Oldtent Archives 2007 - 2008

The quote from Jeremiah 29:11 is the plan the lord has for us all, as long I as we( goldbugs as well as the rest of the people) give back our some of our bounty to others who are in need. We will be rewarded a hundred fold.

the hyperinflation/deflation argument isn’t that tough. the only recorded instances of hyperinflation was when governments could print endless amount of fiat backed by nothing. depression is caused by a recession in an asset based money system. when the presses are chained to gold or other finite resources, a finite amount of “money” can be created, even with the fractional reserve thing. deflation in a fiat system happens when leveraged assets lose value. buy a $250,000. house with -0- down expecting more inflation but the music stops and now the house is worth $200,000. buyers walk away and the lienholder is down $50,000. when 10,000 people walk away from a house, your are talking about severe losses to lenders which is not available immediately to loan out again. this is velocity reduction since the amount of the losses have evaporated fiat, temporarily. the system starts to break down because the fractional reserve thing works in reverse. a $50,000. loss means $500,000.less to loan out.

in a sound money program, no more “money” can be put into the system unless more gold is held in reserve. in a fiat system, when the lenders lose fiat, the government pumps more fiat into the system, the fractional reserve multiplies it and we go again, at much higher prices because the old fiat is still in the system. in a sound money system, it takes a while for the money to recycle thus keeping prices the same over long periods of time. if a shortage develops in some necessary non monetary resource,the prices of other resources must go down in a sound system. in a fiat system, resources still cycle in price but are continually rising because of the extra fiat introduced into the system over time.

the longer a fiat system operates, the faster the rise in prices because the % increase is on an ever rising amount of fiat. in a sound money system a price rise in one area must be offset in another since a finite amount of money is available.

the only way depressions can occur in a fiat system is when prices of leveraged assets are falling rapidly and causes the system to cascade down faster than the fiat can be printed and circulated. fiat systems continue only so long as the fiat can support the entire economy. sooner or later some people can’t keep up with the rising prices and living standards begin to fall or succeeding generations have a lower living standards than previous generations. at this point, the system is generally fragile and any problems require huge inputs of fiat to keep the system working. eventually, endless amount of fiat chasing finite hard resources is rejected as a medium of exchange and store of value.

the fiat environment described is here and now. the baby boomers have control of the fiat and finite resources and the following generation is doing the dirty work. the dollar has lost 95% of purchasing power since the gold standard was rejected. the gold standard guaranteed price stability and depressions. a fiat system guarantees price instability and inflation leading to eventual hyperinflation.

i agree we are currently experiencing deflation. the velocity of fiat has slowed considerably. if new fiat were not being pumped into the system, we would enter a depression. the mountain of fiat going into the system guarantees much higher inflation as it works through the system. the typical time lag for liquidity injections and interest rate changes is usually 90-180 days for the system to respond.

i know i sound like a broken record harping on the disappearance of physical from the retail system. stupid people didn’t cause the shortage. the next places they will go is the comex and other storage areas for physical. when that is unavailable, the only place left is gold in the ground. i still stand by my statements from months ago about the rotation of commodity prices. oil tripled its previous all time high, grains doubled or more the all time highs. the yen carry trade was far higher than anyone ever assumed. the cdo mess is still unraveling. currencies have unbelievable daily moves. gold is making new all time highs in some currencies. guess what happens when the dollar breaks.

just about the time john q public realizes he’s been duped and starts looking for ways to salvage his retirement and other assets, what form of gold will he buy? the physical will be long gone by then. i expect heavy delivery on the december futures contract which should clean up the last of the available physical. what do you think every stockbroker in the world will be pitching his customers? the only gold available will be gold in the ground.

in the investment world, everyone can be correct if the time factors are expanded or contracted. yes, we certainly have deflation today. what happens when that mountain of fiat works its way through the system? the break in 1929 tossed the whole world into depression because all the money was concentrated in strong hands and governments were powerless to “jump start” the economies because the presses were chained to gold. the “new deal” put a few bucks into the system, the fractional reserve multiplied it and presto, a savior was born. if a little money worked that well, what would a whole lot do? (wwll) things worked well until folks started showing up to trade in gold and silver certificates for the real thing. that was the beginning of the end we are witnessing now.

think back to the folks who have absorbed all the physical around the world. are they smart or stupid? act accordingly.

rno

I watched My Uncle suffer from MS, He felt He was a burden to His family..

so one Night ..  He drank as much pool acid as He could get down.

Needless to say, He ended up In Intensive care.. His lungs were Badly burned,

But He lived .. He had lost most of the use of His body. and later died.

during His last days, I used to read Him stories from the Bible,

tears would roll down His cheeks.

anyhow,  read Jeremiah 29:11 (My Favorite)

His Best, bug

No of course no one on the tent. This guy who was advertizing to do legal services of different sorts in Moline Illinois. He has one site up called postconvictionassociates.com I was helping someone with legal matter and found he was scamming people. Did some serious DD on this person. Found he was working out of three assumed names..that I know of. He was on parole for selling things illegaly before and attacked a withness against him. But he was doing this WHILE on parole. I was able to track down his x-parole officer and we had a talk. I also tracked down three other women. And on the BBB eight more people showed up. He would take the money and then basically run with it also keeping or throwing away people personal files about legal matters. I believe the parole office didn’t want to hear it because I copied and pasted a bunch of incrimating fraud sites he had up before he could delete them and was busey deleting things while I showed his parole officer. He didn’t want the evidence but said he’d pass it on. Im thinking sure he will and have to answer to why this happened while on his watch, not my purpose but to see the guy in jail and stopped. Two days later I called Moline police dept..first they heard of it and did want the evidence. The sites he frequented which I found and contacted did the same..in fact one of them sent me the tazer story tonight. When I told him Im going after him he said go ahead and try, it’s been tried before. Im assuming all the other people didn’t have enough info about him and police pushed it off as a civil matter instead of criminal so some put it on BBB site.I think that creep qualifies for the tazer, you think, but will have to get some extra long life batteries.

Im sorry to hear that Gracy filed on such a day. I know another guy who got multiple Sclerosis and his wife left him, on Christmas and he drove her to the airport to find out later to be with another man ..who could take care of her better. I just receiently found something promising with MS..a actual cure this time, it not only stops progression but heals neurons in the body..amazing..they may be well on their way. God bless Mr. Goldbug

[GOD] .. I hope I’m not that person..

but what is interesting, .. My X wife’s Nickname  is “Gracie”

She filed for Divorce on our anniversary.

and that is NO joke..

Thanks for the reply. I think that massive amounts of money getting into the hands of the public is a critical step for hyper-inflation to take off. I think it is an indicator as to what the future holds. That is why I laid out the scenario as a possible avenue for this to happen. One thing for sure……we are living in interesting times !! Best to you bro..

Dusty

And I know just the person I’d like to try it on too. Smile

Three women: one engaged, one married, and one a mistress, are
chatting about their relationships and decided to amaze their men by
surprising them wearing black leather bras, stiletto heels and a mask.
After a few days they meet up for lunch and compare notes…

The engaged woman: The other night when my boyfriend came over he
found me with a black leather bodice, stilettos and a mask. He saw me and
said, ‘You are the woman of my life. I love you.’ Then we made
love all night long.

The mistress: Me too! The other night I met my lover at his office and I
was wearing the leather bodice, heels, mask over my eyes and a
raincoat. When I opened the raincoat he didn’t say a word, but we had wild
s.e..x all night.

The married woman: When my husband came home I was wearing the leather
bodice, black stockings, stilettos and a mask over my eyes. As soon as he
came in the door and saw me he said,

‘What’s for dinner, Batman?’

Just read your refreshing and interesting posts. Thank you. I have been looking for some sort of dialogue on this issue; some have responded to my past posts, and I thank those, as I agree that a correct understanding of this particular fundamental is very important. It is good to see some new ideas in your posts. I hope to give some time tomorrow to some responses.

I had the honor of attending the 92nd birthday celebration of a grand gentleman tonight, and just returned.

Wishing you all the best,

TQ

Zimbabwe is an example of straight up hyperinflation IMO.  Really it depends on one’s definition of “depression” I guess.  Techinically I don’t see where you have have hyperinflation and there is not an associated economic calamity, so adding depression seems redundant. I guess we assume economic depressions can be caused by both a reduction and rapid increase in money supply.  Assuming that hyperinflationary depression has all the consequences of hyperinflation (inc. an increase in the velocity of money) and it’s the opposite of a deflationary depression monetarily speaking (where money supply and/or velocity plummet).  Right now it seems we are approaching a liquidity trap where most of the newly created money isn’t getting to the end consumer or small businesses.

HILARIOUS!!! …    laughed so hard..My stomach hurt.

i read some where that maybe greenspan did this all on purpose to return us to the gold standard..

i am finding it hard to believe he could have been so dumb

would any one care to venture an opinion on the subject

peace

#

banks collapsing left & right is NOT stagnation! .. hehe

The Economy is NOT stagnant, it’s Depressing! (Christmas retail will not Lie)

The Money supply is NOT stagnant . . it’s “PRINT BABY PRINT”

M3 .. To Da Moon!

A guy who purchased his lovely wife a pocket Taser for their anniversary
submitted this:

Last weekend I saw something at Larry’s Pistol & Pawn Shop that sparked my
interest. The occasion was our 15th anniversary and I was looking for a
little something extra for my wife Julie. What I came across was a
100,000-volt, pocket/purse- sized taser. The effects of the taser were
supposed to be short lived, with no long-term adverse affect on your
assailant, allowing her adequate time to retreat to safety….??

WAY TOO COOL! Long story short, I bought the device and brought it home.

I loaded two AAA batteries in the darn thing and pushed the button. Nothing!
I was disappointed. I learned, however, that if I pushed the button AND
pressed it against a metal surface at the same time; I’d get the blue arc of
electricity darting back and forth between the prongs. AWESOME!!!
Unfortunately, I have yet to explain to Julie what that burn spot is on the
face of her microwave.

Okay, so I was home alone with this new toy, thinking to myself that it
couldn’t be all that bad with only two triple-A batteries, right?

There I sat in my recliner, my cat Gracie looking on intently (trusting
little soul) while I was reading the directions and thinking that I really
needed to try this thing out on a flesh & blood moving target.

I must admit I thought about zapping Gracie (for a fraction of a second) and
thought better of it. She is such a sweet cat. But, if I was going to give
this thing to my wife to protect herself against a mugger, I did want some
assurance that it would work as advertised. Am I wrong?

So, there I sat in a pair of shorts and a tank top with my reading glasses
perched delicately on the bridge of my nose, directions in one hand, and
taser in another.

The directions said that a one-second burst would shock and disorient your
assailant; a two-second burst was supposed to cause muscle spasms and a
major loss of bodily control; a three-second burst would purportedly make
your assailant flop on the ground like a fish out of water. Any burst longer
than three seconds would be wasting the batteries. All the while I’m looking
at this little device measuring about 5′ long, less than 3/4 inch in
circumference; pretty cute really and (loaded with two itsy, bitsy triple-A
batteries) thinking to myself, ‘no possible way!’

What happened next is almost beyond description, but I’ll do my best…?

I’m sitting there a lone, Gracie looking on with her head cocked to one side
as to say, ‘don’t do it dipshit,’ reasoning that a one second burst from
such a tiny little ole thing couldn’t hurt all that bad. I decided to give
myself a one second burst just for heck of it. I touched the prongs to my
naked thigh, pushed the button, and . . . HOLY MOTHER OF GOD . .. WEAPONS OF
MASS DESTRUCTION . . WHAT THE HELL!!!

I’m pretty sure Jessie Ventura ran in through the side door, picked me up in
the recliner, then body slammed us both on the carpet, over and over and
over again. I vaguely recall waking up on my side in the fetal position,
with tears in my eyes, body soaking wet, both nipples on fire, testicles
nowhere to be found, with my left arm tucked under my body in the oddest
position, and tingling in my legs?

The cat was making meowing sounds I had never heard before, clinging to a
picture frame hanging above the fireplace, obviously in an atempt to avoid
getting slammed by my body flopping all over the living room.

Note: If you ever feel compelled to ‘mug’ yourself with a taser, one note of
caution: there is no such thing as a one second burst when you zap yourself!
You will not let go of that thing until it is dislodged from your hand by a
violent thrashing about on the floor. A three second burst would be
considered conservative?

SON-OF-A-BITCH, THAT HURT LIKE HELL!!!

A minute or so later (I can’t be sure, as time was a relative thing at that
point), I collected my wits (what little I had left), sat up and surveyed
the landscape. My bent reading glasses were on the mantel of the fireplace.
The recliner was upside down and about 8 feet or so from where it originally
was. My triceps, right thigh and both nipples were still twitching. My face
felt like it had been shot up with Novocaine, and my bottom lip weighed 88
lbs. I had no control over the drooling. Apparrently I shit myself, but was
too numb to know for sure and my sense of smell was gone. I saw a faint
smoke cloud above my head which I believe came from my hair. I’m still
looking for my nuts and I’m offering a significant reward for their safe
return!!

P. S. My wife loved the gift, and now regularly threatens me with it!

‘If you think Education is difficult, try being stupid.’