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October 27, 2010


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Thanks for this series. It has been highly enlightening on the whole process. I'm still not sure I buy into having gold as a safeguard against market collapse though. It seems to me that it would be more valuable to have property and an in demand skill. Property would allow you to grow crops and raise livestock for personal use, barter, and sale. An in demand trade or skill would provide the same security as a bartering tool. Just my two cents.

Excellent information none the less. Thank you.

Thanks FMF, I enjoyed it as well. Just trying to get the truth out there.

Don Current, in Chapter 4 of my book, I go into detail as to the reasons to own gold and silver as a safeguard against market collapse. This is the chapter that explains what I call the deflationary credit contractions we are currently experiencing. Not too many people understand how this will unfold, but I utilize 100 footnotes in making the case for it.

The result of the deflationary credit contraction is illusions of wealth flowing down to real wealth. It is the trillions of dollars of illusions of wealth that at some point need a counter party to and if there are no counter parties, then that wealth can't be converted to an asset that has purchasing power (treasuries, gold, silver).

So when you see our government and the Fed throw trillions of dollars of quantitative easing to "stimulate" the economy, and it has no effect, this is the reason. While people talk about the dollar being weak, at the same time, U.S. treasuries have been strong. Inflationist's can't explain this. My book does.

But you are correct. Farm land and a skill can come in handy. Nothing wrong with having those and some gold and silver. That's good diversification! All I want is the 10% to 20%. The other 80% can still be put to good use based on trends.

Thanks again FMF...

Don - The gov is already cracking down BIG TIME on people trying to trade their own grown food. Do a Google search. For example, recently in GA a guy who grew his own veggies was told by his local town he can not trade them to other private citizens for their products.

There is currently a "food protection act" (not sure the exact name at the moment) that if passed would pretty much spell the end of farmers markets and organic/cooperative stores and farms with the licensing and oversight needed to sell or trade food (or face mega fines and/or prison!).

But then again MasterPo has been accused of being a bomb-shelter alarmist...

the end of farmers markets

Here we go. I must respond to this non-sense.

MasterPo, you are a bonified bomb shelter alarmist, bunker dwelling, paranoid nut.

Sorry if that was too nuanced.

The Georgia case you are talking about has nothing to do with banning food for barter. The guy is growing his crops in a residential area that is not zoned for agriculture and he is growing too much for the local ordinance on non agriculture land (2 acres which is quite a bit, 8 times larger than most people's entire lot). The law was actually intended to stop large commercial farms from coming into residential areas. He might have gotten trapped in the middle a little bit but he is bigger than any local growers usually are, just not as big as the commercial guys the law is usually aimed at.

This has nothing to do with the government trying to control the food market and keep organic or local producers from bartering or selling their goods. If he was outside the city limits or had his land zoned differently (which he is working on doing) he could do whatever he wanted. It has nothing to do with what he raises or how he sells it, only where he raises it. I am sure you would not mind if a hog farmer decided to put up a nice manure infested hog farm right next to your residential property. There are reasons for zoning laws. People who live in residential areas don't want agriculture and livestock production going on in large scale in their back yard.

Your love for gold is entirely understandable. However I am not sure what good it will do you in the parallel universe you inhabit where the govt will ban the private sale or barter of food and throw anyone in prison who tries (your words above, not mine)

@Apex - Did you see the news video of the story? The guy owns a big spread of land in a rural area. It may be zoned residential but so what? He wasn't in business as a farmer on the land. Heck, MasterPo grows tomatoes in his backyard (albeit much smaller than his). So I can't trade my tomats for something?? I'm more curious who turned the guy in!

There is an axiom in math: The whole is equal to the sum of the parts. As of now the Federal gov owns or controls the banks, major insurance, GM, and in the process of taking over healthcare, the internet and broadcast media. That's not to mention all the companies and groups that eagerly walk in lock-step with the administration (e.g. GE). 1+1 still equals 2.

Food&water followed by transportation and telecommunications are the logical next steps.

MasterPo doesn't "love gold". MasterPo actually owns very little as a percentage of the overall portfolio.

But facts are facts, When currencies fail gold and silver remains.

MasterPo true hopes he is wrong. MasterPo would be so happy if in 5 years he can post on his blog how wrong he was when unemp drops below 5%, the Dow is at 20k, S&P at 4k, and gold has fallen below $800/oz again But MasterPo isn't holding his breath.

Just do an ol' MasterPo a favor: *IF* he is right please don't cry that you didn't have fore warning.

Po, the city can't fine you if you aren't in their limits regardless of what you think his surroundings look like from a video. The land wasn't zoned for what he raised so he was technically in violation. There is no grand scheme to take over food production in this story. He got the land rezoned and the city allowed that so now he can grow his veggies again. But I am sure somehow that is all part of their grand evil design to control the food supply.

Your second and third paragraph talking about the government talking over banks, insurance, autos, healthcare, the internet and the media followed by food, water, transportation, and telecommunications is awesome. Regarding your tongue in cheek reference to being a bomb shelter alarmist ..... I rest my case.

I love how gold discussions always bring out these kinds of people talking about the govt taking over and society collapsing. Even if the discussion is reasonably balanced as Mr. Eberhardt seems to be it still attracts these people like moths to a flame.

Nearly every time someone starts talking about gold to me, this kind of thinking is behind it.

If only we were all as smart as Apex.

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