VelocityShares Daily 2x VIX ST ETN (TVIX)

[eric4x]

Consider the source.*

mattyw78 seems a little bit confused, from what I have been reading.*

Regarding the claim that, "over the last 4 years there should have been deflation," this is an understatement. What he means to say is that we should have been in another Great Depression. He seems very disappointed that this is not the case.*

In his post 1582, he asks: "Is post #1581 talking about holding cash when things come crashing down???? That's the last thing I want to hold when the inevitable fiat currency collapse happens brother is paper backed by a promise of the Federal Reserve. Wake up and look at history and what's been going on with our country over the last 41years."*

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=72068547

He is referring to the official ending of the gold standard in 1971. Any profits made after 1971 are considered "imaginary," unless converted into gold or silver. I imagine it's hard to be in the stock market, if you have all of your money in gold or silver.*

It is true that these metals are worth a lot these days, in terms of dollars. But we are free to convert our "worthless paper" back into precious metals at any time.*

There are almost 200 countries in the world. To the best of my knowledge, not one of them uses gold or silver as its standard of money. That ought to tell you something.*

Regarding the oil prices and Iran, oil doesn't care where it comes from or where it goes. Oil is what they call a "fungible" commodity.*

http://en.wikipedia.org/wiki/Fungibility

"Since the United States is the world’s largest importer, it may seem surprising that it also exports around 1 million barrels a day of oil, predominantly petroleum products. Due to various logistical, regulatory, and quality considerations, it turns out that exporting some barrels and replacing them with additional imports is the most economic way to meet the market’s needs."*

http://www.eia.gov/pub/oil_gas/petroleum/analysis_publications/oil_market_basics/trade_text.htm

In short: An oil shortage is an oil shortage. A rise in the price of oil is a rise in the price of oil.*

The main reason for the general increase in oil prices is the expanding world economy. China and India use a lot more of it than they did in 1971. The secondary reason is the demand of oil producing countries for more money, or more power on the world stage.*

If the price of oil jumps suddenly, this is because of a particular reason, such as Iran. The slow, general rise in price cannot be blamed for the sudden jump, which would in this case come from a crisis initiated by Iran.*

It is true what Ron Paul said about the price, in the sense that a silver dime is now worth about 3 dollars. Then again, most of our money is in the form of either paper, plastic, or computer code. A stock certificate is just "paper" at best, and we certainly can't trade it over the Internet with physical silver and gold as our medium of exchange.*

Let us not forget that gold and silver WERE the basis of our money BEFORE 1971. They were given up as the standard, precisely because they were an impediment to proper economic growth. During the massive deflation of the Great Depression starting in 1929, we DID have gold and silver as the basis of our money. It just didn't work.*