of this evening. http://1955design.com/journal/ 1955Design follows up with, Your fund family that your 401k is in probably has a gold or precious metals fund. Although I am not sure that now is the time for that investment, either I looked for this before, admittedly, I did not look very hard. I did not see anything that appeared to be a gold or precious metals fund. Some of these are ETFs or other things, and from what I understand are also highly leveraged. Many of … Read entire article »
Filed under: American Politics, Anarchy!, Blog Reactions, gold bugging, Left Libertarian, Legalese, personal finance
‘Smart People Are Realizing the Banking System is Broken’
DJIA down something like 700 points, that’s the lowest it’s been in over 5 years. Looking at the chart, it’s a veritable cliff at about 3:30pm. General Motors trading at levels not seen since the 1950s. Their dividend yield is 13% and nobody is buying. This kind of gives you the impression that nobody believes there will be a dividend! So much for that surprise 50bp rate cut yesterday… I hope the FED plans on buying a lot of commercial paper, hell, let’s just nationalize the entire goddamned economy, while we’re at it. The Treasury Department is considering taking ownership stakes in many United States banks to try to restore confidence in the financial system, the White House said on Thursday. NYT also reports that this is happening even though it … Read entire article »
Filed under: American Politics, Economics Lessons, gold bugging
Gold is NOT a Fiat Currency
Some libertarians are prone to argue, against the so-called “gold bugs” that gold is essentially a fiat currency. Reiterating the common accusation, Tony proposes that, “Gold has value for the same reason a dollar isn’t a mere piece of ink-stained paper: someone else values it,” and continuing: “During a famine, would you accept gold for a loaf of bread? A loaf of bread for gold?” Whenever I see this sort of argument, I’m compelled to respond. It’s a sickness, I know. During a hyperinflation, would you accept a billion Zimbabwe Dollars for a loaf of bread? A loaf of bread for a billion Zimbabwe dollars? That’s a straw man argument, if ever I’ve read one. Perhaps more importantly, the “Diamond-Water Paradox” was thoroughly destroyed over a century ago, … Read entire article »
Filed under: Economic Fallacies, gold bugging