Friday, January 30, 2015

I think everyone should own some physical metal

Gold has been around for 5,000 years. It’s money that doesn’t have any counterparty risk, in other words, there is no one promising the value of gold except the market itself. The market accepts gold for what it is. And, it is an important diversifier in everyone’s portfolio. So, I think everyone should own some physical metal.

- James Turk via Fin News

Sunday, January 25, 2015


GoldSeek Radio's Chris Waltzek talks to Christopher Duane, Founder of the Sons of Liberty Academy and James Turk of GoldMoney

Tuesday, January 20, 2015

There have been dozens and dozens of bank collapses throughout history

Gold is a physical, tangible asset you can put in your hand, and you can use it as a form of currency by paying for something - by putting it down on a shop counter and walking away with some good or service. The shopkeeper is paid.

National currencies, in contrast, are financial assets. They're not a tangible asset. They have no substance to them. They're a bookkeeping entry on the balance sheet of banks. And they're not an asset of the banks; they're a liability of the banks.

So a shopkeeper is not "paid" in the real meaning of that word until the currency received is spent on some tangible good or service. Until then, the shopkeeper has what is called "payment risk." If his bank becomes insolvent, he loses what he put in the bank, like what happened to bank depositors in Cyprus last year.

So when you take your dollars and deposit them in a bank, the bank has a liability to you to repay those dollars when you choose to spend them. But what you've done is you've given title to your dollars over to the banking system, and they can do with them whatever they want. They can lend those dollars to overleveraged mortgage brokers. They can lend those dollars to third-world countries.

And that's the basic problem that we're dealing with in the monetary system. It's a system that's called "fractional reserves." The banks don't really hold in reserve the dollars that they owe to their customers. And we saw the implications of what that meant in 2008 with Lehman Brothers. Before that, we saw it in 2007 with Northern Rock here in the U.K., where I live. It was a U.K. bank that went bankrupt and became insolvent.

We've seen this bank insolvency time and again throughout history. Back in the 1980s, a bank collapsed called Continental Illinois, which was one of the biggest banks in the U.S. Back in the 1970s, another big bank called Franklin National Bank collapsed. There have been dozens and dozens of bank collapses throughout history because of this fractional reserve system.

- James Turk via Seeking Alpha

Thursday, January 15, 2015

The Monetary System is Not Based on Tangible Assets Anymore

It's the belief that the national currency that people are using for transactions in commerce is money. But in fact, all of these currencies are not really money; they are a money substitute circulating in place of money.

Bubbles are characterized by having some conventional wisdom that everybody believes, but is flawed. When the bubble pops, they realize how wrong they were in believing it. So for example, in the dot-com bubble, everybody said profits don't matter, only market share does. When that bubble popped, everybody realized how wrong that was. Then in the housing bubble, everybody said housing prices only go up, and we know what happened there.

Well, in the money bubble, everybody thinks that what we're using in commerce is money. That's the conventional wisdom, and it's wrong because national currency is just a money substitute circulating in place of money. Money of course is gold or silver.

There's an important point to make here. Basically what I'm saying is that goods and services pay for goods and services. We individuals work in order to fulfill our needs and our wants. And that in effect is saying that the labor we provide buys goods and services. This same principle has also always applied to money. Miners work in order to produce gold and silver that they use to buy goods and services.

But the problem today is that the monetary system is not based on a tangible asset anymore; it's based on credit. It's just based on promises and currency that's created out of thin air.

- Source, James Turk via Seeking Alpha

Friday, January 9, 2015

Macleod pessimistic on all countries with fiat currencies

 In this video, Alasdair Macleod, founder and proprietor of is asked by James Turk, director of the GoldMoney Foundation, about the role governments play in crises. According to Alasdair governments got themselves in a cycle of money and credit production where they can't get off from. Central bankers and politicians make the wrong decisions. Statistics like GDP and inflation numbers are being misrepresented.