Free gold (FOFOA et. al.)

[Ragnarok]

FYI all, FOFOA has a current freegold blog at http://fofoa.blogspot.com

LOTS of reading for those interested in the freegold topic and the comments section of the articles also often has useful insight.

I've been following the freegold idea since the USAGold forum, where I posted as 'Smeagol' in their discussion forum, which sadly is no more.

I don't really care who Another/FOA/FOFOA are as long as the information is good and will help to get us/the ROtW out of the current mess without WWIII.

As far as I can tell, much of what Another/FOA/TrailGuide/FOFOA said/says is becoming apparent to those outside the small group of followers since the Kitco/USAGold forum 1990s-2000spostings. Even Jim Sinclair recently mentioned freegold on his Mineset site. Freegold makes sense to many, but I would imagine there are some in power that would not desire to see it for whatever reason.

While there isn't room for silver in the freegold mechanism, silver imo will hold value but will not enjoy the one-time permanent revaluation that gold will get in order to balance worldwide currency/debts extant.

IMHO, physical gold should be set aside untaxed and unregulated in any way as a standard of wealth, much as the meter is a standard of length and the gram is a standard of mass.

It would then be in the interest of each country to see that their currency measures up to the sole standard of wealth, freely valued gold.



Fyi, R.

 

[pmbug]

Sinclair on Freegold this morning:

...
Free Gold is an interesting school of thought with which I agree on the emancipation of gold from paper gold as natural development and its implication, but not the entire thesis which runs in various directions in application of their basic and correct thesis.

The not-anticipated result of the take down on paper gold was to wake a sleeping elephant of physical demand from other every corner of the globe. The opinion of the operators is that if the gold banks can keep pressure up on paper gold the huge demand for physical will fizzle. The world outside of North America has recent memories of monetary situations exactly the same as now. They know that paper is in its final stage and gold is in a major ascendancy. Physical demand will remain strong thereby overcoming paper gold and forcing paper gold exchanges to change their methods of delivery, clearly restricting paper to a secondary role and making its use to manipulate gold redundant.
...

http://www.jsmineset.com/2013/05/06/where-we-are-why-gold-was-bombed-and-why-ta-is-a-waste-of-time/

 

[pmbug]

Follow up:

It is time for the discussion of the end game. The end game is the basis for the future.

The emancipation of physical gold from paper gold is in fact happening. I have always counseled that a return to convertibility is impossible because gold would convert out only. If gold is emancipated then by definition it is Free Gold.

Free gold is not new.
Free gold is the history of gold.
Free gold is the use of gold for savings.
Free gold is the use of fiat paper for transactions.
Free gold’s definition on Wikipedia has matured as the foundational thinking of a school of thought that I hold which says gold is going back to its original roll pre-convertibility.

I do not hold too many of the tangential and political thoughts of Free Gold. Those are products of its new adherents. As a movement gains followers they usually destroy the truth, the teacher, or both.
...
Implications of freegold

Under a freegold system, people are encouraged to save their surplus purchasing power in gold, for future spending. There are some severe implications coming out of this:[7]

• Savings accounts at banks will be less attractive (as this is an investment, not savings), leaving the banks with a declining pool of capital. Due to leverage function of fractional-reserve banking, it may greatly impact the financial industry.
• People who save their surplus purchasing power in currency and currency derivatives, may see their purchasing power greatly diminished when the monetary system is shifting to freegold, while keeping their savings in currency.
• Monetary policy will no longer impact the pool of savings (the savers).
• Interest rates will truly reflect the anticipated future purchasing power of currency.
• Countries will no longer try to devalue their currency for cheap exports. Quite the contrary: a strong currency will cause an inflow of gold, a weak currency will cause an outlow of gold.
• Freegold will solve the Triffin dilemma,[8] as nations may opt for payment in what they perceive most valuable: currency or gold.
• Freegold may enable meritocracy; those who have (are) the labour force, natural resources or capital (gold) are in power; opposite to today where those who control the money are in power. Therefore;
• Freegold is allowing Third World countries to join the global economy, as they no longer need money to do trade.
• Freegold will put a brake on the debt based money expansion (due to its compound interest), as money is used for short term transactions only. This is more compatible in a world existing of finite resources and sustainable energy.
• Freegold will better support Islamic banking, and Islamic countries might even opt for a gold standard, though leaving them without monetary policy capabilities.
...

More: http://www.jsmineset.com/2013/05/12/a-discussion-on-the-end-game-in-gold/

 

[rblong2us]

and his mate Bo Polny says no real moonshot until around 2020 ........

The next two dates to watch for are as follows:

(I) May 2-3, 2013 - INTERMEDIATE TOP
(II) May 10-13, 2013 - PULLBACK BOTTOM
NOTE: PRICE TARGETS MIGHT VARY, DATE WILL NOT. WATCH DATES."

This drop will mark the low off the May 3, 2013 high and turn date. I am providing
you an updated chart on GLD for your careful review:

For GLD/Gold, the target for the bottom to re-enter long is Monday, May 13, 2013,
HOWEVER there is a possibility of one extra day down into Tuesday, May 14, 2013
for the FINAL LOW. Therefore, the safest re-entry would be Monday only if Gold
is closing UP at market close or Tuesday's close if Gold closed down on Monday.
After Tuesday, it is all over... that is key!

For SLV/Silver, silver's current price is NOT FAR FROM A SUPPORT BREAK! Like Gold...
there is the possibility of ONE EXTRA DAY DOWN into Tuesday, May 14, 2013 for the
FINAL LOW. Therefore the safest re-entry for silver is the same as gold above.

Please remember, price is not as important here as time! If you wait for "your"
price, you may never get it! Pay close attention to the day count posted above
and the next UP CLOSE and this will give you confidence in your trade. Buy the
up close, the price is the price period!

For those of you who buy and hold, sleep well my friends and know that your decision
is a wise one into the year 2020; gold and silver however will have a very long
and bumpy road ahead! Lastly, the "true" Bull Run you all wait for is not just yet,
the general markets will first correct.

I wish you all well.

Have a great day!
CIGA Bo Polny

 

[DoChenRollingBearing]

...

Welcome, Ragnarok! You can stop twisting my arm, ouch!, I am already there re FOFOA!

Yes, his idea is complex and controversial, but he uses a lot logic in building his case, brick-by-brick. And even if he IS wrong, so what? I sleep much better now... And maybe I'll get rich too...

***

"General Jim" Sinclair has indeed been making Freegold-y comments lately, but there is commentary in "FOFOA-land" that Sinclair may not properly understand it, or have another agenda. I cannot comment on these notions as I just do not know. Sinclair is super-respected among PM buyers (and has been for a long time), especially at Mr. Ferguson's (who?) site.

***

It is very hard to distill FOFOA's ideas into a compact article! There is talk underway in FOFOA-land to try, however, to make his ideas more accessible, because, as you wrote, you have to currently put in a lot of time and effort to understand it.

***

My main hesitation in going 100% into gold (as FOFOA would have each of us do) is that no one can predict the future, especially not me!

 

[mike]

"Free gold is the use of fiat paper for transactions. "

If they are referring to warehouse receipts, then it is not fiat (money by decree); it is a receipt that is backed by something real- gold.

 

[bushi]

(I) May 2-3, 2013 - INTERMEDIATE TOP
(II) May 10-13, 2013 - PULLBACK BOTTOM
NOTE: PRICE TARGETS MIGHT VARY, DATE WILL NOT. WATCH DATES."

...My main hesitation in going 100% into gold (as FOFOA would have each of us do) is that no one can predict the future, especially not me!

...and especially, NOT the guys who are giving you a definite DAYs, when they call tops or bottoms, or predicting price levels 8 years into the future... What a pile of :doodoo:

I MIGHT go 100% into gold/silver, PMs in general, but certainly, not today - it would have to be be at today's UNIMAGINABLE low levels. Going "all in", drawing lines in the sand, and extrapolating our own beliefs and outright biases and projecting them unto the real world and or markets (rigged or not), is 100% sure way to get flushed.