Kucinich And Stephen Zarlenga Anti-Gold Drive

[S.Shorland]

[cubical]

Quite long... cliffs?

[matt0611]

Quite long... cliffs?

This.

[Roy L]

Quite long... cliffs?

If you read Zarlenga's book (the first 3/4 is highly recommended, the last 1/4 not so much), he makes a strong case that the total supply of gold is too small relative to the total economy, making it too easy for a small number of very wealthy people to gain control of enough gold to manipulate prices, interest rates, the directions of markets, etc. for their own profit, and to the detriment not only of other market players but the broader economy.

[cubical]

If you read Zarlenga's book (the first 3/4 is highly recommended, the last 1/4 not so much), he makes a strong case that the total supply of gold is too small relative to the total economy, making it too easy for a small number of very wealthy people to gain control of enough gold to manipulate prices, interest rates, the directions of markets, etc. for their own profit, and to the detriment not only of other market players but the broader economy.

This might make sense if the price of gold was static. As some major player tries to hoard the gold, it will skyrocket in value beyond its "true" value. The powers who try to buy up all the gold will in essence be selling off other at assets dirt cheap prices. When someone is hoarding money, it is good for everyone else, assuming he gets the money in an honest way(ie selling a product rather than theft or counterfeit).

[Roy L]

This might make sense if the price of gold was static.

No, it makes sense because it isn't.

As some major player tries to hoard the gold, it will skyrocket in value beyond its "true" value. The powers who try to buy up all the gold will in essence be selling off other at assets dirt cheap prices.

Nope. Buy on margin, kite the price, sell at a profit. You seem to have a remarkably naive view of how financial markets work.

When someone is hoarding money, it is good for everyone else, assuming he gets the money in an honest way(ie selling a product rather than theft or counterfeit).

Nope. Deflation is NOT good for everyone else.

[Lafayette]

If you read Zarlenga's book (the first 3/4 is highly recommended, the last 1/4 not so much), he makes a strong case that the total supply of gold is too small relative to the total economy, making it too easy for a small number of very wealthy people to gain control of enough gold to manipulate prices, interest rates, the directions of markets, etc. for their own profit, and to the detriment not only of other market players but the broader economy.

Question...

How is everything you just said in the above paragraph not all ready what we have under the fiat/central bank system?

[mczerone]

No, it makes sense because it isn't.

Nope. Buy on margin, kite the price, sell at a profit. You seem to have a remarkably naive view of how financial markets work.

Nope. Deflation is NOT good for everyone else.

Great arguments. I really see where cubical was wrong, and why you must be right.

I hope you enlighten us more with your impeccable reasoning and analysis.

[cubical]

No, it makes sense because it isn't.

Nope. Buy on margin, kite the price, sell at a profit. You seem to have a remarkably naive view of how financial markets work.

Nope. Deflation is NOT good for everyone else.

How would it make sense? As gold moves higher, the buyer(manipulator if you want to call him that) will have to give up more and more assets to keep finding new sellers.

If you are the only major buyer, you can't prop up the price, certainly not long enough to unload your position. Besides, you could attempt this with any asset, not just gold. It really has nothing to do with gold.

Wrong. Let's say Steve Jobs had become so rich that he owned 50% of the money in the United States. Then right before he passed away he said he was burning all his cash. You really believe this would not increase the purchasing power, thus be good, for EVERYONE else who held dollars?

[Roy L]

How is everything you just said in the above paragraph not all ready what we have under the fiat/central bank system?

The current system is a debt money system, not a fiat money system. A fiat money system is under the control of the money issuer, basically the government. The debt money system is under the control of bankers, who issue money by lending it. Much as I distrust government, I trust it more than I trust bankers.