Larry Kudlow loves the Liberty Dollar
Wednesday, November 21, 2007
Sometimes, you can learn a lot by listening to Larry Kudlow on CNBC - yesterday was one of those times as Liberty Dollar founder Bernard von NotHaus was on talking about the FBI raids of his "inflation proof money" operation and upcoming legal proceedings.
Just remember that you should question everything that Larry says and think for yourself, lest you find yourself falling under the powerful spell of supply-side group-think where all the world's problems can seemingly be solved by lower taxes and higher asset prices.
Anyway, just having the Liberty Dollar guy on CNBC was a real breakthrough - talking about the nature of money, the Federal Reserve, and the seemingly contradictory indicators of low inflation and a soaring gold price.
Along with Larry, the writers at Forbes seem to have a kind of affinity toward precious metals, as exemplified by their fearless leader who not only espoused a post-Katrina $35 oil price but who also believes that the Fed should target the gold price.
What is most important about the Liberty Dollar raid is that it helps to raise awareness about the value of the U.S. dollar and the workings of the Federal Reserve. The timing of the FBI raid couldn't be better, coming when oil is about to hit $100, gold is near 27-year highs, and other countries are increasingly talking about dumping the dollar.
The Ron Paul Presidential candidacy is another piece of the U.S. dollar puzzle - have you seen these latest poll numbers from Real Clear Politics?
Still probably just a snowball's chance in hell, but stranger things have happened.
The more people talk about the dollar, the worse it looks, and then the more people talk about it - at least that's the way it seems.
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4 comments:
Tim
Congrats on your millionth. Great site with great posts. Good trading and continued success to you.
Harleydog
A short time ago I exchanged mail and talked on the phone with someone from Larry's crew in New York - they seem to love the blog and what I had to say about Larry. Maybe suitable for an on-air mention??? I mean, one million visitors...
The market may move itself away from paper assets anyway. I thought you would find interesting the story from Bloomberg that noted Blackrock becoming the biggest shareholder of a gold etf, and the quote from the manager in this excerpt, ``We have to have a certain amount of liquidity that is similar to cash and that's what these ETFs do for us,'' said Graham Birch, who helps manage about $10 billion in gold equities including about $300 million in StreetTracks. ``If the gold price goes up, so much the better.''
StreetTracks Gold Trust traded on the New York Stock Exchange gained 14 percent in the third quarter, the biggest three-month advance since its creation in 2004, as investment demand soaked up sales from central banks.
``These ETFs are going to continue to grow,'' Birch said. ``It's privatization of central bank gold reserves.''"
So, does this mean the FBI should be raiding streetracks?
I heard Von Nothaus speak back in 2005 and rest assured he knows exactly what he's doing with the Liberty Dollar. He never represented or even referred to his product as anything other than an alternative medium of exchange. The mint is a bit upset (recently) about his growing success but this wasn't always the case. I do believe that he has correspondence from both the Treasury and Federal Reserve stating that they have no problem with the Liberty Dollar as long as he doesn't intrude upon their reserved terminology: "legal tender", "coin", "note", etc. This is a harassment raid, nothing more and have little doubt that he will prevail in court. My only concern is that the government will dick around and prevent the business from operating for a long enough period that he goes belly up! I suspect that this was the strategy from the very beginning....that and the seizure of the metal from Liberty Dollar!
I thought the guy from Forbes was pretty funny......railing about a twenty million dollar operation undermining the Federal Reserve.
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