are gold and silver money?

Fake Diamonds So Why Not Fake Gold

You make a good point...............

They created fake diamonds so maybe fake gold is just around the corner.

You can bet, that in some labratory somewhere, someone is working on the process as I write this reply.

 

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I don't know where you heard about huge amounts of gold reserves off the coast of Japan, but I think you are confusing that with the announcement by Japanese scientists of large amounts of "rare earth metals" that were discovered on the floor of the Pacific Ocean off the coast of Hawaii.

http://www.reuters.com/article/2011/07/04/us-rareearth-japan-idUSTRE76300320110704

 

Diamonds are nearly pure carbon. Fake diamonds are made from subjecting carbon to high pressure. Thus the people who create fake diamonds are already producing them from the element that forms diamonds, they are not creating an element.

Gold is an element. The only metallic elements that have been artificially created are radioactive elements. People have been trying to turn base metals into gold for hundreds of years without success.

 

With watching the market the last couple of weeks, and the turmoil that is going on! It might go belly up, where as gold,silver and other precious metals are rocketing to new highs! And the great part about it is they are in my hand!Three years ago I lost money in my 401k $80,000 to be precise I liquidated my stock and bought gold and silver! At last check I earned my $80,000 plus a $35,000 profit!! There is going to to be a higher demand for gold w/ the market losses! Hang on cause its going to take off really soon!!!!! It may very well be the money in the future!!!

 

http://news.google.com/newspapers?i...&pg=6927,3612578&dq=japan+gold+undersea&hl=en

 

FIAT money was adopted for the purpose of fleecing the sheeple...
To say that we could never return to the gold standard is to give up hope.
If it truely is just not possible, they will need to come up with something.
Faith in FIAT is fading fast, and for good reason.

 

There is nothing inherently wrong with fiat currency. The problem arises when it is a debt-backed currency. The difference is that a fiat system run with complete integrity will work fine. A debt-backed fiat currency run with complete integrity will collapse over time anyway. Of course, if there is no integrity, both will collapse.

 

It would be interesting to know how much Gold, Bernanke owns.
I have heard he is heavily invested in the Canadian dollar.

 

That news item is from 12 years ago. The American researcher who is quoted as saying that the gold should be easy to mine is a vulcanologist, not a mining engineer. In the meantime, the price of gold has risen from a little less than $300 to nearly $1800.

Having a close relationship with the Japanese mining industry, I have heard various glowing reports of big, easy-to-mine undersea finds. But those reports are usually written by people who don't understand the basics of mining. Here is a Bloomberg Japan report from 2008 about Mitsubishi Mining teaming up with British companies to form a joint venture to mine undersea minerals. But the article states that "because there has been almost no development of undersea mining in the world, it is fraught with problems".

http://www.bloomberg.co.jp/apps/news?pid=infoseek_jp&sid=autR6xF8kcyo

Having discussed a similar find with a Japanese mining engineer a couple of months ago, it is apparent to me that the technology is still not developed enough to make mining these deposits an economically feasible undertaking.

 

Maybe fiat currency isn't the problem, but it seems like it helps enable the debt based system to exist. One of the major benefits of a metals based currency is if a nation goes into debt then there is that collateral which devalues the currency accordingly when the backing decreases. Since PM's can't be created out of thin air the physical supply can't be manipulated, so it has integrity built in. If it runs out I suppose it would still collapse, but at least we wouldn't be saddled with debt in the process, assuming lenders pay mind to how much backing exists and don't loan out more than they know can be paid back. I guess there is still a need for responsibility either way, but really if someone makes a risky loan they should be responsible if the risk blows up in their face.

 

I agree.

 

I agree as well, and this is where this whole mess started. The US government created Fannie and Freddie, and it was good FOR THE TIME. Both should have been spun off of the US a long time ago, but Congress didn't because they wanted to use them as ways to funnel money to groups they wanted to support.

I strongly agree that all lenders should have the risk on their shoulders, with no hope that anyone will ever bail them out if their decisions turn bad. This would put the necessary discipline in the market. However, have you noticed Fannie and Freddie are STILL government sponsored enterprises, even after the hundreds of billions they have cost us? The politicians want their little slush fund, and if it costs us another 100 billion in the future, they can just blame "wall street".

Not trying to be political, not stating parties, just the fact these GSE served a purpose when started, but should be private now and responsible for their own decisions.

Chris

 

Chris,
I guess they served a purpose at one time: Buying votes by allowing some people access to easy credit which was subsidized by the taxpayer?


I agree, of course, the mortgage market can be easily handled by the market. But this Country doesn't have a good track record of moving out of government programs.

BTW, Bretton Woods terminated the convertibility of the dollar to gold on August 15, 1971. Next Monday is the 40th anniversary.

 

Ok... lots of stuff i know is older than you are. but still the fact that a trillion dollars worth of it is lying down there puts a ceiling on the price.. at some price somebody will go get it.. this article is only one of many .. but it is the most current.. One article from the late 70's spoke of a gold nugget the size of a city block off the coast of Japan.. Again.. interesting but not related to what I said.

 

undersea oil exploration is impossible too.

 

http://af.reuters.com/article/commoditiesNews/idAFN1E7781P720110809

 

What year did Nixon have the gold reserve sale.. and when is Obama expected to do it again?

 

Agree. Fiat is not inherently evil. The problem is adding politicians to the mix...

Regards,

Bluesboy65

 

I don't know.. I'm not friking spongebob..I don't live at the bottom of the sea. I just want to know about flying eagle cents.

 

I'd like to know more about this "Close relationship with the Japanese mining industry"...