Thomas asks…
What was Andrew Jackson’s strategy in destroying the 2nd bank of the U.S.?
Justin answers:
Opposition to the National Bank
Main article: Bank War
Democratic cartoon shows Jackson fighting the monster Bank. “The Bank,” Jackson told Martin Van Buren, “is trying to kill me, but I will kill it!”The Second Bank of the United States was authorized for a twenty year period during James Madison’s tenure in 1816. As President, Jackson worked to rescind the bank’s federal charter. In Jackson’s veto message (written by George Bancroft), the bank needed to be abolished because:
It concentrated the nation’s financial strength in a single institution.
It exposed the government to control by foreign interests.
It served mainly to make the rich richer.
It exercised too much control over members of Congress.
It favored northeastern states over southern and western states.
Following Jefferson, Jackson supported an “agricultural republic” and felt the Bank improved the fortunes of an “elite circle” of commercial and industrial entrepreneurs at the expense of farmers and laborers. After a titanic struggle, Jackson succeeded in destroying the Bank by vetoing its 1832 re-charter by Congress and by withdrawing U.S. Funds in 1833. (See Banking in the Jacksonian Era)
1833 Democratic cartoon shows Jackson destroying the devil’s Bank.The bank’s money-lending functions were taken over by the legions of local and state banks that sprang up. This fed an expansion of credit and speculation. At first, as Jackson withdrew money from the Bank to invest it in other banks, land sales, canal construction, cotton production, and manufacturing boomed.[32] However, due to the practice of banks issuing paper banknotes that were not backed by gold or silver reserves, there was soon rapid inflation and mounting state debts.[33] Then, in 1836, Jackson issued the Specie Circular, which required buyers of government lands to pay in “specie” (gold or silver coins). The result was a great demand for specie, which many banks did not have enough of to exchange for their notes. These banks collapsed.[32] This was a direct cause of the Panic of 1837, which threw the national economy into a deep depression. It took years for the economy to recover from the damage.
The U.S. Senate censured Jackson on March 28, 1834, for his action in removing U.S. Funds from the Bank of the United States. When the Jacksonians had a majority in the Senate, the censure was expunged.
Robert asks…
Investing in Silver??
I currently have 11 ounces of silver (kook, 3 maples, 7 silver eagles). I am low income, being 16 and looking for a job, and would like to take advantage of the low silver prices. SO–tubes of rounds or bars?? What is best. I am thinking about buying tubes of ase’s, but they are overpriced. Is there less security when buying from private mints or foreign countries?? Thanks.
Thank you Emily for that…wonderful…pie of information that was completely invaluable and irrelevant. If aloof, don’t answer.
Justin answers:
Silver bullion coins are the best here is why. With coins they do not have to be assyed when you sell them as the are reconized as real silver. The coins also serve another purpose….MONEY. Silver and gold are the only Constitutional forms of money. I just bought 100 Canada Silver Maple Leaf Bullion coins on Monday. Im getting the Canada coins for a few reasons. I live in Alaska and we are not connected to the US so Canada would be our lifline in the economic depression that is right around the corner. The US dollar is at par with the Canada Dollar and the Canada dollar will soon be more valuable as time goes on. Canada has reduced their national debt and therefore the face value of the coin in Canada dollars will be worth more in relation to the US Dollar. The Canada Silver is the purest in the world. And it has the highest dollar denomination for its face value on the coin. I wouldnt buy anything but the Canada Silver Maple Leaf coins. Silver is at historic lows and is expected to rise in the near future.
Paul asks…
foreign trade (comparative advantage)?
here is an argument against comparative advantage:
While a country may initially be comparatively disadvantaged in a given industry (such as Japanese cars in the 1950s), countries should shelter and invest in industries until they become globally competitive. Further, they argue that comparative advantage, as stated, is a static theory – it does not account for the possibility of advantage changing through investment or economic development, and thus does not provide guidance for long-term economic development.
what is a good counter argument?
Justin answers:
The coin has two sides.Both are true and real.You have to tell before either head or tail is the winning.The credit should be given to the German economists for the concept of the infant industry which should be protected and nurtured until it will grow up for competition. And the Japanese economists should be admired for the concept of unnatural comparative advantage. It should be manipulated and created by the Japan Inc, or a close cooperation between private investors and the government.But the concepts have more exceptions in the application process. Many developing countries have protected their infant industries until the day they can apply for membership of OECD. China has manipulated the Yuan with capital control and guided investment to the rank of world no. 2, and might keep it until it is no. 1. It has created the world imbalance. The Japan’s model of export oriented policy has dominated world trade so far. The biggest deficit country is the US which keeps printing money and Treasury bills. It might have intention to do so until the dollar has lost its status of world currency. Until then we will know that the wold currency system will collapse in favor of the Euro or not.
David asks…
Purchasing GOLD??Anyone?
I would like to purchase gold bars and or coins. Can a federal bank provide me with this service or do I have to go to a private retailer?
Justin answers:
Gold is a traditional hedge against inflation or deflation. Against currency devaluations. Against avaricious or incompetent governments or Central Bankers. Or shall I just say, in a less politically correct manner, that America is bankrupt and Gold is the only real money? If you invest in Gold, you no longer have to rely on the “full faith and credit” of the US government – which is declining sharply.
The US dollar typically rises or falls inversely with the value of gold. Recently, although there’s been a slight increase recently, the trend of the US dollar is downwards. My view is that the dollar will continue to decline until the US economic fundamentals look better – till America comes out of bankruptcy, that is – and that could take some years.
In terms of your savings or retirement portfolio, this means that if you invest in things like bank deposits (CDs) the net return is most likely negative. Since the beginning of 2003, US dollars held in 3-month US Treasury Bills have yielded less than 3% per year (Source: Global Financial Data). Considering that the inflation rate over this same period of time has averaged more than 3% annually (Source: US CPI), the cash accumulated had less buying power in October 2008 than it did half a decade before.
The carnage on Wall Street, and the fallout around the world, looks far from over – despite what the Feds or the mainstream media might have you believe. Every time there is a new panic like another bank or insurer collapsing, a flurry of investors with dollars, euro and pounds start a new mini gold rush.
At the same time, demand for the yellow metal continues to significantly outweigh supply. The Chinese, for example, love gold and have plenty of dollars. China is keen to diversify its huge foreign currency reserves (by far the largest in the world) away from the dollar. A small increase in China’s percentage of gold reserves would cause a huge increase in demand and consequently in the gold price. Asia, particularly the Indian subcontinent, and the Middle East (think Dubai) are also seeing large increases in domestic gold demand as disposable income increases. When people think that paper currencies will be worth less in the future, they have historically looked to place their net worth into a more stable vehicle. And gold is typically viewed as a safe form of currency, as its value isn’t as affected by inflation.
Why Buy Gold Offshore?
So far, so good. There’s nothing particularly new or controversial about the information above. But I have always believed in a more offshore, skeptical, pragmatic approach. Like it or not, we tell things as they are.
Can we trust government to manage our finances? I think the overwhelming evidence suggests no. History shows that gold is politically sensitive, and governments (read Central Banks, particularly the Federal Reserve) don’t like to see individuals buying gold. Why? Because they can’t control it. They can certainly try. For example,the question has been rased, Will the US Government Confiscate Gold?
Then suddenly, as of late September 2008, we saw the US Federal Government beginning to limit the access of ordinary citizens to gold bullion – by withdrawing new bullion coins from circulation. (Suddenly and unexpectedly in mid-crisis the IRS also introduced a new form FBAR for reporting of foreign bank accounts)
What we can see from all this is that the smartest strategy is to keep your gold holdings outside your home jurisdiction — where they will be well protected against all sorts of threats from governments to predatory ex-spouses. So you need to know:
How to Buy Gold Bullion Offshore
Gold bullion is the most liquid form of gold. If you want to buy gold with the idea that you’ll ultimately sell it, then you will want to buy gold bullion. Bullion means either bars or coins. Fortunately, you can easily buy gold this way and just as easily sell it again anywhere in the world. If you need to break it into smaller denominations, you can for example exchange gold easily for silver coins like Panama’s old Silver Balboa or Mexico’s silver coins.
You can buy gold bullion by looking for offshore dealers. If you have a particular kind of coin in mind – like the Canadian Maple Leaf or South African Krugerrand, to name a few of the most popular gold coins – then do a search for that particular coin, or find the official mint websites. For example, check out the South African Mint or the Royal Canadian Mint. An interesting and more private option for Americans is restricted circulation coins. When you want to buy gold, these sites all contain helpful tools for finding local and international dealers of gold coins.
Provided you don’t ‘look suspicious’ and you can prove the origin of your funds with some documents, it is quite easy to buy gold bullion coins anonymously with cash. Some countries, like France, charge sales tax on gold and so should be avoided. Others place burdensome restricti
John asks…
If you had half the world’s wealth in your hands?
Say about U.S 300 TRILLION, would you:
1) Cancel the foreign debt of countries that are doing very poorly.
2) Put the infrastructure in place so that no-one on the face of this earth would have to drink untreated water.
3) Use half of your unfathomable wealth to end world hunger.
4) Horde the money between yourself and your small extended family, destroy economies, add to your unimaginable wealth yearly while the standard of living decreases worldwide?
What if I told you a man by the name of Jacob Rothschild (of the international banking dynasty and owner of the U.S “federal” reserve (which is privatized btw) does no. 4?
Justin answers:
Rothschild=300 trillion…..Total value of the U.S.A. (and everything in it) is set at about 46 TRILLION DOLLARS. Total debt both private and government is about 16 Trillion Dollars.
“Money is the god of our time, and Rothschild is his prophet.”
Good question JasonD
Expose this douch-bag for what he is. A New world order dynastic mo-fo.
If one looked on the backstage of history, he would find the House of Rothschild. They have indebted Kings, manipulated kingdoms, created wars and molded the very shape of the international world. Among the hierarchy of the Illuminati they are revered as a powerful bloodline.
If I had 300 Trillion I would buy Cuba and start a new country that was based on the U.S Constitution minus the corruption. That would be hard but worth a try,
What the Rothschilds do with their 300 trillion……
Marry their cousins….( 18 marriages made by Mayer Amschel Rothschild’s grandchildren 16 were contracted between first cousins.)
Buy the federal reserve bank through the fed act of 1913(and only let family members own the stock..yes the fed is a private company owned by the Rothschilds)Our Constitution says that Congress and only Congress had the responsibility of coining our money.THE CHAIRMAN OF THE HOUSE FINANCE COMMITTEE IN 1931 SAID THE FEDERAL RESERVE SYSTEM WAS THE BIGGEST ACT OT TREASON EVER PERFORMED ON THE AMERICAN PEOPLE….This act establishes the most gigantic trust on earth…When the President signs this act,(fed act of 1913) the invisible government by the money power, proven to exist by the Money Trust Investigation, will be legalized…The new law will create inflation whenever the trusts want inflation…” Congressman Charles A. Lindberg
Buy Israel…..(Rothschilds had a claim on Palestine because of those unpaid Turkish loans after WW1. The British government followed the dictates of the Rothschilds. The British were given a mandate over Palestine, and the Rothschilds were able to, through their proxies in the British government, create the steps that led to the nation of Israel.)
Profiteer war(Napoleonic,Civil war, WW1, WW2, Coldwar….)
Invest in Eugenics and genetically specific biowarefare(this is a favourite of the American proxy branch of the family…the Rockefellers.)“[Sterilization could] be applied to an ever widening circle of social discards, beginning always with the criminal, the diseased and the insane, and extending gradually to types which may be called weaklings rather than defectives, and perhaps ultimately to worthless race types.”
Set up the league of nations and the U.N( One world government would be easier to control)
Control the stupid(The Currency Act of 1792, which has never been revoked, defines a dollar as 412.5 grains of 9/10 fine silver (originally 371.25 grains of 11/12 fine silver). Federal Reserve Notes are not redeemable in silver. To affix a dollar sign to the “amount due” would be fraudulent. They know this ‹ and you don’t. )
James asks…
what is sensex? what it indicates?
Sir i requested to plz explain the above question. and alos one more doubt that What is Foriegn institutional investers and Foriegn Direct Investment? what is difference FII and FDI.
which is best suitable for Indian economy for grouth
Justin answers:
Sensex:
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The BSE Sensex or Bombay Stock Exchange Sensitive Index is a value-weighted index composed of 30 stocks with the base April 1979 = 100. It consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange. These companies account for around one-fifth of the market capitalization of the BSE.
The Sensex is generally regarded as the most popular and precise barometer of the Indian stock markets.
The base value of the Sensex is 100 on April 1, 1979.
At irregular intervals, the Bombay Stock Exchange (BSE) authorities review and modify its composition to make sure it reflects current market conditions.
The abbreviated form “Sensex” was coined by Deepak Mohoni around 1990 while writing market analysis columns for some of the business newspapers and magazines. It gained popularity over the next year or two.
The stock market has grown by more than seven times from June 1990 to today. Using information from April 1979 onwards, the long-run rate of return on the BSE Sensex can be estimated to be 0.52% per week (continuously compounded) with a standard deviation of 3.67%. This translates to 27% per annum, which translates to roughly 18% per annum after compensating for inflation.
FDI:
====
Foreign direct investment (FDI) is the movement of capital across national frontiers in a manner that grants the investor control over the acquired asset. Thus it is distinct from portfolio investment which may cross borders, but does not offer such control. Firms which source FDI are known as ‘multinational enterprises’ (MNEs). In this case control is defined as owning 10% or greater of the ordinary shares of an incorporated firm, having 10% or more of the voting power for an unincorporated firm or development of a greenfield branch plant that is a permanent establishment of the originating firm.
In the years after the Second World War global FDI was dominated by the United States, as much of the world recovered from the destruction wrought by the conflict. The U.S. Accounted for around three-quarters of new FDI (including reinvested profits) between 1945 and 1960. Since that time FDI has spread to become a truly global phenomenon, no longer the exclusive preserve of OECD countries. FDI has grown in importance in the global economy with FDI stocks now constituting over 20% of global GDP.
Types of FDI:
* Greenfield investment: direct investment in new facilities or the expansion of existing facilities. Greenfield investments are the primary target of a host nation’s promotional efforts because they create new production capacity and jobs, transfer technology and know-how, and can lead to linkages to the global marketplace. Greenfield investments are the principal mode of investing in developing countries.
* Mergers and Acquisitions: occur when a transfer of existing assets from local firms to foreign firms takes place. Cross-border mergers occur when the assets and operation of firms from different countries are combined to establish a new legal entity. Cross-border acquisitions occur when the control of assets and operations is transferred from a local to a foreign company, with the local company becoming an affiliate of the foreign company. Mergers and acquisitions are the principal mode of investing in developed countries.
Charles asks…
Is this US Dinar investing a fraud?
Justin answers:
It may not be illegal but it is certainly high risk. Since the dinar is not traded freely but instead has an essentially fixed exchange rate, the chance of making any short term profit are very close to zero. Further, for now you cannot exchange Iraqi dinars on the currency exchange market (outside of Iraq) so the money only has value inside Iraq. No bank outside of Iraq will exchange this currency for you so it is for all practical purposes worthless. Most of the dinar currency being sold in the US is being smuggled out or Iraq by entrepreneurial types that are taking advantage of uninformed speculators.
Here’s the link to the Central Bank of Iraq currency auction:
http://www.cbiraq.org/cbs6.htm
Today’s price for the dinar is 1477 dinar to the US dollar. That is a change of 1 dinar, from 1476 from the rate the dinar was trading at in the Central Bank of Iraq about two years ago when the Coalition began exchanging dinars for dollars. The exchange has to exist because so much American money is being spent there that they had to find a way to convert it to dinars. However, since the US contractors in Iraq have a significant need to keep the price of the dinar stable, you can bet it is not going to change anytime soon. The exchange basically exists so American contractors and some other foreign contractors can pay Iraqi subcontractors in dinars.
The future value of the dinar is probably tied to the oil production of Iraq, as well as many actions that the Central Bank may take in the future to create lending and deposit accounts. Because of the instability in Iraq it is impossible for oil companies to drill for or explore for oil An oil well is too easily targeted to risk setting up oil rigs in Iraq now. Iraq’s oil production is barely covering their own consumption at present, and much of the exports they are making are offset by importing refined products. Iraq’s productiion has not even reached the level of production that existed before the war, and it may take a decade for the oil production in Iraq to recover to a beneficial level for the country. Oil production has a long lead time; often several years of planning go into drilling an oil well, and it can take months or years before new discoveries are productive. The dinar may be profitable in about 20 years, or it may follow the path of the Turkish lira, which reached about 2 million lira to the dollar before they recently revalued to eliminate all those zeros. Dinar investments may have more potential as collector’s items with curiousity value than as a currency investment. Dinars may become something like those stock certificates people hang on the walls.
By the way, I believe the old Iraqi currency probably has more potential for profit than the new currency because currency and coin collectors are likely to find them more difficult to acquire in good condition than the new currency which is commonly being hoarded by speculators.
Daniel asks…
what coins that can get overlooked are worth signifigant amount. foreign, too.?
Justin answers:
Well, i have invested in Centenarios from Mexico they are very good, all 22 kt. Gold, and go up all the time…
Made a bundle last year…
Michael asks…
Gold and Silver Investors ?? I have questions?
which MINT should I invest in ?? American Silver Eagle, Walking Liberty, Canadian Silver Maple ? or private mint but who ?? APMEX ? Monarch ? JM ? Engelhard ? Monarch ? (I know I have been shopping for brand names).
What about Gold and Silver Flakes ? I got quite few of those, should I cash them in those ?
Justin answers:
If in the US then for gold you should only be buying US gold coins. Us gold is not reportable to IRS on 1099 when you sell back under current laws. Stick with American Gold Eagle coins or pre 1933 US gold coins in raw XF, VF, or AU condition. Stay away from anything with a MS (mint State) rating, or anything in sealed numismatic plastic hard cases. If you do buy foreign gold then buy fractional coins such as 1/2 ounce, 1/4 ounce, and 1/10 ounce as they too are not reportable under current laws.
As for silver, I personally like the Canadian Silver Maple Leafs because they have the $5.00 CAD face value and they are 99.99% verses 99.90%. All silver is not reportable to IRS on 1099 except pre 1965 junk US coins. Pre 1965 coins are reportable but they do carry the lowest markup.
Unless you are buying from a major metals dealer stay away from private mint products because there are fakes out there. For silver buying I use Monex and Precious Gold And Silver Metals which is a Division of Aydin Jewelry Mfg. LLC. Http://www.preciousgoldandsilvermetals.com/ and ebay from time to time. For gold I use American Gold Exchange http://www.amergold.com/index.php and ebay.
Stay away from Gold and Silver Flakes. You want products that are easy to recognize by the average person who is familiar with gold and silver. This is why you want to stay away from jewelry as well. Only coins and bars are money in the western world. In asia its different.
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