Ron Paul's Risky and Foolish Financial Portfolio

[BakshisMouse]

Yes, about 21% of Rep. Paul’s holdings are in real estate and roughly 14% in cash. But he owns no bonds or bond funds and has only 0.1% in stock funds. Furthermore, the stock funds that Rep. Paul does own are all “short,” or make bets against, U.S. stocks. One is a “double inverse” fund that, on a daily basis, goes up twice as much as its stock benchmark goes down.

The remainder of Rep. Paul’s portfolio – fully 64% of his assets – is entirely in gold and silver mining stocks.
....
There are many possible doomsday scenarios for the U.S. economy and financial markets, explains Mr. Bernstein, and Rep. Paul’s portfolio protects against only one of them: unexpected inflation accompanied by a collapse in the value of the dollar. If deflation (to name one other possibility) occurs instead, “this portfolio is at great risk” because of its lack of bonds and high exposure to gold.

How Ron Paul Invests - Total Return - WSJ

I wonder if Ron Paul would change his economic philosophy if his portfolio dropped precipitously due to falling gold and silver prices and deflation. Some of you might point out that his portfolio has outperformed many other portfolios and indexes, but that is probably because the rise in gold prices over the last ten years. Paul's portfolio could take a heavy blow if the price of gold drops sharply like it has been doing recently.

I must say, I would gloat if those paranoid and ignorant goldbugs got their comeuppance for their arrogance.

 

[BakshisMouse]

I certainly wouldn't want a gold nut as president.

 

[ba1614]

Looks solid too me.

 

[Avorysuds]

IS Paul having problems? Who are you to tell him how to deal with his money anyways?

 

[KSoze]

Looks like to me he is just practicing what he preaches. It's better he had it in Gold than in the housing market and dollars.

 

[WatertheTree]

Yes, about 21% of Rep. Paul’s holdings are in real estate and roughly 14% in cash. But he owns no bonds or bond funds and has only 0.1% in stock funds. Furthermore, the stock funds that Rep. Paul does own are all “short,” or make bets against, U.S. stocks. One is a “double inverse” fund that, on a daily basis, goes up twice as much as its stock benchmark goes down.

The remainder of Rep. Paul’s portfolio – fully 64% of his assets – is entirely in gold and silver mining stocks.
....
There are many possible doomsday scenarios for the U.S. economy and financial markets, explains Mr. Bernstein, and Rep. Paul’s portfolio protects against only one of them: unexpected inflation accompanied by a collapse in the value of the dollar. If deflation (to name one other possibility) occurs instead, “this portfolio is at great risk” because of its lack of bonds and high exposure to gold.

How Ron Paul Invests - Total Return - WSJ

I wonder if Ron Paul would change his economic philosophy if his portfolio dropped precipitously due to falling gold and silver prices and deflation. Some of you might point out that his portfolio has outperformed many other portfolios and indexes, but that is probably because the rise in gold prices over the last ten years. Paul's portfolio could take a heavy blow if the price of gold drops sharply like it has been doing recently.

I must say, I would gloat if those paranoid and ignorant goldbugs got their comeuppance for their arrogance.

What I find funny is you are critical of him because he practices what he preaches. If we all would have listened Ron Paul when nixon pulled us off of the gold standard then we wouldnt see this mess.

HIS SUCCESS IN HIS GOLD INVESTMENTS IS EVIDENCE ENOUGH OFF THE DECAY OF THE DOLLAR. HIS GOLD ISNT INCREASING IN VALUE, THE VALUE OF THE DOLLAR IS GOING DOWN.

 

[Mad Scientist]

I wonder if Ron Paul would change his economic philosophy if his portfolio dropped precipitously due to falling gold and silver prices and deflation. Some of you might point out that his portfolio has outperformed many other portfolios and indexes, but that is probably because the rise in gold prices over the last ten years. Paul's portfolio could take a heavy blow if the price of gold drops sharply like it has been doing recently.

Well then in that case he would do like every other investor would do, switch to other investments. Where's the problem?

I must say, I would gloat if those paranoid and ignorant goldbugs got their comeuppance for their arrogance.

Happy that other people would lose their money?

I used to subscribe to WSJ but stopped after I realized they like only a few things:

1. Corporate America
2. Stocks
3. Illegal Aliens

Corporate America can do no wrong, you should support their stocks, and illegal alien slave labor is good for any business' bottom line. They always run stories that support those positions.

Supporting Gold and Silver takes money away from all the wonderful stocks and bonds that Wall Street pushes. But in reality the only people who benefit ar the brokers who make fees off the transactions.

Fees that have increased greatly since the The Fed has been printing money and handing it to banks.

What do you think the Banks are doing with all that money? Playing the stock market that's what.

So anyone who points out that the Fed policy of printing money should be stopped is attacked and smeared by the WSJ propagandists.

C'mon man, even Al Capone knew that the Stock Market was rigged and warned everyone to stay out of it.

 

[Mad Scientist]

Funny how people who invest in gold are called "Gold Bugs" like it's some sort of infestation.

But that asshole, White Shoe boy Bernanke, whose policies are causing the rise of Gold and Silver and their associated stocks get's no criticism at all.

Think about that.

 

[ba1614]

Yes, about 21% of Rep. Paul’s holdings are in real estate and roughly 14% in cash. But he owns no bonds or bond funds and has only 0.1% in stock funds. Furthermore, the stock funds that Rep. Paul does own are all “short,” or make bets against, U.S. stocks. One is a “double inverse” fund that, on a daily basis, goes up twice as much as its stock benchmark goes down.

The remainder of Rep. Paul’s portfolio – fully 64% of his assets – is entirely in gold and silver mining stocks.
....
There are many possible doomsday scenarios for the U.S. economy and financial markets, explains Mr. Bernstein, and Rep. Paul’s portfolio protects against only one of them: unexpected inflation accompanied by a collapse in the value of the dollar. If deflation (to name one other possibility) occurs instead, “this portfolio is at great risk” because of its lack of bonds and high exposure to gold.

How Ron Paul Invests - Total Return - WSJ

I wonder if Ron Paul would change his economic philosophy if his portfolio dropped precipitously due to falling gold and silver prices and deflation. Some of you might point out that his portfolio has outperformed many other portfolios and indexes, but that is probably because the rise in gold prices over the last ten years. Paul's portfolio could take a heavy blow if the price of gold drops sharply like it has been doing recently.

I must say, I would gloat if those paranoid and ignorant goldbugs got their comeuppance for their arrogance.

What I find funny is you are critical of him because he practices what he preaches. If we all would have listened Ron Paul when nixon pulled us off of the gold standard then we wouldnt see this mess.

HIS SUCCESS IN HIS GOLD INVESTMENTS IS EVIDENCE ENOUGH OFF THE DECAY OF THE DOLLAR. HIS GOLD ISNT INCREASING IN VALUE, THE VALUE OF THE DOLLAR IS GOING DOWN.

Man hindsight really is hindsight. I spent 50g on a parcel of land in Northern Ontario Canada about 20yrs ago, and it will pay off well if/when I decide to sell it, but had I spent that on gold instead!!! It was 300bucks an ounce then!!

 

[BakshisMouse]

Yes, about 21% of Rep. Paul’s holdings are in real estate and roughly 14% in cash. But he owns no bonds or bond funds and has only 0.1% in stock funds. Furthermore, the stock funds that Rep. Paul does own are all “short,” or make bets against, U.S. stocks. One is a “double inverse” fund that, on a daily basis, goes up twice as much as its stock benchmark goes down.

The remainder of Rep. Paul’s portfolio – fully 64% of his assets – is entirely in gold and silver mining stocks.
....
There are many possible doomsday scenarios for the U.S. economy and financial markets, explains Mr. Bernstein, and Rep. Paul’s portfolio protects against only one of them: unexpected inflation accompanied by a collapse in the value of the dollar. If deflation (to name one other possibility) occurs instead, “this portfolio is at great risk” because of its lack of bonds and high exposure to gold.

How Ron Paul Invests - Total Return - WSJ

I wonder if Ron Paul would change his economic philosophy if his portfolio dropped precipitously due to falling gold and silver prices and deflation. Some of you might point out that his portfolio has outperformed many other portfolios and indexes, but that is probably because the rise in gold prices over the last ten years. Paul's portfolio could take a heavy blow if the price of gold drops sharply like it has been doing recently.

I must say, I would gloat if those paranoid and ignorant goldbugs got their comeuppance for their arrogance.

What I find funny is you are critical of him because he practices what he preaches. If we all would have listened Ron Paul when nixon pulled us off of the gold standard then we wouldnt see this mess.

HIS SUCCESS IN HIS GOLD INVESTMENTS IS EVIDENCE ENOUGH OFF THE DECAY OF THE DOLLAR. HIS GOLD ISNT INCREASING IN VALUE, THE VALUE OF THE DOLLAR IS GOING DOWN.

Please. The classic gold standard hasn't been used since 1914, it would be impossible to put in use today. Moreover, everything isn't sunshine and rainbows under the gold standard.

The use of the gold standard creates short term price instability and costs society billions to produce gold for the monetary supply. Even Milton Friedman could see that.

Gold Standard: The Concise Encyclopedia of Economics | Library of Economics and Liberty

Or do you already know everything about the gold standard and still think it would be a good idea to adopt it again?

 

[BakshisMouse]

Funny how people who invest in gold are called "Gold Bugs" like it's some sort of infestation.

But that asshole, White Shoe boy Bernanke, whose policies are causing the rise of Gold and Silver and their associated stocks get's no criticism at all.

Think about that.

The price of gold has been rising for much longer than the time Ben Bernanke has been Chairman of the Federal Reserve. Outside of use in circuit boards and jewlry, what use does gold have? It's totally overvalued. And in case you didn't know, gold prices have been dropping sharply recently.

 

[ba1614]

Funny how people who invest in gold are called "Gold Bugs" like it's some sort of infestation.

But that asshole, White Shoe boy Bernanke, whose policies are causing the rise of Gold and Silver and their associated stocks get's no criticism at all.

Think about that.

The price of gold has been rising for much longer than the time Ben Bernanke has been Chairman of the Federal Reserve. Outside of use in circuit boards and jewlry, what use does gold have? It's totally overvalued. And in case you didn't know, gold prices have been dropping sharply recently.

Dropping sharply? It's up 200bucks in the last year and has settled in bouncing up and down from about 16-17 hundred, 16 being the low, and the "up 200" mark. I'll put that up against all most anything gong right now.

EDIT: yes you couple of smartasses I wrote "all most" instead of "almost" fuckoff and contest the numbers.

 

[WatertheTree]

How Ron Paul Invests - Total Return - WSJ

I wonder if Ron Paul would change his economic philosophy if his portfolio dropped precipitously due to falling gold and silver prices and deflation. Some of you might point out that his portfolio has outperformed many other portfolios and indexes, but that is probably because the rise in gold prices over the last ten years. Paul's portfolio could take a heavy blow if the price of gold drops sharply like it has been doing recently.

I must say, I would gloat if those paranoid and ignorant goldbugs got their comeuppance for their arrogance.

What I find funny is you are critical of him because he practices what he preaches. If we all would have listened Ron Paul when nixon pulled us off of the gold standard then we wouldnt see this mess.

HIS SUCCESS IN HIS GOLD INVESTMENTS IS EVIDENCE ENOUGH OFF THE DECAY OF THE DOLLAR. HIS GOLD ISNT INCREASING IN VALUE, THE VALUE OF THE DOLLAR IS GOING DOWN.

Please. The classic gold standard hasn't been used since 1914, it would be impossible to put in use today. Moreover, everything isn't sunshine and rainbows under the gold standard.

The use of the gold standard creates short term price instability and costs society billions to produce gold for the monetary supply. Even Milton Friedman could see that.

Gold Standard: The Concise Encyclopedia of Economics | Library of Economics and Liberty

Or do you already know everything about the gold standard and still think it would be a good idea to adopt it again?

I do not think the gold standard is the solution. I think the dollar is savable, but we need an amendment to the constitution that brings stability to the money supply by tying it to the population. No more fractional reserve system. No more central bank. The government should spend fresh dollars printed with zero interest, and then taxes cancel the transaction.

The gold standard is doable, contrary to myth that it cant be done. The problem I see with it is that gold is to limited, and to easily of a market for a few people to control. This was going on before central banking and all that mess, thats why we welcome a central bank.

 

[R.C. Christian]

Establishment folks are really starting to get worried about Ron. Interesting. It won't be long until they're calling for his death.

 

[WatertheTree]

Establishment folks are really starting to get worried about Ron. Interesting. It won't be long until they're calling for his death.

JFK was the last president to seriously attack the Federal Reserve.

 

[BakshisMouse]

What I find funny is you are critical of him because he practices what he preaches. If we all would have listened Ron Paul when nixon pulled us off of the gold standard then we wouldnt see this mess.

HIS SUCCESS IN HIS GOLD INVESTMENTS IS EVIDENCE ENOUGH OFF THE DECAY OF THE DOLLAR. HIS GOLD ISNT INCREASING IN VALUE, THE VALUE OF THE DOLLAR IS GOING DOWN.

Please. The classic gold standard hasn't been used since 1914, it would be impossible to put in use today. Moreover, everything isn't sunshine and rainbows under the gold standard.

The use of the gold standard creates short term price instability and costs society billions to produce gold for the monetary supply. Even Milton Friedman could see that.

Gold Standard: The Concise Encyclopedia of Economics | Library of Economics and Liberty

Or do you already know everything about the gold standard and still think it would be a good idea to adopt it again?

I do not think the gold standard is the solution. I think the dollar is savable, but we need an amendment to the constitution that brings stability to the money supply by tying it to the population. No more fractional reserve system. No more central bank. The government should spend fresh dollars printed with zero interest, and then taxes cancel the transaction.

The gold standard is doable, contrary to myth that it cant be done. The problem I see with it is that gold is to limited, and to easily of a market for a few people to control. This was going on before central banking and all that mess, thats why we welcome a central bank.

Ending the fractional reserve system would cripple a modern economy. Tell me, how would a mortage work if there was no fractional reserve system?

 

[BakshisMouse]

Establishment folks are really starting to get worried about Ron. Interesting. It won't be long until they're calling for his death.

The Paulettes are really starting to get more paranoid than usual. It won't be long until they withdraw from society altogether.

 

[WatertheTree]

Please. The classic gold standard hasn't been used since 1914, it would be impossible to put in use today. Moreover, everything isn't sunshine and rainbows under the gold standard.

The use of the gold standard creates short term price instability and costs society billions to produce gold for the monetary supply. Even Milton Friedman could see that.

Gold Standard: The Concise Encyclopedia of Economics | Library of Economics and Liberty

Or do you already know everything about the gold standard and still think it would be a good idea to adopt it again?

I do not think the gold standard is the solution. I think the dollar is savable, but we need an amendment to the constitution that brings stability to the money supply by tying it to the population. No more fractional reserve system. No more central bank. The government should spend fresh dollars printed with zero interest, and then taxes cancel the transaction.

The gold standard is doable, contrary to myth that it cant be done. The problem I see with it is that gold is to limited, and to easily of a market for a few people to control. This was going on before central banking and all that mess, thats why we welcome a central bank.

Ending the fractional reserve system would cripple a modern economy. Tell me, how would a mortage work if there was no fractional reserve system?

Say goodbye to the bubble, which is the point. People cant afford to live in America anymore because there is a huge government caused bubble in housing. Small business cant open or survive because of government caused bubbles in commercial real estate. Healthcare none can afford, most cant even afford insurance if they can get it. Agian, government caused bubble.

To answer your question economics is all about equilibrium, interest rates would rise, prices would fall, bubbles will burst, debt will be cleared. Eventually we will find equilibrium, which is a level where the economy functions according to free market principals instead of central planning and inflation.

 

[BakshisMouse]

I do not think the gold standard is the solution. I think the dollar is savable, but we need an amendment to the constitution that brings stability to the money supply by tying it to the population. No more fractional reserve system. No more central bank. The government should spend fresh dollars printed with zero interest, and then taxes cancel the transaction.

The gold standard is doable, contrary to myth that it cant be done. The problem I see with it is that gold is to limited, and to easily of a market for a few people to control. This was going on before central banking and all that mess, thats why we welcome a central bank.

Ending the fractional reserve system would cripple a modern economy. Tell me, how would a mortage work if there was no fractional reserve system?

Say goodbye to the bubble, which is the point. People cant afford to live in America anymore because there is a huge government caused bubble in housing. Small business cant open or survive because of government caused bubbles in commercial real estate. Healthcare none can afford, most cant even afford insurance if they can get it. Agian, government caused bubble.

To answer your question economics is all about equilibrium, interest rates would rise, prices would fall, bubbles will burst, debt will be cleared. Eventually we will find equilibrium, which is a level where the economy functions according to free market principals instead of central planning and inflation.

That still does not explain how banks will be able to lend money without a fractional reserve system.

 

[BakshisMouse]

Ending the fractional reserve system would cripple a modern economy. Tell me, how would a mortage work if there was no fractional reserve system?

Say goodbye to the bubble, which is the point. People cant afford to live in America anymore because there is a huge government caused bubble in housing. Small business cant open or survive because of government caused bubbles in commercial real estate. Healthcare none can afford, most cant even afford insurance if they can get it. Agian, government caused bubble.

To answer your question economics is all about equilibrium, interest rates would rise, prices would fall, bubbles will burst, debt will be cleared. Eventually we will find equilibrium, which is a level where the economy functions according to free market principals instead of central planning and inflation.

That still does not explain how banks will be able to lend money without a fractional reserve system.

addendum: Are you seriously thinking of a bank as just a bilding of brick and mortor that holds greenbacks? Is "money" to you just green paper?