By Greg Hunter’s
A producer friend of mine from my investigative correspondent days at ABC used to say, “There are some people you just can’t help.” I think it meant that some people were in so deep, were so blind, or were just too block-headed to listen to reason that no matter what you did, or how hard you tried, you would not be able to help them. My friend is an excellent journalist and producer. He also has a law degree from Duke University. I have always been a lot more impressed with his degree than he was. He told me that was the first thing he learned in law school. He used to joke that he could have stopped right there and left school after learning the “There are some people you just can’t help” lesson.
I have always really appreciated the value of this phrase, and it was the first thing that came to mind when I received this recent email comment about the post “Gold is Money.” I am not going to disclose the name of the person because I do not want to embarrass her. So, let’s just call her Jane. Keep in mind that “Jane” is a mortgage banker in California with 25 years experience. Below is her email to me:
What can gold buy? A house, a car, food, clothes, a plane ticket, a day at the beach, a night at a Laker game? I can’t even pay my income taxes with it – because it’s not money – it’s a commodity.
My email reply is below:
I’ll bet you have shares of stock? If a broker actually delivered the shares, could you take those shares and buy “. . . A house, a car, food, clothes, a plane ticket, a day at the beach, a night at a Laker game? . . . pay . . . income taxes with it. . . .” You could not do that until you “cashed out.” That’s the same thing you would do with your gold. It is also legal to trade gold for goods and services, and yes you can even use it in a real estate transaction. So, yes!–“gold is money.” Gold has outperformed every other market in the last 10 years. If you invested $10,000 in the S&P 500 in 2000 you’d have a little over $8,000 now. If you invested in gold in 2000 you’d have more than$40,000 now.
You are assuming the currency you are using (the U.S.Dollar) is going to stay stabile. There is no way for the U.S. Dollar to avoid steep devaluation. Please don’t get wrapped up in this little back and forth. Diversify, and take out some protection. If I am wrong, it is impossible for an ounce of gold to turn into a share of AIG, Lehman, or Bear. Thank you for writing me. I hope I helped you in some small way. Thank you for reading USAWatchdog.com.
Not to be out done, Jane wrote me back:
I’ve been swing trading since 2002. When the mortgage meltdown began I took everything off the table and have dabbled only a little since. Some would argue I’m not making money but I didn’t lose a dime so I am better off for doing that. I want a sure thing. I was hot on gold at $350. All the ‘send in your old gold’ commercials told me it’s time had come and it was a sure thing. Once it hit $900 I was done – and very happy too! Yamana Gold at $6 was a sure thing a gamble $15 but again – very happy.
You can trade anything for anything but nobody does – obviously doing so would limit choices and opportunities. You are assuming the U.S. Dollar is doomed. All I’m saying is it ebbs and it flows – like real estate – like anything! I’ve been double short on the Euro for months. If gold mattered I wouldn’t making money shorting the Euro. Ben Bernanke recently testified saying something to the effect of ‘it’s just paper with ink on it.” And he’s right. I don’t know if understands that the government has to spend first so we have money to pay our taxes and that is why paper with ink on it is valuable but I do!
What is ‘steep’ devaluation? It’s senseless to plan my investing around those types of assumptions. All I care about is do I have enough currency to enjoy my life.
Thanks for the banter
This email exchange just goes to show you how some people are not grasping the enormous changes that are coming to America. Maybe I am not doing a good job of explaining the dire situation we face. Or maybe, “There are some people you just can’t help,” but I tried anyway.