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Gold Surges After Japan Says It Is Considering New QE And Geithner Guarantees Currency Wars
A quick look at gold price action demonstrates that someone somewhere is actively debasing currencies. An even quicker scan of headlines confirms this to be the case: per Reuters "Bank of Japan Governor Masaaki Shirakawa said on Wednesday the central bank will consider expanding a new scheme for buying assets ranging from government bonds to exchange-traded funds when deemed necessary." Harakiri Shirakawa continued: "We have taken a very bold measure ... If the need arises in the future, making further use of the new fund as part of monetary policy is one of our strongest policy options." Judging by the chart below, either gold has a tent in its pocket or was really happy to hear this announcement.
And just to confirm that the world is going to hell in a depreciating handbasket, Geithner essentially has guaranteed that a currency war is imminent. Also from Reuters:
U.S. Treasury Secretary Timothy Geithner said on Tuesday he sees "no risk" of a global currency war and wants to maximize incentives for China to allow its yuan to rise in value.
He told the Charlie Rose Show in an interview that China would work against its basic development objectives if it kept its currency undervalued.
"I'm very confident over time that this is going to happen," he said of Chinese currency appreciation. "We just want to make sure it's happening at a gradual but still significant rate."
Mm hmm. And for a vivid demonstration of Geithner's top-ticking predictive capacity, we bring you: "Welcome to the Recovery", the SecTres' August 2 OpEd, which appeared days before the massive July NFP miss set off America on its trajectory with fate and QE2. In other words, stock up on that Costco year-long ration. It will be a long, devalued winter.
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VERY, VERY interesting. please, correct me if I am wrong, Rocky:
So, if I hold a 1 ounce silver dollar ($1 'face value' with $25 worth of silver in it), then a store owner can chose, if he/she prefers, to take my 1 ounce silver dollar and give me a 96% discount (charge me a 1 ounce silver 'dollar' for a $25 item)?
This would allow the shop owner to take a tax loss on each item sold.
further, with the treasury placing a legal value on my 1 ounce of silver at 1 $USD, are they not begging for (building in) DEFLATION in the event that store owners engage in this practice in a widespread fashion?
I've told the story previously about the $50 used car:
A friend wanted a used car for his kid going to college. Might as well get a beater since it was gonna get trashed anyhow. He found one at a used car lot and offered the dealer a $50 gold eagle. Dealer took the offer and wrote up the sale at $50. Dealer took a loss on the sale, of course. Buyer registered the car and paid State sales tax on a $50 car. Done.
incredible. the amazing 'tax loss' scheme.
then, this car dealer can take the gold piece out of his business (by changing it for $50 fiat of his own cash), until he is ready to work a deal with someone else on a purchase.
its like a tax credit to accumulate and exchange gold. not good news for fractional reserve lending.
wow. thanks for that, Rocky. wow. great story.
Yeah, they thought they were smart to put low face values on the silver and gold eagles. That was to keep it from circulating as currency. Looks like that is about to blow up in their faces.
I have something that has pissed me off for a long time now.
The all wonderful Federal Reserve Notes says:
This Is Legal Tender For All Debts Public And Private
To me this means ALL (Not just some or a few), and this appears to be a "Legal Contract" that we all agree to when we accept the dollar bill as a means of exchange.
In fact it is NOT legal tender at all, for public and private debts.
Try to go to the Airport near you and pay in cash, lets say $1000 cash for airline tickets.
Or try to go to a brokerage firm and pay for a stock purchase! No fucking way will they accept it (even though the bill says "legal tender for all debts public and private"). You will be refused and most likely turned in.
Here again many places reward the counter-workers for turning in people with cash that they guess to be suspecious ( these people do not get paid much and may turn anyone in to make the rent)
Do you know that in spite of the 'legal contract" on the dollar bill, that you can be turned in by anyone working at the counter, at banks etc. (who receive an extra $75. cash) for saying you're suspicious, and they are sworn to secrecy, so you will never know why you are being perscecuted, and or harrased?
How decieved and tolerant have we become with government maelfeasence, to overlook the everyday fucking we're taking up the azzz with something so obviously corrupt?
I'm not just saying you, I'm saying me.
why start eroding your silver stash when you can still con them into accepting worthless green paper ?
Good point, Mr. Brains. Hang on to that until you really need it.
Dont take the bate. These gold post are a joke.
Fuck you. Go to bed.
Me writeth too soon...
Don't take the bate, huh? Well, I guess you would know, being the master of the bate. Hell, I'd even through in a plural, and say your were the Master Bates. Bravo, Johnny! Bravo!
On your tombstone.
"Master of His Own Bate"
LOL
Serious fucked up funny thought on a tombstone. Gotta love it.
Time for beddie bye.....
Ya know, if Timmah Two Hands was readin' this betcha he'd be all a freshman sniggerin' right now.
It's spelled bait. Gold has cooties. If you buy it you'll get sick. There ya go that should scare them away.
I think ZH is wrong on this account.
Buyer beware.
I think ZH is wrong on this account.
Buyer beware.
I agree. Shirakawa should definately NOT be buying ETFs.
Talkin' shit ain't nothin' but a G-Thang
-EZ
I'll pull ya card. Shortin' gold like 3 buck 60 sold.
(I shorted @1,358.9)
i am sure Bernanke agrees with you.
"...either gold has a tent in its pocket or was really happy to hear this announcement."
http://www.youtube.com/watch?v=kUZk5olAFuM
Edit for QoS version:
http://www.youtube.com/watch?v=cXhBmEloYxE&NR=1
Do you have bullion in your pocket, or are you just happy to see QE?
Ingot we trust?
Just couldn't resist..
Ingott mit uns.
A good read: http://www.contraryinvestor.com/mo.htm
Part of the current gold trade is this: loss of confidence in a few major currencies. That's enough to require a hedge or an outright long spec. When it's major global currencies we're talking about, that introduces unacceptable economic risk. And hedging with another currency isn't good enough especially if the downside is correlated. Gold is viewed as the safe harbor of choice.
fresh batch!
http://www.madeinchimerica.com/products/dukes_of_moral_hazard
buy one so i can buy some golden grams.
Just laid on a fat position long dollar
Seems we are approaching the Keynsian-fiat currency end game. The financial alchemists will be trying to tell you they know how to turn linen( or paper) into gold. You can believe them and buy lots of linen/paper...or you can not believe and buy gold. Your choice.
Not end-game, just a perceived reset. They're currently taking what they can, and sinking this boat. Make no mistakes, they'll be on the rescue boats & life boats, "managing" the next economic system, too.
I'm not saying anything against gold, I'm just saying that fiat will not end here, and at that, fractional reserve banking is too good of a thing for the people with power in the world; they won't discard such a system outright for proletariat virtues such as honesty or integrity. Virtues are feel-good mechanisms to help the common man continue about in his existence, they aren't for the managers of systems, for the "true" people who matter (see:power) in these systems.
The common folk may rise up and throw the apparent thieves from the temple, but they'll never excise the entire corruption, the elite will have their way, regardless. It took nearly 100 years to set up this robbery of America, I'm sure another 100 or 200 years would be nothing for them.
With that said, life doesn't have any particular qualities of being "good" or "bad"; what we do to one another is entirely by our own will. This says enough about the human species, for me, atleast.
GOLDFEVER!!
What is this "surges" nonsense? It's just been jiggling around as it normally has. So there was a four dollar spike on that particular news. There have been, what, ten $4 spikes in the last week (in each direction) -- hardly newsworthy.
I agree. I don't think this qualifies as a "surge". Perhaps a "blip".
Harakiri Shirakawa
LOL. ZH cracks me up.
In honor of Japanese QE talk; some Haiku:
Dollar blind Timmy
gold looks extremely light
1400 soon
Watch biggest short sqeese ever to unfold.
That's what you get from being high on extreme money supply.
1trillion x 0 =0
1000 trillion x 0=0
This is all the math one needs to know.
Just the ounces you own will be your real wealth.
the only wealth you own will be the land or property that you can manage to keep from goverment or lynch mobs taking away from you.
gold is backed by nothing more significant than the paper money...it is backed by goverments!
I guess you missed the part where markets always select gold as money if given the opportunity.
Gold is eternal, divisible, easily identifiable, difficult to fake, can't be printed, is limited in growth to what can be taken out of the ground, etc. It makes good money, so people choose it as money without being forced to. If it were backed by governments, it wouldn't be worth anything when governments collapse or turn on their people, yet it is.
0 ÷ 0 ≈ 1 Or does it?
ll
And the battle is raging from London. But so far there be buyers thwarting the manipulation.
The world is going to hell in a basket of consumer price goods and services.
I have a years supply of food.
Then what?
So, at which point will China begin flooding treasury market with its inventory ?
Little Timmy G is sooo smart. After he and Bernanke perfect the economy, he is going to create the conditions for world peace and discover an alternative to fossil fuel and solve all our global warming issues. He is a boy genius and can do anything. A modern day super hero. Just give him a printing press and a microphone and we will all be rich and happy.
"Last Gasp of the Fiat Money Regime...
In yesterday’s FT piece from Edwin Truman, he suggested America sell all of its gold, and listed reasons as to why gold was in a bubble. King World News reached out to Jim Rickards to get his thoughts, after yesterday speaking with the legendary Jim Sinclair regarding the same subject. Jim Rickards put together this piece exclusively for the KWN blog which deconstructs the arguments in the FT article from Edwin Truman with remarkable precision."
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/10/13_Jim_Rickards_-_Last_Gasp_of_the_Fiat_Money_Regime.html
Good read. Thanks!!
Economics lesson for idiots like myself.. Fed wants markets to go up. Markets go up. Lesson over.
Edwin Truman, a still floating anti gold turd. You know someone is really desperate when they start to eat their own turds. Truman has become a turd eater.
Yeah the only turd worth listening to is Ferguson...
Dollar down 0.30 - Dow up 45
Dollar @65 - Dow 15000
Adjust for real inflation and the dollar won't buy enough beans to produce a good fart.
The only bubble out there now is dollars and keystrokes.
I'll stick to gold and silver, thanks.
Well that gold and silver take down didn't work too well. But still time for a few hail mary attempts.
haiku
float on a carpet
high above, watch sheeple graze
on keynesian dreams.
Gold keeps going up and up and up. And then we heard that QE2 from the Fed may happen sometime soon and then the Japanese govt. etc. etc.. We are getting close to the next phase of this problem, people and govt. are moving to the single door out of this mess but nobody wants to go out single file.