Maybe Ron Paul Was Right

Discussion in 'Economy' started by Paulie, May 5, 2008.

  1. Paulie
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    Paulie Platinum Member

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    The trend of the price of oil in Dollars and Euro, from 2001 to 2008. Notice that the price fluctuates in mirror fashion between both currencies, the only difference being the Euro (red) not being quite as inflated as the Dollar (blue) over that time. Otherwise, the Euro has been in lockstep with the dollar in terms of oil prices.

    Notice that the price of oil in gold (purple), however, has not changed much at all.

    [​IMG]



    When you factor that in, with this:

    [​IMG]

    [​IMG]

    You obviously see that oil and gold have trended the same.

    This is due to monetary devaluation, not demand, as many on here would like to espouse. The numbers don't lie. While demand obviously plays SOME role in it, it's not playing nearly the role that currency devaluation is playing. The supply and demand factor probably accounts for the subtle differences in the trends, ultimately, but it's obviously not CAUSING the trends.

    And a good article:

    http://www.thedailygreen.com/environmental-news/latest/oil-gold-commodities-47041507

     
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  2. Gungnir
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    Gungnir Member

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    Saying "Paul is right" is like saying "we should have let them build that extra nuclear reactor" in the middle of a brownout.

    Paul is one of the best remedies out there right now but he would have been much more useful if he was declared despot instead of declaring Bush Sr. President.

    More to that, Goldwater should have been elected.
     
  3. indago
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    indago VIP Member

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    Paulitics wrote:
    The more things change, the more they stay THE SAME
     
  4. Paulie
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    Paulie Platinum Member

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    No one wants to comment on it, Indago. It's China and India's fault for needing more oil. :rolleyes:

    No one wants to place the blame where it actually lies, regardless of how obvious it ought to be to them.

    But hey, let's just all hope John McCain FIXES it all for us!
     
  5. indago
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    indago VIP Member

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    Paulitics wrote:
    Actually, what's to comment? The boldfaced truth and facts are right there for all to see.
     
  6. Paulie
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    Paulie Platinum Member

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    Very true. Given the fact that many here would lose precious sleep if they didn't chime in with an opposing opinion on most subjects, I'd say the proverbial silence from the peanut gallery is deafening.
     
  7. Zoomie1980
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    Zoomie1980 Senior Member

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    The old addage that an ounce of Gold today buys about the same amount of bread an ounce of Gold bought 5000 years ago and will likely buy 5000 years from now.

    Meaning, it's a great protector of existing wealth but is a horrible vehicle of ACCUMULATION of wealth over time.
     
  8. Gunny
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    Gunny Gold Member

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    Maybe that means they agree? As was already posted, the facts are right there to see.

    Shall we go back on the gold standard?
     
  9. LOki
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    LOki The Yaweh of Mischief

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    What?

    Money is not wealth.
     
  10. Paulie
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    Paulie Platinum Member

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    Zoomie, this particular thread had nothing to do with investing in gold, especially for the purpose of accumulating wealth.

    The purpose was to show that our monetary policy has devalued our currency to the point of making oil, and the gasoline we buy to fuel our cars, cost more.

    Some think it's OPEC just gouging the market, some think it's the oil companies gouging the market...But in REALITY, it's the policy we've undertaken of inflating the money supply to no end and artificially tampering with interest rates.

    But given a choice of either holding $1,000 cash or owning $1,000 worth of gold...I'm taking the gold.

    You and I both know that facts being right there to see means nothing to some people. For instance, I'd love to see a liberal chime in here and say they agree with this thread. It would probably make my day.

    Gold standard? Not necessarily. But why not allow competing currencies and let the market decide which one makes the most sense? If a particular currency happens to have gold or silver backing, so be it. (EDIT: btw, I'd LOOOOVE to see a liberal chime in and agree with THAT. :rolleyes:)
     

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