Lincoln "Omar" Davis
Bakr ibn Abi Maryam reported that he heard the Messenger of Allah, may Allah
bless him and grant him peace, say: "A time is certainly coming over
mankind in which there will be nothing [left] which will be of use save a dinar
and a dirham."
(The Musnad of Imam Ahmad ibn Hanbal)
Islamic Dinar is a specific weight
of 22k gold equivalent to 4.25 grammes.
Islamic Dirham is a specific weight
of pure silver equivalent to 3.0 grammes.
is based on five: testifying that there is no god but Allah and that Muhammad is
the Messenger of Allah, establishing the prayer, paying the Zakat, the Hajj and
the fast of Ramadan."
cannot be paid with a promise of payment
can only be paid with tangible merchandise, called in Arabic 'ain.
It cannot be paid with a promise to pay or a debt, called in Arabic dayn.
the beginning the zakat was paid with dinars and dirhams. Most significant is
that the payment of zakat was never allowed in paper money during all the
ottoman period right until the fall of the Khalifate.
Muhammad Alish (1802-1881),
the great Maliki Qadi, said that if you were to pay zakat with paper-money only
its value as merchandise ('ayn), that is, its value as paper can be accepted.
Therefore, its nominal value is irrelevant as payment of zakat.
A WAKE-UP CALL
This is a special article that I am writing for the Holiday Season.
I have had several requests to write an article to help educate and
awaken our loved ones to the reality of the future. If I am
successful in bringing to words, the thoughts that go on in my head,
then I hope that this article will make the Holiday Season a little
less argumentative and a lot more friendly than some prior Holiday's
experienced by some families, including my own, when the subjects of
the economy, world and markets come up for conversation. After
serious thought, I realized that this is an article that I really
want to write. I just hope it turns out in the way that I imagined.
This is an article that all of you can e-mail or share directly
with those you really want to help but have never had the chance to
quiet, long enough, for them to hear and understand why you think
and feel the way you do. You and I both know that reaching these
people has been very difficult, if not impossible, and that you are
probably wasting your time but you are going to give it another shot
simply because you do care about them and know that one day they
will awaken to the future but you hope they will wake before it is
too late. These "less than totally informed people" have an
opportunity to invest in an industry that is in the infant stages of
what could be the greatest bull market in history. If just a
fraction of this bull market materializes, investors in these
markets have the opportunity to change the financial futures of
themselves and their families forever.
To understand the risks associated with the events of the future,
one does not have to be a rocket scientist. All one really needs to
do is spend a little time reading the many articles written by many
very welled qualified writers that are posted on many excellent
Most of you, like me, have paid a heavy price for trying to help
your family and friends. You have been labeled as negative,
un-American, off your rockers and simply not in touch with the rest
of the world. Well, the reality of the matter is, you are not any of
the above. It's time they wake up and realize that the ones who are
not in touch with reality is them and if they don't wake up soon,
they will find that one day, when they do wake up, all their hard
work and labor has been for nothing as it could evaporate overnight
when the time comes for the truth to be uncovered. If they don't
wake up they will also miss the greatest investment opportunity of a
lifetime. Unfortunately this is another problem you have in dealing
with the way you think; and that is the fact that if you are correct
in your assessment of the situation, you will profit handsomely by
having had the foresight to plan properly; something that they
refuse to recognize, and they will be seriously crippled in their
financial plans because they never took the time to prepare or
listen. It will be painful watching their hopes and dreams fade
simply because they never took the time to learn and properly
Now I am going to talk to "them;" the third party, the people
this article is being written for. You people who have caused great
concern and many sleepless nights for those who care about you and
have tried endlessly to reach you. I do not plan to sugarcoat what I
have to say because I know that very few of you will even read this
article from start to finish and many of those who do, still won't
get it. If I try to write everything that I feel and want you to
think about, this will be a long article and that is
counter-productive. So I hope to keep it shorter, than I should, and
still stir you to begin to question and seek knowledge of what the
true facts are and the long lasting effects they will have on your
I am going to enjoy writing this article because this is the one
time that none of you can interrupt me with the never ending phrase
of "you are always so negative and quite frankly I am tired of
listening to it" as a response to not listening and learning.
Instead maybe you will read and begin to comprehend the risks you
face by refusing to educate yourself to the risks associated with
being in the dark. You know that if you ever do listen and begin to
understand that the changes you would be forced to make in your own
lives would be totally against everything that you want to believe.
Do you think for one minute that we do not want to believe and have
faith in the same things that you believe? Do you know how many
times in the past I wish I could have been blind an ignorant to the
truth and reality to the facts of life? Do you know how many times
we have said to ourselves that "I wish I didn't know now all the
things I didn't know then."
For most of you, it is so much easier to believe that the people
leading this country really have your best interest at heart and
that one day you will wake up and everything will be just fine.
Well, I've got some real bad news for you; that is never going to
happen under the current paths and policies that our country is now
pursuing. One day you will wake up and realize that the only
interest they have is to gain or keep political power. This is
accomplished by trying to give everyone what they want without
having to pay for it.
Most of you don't realize that we have no choice in the way we
think. We never wanted to be labeled as un-American and negative. We
never wanted to get family upset at holiday gatherings. Believe it
or not we really do love you people and when family gatherings
turned into nightmares we are the ones who suffer the most because
we realize that the real arguments happen as a result of blind
loyalty and stubbornness on your part to believe what you are being
led to believe by those you trust. What you don't yet realize is the
fact that your blind loyalties are terribly misplaced. We would
truly love to believe the way you do but unfortunately we have taken
the time and made the effort to not give our loyalties blindly. We
have spent hours upon hours doing research in search of the truth.
This research continually feeds upon itself because the more
research we carry out the more we realized the depth of our
countries and the world's problems. We know for fact that things are
absolutely not the way we have been led to believe.
Remember when you got your teeth kicked in as the tech stock
bubble burst? Do you remember how you were so sure that things were
different this time and that people like Warren Buffett were "has
beens?" Do you remember how you bought into the game of "old
economy" versus the "new economy?" Have you even figured out that
these two economies were created so that justification could be
given to the lofty prices of the tech stocks. The reality of that
period of investing came down to the fact that there was absolutely
no justification that could be given to the lofty prices that these
stocks were trading. As a result the analysts created a totally
separate category called "new economy" by doing this; these stocks
would then fall into a category that could be justified for breaking
all the historic valuations accorded to stocks. It was a fantastic
game until the end came. When that happened they recreated another
category called "loser!"
Even today I am beginning to hear the words "new economy" again.
What do you think this should be telling you about traditional stock
and bond market investments? Do you think they could be approaching
the overvalued levels again? Of course you can always invest using
the "greater fool theory." This just means that there may be a
bigger fool, than you, to buy your stock from you at higher prices.
How do all you ex-owners of Kmart and Enron stock feel seeing how
you received nothing for your bankrupt company and those who wound
up with your assets are reaping the rewards of your failed
investments? Do you really want to be involved in a market that runs
over you like this?
How do all you investors feel when Elliott Spitzer finds wrong
doing in corporations and then settles with the criminals, collects
a ton of money for "his" cause and you receive nothing. Then to add
insult to injury, he allows the guilty parties to walk away
absolutely free without admitting or denying any guilt. What an
insult; Spitzer gets his and the guilty parties settles for a paltry
fine, which you shareholders pay for, and no one is held
accountable, except Martha Stewart, and I have yet to figure out
what she did wrong.
Enron collapsed as a result of derivatives and offshore
corporations. Our elected officials swore they would get to the
bottom of that mess and make changes that could keep it from ever
occurring again. So what happened? How come the politicians and
Spitzer have not forced other corporations to unwind their
financially destructive derivative positions and close their
offshore corporations? Did you ever wonder why they buried Anderson
as quickly as they did? Since Anderson was the accounting firm that
was largely responsible for setting up the fraudulent offshore
enterprises; do you think it might have been to cover up the paper
trail to all the other illegal offshore corporations?
Derivatives are financial weapons of mass destruction and the
brightest financial minds in the world do not have the answers on
how to keep our financial markets together when the derivatives
implode. Do not forget the failure of Long Term Capital Management
in 1998 and how that fiasco almost caused the financial markets to
fail. Today, Fannie Mae and Freddie Mac are possibly the largest
derivative abusers and they are in the news right now. These
derivative positions will encounter all kinds of problems as
interest rates rise. Rising interest rates will cause horrible
financial problems for the economy and the shareholders of their
companies. You should take every opportunity to learn as much as you
can about the risks associated with derivatives and rising interest
The saddest part to this story is the possibility that the state
of New York will eventually elect this man, Spitzer, as Governor of
New York. Now that is a crime that the residents of New York should
be held accountable for.
Have you ever taken the time to understand how the money was
created to propel this economy forward? Do you think that the
creation of debt is a healthy environment to build a strong and
How many of you have been conned into the debt game? How many of
you are in a situation where you now have accumulated debt up to
your eyeballs? Low interest rates have been a two sided event. On
one hand you have the benefits of refinancing your homes at
unbelievable low mortgage rates; on the other you have succumbed to
the drawdown of all equity from your homes to buy and live beyond
your means. The sad truth to this event is; as interest rates begin
to rise the equity that has been built up as a result of the low
interest rates will evaporate leaving only the debt behind. There is
no doubt that at some point in the future you will be underwater on
your home with your falling equity and rising interest rates will be
the culprit. Do you think that you will be able to sell your homes?
Down the road, do you think that you will be able to afford the new
increased mortgage payments on your home as a result of the higher
interest rates you will be forced to pay as a result of the
adjustable rate mortgage on your home?
These are questions you must deal with now because tomorrow may
be too late! For those of you who own interest only loans, you
better start praying now. With mortgage rates at all time low levels
how can you possibly opt for an adjustable rate loan or an interest
only loan when you have the opportunity to lock in long term
historically low interest rates and payments? As rates rise and you
are stuck owning the home you are now in, because you will have a
negative equity net worth, you will look back to this time and
wonder how you failed to lock in long term rates and how you opted
to forego traditional financing for the temporarily lower payment of
the arm and interest only loans, just so you could buy a house that
you could not afford in the first place. As rates rise the housing
market bubble, just like the NASDAQ bubble, will burst leaving
financial destruction behind!
How many of you seniors have pulled your money out of the safety
of cd's and short term governments to receive a higher rate of
return? I know that the returns that have been given for the last
two to three years have been horrible but I also know that rising
interest rates are just around the corner and rising interest rates
will destroy the value of your principle in these new long term
fixed investments. If you have invested in long term bonds, where
your capital is tied up for years, you need to be fully aware of the
risks that you face. The major risk you face is loss of principal in
the event rates rise and you need to cash in your long term bonds,
which have fallen in value, to reflect the higher interest rates
since you made your original investment. I won't even begin to talk
about the risks associated with Junk Bonds and Ginnie Mae's, because
that is a whole separate topic. If rates rise dramatically, these
long term bond investments may be worth a fraction of what you paid
for them in the event you need to sell and get your money before
Very few investors understand the circumstances surrounding the
high interest rates experienced in the late 70's and early 80's. The
important point to know and understand is that the circumstances
surrounding the events that gave us a 20.5% prime interest rate in
1980 are in place today and the magnitude of seriousness dwarfs the
events of the late 70's and early 80's. Debt is the most serious
event that a consumer, corporation and government must deal with in
securing the sound financial and social future of that entity.
Entities do not go broke when they have no debt. Debt is the cancer
that has destroyed every democratic society ever created. The
disastrous amounts of debt in our society today, on every level,
family, corporate and governmental are unprecedented in the history
of mankind. There is very little chance that most of this debt can
be collected. Our elected officials are doing everything in their
power to continue this debt buildup.
The sole purposes of several years' worth of falling and low
interest rates were to force savings out of traditional investments
in an attempt to resurrect the ".com boom" and to give added
liquidity and buying power to other industries, such as housing, in
an attempt to try and buy our way to prosperity. Our leaders have
done everything in their power to stimulate and resurrect the "Good
Old Days" but it seems that the only thing they have succeeded in
achieving is building an unprecedented amount of debt that
eventually will have to be paid back or defaulted upon. What type of
economy do you think we will have as we direct our family's
resources to paying off our debt? As more of our hard earned money
is directed to paying off our debt there is less to spend on the
luxury items, which we have become so accustomed to owning and
accumulating in the process of amassing the debt. Do you believe
that growth will be negatively affected by the amount of money being
used solely to pay down debt versus building our economy and our
There is no question that when the time comes to pay our debts
that growth in the economy will slow. When this time comes families
will be forced to make budget cuts and there are a lot of industries
that will suffer. The only long term solution is to pay off or pay
down debt and build savings. Investment capital for economic growth
should be fueled from savings rather than borrowing.
The important point that many of you do not realize is that the
price of running huge budget and trade deficits is higher interest
rates. This is not a complicated subject to understand as all one
has to recognize is the fact that there is only so much of a good
thing that anyone can want or have. Take our dollar for instance;
for years foreigners and foreign central banks have collected huge
quantities of our dollar. In the beginning this made sense as the
dollar had value to it and these foreigners enjoyed a huge trade
advantage in the currency game, by creating a strong dollar versus
their own currency. After years of excessively huge increases in
debt, both trade and budget, these foreigners are asking themselves
whether they need to accumulate any more dollars, particularly when
the dollar has fallen by more than 30% in the last two years. As a
result of the internal growth that they are experiencing within
their own countries, the necessity of a cheaper currency in relation
to the dollar is not as important as it once was. In short, the US
is on a path to being replaced, as the only or largest market for
foreign trade and goods. These foreign countries have taken a
beating by owning the dollar versus other options that are available
to them, and they are tired of seeing their wealth destroyed simply
because the US is completely out of control in its spending.
If our Government were a business would you want to loan it money
when their debt is running at unprecedented and out of control
levels with no end in sight? At what point do you begin to ask
yourself whether the US can pay its bills with anything other than
more "worth less paper?" Very few American people have asked
themselves this question; foreigners, who are getting creamed, by
owning our dollars, are asking themselves this question everyday. It
is only a matter of time before they abandon ownership of the dollar
for a less "printable" form of savings and reserves.
As these foreign holders, of our debt, begin to realize that they
no longer have a taste for funding the frivolous buying habits of
the American People they will then turn to other investments that
offer benefits to their own people and wealth that is not created by
a printing press. The only recourse our officials have will be to
enrich the paper return of holding our debt; this will be attempted
with rising interest rates. Initially this strategy may have limited
success but the fact remains that the only asset these foreign
countries have is easily created paper and the "Full Faith and
Credit" of you the US Citizen.
We know, in our own personal lives, the debt we have accumulated
is about all we can afford. Just imagine having to tack on another
$25,000 per person to satisfy the government's part of the debt that
YOU OWE! Are you thinking yet? This is a conservative figure that
does not include the Governments obligations to the future amounts
it "hopes" to be able to pay for programs like social security and
the social programs. This is serious business and measures must be
taken to change the path we are on. These foreign owners of our debt
have us at their mercy and they possess "financial weapons of mass
destruction" which they will use for their own benefit and at their
own time of choosing. Americans also have short memories and
therefore we forget that these foreign countries do not have
American interests at heart but their own interests at heart. Turn
the calendar back twenty-five years and remember the relationship we
had with these foreign countries. We may have short memories but do
When they decide they no longer want to own our debt they will
begin to spend those dollars to buy the natural resources to build
their own countries. I do not blame them in the least for thinking
of themselves. I believe they will buy the best companies in the
world to meet the supply shortfall they have in their own countries.
These foreigners own hundreds of billions of dollars and when they
make up their minds to liquidate their dollar positions we will have
some very serious problems in this country. Not only will they buy
our best companies and force interest rates to much higher levels,
but they will also force us to deal with inflation as we try to
absorb these dollars coming home.
This is a very complicated issue to understand but it is an issue
that you must begin to deal with or be swept away in the losses that
will result in the changing of the guard. The Asian Countries are
beginning to gain a taste of what Americans have taken for granted
for years and they want more. The Asians are beginning to awaken to
the 21st Century and this is creating a huge demand on the dwindling
supply of the world's natural resources. This will cause huge
natural resource shortages and inflation that will only worsen as
the years pass. The Chinese are coming and they want what you and I
have and there are 1,300,000,000 of them. Ten years from now it will
be the Chinese that are calling the shots and we may find ourselves
dancing to their tune. This does not have to be a bad thing if you
properly plan and prepare. You need to recognize that the
affordability of things like cheap sources of fuel is a thing of the
past. Fuel to run our economy, heat our homes and drive our cars is
going to be more expensive and the things we take for granted may
become luxury items down the road. Very few Americans have the
foresight to see and understand these unfolding events. The Chinese
are going to exert tremendous new demand on the world's natural
resources at a point in time where the supply of the world's natural
resources has peaked and begun to fall. I believe that five years
from now the US will be very sorry we ever outsourced a single job
I hope I have been able to generate a series of questions in your
head that propel you to seek answers. I hope you begin to listen to
those who are so desperately trying to reach you. You must realize
that they are only trying to help you. They have websites that they
can share with you where you will be able to more clearly understand
the reasons why we think the way we do. If you where to have an
understanding of the events that we feel are about to unfold then we
believe you may view things differently and adjust your investment
portfolios and your thinking accordingly.
You must begin to realize that a dollar bill is not a payment of
debt but an IOU. You must begin to realize that those people who
have accumulated the most dollar bills are beginning to take offense
to the fact that the US just prints more dollar bills as a means to
spend money it does not or will not have. They realize they must
liquidate these dollars to protect themselves against the further
printing, or devaluation, of their reserves. You must begin to
recognize that these people are going to want to convert those
dollar bills into an asset that cannot be duplicated by the simple
printing of paper. When you begin to realize that that IOU will
someday be converted into hard assets then you will begin to
understand why we think and feel the way we do.
When you understand that the printing of money is destroying the
system that we so strongly want to support, then you will be leading
the discussion and others will call you negative. It will be at this
point in time that you will fully understand how we feel and why we
think the way we do; welcome to the "Real World!"
Yes we are "gold bugs" and damned proud of it! We know that the
only true money is gold as it is the only form of money that is not
an IOU. Gold is pure wealth and it stands on its own. You cannot
print gold. To mine gold from the ground is a very expensive and
time consuming event. Gold must first be found, then proved out
through drilling, then put into production. To discover a body of
ore and turn it into a producing gold mine takes seven years on
average. In essence; what you have above ground is what you "got."
This is why gold maintains its value. From the beginning of the
monetary system gold has been used, universally, as money. An ounce
of gold is an ounce of gold; it stands on its own merit, it is not
an IOU or a piece of paper that can easily be duplicated.
Those people who fully understand this have been quietly
accumulating gold for years and they now have a great deal of it and
one day they know that paper will crash and gold will be back and
those who have the gold will make the rules.
I hope this article will be of help to all in understanding that
you need to be responsible for yourselves and the decisions you make
which will dictate your financial futures. You need to learn as much
as you can so that you will better understand how the future will
unfold. I would love to say that I have the answers, but I don't and
I have yet to meet anyone who does. I only know that exponentially
expanding our debt is the absolute worst thing that your families
and our nation can do in an attempt to resurrect a period of time
that was fueled, by the invention of the internet and Y2K, and not
to be repeated. You must begin to pay down your debts and start to
save. You must fuel growth from savings and not debt. I only hope it
is not too late.
This is a very serious subject and I hope I have been successful
in reaching, a few of you, to stir the desire to learn and educate
yourselves. Do not accept, blindly or as gospel, the explanations
that you are being given today by those who have a vested interest
in the outcomes they hope to achieve, by encouraging and practicing
the worst of unsound financial practices available to man. As money
dries up for all the "free-be" programs of the future, you will
recognize that you are responsible for the poor decisions you make
along the way. The time will come where the topics, I have, just
touched upon here, will become painfully and blatantly obvious to
all; the only question you need to answer for yourself is the
question of whether you will be a survivor or a victim. You are the
only one who can decipher the outcome to this question; at that
point in time you will have only yourself to blame for not taking
the time to educate yourself to the truth.
For those of you on my e-mail list I am sorry that I have not
sent out an article recently. I have been very busy. I believe I
will have some very interesting surprises and information to share.
I have a couple of companies that have been brought to my attention
that I am currently researching and I feel hold great promise. I
hope to have a complete article for you shortly after the beginning
of the year. I am very excited about what I am working on. For those
of you not on my e-mail list there is room as I am completely up to
date and can accommodate new subscribers. You can get on my e-mail
list, at no charge, by responding to the e-mail address below.
I wish all of you a very Merry Christmas and a Happy New Year. I
hope the future brings great happiness and prosperity.
26 December 2004
October 3, 1849 issue of The Bradford
Reporter, of Towanda, Pennsylvania.
By E. mason
Ah, little gold dollar, republican name,
Let peace be thy motto, and freedom thy fame;
may all use thee kindly and not hide thy face
Like misers and bankers in some lonely place,
But gain thee by labor or calling that's just,
And part with thee freely whenever they must;
Let labor's adore thee as both kind and civil,
Though bankers may make thee the root of all evil.
''Twas labor that caus'd thee to leave the gold mine
''Twas labor that made thee in splendor to shine,
''Twas labor that coin'd thee and fashion'd the mold
To shape thee so nicely a dollar of gold.
Since dollars and labor are nearly allied
In payment for labor they should be applied;
And all who will labor six days out of' seven,
Gold dollars in payment should always be given.
'Tis cheating of' labor when misers do hold
And store up so useless those dollars of' gold;
'Tis knavery that bankers should keep them in gabs,
And substitute for them a vile trash of rags;
A bill made of' paper, pure gold to alloy,
To build up the rich and the poor to destroy.
Unknown to our fathers who fought for our freedom,
Forbid it ye younger who doth now succeed them.
Arise then ye freemen, use liberty's hand
And drive this vile paper from liberty's land,
And let the gold dollar be coin for the poor
And circulate freely to every man's door,
Awake up to freedom and not be controll'd,
Submit not to bankers to pocket your gold.
Put down the whole system of legalized knaving
And down with the brokers who now live by shaving.
Now look about the country and see those that shirk
Too idle to labor, too lazy to work,
Bank bills are their hobby, they live at their ease,
And make a new issue whenever they please;
They sport on the inter'st of' bills they have lent,
Whose capital value is not worth a cent.
And cheating so common, the nicest inspector
Is forced to keep by him a bank note detector.
Then freemen use wisdom, be free when you can
Drive all the small paper from liberty's land,
Send back to the bankers all notes under tens,
And draw back the specie to make you amends;
And henceforth refusing this paper disgrace,
Gold dollars and silver will soon take their place.
Our country will stand on a footing more civil,
And freemen rejoice at the downfall of' evil.
"The Possession of Gold
has ruined fewer men than the Lack of It."
Thomas Bailey Aldrich
"The desire for gold is the most universal
and deeply rooted commercial instinct of the human race."
Gerald M. Loeb
"Gold was not selected arbitrarily by governments to be the monetary
standard. Gold had developed for many centuries on the free market as the
best money; as the commodity providing the most stable and desirable monetary
Murray N. Rothbard
"Even during the period when Rome lost much of her ancient prestige,
an Indian traveler observed that trade all over the world was operated with
the aid of Roman gold coins which were accepted and admired everywhere."
"The history of fiat money is little more than a register of monetary
follies and inflations. Our present age merely affords another entry in this
Hans F. Sennholz
"As fewer and fewer people have confidence in paper as a store of
value, the price of gold will continue to rise."
Jerome F. Smith
"Those entrapped by the herd instinct are drowned in the deluges
of history. But there are always the few who observe, reason, and take
precautions, and thus escape the flood. For these few gold has been the asset
of last resort."
Antony C. Sutton
"For more than two thousand years gold's natural qualities made it
man's universal medium of exchange. In contrast to political money, gold
is honest money that survived the ages and will live on long after the political
fiats of today have gone the way of all paper."
Hans F. Sennholz
"When paper money systems begin to crack at the seams, the run to
gold could be explosive."
"In a country whose currency is not convertible into gold, inflation
leads to its continuous devaluation in terms of foreign currencies."
Michael A. Heilperin
"Until government administrators can so identify the interests of
government with those of the people and refrain from defrauding the masses
through the device of currency depreciation for the sake of remaining in
office, the wiser ones will prefer to keep as much of their wealth in the
most stable and marketable forms possible - forms which only the precious
"Gold would have value if for no other reason than that it enables
a citizen to fashion his financial escape from the state."
William F. Rickenbacker
"America today has insufficient savings to finance both crucial
investment and its consumption of imports."
James Dale Davidson
"We need only take our heads out of the sand to see clearly that
interventionism not only has failed to provide the promised
something-for-nothing, but has led to all sorts of undesirable consequences.
Indeed, many are just beginning to realize that we are moving towards disaster
even though we have been on a wrong heading for decades."
"Do the American voters know that the unprecedented improvement in
their standard of living that the last hundred years brought was the result
of the steady rise in the per-head quota of capital invested? Do they realize
that every measure leading to capital decumulation jeopardizes their prosperity?"
Ludwig von Mises
"The dollar will be wiped out."
Dr. Franz Pick
"The way I see it, gold is headed over $1000 an ounce, probably much
higher. At anywhere near current prices, it's the lowest risk, highest potential
investment I can think of."
"In the long run, the gold price has to go up in relation to paper
money. There is no other way. To what price, that depends on the scale of
the inflation - and we know that inflation will continue."
Nicholas L. Deak
"Gold bears the confidence of the world's millions, who value it
far above the promises of politicians, far above the unbacked paper issued
by governments as money substitutes. It has been that way through all recorded
history. There is no reason to believe it will lose the confidence of people
in the future."
Oakley R. Bramble
"In the end, more than they wanted freedom, they wanted security."
"The paper standard is self-destructive."
Hans F. Sennholz
"With the exception only of the period of the gold standard, practically
all governments of history have used their exclusive power to issue money
to defraud and plunder the people."
F.A. von Hayak
"The fate of the nation and the fate of the currency are one and
Dr. Franz Pick
"The history of paper money is an account of abuse, mismanagement,
and financial disaster."
Richard M. Ebeling
"The first requisite of a sound monetary system is that it put the
least possible power over the quantity or quality of money in the hands of
"Whom the gods would destroy, they first subsidize."
"All of the government's monetary, economic and political power,
as well as its extensive propaganda machinery, will be enlisted in a constant
battle to drive down the price of gold - but in the absence of any fundamental
change in the nation's monetary, fiscal, and economic direction, simply regard
any major retreat in the price of gold as an unexpected buying opportunity."
Irwin A. Schiff
"If ever there was an area in which to do the exact opposite of that
which government and the media urge you to do, that area is the purchasing
"Were we to be directed from Washington when to sow and when to reap,
we should soon want bread."
"The truth is that capitalism has not only multiplied population
figures, but at the same time, improved the people's standard of living in
an unprecedented way. Neither economic thinking nor historical experience
suggest that any other social system could be as beneficial to the masses
as capitalism. The results speak for themselves. The market economy needs
no apologists and propagandists. It can apply to itself the words of Sir
Christopher Wren's epitaph in St. Paul's: 'Si monumentum requiris, circumspice.'
(If you seek his monument, look around.)"
Ludwig von Mises
"We are in a world of irredeemable paper money - a state of affairs
unprecedented in history."
"Public works are not accomplished by the miraculous power of a magic
wand. They are paid for by funds taken away from the citizens."
Ludwig von Mises
"No other commodity enjoys as much universal acceptability and
marketability as gold."
Hans F. Sennholz
"Of all the contrivances for cheating the laboring classes of mankind,
none has been more effective than that which deludes them with paper money."
"If you don't trust gold, do you trust the logic of taking a beautiful
pine tree, worth about $4,000 - $5,000, cutting it up, turning it into pulp
and then paper, putting some ink on it and then calling it one billion dollars?"
Kenneth J. Gerbino
"It is important to remember that government interference always
means either violent action or the threat of such action.....taxes are paid
because the taxpayers are afraid of offering resistance to the tax gatherers.
They know that any disobedience or resistance is hopeless. As long as this
is the state of affairs, the government is able to collect the money that
it wants to spend. Government is in the last resort the employer of armed
men, of policemen, gendarmes, soldiers, prison guards, and hangmen. The essential
feature of government is the enforcement of its decrees by beating, killing,
and imprisoning. Those who are asking for more government interference are
asking ultimately for more compulsion and less freedom."
Ludwig von Mises
"Borrowers will default. Markets will collapse. Gold (the ultimate
form of safe money) will skyrocket."
"The international monetary order is more precarious by far today
than it was in 1929. Then, gold was international money, incorruptible,
unmanageable, and unchangeable. Today, the U.S. dollar serves as the
international medium of exchange, managed by Washington politicians and Federal
Reserve officials, manipulated from day to day, and serving political goals
and ambitions. This difference alone sounds the alarm to all perceptive
Hans F. Sennholz
"Deficit spending is simply a scheme for the 'hidden' confiscation
of wealth. Gold stands in the way of this insidious process. It stands as
a protector of property rights."
"Politicians can't give us anything without depriving us of something
else. Government is not a god. Every dime they spend must first be taken
from someone else."
"The gold standard, in one form or another, will prevail long after
the present rash of national fiats is forgotten or remembered only in currency
Hans F. Sennholz
"Increasingly, the wealth of the modern world has come to be represented
by financial assets rather than real assets, and this to me is a very unhealthy
situation, because financial assets are inherently unstable. Financial assets
(currencies, bonds, mortgages, stocks, bank credit, etc.) can be quickly
and violently reduced in value, or destroyed completely by either inflation
Donald J. Hoppe
"It is a socialist idea that making profits is a vice. I consider
that the real vice is making losses."
"All previous attempts to base money solely on intangibles such as
credit or government edict or fiat have ended in inflationary panic and
"There can be no other criterion, no other standard than gold. Yes,
gold which never changes, which can be shaped into ingots, bars, coins, which
has no nationality and which is eternally and universally accepted as the
unalterable fiduciary value par excellence."
Charles De Gaulle
"Betting against gold is the same as betting on governments. He who
bets on governments and government money bets against 6,000 years of recorded
"Gold is forever. It is beautiful, useful, and never wears out. Small
wonder that gold has been prized over all else, in all ages, as a store of
value that will survive the travails of life and the ravages of time."
"The proper and limited use of government is to invoke a common justice
and keep the peace - and that is all."
"Gold is not going to fade away and just become another useful metal."
"Never have the world's moneys been so long cut off from their metallic
Murray M. Rothbard
"The gold standard sooner or later will return with the force and
inevitability of natural law, for it is the money of freedom and honesty."
Hans F. Sennholz
"Every individual is a potential gold buyer, although he may not
need the gold. It may be added to the store of personal wealth, and passed
from generation to generation as an object of family wealth. There is no
other economic good as marketable as gold."
Hans F. Sennholz
"To prefer paper to gold is to prefer high risk to lower risk,
instability to stability, inflation to steady long term values, a system
of very low grade performance to a system of higher, though not perfect
"Start now buying gold coins, any kind, and hoarding them."
Dr. John L. King
"The gold standard makes the money's purchasing power independent
of the changing, ambitions and doctrines of political parties and pressure
groups. This is not a defect of the gold standard; it is its main excellence."
Ludwig von Mises
"Place 5 percent to 10 percent of your total assets in gold bullion
and selected gold and silver coins. No one knows with certainty whether the
coming depression will be inflationary or deflationary."
James Dale Davidson
"The standard of living of the common man is higher in those countries
which have the greatest number of wealthy entrepreneurs."
Ludwig von Mises
"...there seems to be a correlation between the intensity of the
official attacks on gold and the severity of monetary crises."
Hans F. Sennholz
"I see a great future for gold and silver coins as the currency people
may increasingly turn to when paper currencies begin to disintegrate."
Murray M. Rothbard
"Nothing beats a little cash in a bear market, of course, and the
oldest form of cash is gold."
"Gold is as steady as a rock, a standardbearer by which all currencies
can be accurately measured."
"Buy gold and sit on it. That is the key to success."
Dr. Franz Pick
"Whenever an overall breakdown of a monetary or financial system
occurs, return to gold always restores order, revives confidence and brings
"The possibility of a discriminatory capital-gains tax on gold 'profits,'
or even of outright confiscation, cannot be wholly dismissed. We must remember
that in 1933, when private citizens began to exercise their clear legal right
to convert their Federal Reserve notes and gold certificates into gold, President
Franklin D. Roosevelt suspended the conversion, ordered the citizens to exchange
their gold for paper money, and made it illegal for private citizens to hold
or own gold. In other words, the government not only broke its solemn and
explicit pledge to convert its notes into gold on demand, but treated the
holder (and dupe) who had taken the pledge seriously as the real culprit."
"The authorities in the United States confiscated private gold holdings
in the Depression of the 1930's. They may seek to do so again in the Depression
of the 1990's."
James Dale Davidson and Lord William Rees-Mogg
"From a strictly economic point of view, buying gold in a major inflation
and holding it probably presents the least risk of capital loss of any investment
"An ounce of gold is an ounce of gold, whether it consists of guineas,
sovereigns or eagles."
Hans F. Sennholz
"Regardless of the dollar price involved, one ounce of gold would
purchase a good-quality man's suit at the conclusion of the Revolutionary
War, the Civil War, the presidency of Franklin Roosevelt, and today."
Peter A. Burshre
"When you buy gold equities you're buying gold that hasn't yet been
mined. Making an astute investment will demand an understanding not only
of the forces that drive gold prices but also a grasp of the workings of
the stock market and the fundamentals of the stock - the company's reserves,
production costs, earnings, dividends and management."
"The great merit of gold is precisely that it is scarce; that its
quantity is limited by nature; that it is costly to discover, to mine, and
to process; and that it cannot be created by political fiat or caprice."
"As the prosperity of the nation and the height of wage rates depend
on a continual increase in the capital invested in its plants, mines and
farms, it is one of the foremost tasks of good government to remove all obstacles
that hinder the accumulation and investment of new capital."
Ludwig von Mises
"It is the greenback which is unstable, and not bullion."
Dr. Franz Pick
"Gold will be around, gold will be money when the dollar and the
euro and the yuan and the ringgitt are mere memories."
"Civilization can only revive when there shall come into being in
a number of individuals a new tone of mind independent of the one prevalent
among the crowd and in opposition to it. A new public opinion must be created
privately and unobtrusively. The existing one is maintained by the press,
by propaganda, by organization, and by financial influences which are at
its disposal. The unnatural way of spreading ideas must be opposed by the
natural one, which goes from man to man and relies solely on the truth of
the thoughts and the hearer's receptiveness of new truth."
"In brief, the jig is about up and painless extrication from our
predicament just isn't going to be possible."
Alfred A. Malabre, Jr.
"How rare is gold? If you could gather together all the gold mined
in recorded history, melt it down, and pour it into one giant cube, it would
measure only about eighteen yards across! That's all the gold owned by every
government on earth, plus all the gold in private hands, all the gold in
rings, necklaces, chains, and gold art. That's all the gold used in tooth
fillings, in electronics, in coins and bars. It's everything that exists
above ground now, or since man learned to extract the metal from the earth.
All of it can fit into one block the size of a single house. It would weigh
about 91,000 tons - less than the amount of steel made around the world in
an hour. That's rare."
Daniel M. Kehrer
"Bullion doesn't pay interest or dividends, nor does it grow or expand
by itself. That's the price you pay for tranquillity."
"At a minimum, gold will rise to $3,000. A more likely scenario,
however, is that the world's financial system will break down completely.
(The basis of that system is the U.S. dollar.) In that case, gold will rise
as high as $10,000 to $40,000 - a point at which all credit - paper will
be backed by gold."
"Start buying gold now, regardless of the price. By acting now, you
will not have to react when it's too late. Too late will be when the majority
of the public finally figures out what is happening to paper money and
frantically tries to get aboard. Remember, if you're one of the ones holding
paper in the end, you will have given away your products and services for
"Gold is not less but more rational than paper money. Money holds
value so long as it is in limited supply; gold will always be in limited
supply, and would require real resources to produce even from the sea; paper
and printing ink are not in limited supply. The gold system is much closer
to a modern automatic scientific control system than the crude and relatively
unstable system of paper."
"By common consent of the nations, gold and silver are the only true
measure of value. They are the necessary regulators of trade. I have myself
no more doubt that these metals were prepared by the Almighty for this very
purpose, than I have that iron and coal were prepared for the purposes in
which they are being used."
"Although gold and silver are not by nature money, money is by nature
gold and silver."
"Like Liberty, gold never stays where it is undervalued."
"Gold is not necessary. I have no interest in gold. We'll build a
solid state, without an ounce of gold behind it. Anyone who sells above the
set prices, let him be marched off to a concentration. That's the bastion
"The modern mind dislikes gold because it blurts out unpleasant truths."
"The tongue hath no force when gold speaketh."
"As good as gold."
"You have to choose [as a voter] between trusting to the natural
stability of gold and the natural stability and intelligence of the members
of the government. And with due respect to these gentlemen, I advise you,
as long as the capitalist system lasts, to vote for gold."
George Bernard Shaw
"It is extraordinary how many emotional storms one may weather in
safety if one is ballasted with ever so little gold."
"Though wisdom cannot be gotten for gold, still less can it be gotten
"Chains of gold are stronger than chains of iron."
"Man prates, but gold speaks."
"Gold opens all locks, no lock will hold against the power of gold."
"Foul cankering rust the hidden treasure frets, but gold that's put
to use more gold begets."
"Gold were as good as twenty orators."
"Gold is a deep-persuading orator."
"Gold is worshipped in all climates, without a single temple, and
by all classes, without a single hypocrite."
Caleb C. Colton
"Gold is a treasure, and he who possesses it does all he wishes to
in this world, and succeeds in helping souls into paradise."
"Gold is the soul of all civil life, that can resolve all things
into itself, and turn itself into all things."
"Gold gives an appearance of beauty even to ugliness."
"Put forth thy hand, reach at the glorious gold."
"Gold is proved by touch."
Gold can a path through hosts of warders clear. And walls of stone
more swiftly can displace than ever lightening could."
"When gold argues the cause, eloquence is impotent."
"There can be no doubt that the international gold standard, as it
evolved in the 19th century, provided the growing industrial world with the
most efficient system of adjustment for balance of payments which it was
ever to have, either by accident or by conscious planning."
W. M. Scammell
"Water is best, but gold shines like fire blazing in the night, supreme
of lordly wealth."
"There are about three hundred economists in the world who are against
gold, and they think that gold is a barbarous relic - and they might be right.
Unfortunately, there are three billion inhabitants of the world who believe
--- "And in the end, what meaning does the outcome of the paper fight
really represent to the deeper fight within each soul to find true wealth."
--- " Gold is not valuable because it is rare or hard to come by.
It is valuable because it can serve as an anchor to the "heart/soul" of the
"global economic mind" to return once again to the common ground which holds
humans together...the untarnishable "trust" that resides within us all and
can never be destroyed.---"
Solomon Weaver (USAGOLD Forum)
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