Chris Martenson Interviews James Turk: "Gold Is Our Defense Against the Fiat Currency Graveyard"

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Tue, 07/12/2011 - 12:51 | 1448104 YesWeKahn
YesWeKahn's picture

I am pretty sure that Bernanke advices his family and relatives to buy gold.

Tue, 07/12/2011 - 14:15 | 1448555 DC
DC's picture

How could you possibly know that?

Tue, 07/12/2011 - 12:52 | 1448106 packman
packman's picture

"And when politicians take control of central banks..."

LOLOLOLOL.... Um.... yeah.


Tue, 07/12/2011 - 13:30 | 1448241 Screwball
Screwball's picture

That's where I stopped.  Maybe someone can explain, but don't get this statement at all.

Tue, 07/12/2011 - 15:12 | 1448907 thesapein
thesapein's picture

It's like when the actors in a film try directing, maybe? But I hear you; he speaks as if chickens and eggs are two different creatures today and to really get what he (a real banker) is saying you gotta pretend or guess at what exact political maneuvers in history he is referencing given that these two powers have a complex history. But, please, don't discount James Turk based on his own biases that we all have. He is still a very good source of info in his industry. Cheers.

Tue, 07/12/2011 - 14:03 | 1448443 CIABS
CIABS's picture

packman, screwball, et al:

right.  "...when politicians take control of central banks..."

politicians, central banks, central bankers, bankers, et cetera, ad nauseum.

economic history might move slowly enough that ordinary people can keep adjusting to the "status quo" so as to believe that there is such a thing.  but the process is like a raging fire, if not an explosion.  it will leave only a world of ashes.

Tue, 07/12/2011 - 14:40 | 1448115 Mr Lennon Hendrix
Mr Lennon Hendrix's picture
Calling JPM's Naked Silver Shorts

The COMEX has been looted of its silver during the last few months to little fanfare.   Not only have not many people noticed, but the ones that have have not asked who and why this happened.  It happened because JPM and other proxie banks were forced to cover their naked short calls, and they had to go out on the market and get the collateral.  This because long calls exercised their strikes and wanted payment....

Calling JPM's Naked Silver Shorts:


Tue, 07/12/2011 - 12:56 | 1448118 topcallingtroll
topcallingtroll's picture

Houston we have a problem.

Obama said he wont accept a short term deal nor a deal without tax increases. The republicans cant go back on Grover's tax pledge they signed or they will be voted out of office.

I hate to be chicken little, but prepare for fireworks. Gold, not silver, diversified cash, diversified ultra short term sovereign bonds.

This is not the time to speculate or play games. The market can have the next upside five percent move. Batten down the hatches.

Tue, 07/12/2011 - 13:01 | 1448138 vast-dom
vast-dom's picture

I believe Silver will rise faster than gold, as relative %age.

Tue, 07/12/2011 - 15:23 | 1448970 thesapein
thesapein's picture

it's one of the few things i'm most sure about. one day, silver will trade like a precious metal again.

Tue, 07/12/2011 - 13:04 | 1448148 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Gold, not silver?  Yeah, ok.

Tue, 07/12/2011 - 13:12 | 1448176 hack3434
hack3434's picture

 diversified ultra short term sovereign bonds


This is not the time to speculate or play games


Talk about oxymorons...Why do people with less than a billion net worth even bother? gotta chase that 0.03% yield heh!


Tue, 07/12/2011 - 13:00 | 1448133 Magnix
Magnix's picture

Help me understand how is gold defense against currency if the market price is $1500+ and then when they standardize the gold then it will be worth $20 face value and lost $1500????

Tue, 07/12/2011 - 13:08 | 1448162 BigJim
BigJim's picture

If 'they' standardize at a $20 face value that's fine. I'll buy it all and tile my house with it.

Are you fucking serious?

Tue, 07/12/2011 - 13:10 | 1448167 baby_BLYTHE
baby_BLYTHE's picture

Gold should be viewed as an alternative currency to the dollar, not just another investment vechile.

Tue, 07/12/2011 - 14:09 | 1448487 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Gold should be viewed as "insurance" against the stupidity and theft of governments.


Tuco Benedicto Pacifico Juan Maria Ramirez

Tue, 07/12/2011 - 18:54 | 1449789 thesapein
thesapein's picture

Should? Really? Why not let some people view gold as insurance but why me? I hate insurance, yuck. It's just another form of gambling, hoping you'll get lucky and pay less into the scam than you'll get back, tho lucky isn't the right word if you just had a car accident. It also encourages reckless behavior. So, if there should be a "should" let's say not to view gold as just another legally inforced scam.

Tue, 07/12/2011 - 13:10 | 1448171 Quintus
Quintus's picture

If you don't understand how gold has been a defence against every currency collapse in history then you need to do some reading my friend.  If, during your research, you can find a single instance where gold holders fared worse than paper holders during a currency crisis scenario, please point it out to us, because I've never seen or heard of such an occurrence.

Tue, 07/12/2011 - 13:14 | 1448182 Bastiat
Bastiat's picture

If they "standardized" gold at 20 "new dollars", then $20 would be around average monthly income . . .or it may be 4 months income.


Tue, 07/12/2011 - 13:17 | 1448194 JollyRoger
JollyRoger's picture

It is what you can trade for a specified weight of gold that will matter, not the dollar number they attach to it.  The relative weight will retain it's purchasing power.

Tue, 07/12/2011 - 14:03 | 1448444 Smiddywesson
Smiddywesson's picture

Help me understand how is gold defense against currency if the market price is $1500+ and then when they standardize the gold then it will be worth $20 face value and lost $1500????

They have had three years to stock up on gold.  Why would they peg the price lower????  They have massive debt.  They don't want to default any more than is necessary.  In order to deleverage, they want their gold valued higher, not lower, and they have the means to drive is as high as they want.


Tue, 07/12/2011 - 14:07 | 1448468 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

It's all about "purchasing power"!  Nominal values mean nothing.


Tuco Benedicto Pacifico Juan Maria Ramirez

Tue, 07/12/2011 - 14:22 | 1448610 ian807
ian807's picture

"They" can standardize until the cows come home, within the borders of the USA.

So I get the gold out of the country and sell it at fair market value, convert to some preferred currency, fly back home.

The USA is not the world. Whatever shenanigans they try and pull here, will not be pulled everywhere. When travel and removal of gold are restricted, there will immediately be a cottage industry dedicated to both. In an internet connected world, governments are finding their limits.



Tue, 07/12/2011 - 15:28 | 1449005 thesapein
thesapein's picture

An answer is only as good as the question.

Tue, 07/12/2011 - 13:03 | 1448143 Sudden Debt
Sudden Debt's picture

It will not only be gold and silver.

It will be any hard asset that will gain in fiat value.

but silver and gold are the most prefered once.


Tue, 07/12/2011 - 14:05 | 1448464 Smiddywesson
Smiddywesson's picture

It will not only be gold and silver.

It will be any hard asset that will gain in fiat value.

but silver and gold are the most prefered once.

Sure, if they don't tinker with the economy.  I could see TPTB pressuring for price ceilings on most hard assets "to protect the public", thereby increasing inflationary pricing in gold.  These people have all the power and tricks on their side.

Tue, 07/12/2011 - 14:14 | 1448552 Sudden Debt
Sudden Debt's picture

untill they don't.

If you look at the silver, it's pretty clear they really want to keep it below 40$.


They will keep it below that price untill they can't anymore.

When all stocks are empty.

When everybody wants it.

And then, whatever power you've got, SUPPLY/DEMAND will kick in.

I kind of hope I can buy more on the cheap for the next 12 months. But afters weeks like this, I don't think so.

But just imagine we could! I would love it. I would be kind of sad if the price would rocket up now. Kind of like less profit because I could have bought more in 1 more year.


Tue, 07/12/2011 - 13:04 | 1448149 cougar_w
cougar_w's picture

There can never be anything wrong with a currency that cannot be corrected by warfare.

Tue, 07/12/2011 - 13:55 | 1448393 packman
packman's picture

Yes of course.  Remind us - exactly how much is a 1920 Papiermark, or for that matter a 1924 Reichsmark worth at this point?

Tue, 07/12/2011 - 14:03 | 1448450 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

That is a myth.  Wars destroy lives, currencies and economies.  Only the banks benefit as they lend to both sides at interest as is becoming of demons!


Tuco Benedicto Pacifico Juan Maria Ramirez

Tue, 07/12/2011 - 13:08 | 1448159 Fix It Again Timmy
Fix It Again Timmy's picture

Life is difficult enough without having to worry about the purchasing power of the "fruits of your labor", yet TPTB have constantly eroded it since 1913 - you need to think about how to foil that "theft" - that's all you need to do and we all know a simple way of doing that...

Tue, 07/12/2011 - 13:08 | 1448164 janchup
janchup's picture

No one mentions the fact that governments can and will do anything. A new tax on gold will appear. How about 95%?

Tue, 07/12/2011 - 13:21 | 1448187 Popo
Popo's picture

The gold transaction tax is indeed the biggest fear.  

It would allow you to keep your gold,  but selling it would incur a hefty tax. 

This effectively bashes the gold price down as buyers leave the room.

And for those who say "I'll take my gold abroad" -- good luck with that.  You can't even fly with more than $10k, and customs in most countries isn't going to let you bring in tens of thousands of dollars worth of gold.

Getting around the tax is *not* going to be easy.

As someone who got his investing-ass kicked when the government passed the "no shorting" rule on financial stocks in 2008 -- I now know that the goverment *will* change the rules right under your feet -- even if it seems completely unfair or illegal.

Tue, 07/12/2011 - 15:23 | 1448973 KingdomKum
KingdomKum's picture

most will surely sell on the black market, eliminating all taxation  .  .   .  

Tue, 07/12/2011 - 17:05 | 1449479 Nage42
Nage42's picture

$10K of "financial instruments" words are important.
That means 200 x $50 Canadian Maple Leaf coins (legal tender).
If you've got north of $320K (current spot) in liquid wealth then you've got better methods than this (GM or BV in Switzerland), but still, that's a boatload of starter funds...

Tue, 07/12/2011 - 13:16 | 1448190 Quintus
Quintus's picture

No problem.  Gold is a currency in its own right accepted anywhere in the globe.  I'll take my metal abroad (in fact I already store some of it abroad) and exchange it into currency as and when required in a jurisdiction that does not levy a 95% tax on gold.  Switzerland maybe.  

Of course we could see global capital controls implemented in every country in the world and a system for tracking every ounce of gold everywhere on earth, but I doubt it.  In circumstances where a tax such as you propose would be implemented, I suspect the Governments of the world will not be in a mutually cooperative frame of mind, and will each be seeking to attract wealth to their jurisdictions at the expense of the others.

Tue, 07/12/2011 - 13:22 | 1448209 Popo
Popo's picture

LOL.  Sure.  You can just take all that gold right out of the US, and into customs somewhere else.

No, there won't be a problem with that....  


Tue, 07/12/2011 - 13:25 | 1448216 Quintus
Quintus's picture

I don't live in the US, but even if I did are you telling me that the US customs are so efficient that nothing ever gets in or out without their knowing about it?  How's that world-leading drug industry you have there working then?  Or the millions of illegal immigrants residing in the US?  How can they possibly be just walking in and out when Customs and border controls clearly make that impossible?

Tue, 07/12/2011 - 13:36 | 1448271 gdogus erectus
gdogus erectus's picture

Yes, but in America, if you are going to be a smuggler - it helps if you can use the company's C-130.

Tue, 07/12/2011 - 17:42 | 1449598 poor fella
poor fella's picture


Tue, 07/12/2011 - 13:39 | 1448290 Popo
Popo's picture

Oh, so your plan is to *smuggle* the gold through customs. 

Ok.  Well that's always an option.  But if you're investing in gold to *limit* your exposure to risk, then smuggling gold through customs is what you definitely *don't* want to to.

Tue, 07/12/2011 - 13:48 | 1448348 Quintus
Quintus's picture

Don't be silly.  

The risk I am hedging with gold is the inevitable collapse in the value of fiat currency.  More correctly, since this event is inevitable, I am hedging the timing of it.  IF that event happens in my lifetime, taking across borders that portion of my gold that is not already abroad (in the unlikely event that this is even required) will be a minor inconvenience compared to, say, begging in the streets for sustenance like paper holders will likely have to do.  Just read some accounts of what happened to the middle classes in Argentina during their currency crisis.

Tue, 07/12/2011 - 14:40 | 1448736 JOYFUL
JOYFUL's picture

 taking across borders that portion of my gold that is not already abroad (in the unlikely event that this is even required) will be a minor inconvenience compared to...



umm, nice try, but I suggest you return the fee charged for your course in rhetoric and demand a complete refund...ya, like, living in Gulag Camp X34(aka DHS 'temporary relocation facility 666) is a lot better than, lets say...bein a chicken with it's head cut off!?!? 

After asking a series of leading questions that dare the reader to suppose that you are either being like, totally ironical, or, alternately, have just arrived here from planet (...fill in space 51 on Form ABD here.......)




are you telling me that the US customs are so efficient that nothing ever gets in or out without their knowing about it?  How's that world-leading drug industry you have there working then?  Or the millions of illegal immigrants residing in the US?  How can they possibly be just walking in and out when Customs and border controls clearly make that impossible?...


you dare demand of others to avoid being "silly"!?!?

Most folks(even non, perhaps make that especially non Merikans) know that it's the gubberment itself masquerading behind various acronyms like DEA FDA FBI CIA NSA DHS nauseum which run the drug trail which starts under the protection of NATO 'liberators' in Afghanistan, runs through central Asia to liberated KOSOVO on into Europe and across the pond to various veins on both coasts of the USA....if you don't, then I suspect any words of wisdom about your forthcoming encounter with the folks what get profiled on these pages EVERY DAY, (or more particularly their tax payer supported front line minions!) and their hatred of shiny stuff and those what hold it would be entirely wasted on thee..."Don't be silly" sayest thou!?!?

Sorry bud, you the last stop on that line! 


Tue, 07/12/2011 - 15:02 | 1448827 Quintus
Quintus's picture

Man, I thought I had a big tinfoil hat.  I defer, sir, to your altogether superior paranoia levels.

But seriously, back to the topic at hand.  You have convinced me.  There is clearly absolutely no way that anybody who was threatened with a 95% tax on his gold could take it to somewhere that it was not so heavily taxed.  Not without the mind-reading all-knowing super-efficient Government finding out about it and stopping them.  No, they'd have to just sit quietly at home and wait for the man from the Fed to knock at the door and take their metal from them.

What was I thinking?  Now if you'll excuse me, I have to go buy some NFLX to protect my wealth.

Tue, 07/12/2011 - 15:30 | 1449011 JOYFUL
JOYFUL's picture

I recommend you get a stretch limo for the trip to the airport, then give the driver a super BBbbig least you'll have given one last tip o da hat to small bizness! Assuming you to have libertarian tendencies from your purported need to hold gold, that at least will feel better than letting the state have it all! 

My hat is not tinfoil but it is super big, like bigger than the biggest Pancho Villa Mejicano sombrero yu never's Taxco silver over a base of Dia de los Muertes huesos gringo! 


as for paranoia, don't defer to me,(i'm just a bump on da log!) but rather, ponder the words of Claude Steiner(from way back in the good ol days): "

Paranoia is a state of heightened awareness. Most people are persecuted beyond their wildest delusions

Tue, 07/12/2011 - 17:35 | 1449582 knowless
knowless's picture

One doesn't need to smuggle it personally, merely pay a fee to a smuggler during the sale, say gold can get you so many fiats, you know this, they know this, so you negotiate a price, you would never need to cross a border, they have mules for that.

it's really not that difficult of a concept.

Tue, 07/12/2011 - 13:16 | 1448191 Abitdodgie
Abitdodgie's picture

But taxes are voluntary so who cares , unless you are a slave then sorry.

Tue, 07/12/2011 - 13:21 | 1448206 Bastiat
Bastiat's picture

And will they impose that worldwide?  Will the Chinese and Indians be subject to that tax?   If your idea is to decrease demand it is mistaken because it affects a miniscule segment of the international market. It would also not raise much money for the US Treasury since the extent US taxpayer cap gains in gold is trivial in the big picture. 

Tue, 07/12/2011 - 13:51 | 1448367 au_bayitch
au_bayitch's picture

How many people pay a sales tax on the gold coins they purchase now? If a new tax is put in place, why pay? Go to another shop.

Tue, 07/12/2011 - 13:13 | 1448179 throughthewire
throughthewire's picture

This guy's predictions are much too early for the destruction of the dollar. The final, final bubble will come in the US dollar when the world realizes there's no where near enough dollars (despite the printing press) in the world to pay off the worldwide dollar denominated debt. When the final bubble arrives the mother of all depressions will be well underway.

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