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Gold Trades North Of $1,420 After China's PBOC Advisor Li Says "Absurd" Dollar Is Reserve Currency

Tyler Durden's picture





 

Precious metals have now entered their parabolic phase. The latest catalyst for gold having traded north of $1,420 is not only the ongoing collapse of Europe via surging spreads and accelerating ECB bond monetization, which in tried and true bizarro fashion have lead to a more than 100 pip move higher in the EURUSD, but the latest speech by PBOC academic advisor Li Daokui, who said that it is "absurd" that the dollar is still the reserve currency of the world. We are confident that pretty much everyone in China agrees. The likelihood that China is about to do something big in FX land was also confirmed by the biggest move higher in the CNY which rose by 0.51%, the most since the revaluation period, and also by the high yield in the one week auction, which has led some to believe that China may be willing to hike rates once again, and further weaken the dollar peg.

From BLoomberg:

Li Daokui, an academic adviser to China’s central bank, said it could be seen as “absurd” that the dollar remains a reserve currency after the financial crisis.

To a visitor from outer space, it would seem “absurd” that the dollar holds that role, given problems in U.S. financial regulation and the country’s economic difficulties, Li said at a forum in Beijing. The same assessment could be made of the nation’s ability to keep issuing currency according to its own needs, he said.

To a visitor from outer space, it would be more absurd that after precipitating the biggest Depression in history Bernanke is still in charge of the world.

 


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Tue, 11/09/2010 - 09:16 | Link to Comment Spitzer
Spitzer's picture

dollar's a joke bitchez

 

Tue, 11/09/2010 - 09:23 | Link to Comment MarketTruth
MarketTruth's picture

Every time i hear his name, i think of Mr. Dollar as "Ben Shalom Bukkake".

Tue, 11/09/2010 - 09:26 | Link to Comment I need more cowbell
I need more cowbell's picture

No, fiats bitchez. PM's up versus ALL currencies. Don't be so dollar centric

Tue, 11/09/2010 - 09:30 | Link to Comment Spitzer
Spitzer's picture

fuck that.

The dollar is the most overvalued, overbought, over issued joke of all time.

Tue, 11/09/2010 - 09:34 | Link to Comment I need more cowbell
I need more cowbell's picture

Yeah, you're right of course, all the other fiats are rock solid, lol

Tue, 11/09/2010 - 09:59 | Link to Comment SheepDog-One
SheepDog-One's picture

Fiats are Fiats...very hard to change spark plugs on!

Tue, 11/09/2010 - 10:50 | Link to Comment financeguru500
financeguru500's picture

Do you think China has the guts to bring their currency in as the Reserve currency of the world. Or how about this, do you think the rest of the non-communist countries in the world will even consider China's currency as a reserve currency?

My guess is that just like the other day, the IMF goons will be standing by with a world currency backed by Gold. Conveniently, gold is going up as we speak which sets the stage for that very situation to occur. This will put the Rothschilds in control of the entire worlds finances.

Tue, 11/09/2010 - 10:04 | Link to Comment SheepDog-One
SheepDog-One's picture

Li Daukoi says USA has great economic problems? Im sure its all just a misunderstanding as Obama says of the US voters in the last elections...all just a failure to Teleprompter communicate Im sure! US voters just too dumb to get it, China too dumb to get it.

Tue, 11/09/2010 - 13:21 | Link to Comment cocoablini
cocoablini's picture

News flash- ALL money is fiat. Gold is FIAT. Gold is the last firewall of fiat, and has inherent value as a FIAT stable currency which is not based on credit. It's a dumb rock in the ground, and I could make polished river rocks and call them money storage too.
Money is barter of human labor and assets of value. Fiat and gold are worth something because we AGREE it stores labor credits. Once the system goes down, my Barbeque has just as much value to live on as gold.
I own gold shares, miners because when the fiat system goes to shit gold at least is the absolute bottom last ditch firewall before anarchy and road warriorism.

Tue, 11/09/2010 - 13:56 | Link to Comment JohnG
JohnG's picture

"Gold is FIAT."

 

I would suggest that you actually research what fiat currency is befor you embarras yourself furthur.

 

The term fiat money is used to mean:

  • any money declared by a government to be legal tender.[1]
  • state-issued money which is neither legally convertible to any other thing, nor fixed in value in terms of any objective standard.[2]
  • money without intrinsic value.[

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

 

 

 

Tue, 11/09/2010 - 09:13 | Link to Comment MeTarzanUjane
MeTarzanUjane's picture

Something tells me the current Silver squeeze has a little to do with it also.

Tue, 11/09/2010 - 10:31 | Link to Comment Turd Ferguson
Turd Ferguson's picture

Tarzan, you win the prize. 

I've maintained for months that gold is following silver.

The silver Comex is broken. December delivery is an absolute nightmare for Blythe and her minions. The question is: If the silver Comex is broken, isn't the gold Comex broken, too. The answer is: YES!

There are going to be stopping points along the way. Blythe, rather predictably, set up shop at 1420. When 1420 convincingly falls, she; going to fight like hell at 1440-1450. I'd expect all kinds of craziness when we hit 1440-50...Fed statements, etc...anything to talk up the $ and reverse the PMs. It'll probably work for a few days, maybe even a week. This advance has almost gotten out of hand and our buyer(s) of size may pull their bids for a few days in the hopes of adding again at lower levels.

So, let's say we see 1440-50 by late this week. Some profit-taking and bid-pulling pushes gold back to 1390 by mid next week. IF that happens (and it may not as this thing has taken on a life of its own), buy buy buy. 1500 by 12/10/10. Jim Sinclair's 1650 by 1/11/2011 looks like a certainty.

Tue, 11/09/2010 - 11:32 | Link to Comment 24KGOLD FOIL HAT
24KGOLD FOIL HAT's picture

At least the Matrix postponed all this till after the elections, unlike 2008.  I bought all I could at end of Oct @ 1345.  Agree on a temp pullback.

Tue, 11/09/2010 - 13:21 | Link to Comment thesapein
thesapein's picture

Something told me the same.

Curious, why do you speak of silver in the proper form, Silver? It's kind of kewl.

Tue, 11/09/2010 - 09:16 | Link to Comment John McCloy
John McCloy's picture

Is Charmin Ben going to have to cancel Operation Weimar or at least begin to jawbone or change around the Fed language in the next meeting hinting at a rate hike?

   I guess the facts have changed and you still have not changed your mind Ben.

Tue, 11/09/2010 - 09:21 | Link to Comment EscapeKey
EscapeKey's picture

His hands are tied. Without QE2 there will be no bidders for the treasuries.

Tue, 11/09/2010 - 09:28 | Link to Comment docj
docj's picture

Well, that's true - but it's also not Benron's problem.

It's Turbo Tax Timmy's.

Tue, 11/09/2010 - 11:29 | Link to Comment spekulatn
spekulatn's picture


Well, that's true - but it's also not Benron's problem.

It's Turbo Tax Timmy's.

 

How reassuring docj.  

8)

Tue, 11/09/2010 - 10:05 | Link to Comment SheepDog-One
SheepDog-One's picture

Thats all QE2 was about, monetize our own debt as last resort as no one else is dumb enough to touch it. 

Tue, 11/09/2010 - 10:32 | Link to Comment deez nutz
deez nutz's picture
There would be bidders if the market determined the rates.  
Tue, 11/09/2010 - 12:50 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

Zactly. And as soon as rates are not held down artifically, and go up even modestly, look for massive TBTF implosions as asset values collapse. 

Should be bright enough to read a newspaper by at midnight.

Tue, 11/09/2010 - 10:33 | Link to Comment packman
packman's picture

His hands are tied. Without QE2 there will be no bidders for the treasuries.

Yes, there would be, just at lower prices / higher yields.  As it should be.

 

Tue, 11/09/2010 - 11:09 | Link to Comment MachoMan
MachoMan's picture

There sure won't be bidders for treasuries while commodities and the stock market are launching into orbit...  can't eat your cake and have it too.

Tue, 11/09/2010 - 09:17 | Link to Comment unum mountaineer
unum mountaineer's picture

ruh roh!! just another day in the neighborhood for most here at the 9-5....

Tue, 11/09/2010 - 09:17 | Link to Comment Big Corked Boots
Big Corked Boots's picture

When paper burns, it burns quickly.

Tue, 11/09/2010 - 09:56 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Fahrenheit 451 to be exact.

I love the parallel between the book's "Firemen", who start fires rather than put them out, and Baby Back Ben, who's burning his own currency rather than protecting it.

You just can't make this shit up.

http://en.wikipedia.org/wiki/Fahrenheit_451

Tue, 11/09/2010 - 10:16 | Link to Comment Vergeltung
Vergeltung's picture

excellent point, CD.

Tue, 11/09/2010 - 11:10 | Link to Comment Xedus129
Xedus129's picture

Bradbury was very foresightful.  The televisions, the predator drones.. scary.

Tue, 11/09/2010 - 09:22 | Link to Comment Central Wanker
Central Wanker's picture

Does this mean that it is "Absurd" for China to hold such a vast amount of US Treasuries?

Timmay should learn ASAP, what is "F*ck you" in Chinese. He may hear it soon.

Tue, 11/09/2010 - 09:23 | Link to Comment EscapeKey
EscapeKey's picture

Chinese US Treasury holdings have decreased over the past year.

From 936.5bn to 868.4bn.

http://www.ustreas.gov/tic/mfh.txt

 

Tue, 11/09/2010 - 12:51 | Link to Comment mark mchugh
mark mchugh's picture

No one seems to be able to "hear" that.

Tue, 11/09/2010 - 09:27 | Link to Comment unum mountaineer
unum mountaineer's picture

cào n? m?de

that's the closest I can find. I'm going to ask a cambodian feller at work later on..he's a well traveled guy..he can assist..i will be able to swear in multiple tongues
Tue, 11/09/2010 - 10:08 | Link to Comment SheepDog-One
SheepDog-One's picture

Thats all China is doing now, trading their dollar debt for commodities, and that may become a losing action real soon and be the big unhinging point, where China decides to just dump it to whoever, and keep raising rates. 

Tue, 11/09/2010 - 11:06 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

He's already hearing it.  Just ignoring it.  He'll always ignore it.  Even when China bitchslaps him and Bernanke ...and Wall Street... back to the stone age.

Tue, 11/09/2010 - 11:26 | Link to Comment thefatasswilly
thefatasswilly's picture

"gan ni ma"

Translated more accurately as "fuck your mom"

Tue, 11/09/2010 - 12:54 | Link to Comment Bananamerican
Bananamerican's picture

yes, and "gan ni granny" means fuck your grandma

Tue, 11/09/2010 - 16:19 | Link to Comment thefatasswilly
thefatasswilly's picture

fail

Tue, 11/09/2010 - 09:18 | Link to Comment umop episdn
umop episdn's picture

Things must be getting pretty wierd when China's PBOC dude actually says what I've been thinking. When central banksters speak truth, I worry!

Tue, 11/09/2010 - 09:40 | Link to Comment MeTarzanUjane
MeTarzanUjane's picture

He's a consultant.

Tue, 11/09/2010 - 09:20 | Link to Comment Xedus129
Xedus129's picture

Operation Wiemar! That's great.

 

Dammit, meant to reply.

Tue, 11/09/2010 - 09:19 | Link to Comment cossack55
cossack55's picture

Again, bottom line:

PMs are enemy of the TBTF

PMs are enemy of the dollar

Hence:

I'm glad I agree with 1.4 billion Chinese.

Death to the Banks (might sound better in Latin)

Tue, 11/09/2010 - 09:22 | Link to Comment eigenvalue
eigenvalue's picture

Li Daokun is not so influential as you expect. The ultimate decision to diversify China's reserves is in the hands of Hu and Wen. 

Tue, 11/09/2010 - 10:10 | Link to Comment SheepDog-One
SheepDog-One's picture

If anything is said nationaly from China its been approved at the top and its what the top is also thinking. There are no Erin Burnett loose cannons in China!

I still cant believe that bimbo this morning said 'dont buy gold, its still not expensive enough yet'.

Tue, 11/09/2010 - 11:57 | Link to Comment Bam_Man
Bam_Man's picture

The ultimate decision...is in the hands of Hu and Wen.

Abbott and Costello would have had a field day with this.

Tue, 11/09/2010 - 12:52 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

+!!

Tue, 11/09/2010 - 13:10 | Link to Comment Bananamerican
Bananamerican's picture

"Hu said "dump dollars" and Wen..."

"I dunno"

"I just told you, Hu & Wen!"

"When?"

"Not Wen, HU AND Wen, just now!"

"Huh? How?"

"Hau? Is that possible? ...He likes soft commodities"

 

Tue, 11/09/2010 - 09:25 | Link to Comment UGrev
UGrev's picture

ripas mortem

Tue, 11/09/2010 - 09:21 | Link to Comment jbc77
jbc77's picture

I have a strange feeling we're not far off from the tipping point. A run on the dollar could quite possibly be very near.....

Tue, 11/09/2010 - 09:26 | Link to Comment EscapeKey
EscapeKey's picture

Personally I think you must be fxxxing crazy to hold Dollars. I see the daily swings in the index, and I can't for the life of me understand who buys.

But then, it's probably a case of the other currencies in the basket falling at an even faster rate.

Tue, 11/09/2010 - 09:51 | Link to Comment SheepDog-One
SheepDog-One's picture

Sure seems so jbc. 

Tue, 11/09/2010 - 09:22 | Link to Comment Ivanovich
Ivanovich's picture

With sentiment this negative, I'm a bit wary about being short the dollar.

Tue, 11/09/2010 - 09:35 | Link to Comment TonyV
TonyV's picture

+1

Tue, 11/09/2010 - 10:11 | Link to Comment SheepDog-One
SheepDog-One's picture

I wouldnt be short or long the dollar myself, just turn dollars into silver and hell with the dollar. 

Tue, 11/09/2010 - 12:07 | Link to Comment tsx500
tsx500's picture

whatever u say  mr. prechter  ............

Tue, 11/09/2010 - 09:23 | Link to Comment whaletail
whaletail's picture

Ni Hao white devil. We are coming for you. 

Tue, 11/09/2010 - 09:23 | Link to Comment whopper
whopper's picture

Johnny oh Johnny Bravo.....where are you ????

Where did that pud whacker Master Bates  or Johnny Bravo go?

Tue, 11/09/2010 - 10:05 | Link to Comment digitalhermit
digitalhermit's picture

JB said he'd never post here again if Gold reached $1450/oz. Getting pretty darn close to that in the spot market. It's effectively that if you are buying physical (coins).

Gold Eagle ask @ $1,459

Tue, 11/09/2010 - 10:13 | Link to Comment Pladizow
Pladizow's picture

Actually, we should never hear from him again:

by Johnny Bravo
on Fri, 09/10/2010 - 02:57
#573653

I don't say quite 900, but otherwise, I'll hold to everything else you said.

If there's a 200-250+ move downward, I want respect.

If it hits 1400 first, I'll leave. Kay?

Tue, 11/09/2010 - 10:28 | Link to Comment EscapeKey
EscapeKey's picture

Oh, that's doubly sweet - not only will he leave, but he also gets zero respect.

Which, I suppose, was roughly the amount he got before he left. But it's nice to be able to close a page with a round number.

Tue, 11/09/2010 - 10:33 | Link to Comment taraxias
taraxias's picture

But....but.....but.....I thought it was going to $900

 


by Johnny Bravo  on Thu, 07/01/2010 - 15:47 #447313

It still is.  Look at the big rising wedge in the charts above.  It took that long for the wedge to play out.

It's still going down to at least the 900s based on the wedge you see above.  I don't have a timeline, but that's the technical pattern's resolution.

Also, note that my call was right at the time.  Thanks for proving how right I was.


Tue, 11/09/2010 - 10:35 | Link to Comment taraxias
taraxias's picture

Or, how about this blast from the past......

 

by Master Bates  on Sun, 01/31/2010 - 22:44 #212819

I was talking mad shit at the gold peak, remember?  Deafening silence indeed.

I was like "gold is about to decline" while all you people were like "gold bitches" back when it was in the 1200's.  Now it's at 1070, and I'm still talking.

That descending triangle on the gold chart and the bull cross on the USD MACD looks pretty ominous.

You might consider paring back some of those gold reserves, homey.

Remember I told you this when gold is sub 1000. 

This has been a public service from Master Bates.

Have a nice day!

Tue, 11/09/2010 - 12:15 | Link to Comment JonNadler
JonNadler's picture

That's not fair to bring up what I said in the past!... I mean what Jonny and Mbates said, I mean, you know...we're not the same person...

Tue, 11/09/2010 - 12:47 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

JonNadler and, responding to two ZH-ers on the now gone Silver $28 thread, I offer up the below answers that I posted on that thread.

@ ATTILA: yes, if you "sufficient" gold and silver and any left money left over, yes, sure buy Pt and Pd coins.  Diversification.

@ DosZap and JonNadler:

-- Dos, please mention the idea of land in Peru or Argentina (near Caseyville) again in the near future so we can properly look at the idea.

-- JonNadler, yes, you can buy lots of decent land in Peru, but you may wish to avoid being near any gold & silver mines, you know, just in case JPM screwed them...

...

Since you, JonNadler, were kind enough to open things up here, you might want to consider being one of the FIRST rats off that ship, hell, tell JD you'll take your bonus at a juicy 20% discount if you can get it NOW!  You know, before he becomes Hugo Chavez's butler, LOL.

YOU have a fine sense of humor.

Tue, 11/09/2010 - 12:55 | Link to Comment mark mchugh
mark mchugh's picture

Gold wedgies are the worst.

Tue, 11/09/2010 - 09:24 | Link to Comment LoneStarHog
LoneStarHog's picture

Anyone who thinks that China is *trapped* into USTs, is friggin' nuts.

1) China has been buying hard assets around the world with those USTs

 

2) China will nationalize all of the American assets (factories, etc) and will then be the manufacturing powerhouse, especially to its own economy.

Tue, 11/09/2010 - 09:28 | Link to Comment UGrev
UGrev's picture

So, "Red Dawn" was really about the Chinese invading.. ;)

Tue, 11/09/2010 - 09:52 | Link to Comment SheepDog-One
SheepDog-One's picture

The NEW Red Dawn is China invades. 

Tue, 11/09/2010 - 10:02 | Link to Comment UGrev
UGrev's picture

what? are you saying they're re-making the movie?

*google*

Holy crap.. and I was just making a funny. Not so funny anymore..  Remaking a classic is almost always a Failure. It better be good!

Tue, 11/09/2010 - 10:12 | Link to Comment SheepDog-One
SheepDog-One's picture

Yep, remaking it.

Tue, 11/09/2010 - 10:23 | Link to Comment goldsaver
goldsaver's picture

Googled it again this morning. The movie is competed but missed the November release due to money problems at MGM. Is supposedly sitting in the MGM vault. It is directed by the assistant director of the Bourne movies. Should be kick ass. Of course, there will be a whole bunch of self-loathing PC crap since this is a standard fare from Hollyweird.

Tue, 11/09/2010 - 12:06 | Link to Comment robertocarlos
robertocarlos's picture

The real thing will be much better. It's in 3D.

Tue, 11/09/2010 - 10:07 | Link to Comment digitalhermit
digitalhermit's picture

Fear sells.

Tue, 11/09/2010 - 11:46 | Link to Comment 1100-TACTICAL-12
1100-TACTICAL-12's picture

Does not sound good...

Tue, 11/09/2010 - 09:30 | Link to Comment fiftybagger
fiftybagger's picture

"China will nationalize all of the American assets (factories, etc) and will then be the manufacturing powerhouse, especially to its own economy."

 

What now bitches?

 

http://media.moddb.com/cache/images/members/1/17/16604/thumb_620x2000/Wh...

Tue, 11/09/2010 - 09:57 | Link to Comment Spastica Rex
Spastica Rex's picture

Someone else who believes that "math humor" is not an oxymoron.

Tue, 11/09/2010 - 10:19 | Link to Comment ibjamming
ibjamming's picture

Our military will prevent that.  We can STILL destroy the planet and EVERYONE knows it.  We're the 800 pound gorilla in the room...everyone wants us gone, but nobody is willing to make the first strike and get their ass killed.

Tue, 11/09/2010 - 09:31 | Link to Comment eigenvalue
eigenvalue's picture

Come on. Those factories have no core technologies. All the important technologies are in the hands of the US headquarters.

Tue, 11/09/2010 - 09:38 | Link to Comment Eally Ucked
Eally Ucked's picture

How you apply technology to your products and not having "core technologies"? Once it is applied and all domestic engineers have access to it its no more big secret. Rights to them it's different story but they can claim them as collateral for your debts.  

Tue, 11/09/2010 - 09:44 | Link to Comment UGrev
UGrev's picture

Ever seen an Chinese EOTECH copy? it's actually pretty good. The glass is shit, but the damn thing is almost identical otherwise. Yeah, made with crappier electronics to keep cost down, but don't think for a moment they couldn't repro it with better components for their own purpose. Reverse Engineer FTW!

Tue, 11/09/2010 - 10:09 | Link to Comment Big Corked Boots
Big Corked Boots's picture

The Chinese keep all the good stuff for thier home market (and especially for thier defense forces) and send all the crap offshore. Especially to Wally World where the average patron can't tell the difference.

The Chinese are a lot of things, but they ain't stupid. Nationalization and outright confiscation of assets could be real and that could really kick our arse.

Tue, 11/09/2010 - 09:31 | Link to Comment apberusdisvet
apberusdisvet's picture

Yes China could nationalize all American investments, but look what happened to Hugo when he expropriated foreign assets in Venezuela.

 

Abso-fucking-lutely nothing!

Tue, 11/09/2010 - 09:42 | Link to Comment Eally Ucked
Eally Ucked's picture

Venezuela is not comparable to China, will you deny them access to capital, printed US $? Ha,ha, they will find other investors and you will keep your $.

Tue, 11/09/2010 - 09:35 | Link to Comment boooyaaaah
boooyaaaah's picture

Nationalization is a real threat

Ford's excursion into Russia before ww2 was all nationalized

 

Tue, 11/09/2010 - 09:58 | Link to Comment Spastica Rex
Spastica Rex's picture

The Excursion was being built before WWII? In RUSSIA?!

Tue, 11/09/2010 - 10:13 | Link to Comment Buddha_Gorilla
Buddha_Gorilla's picture

That made my day.  Well, that and silver touching 28.56 around 4:30 this morning.

Tue, 11/09/2010 - 12:46 | Link to Comment Spigot
Spigot's picture

And I'm sure that China has hedged their US T exposure via interest rate/currency derivatives with US Banks being the counterparties. Why?? In order to OWN the US financially in the case where the US government triggers the "nuclear option" of inflation and/or interest rate rise dramaticly.

And I'm sure that Wall St salivated over hedging them thinking it was free bonus money...

Tue, 11/09/2010 - 09:28 | Link to Comment jbc77
jbc77's picture

Europe is literally falling apart and the Euro markets are up today. Go figure. Man, have we entered the Twilight Zone or what? This is so surreal.

Tue, 11/09/2010 - 09:35 | Link to Comment unum mountaineer
unum mountaineer's picture

anything to keep the farce alive..anything..Who knows if the veil will be fully removed to show the carnage...will these sovereigns just stop providing certain services in an effort to rebalance? bloody unlikely..that shit would cause blood in the streets..and it would be oligarch, politico blood can't have that! no one has gonads that big on the inside or out to make that move. they will go the other route..even the fucking norway rat looks after her young....(well thats not totally true. have seen a couple nibble on a few)

Tue, 11/09/2010 - 09:30 | Link to Comment DavidC
DavidC's picture

The ironic thing is that if the dollar continues to fall as a result, it's achieving exactly what Benny boy wants.

What they ought to do is band together, BUY the dollar big time - that would scupper him and the Fed.

DavidC

Tue, 11/09/2010 - 09:44 | Link to Comment John McCloy
John McCloy's picture

What about the nightmare scenario where Russia & China joint announce plans to create a currency backed by metals ?

Tue, 11/09/2010 - 10:16 | Link to Comment CitizenPete
CitizenPete's picture

or backed by rare-earth metals?

Tue, 11/09/2010 - 09:33 | Link to Comment boooyaaaah
boooyaaaah's picture

So China will raise the price of the Yuan

Isn't that what we always wanted?

Now Chineses goods will cost more, some money going to the workers, I hope

Our Goods will cost less

And gold has not yet made 2 bagger status (800-1600) since 1980

Silver is still losing since 1980 (45-30)

 

 

 

Tue, 11/09/2010 - 09:39 | Link to Comment John McCloy
John McCloy's picture

Erin is on Morning Joe telling people not to buy gold because it is still 40% below it's inflation adjusted high during the Hostage crisis and that if you believe the world will be better tomorrow not a wise purchase. Scarborough was actually calling it "unicorn" gold. hmmm..Unicorn gold I suppose for Unicorn accounting.

  What do I do if I think we are trading places with China & India Erin?

Tue, 11/09/2010 - 09:46 | Link to Comment Bob
Tue, 11/09/2010 - 09:56 | Link to Comment SheepDog-One
SheepDog-One's picture

So Erin suggest to wait until its far higher to buy? These stock whores are funny, pissed about gold, these people arent financial reporters theyre propagandists for their masters.

Tue, 11/09/2010 - 13:00 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

I otherwise enjoy Morning Joe in the am and have been chagrined at their inclusion of CNBC Sell Side Whore appearances Cramer and Burnett and CNBC supplied news crawls ("Gold Rises on Inflation Fears" - WTF?!?!)

Tue, 11/09/2010 - 10:25 | Link to Comment goldsaver
goldsaver's picture

So is the bint's advice to buy high and sell low? Is she doing that with her funds?

Tue, 11/09/2010 - 10:56 | Link to Comment Al Huxley
Al Huxley's picture

Worry when they start pumping it, and pumping gold stocks.  That's the exit signal.

Tue, 11/09/2010 - 09:44 | Link to Comment lolmao500
lolmao500's picture

Still the stupid dollar is still trading at high 76.

 

It should be hitting all time lows right now. Like low 60s... but nooooooo.

Tue, 11/09/2010 - 09:48 | Link to Comment docj
docj's picture

Patience, grasshopper.

Major support is in the 71-72 range.  Beyond that, there be monsters.

Tue, 11/09/2010 - 10:08 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

BIG and scary monsters if I remember correctly my childhood indoctrination.

Tue, 11/09/2010 - 09:48 | Link to Comment Bartanist
Bartanist's picture

Then if China does not like it then China should decide to do something about it and de-peg their currency from the dollar ... and bring it down to 1:1, or so.

... end of China's export economy and they know it, but they can completely take down retail and ALL of those manufacturing companies that bailed out of the US and are doing all of their manufacturing in China.

Apple to $0.30, bitchez.

Tue, 11/09/2010 - 09:49 | Link to Comment zaphod
zaphod's picture

What is absurd is China keeps buying more and more USTs and after that other US assets, in a never ending attempt to keep their currency from appreciating until a level that trade balance is restored.

They want it both ways.

They want to load up on USD assets in a manner that benefits them, but then they want the value of those assets to maintain their value.

China will learn you can't have it both ways.

Tue, 11/09/2010 - 10:14 | Link to Comment BigJim
BigJim's picture

Haven't the Chinese reduced their UST holdings?

Tue, 11/09/2010 - 09:51 | Link to Comment ptolemy_newit
ptolemy_newit's picture

The difference between (war) armed conflict and (war) economic is that the economic war has longer lasting results and greater spoils to the winner.  So america has spent trillions on military complex and outright armed conflict against everything as a means to base an economy.

China could spend 800 billion and change the world.  IT IS WORTH IT and is going to happen soon!

Tue, 11/09/2010 - 10:19 | Link to Comment Green Leader
Green Leader's picture

You forgot to include bioweapons in your model.

Do some research on the AH1N1 virus and Obama's visit to Mexico.

This is dread, really dread, man.

 

Tue, 11/09/2010 - 09:56 | Link to Comment Thunder Dome
Thunder Dome's picture

When the shit goes down, the ignorant will not have time to react.

Tue, 11/09/2010 - 10:07 | Link to Comment Peterpaul
Peterpaul's picture

A great conflict was about to come off between the Birds and the Beasts. When the two armies were collected together the Bat hesitated which to join. The Birds that passed his perch said: "Come with us"; but he said: "I am a Beast." Later on, some Beasts who were passing underneath him looked up and said: "Come with us"; but he said: "I am a Bird." Luckily at the last moment peace was made, and no battle took place, so the Bat came to the Birds and wished to join in the rejoicings, but they all turned against him and he had to fly away. He then went to the Beasts, but soon had to beat a retreat, or else they would have torn him to pieces. "Ah," said the Bat, "I see now,

"He that is neither one thing nor the other has no friends."

Tue, 11/09/2010 - 10:16 | Link to Comment johny2
johny2's picture

Birds would have killed bat as soon as he said he was a beast. nice story though. 

Tue, 11/09/2010 - 10:33 | Link to Comment TheSettler
TheSettler's picture

Are ya'll on Crack?

Tue, 11/09/2010 - 10:09 | Link to Comment CitizenPete
CitizenPete's picture

Gold: IF you don't "get it", you just won't get it.

 

Because there won't be any left in a few weeks.

Tue, 11/09/2010 - 10:17 | Link to Comment SheepDog-One
SheepDog-One's picture

Thats when the real fun will start, when those logging on to Kitco see they cant get physical delivery! 20% up days all in a row, hopefully making Bernanke swandive from a high window.

Tue, 11/09/2010 - 10:20 | Link to Comment scratch_and_sniff
scratch_and_sniff's picture

Anyone know where i can buy a framed picture of chairman mao online, my livingroom wall is looking kind of bare now that i think of it.

Tue, 11/09/2010 - 10:29 | Link to Comment goldsaver
goldsaver's picture

Call the white house. I'm sure they must have some in their gift shop.

Tue, 11/09/2010 - 10:32 | Link to Comment packman
packman's picture

To a visitor from outer space, it would be more absurd that after precipitating the biggest Depression in history Bernanke is still in charge of the world.

IMO you're letting Greenspan off the hook.  Bernanke's making it worse, but he's not the main/original cause.

 

Tue, 11/09/2010 - 10:35 | Link to Comment Stuck on Zero
Stuck on Zero's picture

The dollar is very valuable.  It's amazing how much Chinese stuff you can buy with a dollar. 

Tue, 11/09/2010 - 10:42 | Link to Comment jomama
jomama's picture

I am pleased to say that I poured my life savings into gold and silver about a year ago in no small part because of reading ZH.

However, I would trade it all to have a stable job and a modest standard of living for the rest of my life, and for my family... which the picture is looking worse and worse for every day.

I wonder after the dollar is officially gone as the reserve currency that the remaining regulations and red tape will only push industries farther and farther from doing business here...  Maybe the correction will be just what this country needs.  Yes, the earning power will be less, but maybe more affordable for businesses to start hiring again.

Tue, 11/09/2010 - 12:47 | Link to Comment surfsk8sno
surfsk8sno's picture

Silver :)

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