what is the value of money?

anyone out there who still believes in fiat money and the ability of 'our' elites and their small dirty politicians to fix the current debt + paper money mess?

year of the dragon => year of the snake => gold standard is back :-)

you also do not think this paper money orgy could go much longer, do you? napoleon III neither does, he still sticks to his era 1854 :-)

friends, i've already written a lot about money and uploaded few nice pictures how money developed / changed as the times went on, even the relationship between money and happiness have been addressed by myself before (e.g. here), but you know what? there is one special reason i write this blog post today: the last week was a real blood bath for gold / silver bugs at the wall street, you know? so sad ;-(((

ok, let's sum up: the most valuable things on earth like health, happiness, freedom, love, home, family, joy, intact nature, etc we cant buy with money. of course, we can buy a doctor, sex, a house ... but this really important stuff ... hmmmmm ... well, i will better go to bed now and try to think about this kind of stuff later on ;-)

let's finish this blog post with few old, old, old quotes by voltaire, the french writer born november 21, 1694:

source: wikipedia

• don't think money does everything or you are going to end up doing everything for money
• when it's a question of money, everybody is of the same religion
• paper money eventually returns to its intrinsic value - zero
• in general, the art of government consists of taking as much money as possible from one class of citizens to give to another

voltaire spoke not only about money, my dears

• history in general is a collection of crimes, follies, and misfortunes among which we have now and then met with a few virtues and some happy times 
• history is filled with the sound of silken slippers going downstairs and wooden shoes coming up  
• history supplies little beyond a list of those who have accommodated themselves with the property of others 
• it is forbidden to kill; therefore all murderers are punished unless they kill in large numbers and to the sound of trumpets => what about the north atlantic terror organisation (NATO) and its crimes in iraq, afghanistan, libya, syria, ... ?

~~~

what about fair precious metal currencies? or any other fair currencies (e.g. backed by working hours or any other model based on work provided today and 'conserved' for a use later)? or what about a needs-based-economy completeley without money as the society provides food, clothes, roof above the head and so on for everyone but no one accumulates money ('wealth') in huge scale?

go gold bugs go and let's crash the powers of the fraudulent financial-military complex :-)

eof

my market outlook ...

folks, i do not think/feel all financial assets will crash this time as they did last october (stocks, interest rates, commodities, real estate, ...)
i think we will see an inflationary rally in commodities and the steady rising gold price remembers us about that inflationary scenario, doesn't it? (some older guys often mention the 70ties in that inflationary context => ?). in my opinion we will prolly also see the demise of the USD soon as the world will not for ever deliver products & services to usa in exchange for self-printed green papers ... btw, the €uro is not any better, so i further think there will be some next monetary reform which will re-animate gold/silver backed currency/currencies again.

bonds? i do not consider bonds in my 'universe' because they are too boring for me + my account is not properly capitalized for bond investments + in an inflationary scenario are bonds the worst solution possible, so why to think about them?
stocks? i'm very bullish on precious metals (pm), so i'm even more bullish on pm-stocks, but why? is it just because i'm already so heavily invested or is there any fundamental reason for further increase? i'm really not sure ... unlike the most other gold bugs i even do not consider gold @ $1.000 cheap (you still remember my gold-price-manipulation blog post?). of course, there is the huuuuuge danger of inflation where all hard assets should perform well against paper assets (cash, bonds, today's low interest rate bank accounts, ...), especially well should perform silver (poor man's gold ) ... what about general stock markets like djia, s&p 500, dax? hmmmm, on the one hand there will always be some hot stories/technologies out there which will perform phenomenally (at the moment prolly batteries, lithium, electric cars,

green energy + pm explorers) and on the other hand the major stock indexes contain also many commodity stocks (e.g. with alcoa, chevron + exxon is dow by 10% commodity related :), thus i do not think stocks will drop in price soooo dramatically as last october as there was no money in the markets at that time and many positions have been liquidated at any price because of margin calls etc.
otherwise, stock prices will reflect the development of corporate earnings in the long run, here i'm really sceptical and i think the recent upswing on the markets since march moved the prices far too high, esp. the financial stocks are IMHO sooooooo overvalued, but i wouldn't go short... we never know how much money will the governments and their small dirty central banks add to the system and who will directly receive that new money next time ... maybe the banks/insurances again?
ps: i always look for purchase opportunities in the stock markets and always have few stocks on my watch list where i only wait for some fresh money to buy them, but not now! i've invested the major part of my remaining funds before my summer vacation between may and august [by some coincidence of luck & fate it was just few weeks/months before mining stocks really took off :-)] as i've been waiting for the gold rally to come in august, but there is not a single 'i-really-want-to-buy' stock on my list now ... are stocks too expensive already? nevertheless i'm not going to sell any stocks soon anyway unless the 100-years-dow-gold-indicator tells me to do so, it's an (inflationary) bull market, i think ...
pps:

"No one can know the precise level of net debt at which the United States will lose its reputation but a few more years like this one and we will find out." — Warren Buffett

"Fiscally, we are in uncharted territory." — Warren Buffett, August 19, 2009

(illustration by lara tomlin)

addendum, november 16, 2009:

folks, i was sooooooo damned right on the markets this time and so is my gold + silver + commodities portfolio, huhuuuuu!

i'm not sure if it was just question of luck, but the commodity and stock markets tweeted that since weeks to me ~ they rose like hell no matter how disastrous the economy news was ... so i thougt the folks out there will buy anything at any price just to get rid of their paper money :-)

well, IMHO gold below $1,000 is history => WE ARE IN THE EARLY PHASE OF AN INFLATIONARY HARD ASSETS RALLY !!!

rich dad, poor dad (robert kiyosaki)

folks, i've just finished reading kiyosaki's rich dad, poor dad ......... it was GREAT !!!

when will YOU become financially independent? when will YOU escape from the rat race (work, taxes, bills, no money left, work, taxes, bills, ...)? AND WHEN ME ??? a good question, isn't it? ASAP is prolly the best answer for both of us, right?

some major issues:

• think, think, think!
• work 2 learn - do not work 4 money - let money work 4 u :-)
• JOB = just over broke
• earn more than u spend
• understand difference between assets & liabilities! btw, what category belongs your house/car to?
• BUY income generating ASSETS (= the only rule to riches :-)
• cashflow !!!
• buy luxuries last = buy luxuries when your assets column provided enough income to afford them
• reinvest earnings from your assets column into your assets column again ... income => more income ...
• the power of corporations ... start your own business (lower taxes, [business] expenses with pre-tax money, ...)
• choose yr friends carefully (insiders 4 stock market infos :)
• real estate? hmmmmmm ... should i take a class where i would learn how to buy real estate on foreclosures (buy from banks & attorneys instead of owners / brokers ?)
• make offers, someone may say "yes"
• learn from history
• do not say "i can't afford it!". say "how can i afford it?" instead
• do not play it safe! play it SMART !!!
• action is better than inaction => act now :-)
• and much more ...

of course, do not miss robert kiyosaki's formulation either :-) ... and pls skip the boring introduction, there is one single idea carried out over 5+ pages ...


btw, best luck for everyone who will try it :O)

addendum, video 2008, god's money (gold + silver) vs. men made money (paper), http://www.youtube.com/watch?v=zhzMl31fAw0

predictions 2014: http://www.youtube.com/watch?v=gmthQW554dw

last burt not least, a picture :-)

picture source: http://www.youtube.com/watch?v=gmthQW554dw

eof