Don’t Hedge Against Government Inflation

Saturday, May 22, 2010
Posted in category Inflation/Gold

You may watch or listen to Glenn Beck and know that Goldline International is a sponsor. Like every other gold seller, the company is trying to profit from the disastrous, inflationary policies of the US government. For those of us in the know – aren’t we all trying to do the same? A New York congressman, Democrat Anthony Weiner, is going after Glenn Beck and Goldline because …. because … well, read the quote from the story:

“But the facts are clear.  Goldline rips off consumers and Glenn Beck helps.”

In the report (on Weiner’s House website as a PDF), Weiner charges that Goldline “grossly overcharges” for coins and makes false claims about gold being a good investment. Goldline touts gold as a more solid investment in this economic climate.

The report says the gold retailer has entered “an unholy alliance with conservative pundits” — among them Beck, Fred Thompson, Dennis Miller, Mark Levin and Laura Ingraham — to “promote Goldline by playing off the fear of inflation.”

I suppose that when a hurricane is coming, one can promote window shutters, sand bags, and bottled water (no “price gouging,” of course) because the looming disaster is an act of nature. But when the oncoming slaughter is an act of government and its central planners, the freedom to voluntarily promote and transact need not apply because such actions may interfere with the planned actions of our government propagandists and the potential profits of the corporate state elite.

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17 Responses to Don’t Hedge Against Government Inflation

  1. Brandon says:

    May 22nd, 2010 at 11:27 am

    Congressman Weiner is a little weenie and a whiner!

  2. Iluvatar says:

    May 22nd, 2010 at 1:33 pm

    What little of Glenn that I have seen I have actually liked (I don’t watch much broadcast TV). But I also don’t buy from Goldline (suspicious of them). Try Dillon Gauge, Gainseville Coins instead (and, ALWAYS, ALWAYS take delivery & vault it yourself!). Those guys got some mean brick.

    Question in my mind though?

    In a normative deflation, does not gold actually lose value? Sort of lock step w/ an increasing dollar index? Or does it hold its value wrt the dollar? Anyone know?

    As an (~important) aside, I think a consensus out there is that we will entertain 6-18 months of deflation (contractions), then followed by a semi-massive – massive inflationary period of up to 5 years (5-20% — 20-100%).

    And it has more to do w/ the flexibilities of a nonconvetible floating exchange rate currency system (== ours, where we are our own banker and have sovereign control of our currency) as compared to a gold standard currency system.

    It is at least 1 reason why we have seen the strange (and scary) market decouplings of late.

    I am still struggling through the literature on currency systems, but I thought y’all might find this article interesting. You need to read it > 3 times to get what he is saying:

    Also, this video poses some very interesting ideas:

    As I learn more I’ll try pass it on (read: sneak it in, grin!).

    Have a good weekend! Gotta get to the lawn before it rains (mulch mower).

  3. Iluvatar says:

    May 22nd, 2010 at 1:37 pm

    Darn it! “nonconvetible ” is spelled nonconvertible. I wish I could type…

  4. M. Terry says:

    May 23rd, 2010 at 12:41 pm

    Iluvatar says: “Darn it!…I wish I could type…”

    Dont swet it. Remimber, tiping is somethig that requeirs loots of practise. Besides, loots of posturs hose spelling and ofen slauter the english language… except for me, of coarse.

    Oh yeah – I don’t have TV access in the house, but there’s little wonder that lefties are trying to take out neocon loudmouths in any manner possible. This is akin to suing Rush Limbaugh for selling Zicam because of the the possible side effects.

    Busybodies at work again…

  5. Jeannie Queenie says:

    May 23rd, 2010 at 2:10 pm
    is also a good dealer to buy from. Get a discount by sending a check rather than using a credit card. They’ll
    deliver via USPS or UPS/FedX. Like Iluv says, ‘take physical delivery yourself’.
    Make sure you put a note on your order that the drop off guy not just dump it on your porch, and that you want to physically receive it.
    Most my online orders are left on the front porch, but surely not bullion deliveries.
    With Golden Eagle you can also have a direct withdrawal from your checking acct. If you like dollar cost averaging your money is always available.

    Previously did business with Bullion Direct–Ordered many silver eagles and a few 1-oz Heraeus bars. Instead I got a few Eagles and way more Heraeus which there’s no way of knowing if shaving of edges took place!!
    Am very leery of ETF’s after reading this months ago about Morgan Stanley/paper silver:

    ‘JPMorgan Chase & Co. is also the custodian of the ETF, SLV, which is supposed to have up to 300 million ounces held by JP Morgan, which is also likely not there.
    JPMorgan likely engaged in a Ponzi scheme of selling silver to clients, without actually purchasing the real physical silver in the marketplace, which is a totally fraudulent and illegal activity—and is also likely engaged in sending false brokerage statements to account holders of unsecured bullion accounts, and thus, is likely engaged in both mail fraud and wire fraud.’

    In short, caveat emptor–I’d stick with the physical and mining stocks.
    I’ve enjoyed some good runs with single players…SLW, CoeurDE, Hecla mining stock.

    Wish I hadn’t dumped Freeport Moran Copper and Gold I had 12 years ago. That 6,000 then would now be over 25G!Jason Hommel’s silver stock report always has good reads on silver’s happenings. Check his good article on
    confiscation—-for those fearing big boots at your doorstep someday, he points out the real confiscation is inflation.

    I am surprised to hear that Glenn Beck would sully his persona via pitching for Goldline. Iluvatar, I think you are spot on with your take of massive inflation for a few years…won’t be pretty at all.

  6. Iluvatar says:

    May 23rd, 2010 at 2:34 pm

    Thought this was interesting…

  7. Iluvatar says:

    May 23rd, 2010 at 9:55 pm

    @ M Terry:

    OK! You kicked my butt!

    But then you and JQ are the supreme holders of comedy.

    ROCK ON!

    And live well brothers…

    A Bientot! (I am almost positive I got that wrong – help JQ?)

  8. Iluvatar says:

    May 23rd, 2010 at 10:49 pm

    @ JQ:

    The silver corruption (which my boss clued me into – thanks BV!!) slowly leaked out to the public – Good call!

    But I am wondering what the Gold manipulation truly is?

    Gold has done some very, very weird stuff recently; and it WAS NOT in tow w/ what it should do…

    Trust me they are manipulating these markets as well!

    My bet?

    They won’t be able to do that forever!!

    Fear will take over…

    & make it’s statement!

  9. Iluvatar says:

    May 23rd, 2010 at 10:50 pm

    & Oh, BV, thanks for not firing me yet… (my boss)

  10. Iluvatar says:

    May 23rd, 2010 at 11:16 pm

    @ JQ:

    Holding period for physical gold needs to be 20 years ++.

    O/w, you don’t play the game.

    It’s much longer than an equity trial (mutual funds or stocks directly) – where you put your skin in the game for 7-10 years.

    But at this point, almost everyone is saying to pull your skin OUT of the game (equities) AS WELL AS BONDS (due to inflation risks).

    But, in my view, we may do OK buy doing a throw towards short bonds w/ maturation dates <18 months, while continuing the PM build-up & launch-off.

    Actually silver was down to < $18/oz as of this past Friday. Us cowboys are sittin' on the fence gettin' ready to go do some "Bidness"!

    I am thinkin' of up'ing my SLV position by another 200 OZ (Gainseville's prices are starting to look sweet!).

    A Toute A L'Heure! Bon Soir!

  11. Iluvatar says:

    May 24th, 2010 at 1:09 am

    Uh oh, Karen warned us about this & I am still digesting it:

    You are a tattle-tale! (I am telling on you!)

    May take action on this one hoss!

    Bon nuit!

  12. Michael says:

    May 24th, 2010 at 8:55 am

    This is how it starts. Wait until it’s banned again.

  13. Jeannie Queenie says:

    May 25th, 2010 at 11:27 pm

    ILUVATAR, I learned something new today that I would like to share. Yes, we know that stock values must collapse, seeing as it is faux money as prop, and that there isn’t any possibility or force anywhere big enough to keep values propped up. “Gold will go up, as more people realize the value of scarce gold. And silver, even moreso.
    All the world’s silver mined is only worth $10 billion, most consumed by industry, leaving a scant $2 billion for investment per year. That’s $0.002 Trillion.

    The only way that a $28 trillion market, can flow into a $0.002 trillion market, is when the $28 trillion market collapses in value, and the tiny $0.002 trillion market explodes in value.
    Get silver. It’s a race against time. It’s a race against all the other baby boomers who bought into a stock mania that is destined to collapse against the harsh reality of historic and trusted values.” So just keep adding to that growing pile of silver, and stay away from the ETF’s and Morgan Stanley as per previous post about paper silver.

    A little over a hundred years ago in San Francisco when rules were not as abundant as today, you can view Market Street and how things were before the inception of the Federal Reserve/1913. Note in this video how without the state’s almighty interference, how the randomness of horses/buggies/autos and pedestrians are in a free flow…just like how the economy should be…sit back and enjoy this little bit of history with some music that puts you in another world…one which is far more sane and spirited.

    Entitled Air – La Femme D’Argent I think you’ll groove this one.

  14. Jeannie Queenie says:

    May 26th, 2010 at 12:21 am

    Iluv, ck out today’s WSJ on gold as the next bubble. This should answer some of the questions you were asking before.

    Once you’ve read that, check
    this next video leaving little to one’s imagination if a potential breakdown were to come about here, and around the globe.
    Imagine the panic if folks couldn’t get gasoline for their cars. food flying off the store shelves…stores closing, roaming gangs and some store keepers only taking metal like silver.
    Entitled The Economic Collapse-short film-pt 1

    You will know that you are on the right track by adding to your silver…rêves doux par la lune argentée

  15. Iluvatar says:

    May 26th, 2010 at 3:41 pm

    @ JQ & Michael:

    I guess my view is that the true purpose of taking SLV & GLD positions is to:

    1) dispense silver first when times are very bad, so that we can continue to eat (trust me, at that point, you have no other bills to pay), then

    2) dispense the gold next once all the silver is exhausted, so that we can…

    continue to eat!

    I call that grim…

  16. Iluvatar says:

    May 26th, 2010 at 8:29 pm

    @ JQ:

    “Air – La Femme D’Argent ”

    Hey, that was fabulous!

    I would have genred that as Jazz Fusion, btw (which is a genre I have some minor coverage into, but like very much).

    Let me know if the following rings a bell: Passport (German group, Klaus Doldinger is an excellent sax man), Pat Methany (et. al.), Billy Cobham, Chic Corea & Return to Forever, Camel, Gong (French band), Jean Luc Ponty, and Shadowfax just to name a few.

    Very, very good stuff.

    If you liked Air, you won’t go wrong on some of the softer stuff these guys do…

    Also, liked how those folks all seemed to manage getting around w/o 1 red light.

    As I watched that I was reminded of Brownian motion (following Bose-Einstein statistics).

    Thanks for the throttle down.

  17. Jeannie Queenie says:

    May 31st, 2010 at 1:29 am

    Iluvatar, Yes, Chick Corea/Spain was live at Montreux in 2004,
    The sax guy here plays a wicked hot sax at this concert w/CC.

    Loved this one with Klaus Doldinger – Autumn Leaves. He also plays a mean sax, and the pianist is terrific as well– It would be wonderful to get to Montreux this summer, July 2 – 17 to catch Herbie Hancock – The Imagine Project & Quincy Jones and the Global Gumbo All-Stars, but the price is out there, not to mention airfare to Switzerland. But much closer to me is Newport’s Jazz Festival this August. Both Chick Corea, Herbie Hancock, Wynton Marsalis will be there, and my old favorite, Ahmad Jamal (love his Poinciana—wore my record out long ago..would love to paint while listening to this—he is simply exquisite in Poinciana), from a concert in 2005, the old boy still has it bigtime I’d say..see at Thanks for a couple new names above to ck.

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