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[Leslie <cayadopi AT yahoo.com>]

http://financialsense.com/editorials/fekete/2008/1222.html
 
Fekete writes an update on the outlook for the value of gold.  This one is 
quite interesting as he talks about what happened to gold/silver during/after 
the collapse of the Western Roman Empire and the parallels to today.  History 
supports James' points a couple weeks ago that gold/silvere will have zero 
value - the pricing mechanism will be gone.
 
Fekete warns that gold in backwardation in Dec 2008, is warning, is a 
premonition of what is coming down the road.  He believes there will be 
repeated instances of backwardation, each more severe than the preceeding, as 
gold/silver go into hiding.  Hyperinflation and ultimately the collapse of 
the monetary system - a point where gold/silver will not have a value either, 
because those hoarding will not be willing to part with it, until such time 
as confidence in a fiat currency returns.  
 
After the collapse of the Roman Empire we went into the Dark Ages, where 
payment in gold/silver could not be taken for granted - gold/silver went into 
hiding never to re-emerge during the lifetime of the original holders.  
Fekete warns that the disappearance of gold/silver is ominous.
 
The brief history in the article and parallels to today are interesting.
 
My take on the practical side of the gold/silver debate would be to SHORT 
TERM term use gold/silver to off-set the hyperinflation phase of the 
collapsing dollar (and other currencies collapsing) to offset the decline in 
purchasing power, and exchange the gold for fiat currency in order to 
purchase LONG TERM term survival goods including anything that can produce of 
barter.
 
This would include survival books to pass on to the next generation(s). 
 
 
James, do you have any time line of your own in mind on when you think you 
might find yourself in a position to have to close your own front gates?
 
 
 



>From bobford79 AT yahoo.com  Tue Dec 23 11:04:34 2008
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Subject: Re: [Homestead] More on Gold
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Leslie, I believe you mis-read Dr. Fekets's intenet where he draws upon 
historical anaylis.  He wrote:

"............... causation goes in the opposite direction. The disappearance 
of gold and silver coins as a means of exchange was a long-drawn-out, 
cumulative event. In the end, no one was willing to exchange gold and silver 
coins for the debased coinage of the empire. At that point the empire was 
bankrupt; it could no longer pay the troops that defended its boundaries 
against the barbarians threatening with invasion.'......."

That is to say, that the gold and silver still retained their value , in his 
opinion; but ttheir was nothing left in the fiat system worth the trade value 
of the gold and silver.  And, if we are sitting and waiting for a return of 
the "dark ages", we desrve whatever we get, anyway.  Anyone who now believes 
things will become 'that bad', should be out with ropes, rifles, pitchforks, 
and whatever else will kill and maim those in power who would allow such a 
thing to occur.  Most of us think we are witnessing a calamity, but not 
anything close to a repeat of the 'Dark Ages'.

--------------------------------------------------------------------




--- On Tue, 12/23/08, Leslie <cayadopi AT yahoo.com> wrote:


>  
> Fekete writes an update on the outlook for the value of
> gold.  This one is quite interesting as he talks about what
> happened to gold/silver during/after the collapse of the
> Western Roman Empire and the parallels to today.  History
> supports James' points a couple weeks ago that
> gold/silvere will have zero value - the pricing mechanism
> will be gone.
>  
> Fekete warns that gold in backwardation in Dec 2008, is
> warning, is a premonition of what is coming down the road. 
> He believes there will be repeated instances of
> backwardation, each more severe than the preceeding, as
> gold/silver go into hiding.  Hyperinflation and ultimately
> the collapse of the monetary system - a point where
> gold/silver will not have a value either, because those
> hoarding will not be willing to part with it, until such
> time as confidence in a fiat currency returns.  
>  
> After the collapse of the Roman Empire we went into the
> Dark Ages, where payment in gold/silver could not be taken
> for granted - gold/silver went into hiding never to
> re-emerge during the lifetime of the original holders. 
> Fekete warns that the disappearance of gold/silver is
> ominous.
>  
>