Author Topic: Money is not real, it just a concept which is being manipulated  (Read 4073 times)

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The Prophet

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Money is not real, it just a concept which is being manipulated
« on: January 30, 2015, 08:11:01 am »
Before 1971, the value of money was tied to something tangible, something real and something with a degree of scarcity and value - GOLD.  The supply of gold could not changed or value manipulated by any single government.  Since then it has become little more than a sovereign IOU from someone we don't know - being devalued, printed, and inflated away by government and central banks so the repayment of the IOU is less in real terms.

The Bank of England's target for inflation is 2%. That is not a target to reduce it to, but to maintain it at. Now inflation is allegedly falling to under 1%, the powers that be worry about deflation or falling prices. Why?  because it means the debt will have to be repaid at its true value which no government can afford.

Money in its basic form is a unit of working time. People work and in return they want something. In days gone by a builder may been paid a chicken for fixing a roof for example.
The Pound Stirling promised "to pay the bearer One Pound". One pound of something we all presumed. But what now?  People are still going to work and they are still being paid. But the amount of Pounds they are being paid is not the same in real value (gold adjusted) terms as it was ten years ago, it is far less. So people who work are getting less for their time in return. How can people earning less money, pay more money to service national debts that was supposed to lead to higher earnings?

It is even worse for the self disciplined saver, who may have for many years forgone the immediate gratification of buying someone they desired with their recently earned money in return for greater returns later. But what does he get? Nothing. The "best" interest rates are barely keeping up with inflation around 1.5%.  Did anyone who has a cash ISA ever believe the tax-free interest would be so low?

Honest workers, savers and investors are regarded as suckers by governments the world over. It is they who are being stolen from by the fake money system.

The smart people have stopped working, opted out and are spending their savings and from April will be spending their pension funds whilst they still have some value.
 
Reckless? Maybe, but infinitely preferable to seeing it all gradually (or not so if we get Hyperinflation)  become more and more worthless by world-wide government policy and central bank meddling.


Ludwig Von Mises

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Re: Money is not real, it just a concept which is being manipulated
« Reply #1 on: January 30, 2015, 10:14:23 am »
Surely, the smart people are now purchasing gold and silver rather than just spending their savings? If they're not, then they should be. What's your view?


New Home Expert

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Re: Money is not real, it just a concept which is being manipulated
« Reply #2 on: January 30, 2015, 02:08:33 pm »
Yes it is a good idea to buy Gold but people do need to live!
You can't pay your Council Tax with Gold!
Earning "money" and paying taxes is the stupid thing to do if you have liquid savings in my opinion.
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Ludwig Von Mises

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Re: Money is not real, it just a concept which is being manipulated
« Reply #3 on: January 31, 2015, 09:44:41 pm »
Gold is about as liquid as it gets if you buy it at bullionvault.com or therealasset.co.uk - they provide *allocated* accounts that are audited daily and where the gold is stored outside of the banking system. You even choose the jurisdiction - best ones are Switzerland, Singapore and Hong Kong. Gold and Silver are currently trading around the cost of production. If you want to buy low in order to sell high then now is the time to get in. Even if you only put in 10% of your savings I guarantee you won't be sorry. Nobody ever went bankrupt investing in precious metals.

New Home Expert

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Re: Money is not real, it just a concept which is being manipulated
« Reply #4 on: February 02, 2015, 10:56:27 am »
Agreed.  I have 8% of my wealth in Gold and use the ETF PHAU.
It tracks the gold price and you also have some exposure to the dollar too.

I see the Royal Mint is selling small Gold "wafers" to the public for £50.
Obviously with a huge mark-up on what the physical gold is actually worth though!
First they debase the currency,  then try to make money out of people wanting to protect what they have by buying gold.
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