[e-gold-list] Bear Stearns and other news

[Jim Davidson]

Dear Jim, 

> Also, does anyone else wonder what might have been if
> the law enforcement resources & investigatory zeal that
> were thrown at e-gold/OmniPay/Liberty Dollar/ etc. had
> instead been thrown at Bear Stearns?? 

Another interesting question, asked today by quite a few,
is what would have been the Bear Stearns situation if
they had their crisis without the Glass Steagall act
interfering with their ability to access Fed credit on
their own. Kudlow elaborates here:

http://article.nationalreview.com/?q=MmU3Y2IzNWZhM2QwMDdjMGE1YTgyZmY5YjIyZTgwYzM=

Not everything I've read today makes any sense.  Ambrose
Evans-Pritchard has occasional insight into economics, but
his St. Patrick's Day comments are nutty. Found here:
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/17/ccview117.xml

"I doubt the dollar can fall much further. What is it to
fall against? The spreading credit contagion will cause large
parts of the globe to downgrade in hot pursuit - starting with
Europe."

What an amazingly stupid thing to write.  Of course the dollar
can fall much further.  It can fall against all other currencies,
and against gold, silver, and platinum, to name a few things.
There is no upper bound to the amount of dollars the fed may
print.

As my friend Clyde Harrison said in 2002, "Fiat currencies don't
float.  They just sink at different rates."

Recently, I had occasion to write about 401Ks and IRAs here:
 http://www.vertoro.com/200K.htm

Which meshes fairly well with another comment I read today,
to the effect that in addition to being hedges against
inflation, gold and silver are hedges against counter-party
risk.  I think that is especially true of gold and silver
coins in my physical possession.  (Remember, Jim, when I could
redeem an ounce or so of e-gold for an actual one ounce gold
coin?  Gosh, I enjoyed that feature!)

And why would one worry about counter-parties?  Well, if
the banking system is experiencing something of a meltdown,
as it did in the 1930s and in other periods in history, how
long does one wish to be without access to funds?  And how
much is a stash of $100 bills going to be worth if there is
a hyperinflation?  Gold and silver are excellent hedges
against catastrophes of all sorts.  Like a fire extinguisher,
a good rifle, and a first aid kit, some gold and silver coins
in hand just make good sense.

Regards,

Jim
 http://vertoro.com/

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