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Elaine, as I recall Ben Stein used to be one of Nixon's speechwriters. Enough said.

Mike W.

Thank you for this incredible article....you certainly have a way of cutting through the smoke and mirrors and getting right to the truth. Oh how I wish we had more of the truth these days. But that would not be convenient now, would it?
I do however take exception with your views on oil and gold. If the US$ buys less and less as you state, throwing us into a depression, (or rather a hyper inflationary depression) I do not think that oil usage would grind to a global halt. That is impossible. There are many countries that will continue to function even as we spiral nose first towards the dirt. And besides, I don't think you give enough credit to anyone not on Wall Street or in DC. There are thinking individuals on the planet...like you.
Additionally, if the use of oil were to drop off, the producers would make certain to adjust their production to compensate. Reality always lies somewhere in between the extremes.
For instance, things could not be much worse than in Iraq right now. Yet they have people working, driving, doing business. Not exactly a booming economy, but there is some commerce.Unless we dive into a form of complete self destruction overnight, I just can't see things ending as abruptly as you describe.
I do however also think that gold will rise for the very same reasons you say it will not. With the dollar buying less, why would we pay less for gold?? I don't get it. Also, with the drop off the cliff of the dollar, the former reserve currency of the world, the demand for anything non-$ will be tremendous.
Additionally, as the Western Central Banking establishment collapses, currencies in all those countries will be rejected for the same reasons the US$ is. People will no longer trust the paper of their own country. Again, a strong case for gold.
Also, the gold market itself is one of the smallest markets in the world. As things continue to deteriorate, the likelyhood that holders of gold will be willing to sell diminishes greatly causing a shortage of the metal for sale in the market. The higher prices for Gold also reinforce the notion of holding on to ones gold, not selling it. Especially as trust in the financial system disintegrates.
The oil producers will also have a thing or two to say about the price of gold. Remember that the only things keeping the current game going is a clever combination of lies, deception, ignorance and firepower.
Please do not mistake the paper gold comex market with the physical market itself. They are two completely different entities. One of the nastiest sandboxes in the world is the comex.
What say you?
ps. I heard Ben Stein not 3-4 weeks ago on NPR having a rather un-intelligent discussion about economics and the housing collapse. For someone who is supposed to be so smart, he sure was wrong just a few weeks ago. He continues to be.
Amazing how stupid people can do so well in this economy. Additonal proof of just how inbred our current economy is.

Elaine Supkis

Stein is all over the media BECAUSE he is stupid! Think they would talk to me?

As for physical gold: translating it into sales is very difficult if the government is hostile. Power grows out of the barrel of a gun and no one has more guns than governments Only when things go really bad and there are open insurrections does this fail or fall apart. Usually drug sellers/dealers like the ones in Afghanistan or Columbia, are the ones fighting the fiercest.

Gold holding works only if the government protects gold holders.


Hey, look! Senator Dodd Asks Paulson About Goldman Subprime Role

``It is in the best interest of resolving this crisis if Secretary Paulson, who was leading Goldman at the time in question, addresses the concerns raised by Mr. Stein's article,'' Dodd's statement said. ``Failure to do so may be cause for a more formal investigation.''

I wonder if he's got the cajones to actually make something of this?

Elaine Supkis

Yes, isn't it amazing? That stupid article, as I pointed out, schizophrenically suddenly lurches into my territory, calling for the arrest of the clowns who are destroying our economic system.


Gold goes up when the dollar goes down. They share an inversely proportional relationship with one another.

Ben Stein is an ardent republican who toes the party line. It's amazing that suppy-siders can't even get past their own BS to realize what a failure it is for this country.

Yah, deficits don't matter, trade deficits really don't matter and debt is good for the country, while savings is bad. And this trickle down economy BS. Man, this country is doomed.

Thanks for the info. It's a great read!

Elaine Supkis

Thanks, Ron. I'll see you behind Robin Hood's barn.

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