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Guest Post: Gold Will Soar as the U.S. Dollar Bubble Bursts
Submitted by Mike Krieger of Kam LP
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
- Thomas Jefferson
Gold Will Soar as the U.S. Dollar Bubble Bursts
I haven’t taken the time to write about gold in length as of late because quite frankly there is so much quality stuff being written about it at this point. In addition, the understanding of the monetary system and the dangers of fiat money in general is so much better than it was even a year ago. Nevertheless, while the understanding is considerably better it remains poor. While it has become a bit cliché, the statement that “gold is not going up but the dollar is going down” is the most important concept for every investor and indeed citizen to understand at this point. Completely wrapping one’s head around this concept may very well be the difference between economic survival and complete destruction in the years ahead. For when you truly comprehend this notion you stop thinking about gold in terms of its price and you can then make a rational decision about where it is going. Gold is not up 23% this year to $1,345/oz, rather the U.S. dollar has depreciated by 23% versus the world’s neutral money supply, gold. As we all know by now, there is no limit to the amount of money Banana Ben Bernanke can or will print. Thus, gold’s theoretical upside is infinite in a purely paper money world. Once you understand this, you recognize that gold is not the bubble but rather the biggest bubble on planet earth today is the U.S. dollar itself.
The Dollar Bubble Grows as FX Reserves Surge Globally
French enlightenment giant Voltaire said back in the 18th century that “paper money eventually returns to its intrinsic value – zero.” Indeed, this is the basic economic history of the world and not really such a profound statement, yet most people in the United States today have no idea what sort of immovable force they are fighting against by storing a their “wealth” in increasingly worthless pieces of paper backed by nothing that we call U.S. dollars. One of the most bullish factors behind the current gold bull market and one that will drive the price multiples beyond where it stands today receives much too little attention. While a lot of attention is placed on the low percent of FX reserves that are held in gold by the BRIC nations and other fast growing emerging economies what is not discussed is that rate at which these FX reserves are growing in the first place. While the fact that China’s FX reserves soared to $2.65 trillion as of the end of September made plenty of headlines, not enough people pointed out the fact that this represents a 17% year-over-year growth rate. The implications of this are clear. Everyone knows that the BRIC nations and many others own a woefully inadequate amount of gold in tonnage terms, but especially with respect to a percentage of total FX reserves. While the latest Chinese gold data is only from April 2009 and the amounts are surely considerably higher, this is beside the point I am trying to make. The key point is that if it’s FX reserves are growing at 17% then China has to increase its gold reserves by that amount just to keep the % FLAT. Forget about increasing it. It’s not just China though. It is the whole world. Russia’s FX data recently came out and guess what? FX reserves soared 19% year-over-year to $503 billion. Russia provides more up to date data on its gold reserves and they are actually up 27% year-over-year. Nevertheless, Russia has previously stated that it wants it share of gold to reserves to get to10%. Despite the tremendous buying the percentage has only been moving up slowly and currently stands at 6%. This is a function of the dollar bubble and the impact it has had on Russia’s FX reserves.
What investors seem to overlook is the fact that when countries fight back in this highly destructive currency war they print their own currencies and then buy dollars to keep their currencies from appreciating too rapidly. Let’s take a look at Brazil. They have been in the news lately as the Finance Minister has made a stink about the U.S. policies with regard to the way the FED is defiling the dollar. They have been all over the market trying to prevent a more significant appreciation of the real. Well guess what? As of the latest FX data they now have $283 billion in reserves, which represents an incredible 21% increase year-over-year. Unfortunately for Brazil, they basically have no gold and don’t appear to be buying. Perhaps the leaders over there just don’t have a clue, or perhaps it’s because they don’t have nuclear weapons. If you take a look at the countries with massive and growing FX reserves the ones that are actively and aggressively buying gold have either nuclear weapons or some sort of significant military deterrent to the U.S. Look at Japan and South Korea on the flip side. Japan has about 3% of its FX reserves in gold and South Korea has 0.2%. More importantly, neither nation has been adding to their stockpiles. While South Korea made some comment about adding gold they probably will have to think twice considering the troops we have in their backyard.
Sadly enough, many of the fastest growing countries in the world simply do not have the geopolitical might to shift some of their increased dollars into gold. At least not officially or out in the open. This is probably partly why they are so angered by U.S. dollar policy. Essentially we are stuffing ticking time bomb assets into their FX reserves (dollars and dollar related assets) and they are forced to accept these soon to be confetti “assets” as payment. Jim Rickards wrote an excellent piece a while back where he likened U.S. treasuries to opium that the British forced the Chinese to accept as payment during the 19th Century. The article is excellent and can be read here http://www.dailypaul.com/node/144070.
Buy Physical Gold While You Can
Fortunately, we as American citizens do have the right to buy as much physical gold as we want at this stage and now is the time to do so. By saying this I do not mean that gold cannot go down from here. Of course, if the markets experience a huge spasm after the elections and the next Fed meeting, gold could certainly pullback violently. The people that I am trying to reach today are those that have not yet bought a reasonable amount of physical gold (not GLD!!!). This is because I think the window of opportunity to buy at anywhere near the current level is fast closing. Pretty soon, it is going to be clear to everyone exactly what is being done to the dollar and what this means. Think about it this way. There are roughly 230 million adult Americans around today. What if each one of them realizes that what Thomas Jefferson warned about in the quote at the top has already happened. Go back and read that quote and think about the Fed, the bank bailouts and the foreclosure scandal. This is the oldest trick in the book and we continue to fall for it while mindlessly watching Snookie prance around on the Jersey Shore. What if this awakening caused each adult to go out and buy just ONE ounce of physical gold. This amounts to over 7,000 tons!!! This is only slightly below what the U.S. government supposedly has stored in Fort Knox and elsewhere. It is 2.8 times the amount of gold that is mined each year. While I understand that this scenario is unlikely, we are only talking about one nation and we are only talking about one ounce each. Even if the richest 10% bought one ounce it would still be 720 tons, or 30% of annual supply. You see the math just doesn’t work at these prices. People are climbing the learning curve and doing it fast. If you wait until the tipping point there is a very good chance you will never be able to get your hands on the supply you desire. Good luck and use your head that’s what it is there for.
All the best,
Mike
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Robot, at least you're not a coward like Jonnybarvo, does anybody remember Jonny?
Robot, at least you're not a coward like Jonnybarvo, does anybody remember Jonny?
Help! I'm locked in my MaMa's basement and I can't get out!
Buried canned ham in the backyard Bitchez!
Knock it off Johrny, you Cheesy Bastard.
MsCreant, will you be my Mama? Cause my MaMa keeps me locked in the basement and sensually abuses me....
Dressing up like Cheeky was an early haloween prank gone horribly wrong...I know how ya feel Johrny :)
Cmon, it's been like an hour. Someone point out that Cheeky would NEVER misspell a word like halloween, asstard!
whyfore you cut your cheese? It wuz bigger las time.
Think this with a French accent: You like zee beeger chez, no? Zee leetle chez, it does not satisfy? Ho Ho Oui Oui!
...
Robo, toss a ten year chart up there, too. Thanks
http://www.kitco.com/charts/popup/au3650nyb.html
Toss up a 10 year USD/Cottonelle chart if possible.
Dont bother with the facts... the true believers... all 10,000 of them will be in a camp together bitching about how un-fair it all was... if they ever had thier wishes come true.
scare them JW, scare them! gold to 300, tell'em
Removed because I'm slow to sarcasm.
Congrats.
It's okay, he wants to be an effigy and draw the fire. You were playing his game. It's a different sort of trolling he does.
Yeah, I can understand that. It's also a way to make you feel stupid for using YOU'RE SHOUTING TYPING!
Gold at 300 would mean a (wishful) erasure of the HISTORY of the last decade, ferocious ongoing wars, a dramatic scarcity of basic resources (oil, food, water, among others), and yes, climate change (not a very popular notion in this blog). Let’s not even talk about geopolitical changes (Rusia, China, and Asia, Brasil, and Latin America), together with people’s awareness of the true nature of corporations, in the US and all over the world. No my friend, there is no way back to the fallacies of unlimited progress, development and consumption.
So you show that gold on one day dropped $14. But look at the numbers on the y-axis. What were the y-axis numbers showing last year? In 2008? In 2007? The fact that those numbers are in the mid-1300's completely obliterates the point you were trying to make.
Have you ever heard of inflation?
http://img833.imageshack.us/i/spdxyspread.gif/
This might help you put things into perspective
http://img135.imageshack.us/i/spdxyregression.gif/
Just like the elite decide who gets to sell their oil at $147 per barrel (the top) or who get to buy at the bottom. i was working as a broker in the 87' crash, I convinced a client to put in a buy order at $20 GTC on Gillette a day earlier and got confirmation back that the order was on the books. The stock the next day traded through our limit on very heavy volume down to about $19.
Do you know they came back to me and DK'ed it, later said it was one of 768 orders lost and that because of the unusual circumstances we were out of luck. Fought it, no results for me or client, and old timer who had nick-named me "customers man" said "there he goes again". They took the trade for themselves because later that day the stock closed at about $24 1/2.
Thats how it works, good profitable trades go in one pile (for their family and friends) the losers go into another pile (for the customers)
Wrap your head around that, and that was 1987, and it was going on I believe for as long as they could get away with it. And one ethnic group controls most of the mechanics, they keep to their own group with their mouths shut, and are like Santelli multi-millionaires.
And the beat goes on. (of course we're the ones being beaten).
Profitable Trades (Same Day) = Insiders
Trades Under Water (Same Day) = Suckers, I mean the Public
Re, your head? It's a WRAP .
You can't eat gold.
Yellowcake, bitchez.
URG and VAE (Toronto)!
Yellowcake is delicious. :P
what happening do we have that spotty 23 year old back again under a different ID?
thank you captain obvious.
From: Kaiser Sousa
To: questions@cftc.gov
Sent: Wed, October 20, 2010 3:06:25 PM
Subject: Question...
why does your organization exist?
it most certainly can not be for the purpose of safeguarding and protecting the US citizenry from entities who desire to manipulate and distort the markets for their benefit and their benefit alone. your blatant sycophancy towards your banker overlords is now public record. your treachery and betrayal of the public interest & trust now documented and corroborated.
http://www.silverbearcafe.com/private/10.10/whistleblower.html
http://www.thedailybell.com/1461/Retiring-CFTC-Judge-We-Covered-Up-Marke...
p.s. - Silver @ $23.93 per the fraudulent "Crimex" paper price is a joke. do your jobs or at least have the decency to have those puppet commissioners, Bart excluded for the moment, dawn JP Morgan name tags as to at least publicly and clearly identify who they serve...
Swim with the current you will get further... before drowning... but either way, you will not be able to tred water forever.
don't tell them to swim with the current you idiot or they will buy gold. What's the matter you ass, you're supposed to scare tehm
you sir crack me up
on Thu, 10/21/2010 - 11:47
#667134
don't tell them to swim with the current you idiot or they will buy gold. What's the matter you ass, you're supposed to scare tehm
JonNadler,
You offer one sentence of personal slander... I offer numerical facts... you feel like I am undermining the cause... You feel, like... the facts are mean? harsh? and / or not on your side? the numbers... make you feel... like? the numerical facts are the fucking numerical facts and no matter how you feel about them... they will still remain the numerical fucking facts.
So, You go ahead with your one line slander... about how you feel a certain way... maybe we can all chip in.. for all of you with feelings issues and get a discount on a larger supply of fucking midol... but I really dont care if any of your pussies hurt... becuase you dont like the numerical facts...
Don't you dare pick on lil Johnny Nadler! You big Gold Bully...
LMAO.
offer them some more numerical facts and they will surely sell all their gold. Come on JW after all we're the same person aren't we?
Swim with the current, you eventually end up in the ocean...what then?
The Jefferson quote is bogus.
http://www.snopes.com/quotes/jefferson/banks.asp
As your post would elude too.. you believe that history does not repeat...
Figure 1 demonstrates the extent of uncalled capital in a variety of sectors during 1870-1913. The figure reports data for only a few sectors, including banks, insurance companies, trusts, and land, mortgage, and financial companies. These sectors maintained a high amount of uncalled capital relative to the market as a whole. The high proportion of uncalled capital can be seen as a market-imposed requirement to engender confidence in sectors where leverage was high and the physical assets were either meagre or inaccessible to creditors.
Of course, as shown in Grossman (2001), state-chartered banks in US states that imposed extended liability during the Great Depression fared worse than banks in limited liability states, suggesting that the benefits of extended liability may be of limited use in the face of a financial tsunami. Nonetheless, our results have an important implication for today’s policymakers. Extending bank shareholders’ liability can protect taxpayers by directly reducing the taxpayer’s share of bank resolution costs and, more importantly, by altering the risk-shifting incentives of banks.
http://www.voxeu.org/index.php?q=node/5476
You can stay your dumb ass in the fucking kiddie pool so as not to get deep water where you can not stand, thusly must tred... and surely drown at some point... which is to say that I will not commit to you the needed time... to see you eventualy go under... so save it stupid.
*ALLUDE*, dumbass
So, paper currency controlled by rich banker elite is < or = mined yellow metal controlled by rich banker elite?
Gold is worth roughly 5.90X10^28 free electrons per cubic millimeter.
This is exactly why it is such a difficult concept. So it should read...
Those that wish to preserve their weath (not gain wealth) need to purchase, at any price, physical gold. Which, by the way, is money that can be spent in stores!
+$1320 Modern. The value of physical gold is the key.
It's all about the ounces (FOFOA). fofoa.blogspot.com
I still don't understand how either side in this debate can be so certain of the unknowable future. It seems to me that one should be "hedged" for a variety of possible tail events, including ownership of physical PMs, and ownership of equities during this reflation of asset prices. "What if I'm wrong?" is a question every participant in the markets must ask on a continuous basis. (I know, what if I am wrong about this...) I guess the majority on ZH really do have "zero" hedge. Have the hedge and own piles of PMs, but don't miss the crazy reflation, just in case we're wrong.
"What if I'm wrong?"
I ask my self that everyday/hour and you are quite right.
and try to hedge. Any suggestions would be gratefully received.
I have 20% in physical, split between gold and silver. Even my clients own 12-18% between gold/silver and the miners, and physical if they have heeded my warnings.
I have a place to get away to in the mountains, with farmable land and plenty of room to invite friends and family.
I own uranium stocks. If equities have a future as the world spirals into war/chaos.
But I also own the market, including NFLX and AAPL, IBM, etc. And distressed mortgages and TIPs. If the greenback goes to zero and all paper assets with it, 20% in PMs should more than adequately maintain purchasing power.
Someone sold you farmland in the mountains? I'm not a geography major, but where is good farmland to be found in the mountains? You'd be better off planning on being a hunter-gatherer and living off deer jerky.
He wrote "with farmable land".
Here's a device to farm with in the mountains:
http://www.grillospa.it/classic.php?prod=7
Pirelli tires come standard.
Wow, it's beautiful...can i get it in a turbo?
These people can help you:
http://earthtoolsbcs.com/
This is turbocharged, much more effective, and (partly) made in the USA.
http://www.deere.com/en_US/ProductCatalog/HO/servlet/ProdCatProduct?pNbr=684DLV&tM=HO
to borrow a line from Packard - "ask the man who owns one."
That tractor will get you killed in hilly terrain.
A pair of short legged oxen and a couple two wheel tractors are the real ticket for mountain farming.
Oxen bred for hilly terrain:
http://www.youtube.com/watch?v=YYnDXXA4icw
http://www.youtube.com/watch?v=9jyHes_Geh0
It's on the Ausable River, upstate--and "farmable", not already a farm, in that more than 10 acres is cleared and has rich soil. For my part, the best case, we do a 70's style inflation and in ten years my horses will graze there as my kids and I pull trout out of the River...
One's got to have a vision.
MI?
My wife & I take ourselves from upstate NY (near ROC) to upstate MI (near Mio) every summer to float down the Ausable River.
Fun times and we get to drive straight through Canada (Ft. Erie to Huron) to save several hours driving south through Ohio then back north. But, we miss out on Cedar Point and all the lovely roller coasters.
I will miss roller coasters the most, I think, if SHTF and Mad Max breaks out. Tall fast metal vs. wooden shaky, it don't matter, roller coasters are fun times that may not last in a Mad Max scenario.
Mountain valleys are among the best places in the world to grow crops. Lots of rain, and likely they have good soil. You don't have a lot of space to plant, but where you do plant you should get a very good harvest.
I have though about buying land in or around Taos, NM for this very reason. Indeed, they have the one valley area that is about 20x50 miles that would make perfect farmland or grazing for cattle. Sadly, much of it is being wasted on a housing development for now, but there is a lot of open, unused space there.
Any hedgies looking to India as a hedge, feel free to get in touch.
ORI
http://aadivaahan.wordpress.com
For many of us folk not loaded with assets, the other event is the hedge itself. And what I mean by that is if we pessimists are wrong, then then the alternative is economic good times or at least another bubble to pass the buck. So I know personally I would love to be wrong and watch PMs get blasted. Because this would mean that Zimbabwe Ben doesn't execute the dollar, deficits and debts get under control and we have economic growth. So why should I prepare for a bright sunny day, I'd rather prepare for a storm.
You Sir, are one smart cookie.
Real Diversification is as close as you can get to a free lunch. (this doesn't mean several different stocks)
I own a small portion of each, some are weighted heavier, because they are perfoming better:
Bonds
PMs
Stocks
Cash
Personal Life Improvement Investments (Backyard garden, water source, energy systems)
Cash is tricky in here. Best keep it somewhere other than your bank! If all hell breaks loose, the banks won't have it on hand.
In 20's please.
I'm diversified...I've got gold AND silver.
I also share Shameful's view, if I am wrong then good times roll again. Being wrong will be good, too.
+1 for diversification humor. Let's all hope it doesn't get as bad as it could.
+ 100,000 for diversification. Flexibility will be important too.
Wait, so the US dollar "bubble" is gonna "burst" when it's at an all time "low" and is the reserve currency of the world. Hmmmm. Ok. I smell head fake. Listen, I have no problem with this theory but for god's sake, make your case. WHAT is going to replace the dollar. And don't say "gold". I mean what type of system? How? What geopolitical events will surround it? I don't believe I am going to be paying gold to buy a car or have a guy put tile in my house any time soon. We've already seen it in Japan. They're having a hard time keeping their currency from strengthening. Central bank intervention does nothing after a while. Dollar correction is imminent.
Real Bills.
They butchered it in 1913, http://en.wikipedia.org/wiki/Real_bills_doctrine
Warehouse Receipts. Goods for exchange median at a price that can be converted into a receipt that matures into a ... Real Good.
I.e. Exchange your 1 Gold for 16.4 Oil reciepts that you can let mature into oil, or exchange them for 3.5 silver receipts, that can mature into silver ect.
Each receipt is CASH because it is Backed by a REAL good. This prevents the government from printing cash (aka its not backed by anything.)
Warehouse Receipts!
This is why I use ZH. thanks for the Real Bills link. I had never even heard of this.
And if your Bill is not redeemable in the commodity or product that it is denominated in?
Gold is the ultimate stop for Bills, so gold is the ultimate store of value.
The value of a single dollar may be at an all-time low, but the aggregate value of all the dollars in existence - a figure which is being hyper-inflated by the Fed with its profligate printing programme, makes the currency (and the US) massively over-valued, and surefire sell.
What will replace the dollar? Something else. If you think that is a good argument for the dollar not collapsing, you are deluding yourself.
"WHAT is going to replace the dollar. And don't say "gold". I mean what type of system? How? What geopolitical events will surround it?"
I am convinced that
1) the Iraqi Dinar will become the world's next global reserve currency.
2) this has been planned for thousands of years by some big power players (not human).
3) it will become the reserve currency by de facto mechanism once the dollar collapses.
Oops....
Here is a quite interesting chart via Bloomberg; you make your own conclusions...
http://img139.imageshack.us/img139/8675/spxgoldratio.gif
oog what an ugly chart, that sucker is heading for zero fer sher..Say Robo, what does the 2yr, 1yr, 6month or 3month chart on that bad boy look like?
Put up a collection of op ex hits; that'll really 'prove' your point, whatever that is...
Give them the 30 year chart... expalin they are 20% (ish) off all time highs... for spot gold and let them buy high to sell higher..
I cant dumb it down any more than I just did you ignorant fucks!
Give them the 30 year chart... expalin they are 20% (ish) off all time highs... for spot gold and let them buy high to sell higher..
I cant dumb it down any more than I just did you ignorant fucks!
Good to see we have two child representatives from the CFTC or is JPM and HSBC today.
on Thu, 10/21/2010 - 11:56
#667176
Good to see we have two child representatives from the CFTC or is JPM and HSBC today.
Kina,
You offer one sentence of personal slander... I offer numerical facts... you feel like I am undermining the cause... You feel, like... the facts are mean? harsh? and / or not on your side? the numbers... make you feel... like? the numerical facts are the fucking numerical facts and no matter how you feel about them... they will still remain the numerical fucking facts.
So, You go ahead with your one line slander... about how you feel a certain way... maybe we can all chip in.. for all of you with feelings issues and get a discount on a larger supply of fucking midol... but I really dont care if any of your pussies hurt... becuase you dont like the numerical facts...
JW , any experience with anger management classes? Seems you have lost yourself to YOUR emotions.
I think he's off his meds.
He couldn't afford to fill his prescription, so he is tripping balls from speedballing. Proving to be a little contraindicative, apparently.
LOL merehuman, SWR, Goin!
Needed the laughs today, thanks!
When his parents get home, he'll probably get a bar of soap for dinner, then off to bed.
I know, right? Don't buy gold! It's 70% inflation adjusted off its all time high!
Tell 'em to buy dollahs instead, they're cheap. Beat the rush!
And I thought I was Johnny Bravo!
Wow
Gold priced in euros looks very bad in technical terms. We will revisit $1100 early next year before setting new highs
Agree... except for the last bit... that's not clear as of yet (possibly right, but not clear)
Have to say Americans ought to be buying gold and silver before USD sinks too much further.
Same goes for Europeans. Both sitting on economic powder kegs.
I'm confused by who is trying tell who what here. Even though I'm bullish gold we all knew a correction had to come and this is it. Why do we need you robotrader to post charts to explain what was long going to be obvious. Once the price has been trounced and 'everyone' is covered it'll go back up and even if it doesn't medium term unless your trading now the "long term" outlook is still very positive.
+1
+1
+1
+1
Just say +4 already Mr. Plissken.
GIT SOME!!
http://www.youtube.com/watch?v=OCkLEo-DT1Q
Picked a bad day to write about this shit
http://www.youtube.com/watch?v=VmW-ScmGRMA
+10
Geithner's comments might be a game changer. If they choose to slow the decline in the USD then, and remember that hyperinflations are all about a lose of confidence in theccy (see wiemer and zimbabwe - printing money is a necessary but not sufficient condition for hyper inflation) then you will see the USD reverse. If they slow the decline then its less clear that you want/need to hold gold. And with positioning at 5 year extremes that door might get real narrow.
c'mon the fed = government. independent my arse. a lack of confidence in the bull shit they spew = a lack confidence in cb = lack of confidence in government...and Barry convinces me that he needs to stick his elbow in on his drives..that's about all. and right now, there are many who have lost confidence in government being the do-all-end-all..printing is irrelevant (but they will do it with binary 1 and 0's). I still believe there is a transition...whats the stat line of what a quadrillion would like again? right, that's gobs-o-cash...what if..bare with me..that shit is on a debit / swipe card...poof..not so hard to imagine then right? do away with check writing...help me out huggy if you are in london.,,might have read something about that at the grocery store..but it's more possible than ever..me? no thanks..unplug me from this fuckin matrix.
Yeah you need unplugging alright.... Positioning can cause a lot of pain if theres a reversal thats all i am saying... And if they slow/halt the decline of the USD then gold will come down... a lot. That market only ever has 5 lots here and there sitting on the bid....try clearing the stack and it'll be down 15 bucks on nothing, then its the next guys turn.
I am not saying it wont be higher later... i probably will be ... but it might visit 1000 again before 2000.
Hyperinflations are always about the loss of confidence in the ccy. Guess they could just ban currency speculation.....
http://www.zerohedge.com/article/mr-t-talks-gold-bloomberg
Oct 13th...
That would be funny, and a good point, if Mr.T was trying to sell you his gold, not buy yours.
Regards
It's all maneuvering before he elections; the FED wants a DEM house; they are easy marks for bankster contributions. The lame duck Congress will try to pass some crap; the result will be PMs going to the moon as all confidence in the Gov't goes south.
This idea that the Govts around the world are trying to accumulate gold is a strange one. First of all, wasn't it just 20 years ago that most central banks were trying to SELL their gold? Secondly what is the point of having gold if there is a destructive currency war or global hyperinflation since you can't eat or wear gold or build anything with it other than capping teeth perhaps and wearing it as jewellery? Wouldn't it make much more sense for the BRIC countries with USD surplus to buy up hard assets like land or commodities or military -- i.e. something that will be USEFUL in case the world truely goes into a global meltdown and all-out trade war ensues? In the event of a global deflation/hyperfinlation or all-out trade/currency wars, what would a country rather have? Bullets/food/oil/copper or GOLD???????
what would i rather have...bens helicopter!
LOL, but, Ben's chopper won't get me to Peru merehuman!
wink wink..what to do when you have a currency war on your hands...trade it out for the shit you need
Since I bought in at $700, I'll watch the slide untill it hurts. But what really bothers me is this. I tried to trade a couple of handguns for an SKS privately and the guy wants to go to an FFL dealer and pay fees! America is doomed.
I hope he was in state... or how much are stamps now? $50 bucks? it is a shame what one has to pay to protect ones family and way of life... its almost to expensive...
yeh really
Yeah its almost like their is inflation...
Why was the daily effort to drive down the spot price a couple hours late today?
They had to wait for the CFTC to turn off their computers.
Infinite upside. Hmm. That sounds good.
Gold to $1700 - after a bit of a swim.
Here's the irony regarding the "What if I'm wrong?" thing. Gold bugs never seem to ask themselves this. The fact is, if they're RIGHT, you might as well have stockpiled AMMO and skipped gold entirely. It's too heavy, and serves no purpose that an AR-15 doesn't. I honestly just don't think it will come to that. It'll be like the great depression, except less obvious, until eventually asset prices will drop, and people will buy everything back into a generational reinflation bubble, possibly after a world war, just like the 50 boom after the 30s and 40s. Research history guys, and don't be so scared of death. It doesn't even exist. This entire matrix is a cosmic joke.
'entire matrix is a cosmic joke... yea but i can get a great milkshake there
Oh, and the steak is amazing...
"You know, I know this steak doesn't exist. I know that when I put it in my mouth, the Matrix is telling my brain that it is juicy and delicious. After nine years, you know what I realize? [Takes a bite of steak] Ignorance is bliss."
in the late 70's, it never came to guns and ammo... but gold hedged one (to an extent) against brutal inflation. I am not suggesting an all in bet. If gold goes up multiples during an "event", I want exposure. If "i'm wrong", gold busts and 20% of my portfolio goes down 30-50%. that I can manage.
Really? You can trade an AR15 with the same value density as an oz of gold?
Carbines didn't get ANYONE out of the country in the dead of night in Russia or Germany. Gold did. Ponder that.
You have no fucking clue if you think gold is heavy...AMMO is heavy.
I'll ponder it this way. If I have to even come CLOSE to worrying about getting "out of the country" in the dead of night using gold as a bribe, that AMMO will be flying, and THEN (getting back to my point) at least it would be worth it's weight. At that point, really? Who cares.
If GLD didn't exist, the real price of physical gold would soar. Therefore, when it is discovered what a sham GLD is, then GLD will be eliminated and the gold price will soar. Until then, they can continue to manipulate and keep some degree of suppression on the price but even that is beginning to wear thin. For now, people sleep well thinking they own gold when they own GLD.
Simple as this, Have some gold & silver, Food & water, & what ever else you Think you need. JW is not the one who has to feed your kids..
on Thu, 10/21/2010 - 12:24
#667333
Simple as this, Have some gold & silver, Food & water, & what ever else you Think you need. JW is not the one who has to feed your kids..
1100-TACTICAL-12,
The Gold Salesmen in here are not pushing for food and water and bullets and gold if someone can afford it... they are pushing gold... and full blast 24 hours a day 7 days a week... balance, or what it good for people is not the topic... it never is... until I bring it up... the topic from the bought and paid for plants is sell gold... so dont run your fucking mouth about what JW says.. cause anyone who has been here longer than a week knows exactly what I am about.
now, go buy a real shotgun you fucking mouth piece... http://www.usmcweapons.com/articles/M1014/M1014NF.htm
and if your pussy hurts over the numerical facts... ask your wife about what it is that you should do to fix it. NOT ME!
Boy you sure have stored up a lot of anger. It's been awhile since the last downward move in this ongoing gold bull market, you must have really been seething seeing it hit more and more all-time highs.
Out of curiosity, do you make these kind of immature nerd-rage outbursts in real life, or only when you are safely anonymous on the internet? Because you sound like an insecure loser.
Are you going to come back and apologize when it hits $1400? What about $1500? How high does it need to be before you stop being a mouthy child and admit your stupid ass was wrong?
on Thu, 10/21/2010 - 12:53
#667467
Boy you sure have stored up a lot of anger. It's been awhile since the last downward move in this ongoing gold bull market, you must have really been seething seeing it hit more and more all-time highs.
Out of curiosity, do you make these kind of immature nerd-rage outbursts in real life, or only when you are safely anonymous on the internet? Because you sound like an insecure loser.
Are you going to come back and apologize when it hits $1400? What about $1500? How high does it need to be before you stop being a mouthy child and admit your stupid ass was wrong?
redpill,
Dear Salesman... You can click on my name "JW n FL " <----- and review when and where I bought Gold... and you can change the spirit of my message to better meet the needs of the sell Gold arguement... that you are making... but some people (not all) are smart enough to read what I typed and what I exactly am saying... and how what you are trying to change the message into do not mesh well...
Please salesman... open you dumb fucking mouth again... so that I can point out your slimely under belly some more..
Sincerely, JW n FL
and if you took the time to search my name here... on google...
http://www.google.com/#hl=en&expIds=17259,17315,18167,23628,23670,25834,26328,26637,26761,26849,26992,27013,27060,27126&sugexp=ldymls&xhr=t&q=JWnFL&cp=5&pf=p&sclient=psy&aq=f&aqi=&aql=&oq=JWnFL&gs_rfai=&pbx=1&fp=1fcdface22984313
You could easily find me James Workman whenever you felt that you had grown balls big enough for the trip sales man.
@ redpill:
I'm guessing 'no' on that apology request. Don't worry, I know you aren't surprised.
Yeah, a real shocker. He'll disappear until the next time gold dips 2% and then come around for another bout of adolescent rage attacks against everyone who had successfully preserved their wealth via precious metals.
Ah yes, another internet tough guy throwing out threats. Real mature, you stupid child.
And sales is not my bag, hell I'm certainly not selling my gold. I hope for your sake one of these days you don't stroke out in the midst of one of your insecure internet rages.
Grow up.
I guess your right, your M1014 will kill something dead'er, than my 1100. Who would have thunk it?
I will not stoop so low as to call you a fucking moron..
JW, if the numerical facts don't work, try insolance, a lot of it, and the gold cocaroaches will run. It's always worked for me you know
Yeah, who needs facts?
They have cocaroaches at JPM? Working conditions must be great there! Don't quit your Senior VP job there JonNadler!
I don't think its complicated at all. The only thing that that makes a clear view difficut to see is the intentional and wide spread disinformation and the simple failure to allow the facts to be "In The News" The IMF is on its last weeks. This fact makes understanding why the very same currencies that make up the SDR's just happen to be the same currencies engaging in QE [overt and covert QE---covert can be as simple as "You do me and I'll do you", like the UK Buying our Bonds and we buying theirs. If you knew you were going to be officially bankrupt soon, but somehow manged to have an active Credit Card, you might as well run-up the tab as much as you can. This clip shows the coincidental 4 QE'ers are the SDR countries The BOJ surprised markets on Tuesday by pushing down interest rates to zero and pledging asset purchases to pump more money [Yen] into Japan's struggling economy.
The U.S. Federal Reserve, the European Central Bank and the Bank of England [UK] also have extremely accommodative monetary policies in place.
If the US wants China to revalue the Yuan vs USD, how about the USD equalizing the Yuan. That would make $1,000/US current = $6,650/US <<< Hey, there's our Gold price forecasts of over $5,000 I've mentioned this in several posts. Best guess is one of these two; either a 'move the decimal point', but keep Mortgage Balances at the "Old" Dollar [the today dollar], and payable with the New Dollars, a 10 cent [current] dollar....or 2) Peg the USD to the renmimbi, China's Yuan, the reverse of what we had till 2005. This would equate to a 16 cent dollar Let's understand that the term Millionaire is common in many countries, like Japan for example.....we'll get used to it
Let's understand that the term Millionaire is common in many countries, like Japan for example.....we'll get used to it
So true and well put.
ORI
I wonder what it was like to have gold in the stone age? must have bought some really fine possum skins for clothing during the winter you hoped you didn't starve to death in.
Humans hadn't developed speech in the Stone Age.
I have it from highest authority that the first word ever spoken was GOLD.
Second word was GOT. It was a question the first prostitute raised when she got banged by the tribes elder. She become Queen and it all started from there.
There you go, Got Gold? Oldest profession in the world and then came pimps.
Pimps evolved into banks. We all know the rest.
As Hankster "the Bankster" Paulson said, "Pimping ain't easy!" (ok, it might have been Snoop Dog who said it, but Paulson agrees)
Plus, they have found several cave drawings that translate to "Gold Bitchez!!!"
Americans shop at Apple stores, Chinese shop at Gold markets.
EVERYONE knows that paper will eventually be useless and that liabilities cannot be paid unless massive inflation hits.
The most ignorant of consumers are still buying cheap made in China crap to stuff every nook and cranny in their foreclosed home. The savings on defaulting mortgage payments are spent at Walmart.
There is no reasoning with stupid. Many Americans are stuck on stupid because TeeVee has zapped their brains.
It might take another 10 years before the ultimate default happens but happen it will.
Someone suggested Gold to $300 ... HAHAHA what a pipe dream.
Gold at 300 would mean a (wishful) erasure of the HISTORY of the last decade, ferocious ongoing wars, a dramatic scarcity of basic resources (oil, food, water, among others), and yes, climate change (not a very popular notion in this blog). Let’s not even talk about geopolitical changes (Rusia, China, and Asia in general, Brasil, and Latin America), together with people’s awareness of the true nature of corporations, in the US and all over the world. No my friend, there is no way back to the fallacies of unlimited progress, development and consumption.
When do we start?
By the time anyone in a million figures out the near century of debasement of fiat paper currencies, especially the paper dollar, there will not be a wisp of gold/silver real money left for the commoner to put their hands on!! The world wide bankster gangsters will have it all coffered up, ready to rule the world with the only real money out there for millenniums!! DINKERS! dollar inkers to infinity and the bag holders of bad paper are always the rank'n file common folks who haven't a clue!! All the risk of being left holding the bad paper the banksters created is always shoved of on the innocent bag holders; always! End of paper ponzi story!! Then wash, rinse, and repeat the cycle again!! Nearing the end of the 40 year cycle of the paper dollar backed by nothin but thin air promises of gov goonzi's!
S&P appears to be down at the moment. But wait...it's actually rocketing higher when priced in gold!
funny.
Same shit started in 2008 before the elections.
September was fragile but things broke down completely in October.
However, in 2008 the masks were still on and the world didn't understand the bad performance the US had been putting on. Now the cat is out of the bag, we had 2 years to get educated and find out that the Fed, the UST and the entire American political elite is a con-game.
A flight to the safety of USD is completely out of the question. Nobody will fall for it this late in the game. Improving US economy numbers, better than expected jobless numbers etc are a pump and dump promo run by the US government. The curtain has been lifted, the wizard has been exposed.
Can anyone name one government in history that paid off its debt? No. They always default, one way or another.
Can anyone name a paper currency in history that never failed? No.
Does it make sense to have all you eggs (capital) in one basket (dollars)? No.
Can you eat gold? No
Can you eat paper? No
Can you store 10 years of food, oil, and water? No.
Are we going back to a gold standard? No, never.
Will you be able to exchange gold for whatever "new currency" comes around in the future? Very likely, yes (Unless we bomb ourselves back to the stone-age and then it won't really matter anyway will it?)
Gold is government-default and fiat-currency-default insurance.
Is it a panacea? No
Do I own some? Yes
Am I buying the dips? When I can, yes.
Sounds like you've been reading Reinhardt & Rogoff (This Time is Different).
Great reply.
+$1320
Diversification and flexibility.
Don't know those guys, but I'll check it out.
AmPat?
very well said....the recent sharp downturns in gold price are another desperate panic by the oligarchs to control gold...it will not last...take physical posession only - it is the only way to protect and enhance its value....
watch the quadfecta of gold, oil, djia, and usd.....the ppt is wildly at work and the gyrations in these prices becomes more wild....gold up, oil up, djia, usd down....its a machine....the ppt is desperate...
Mike....you might want to check that opening quote. Not sure TJ said those words.
http://www.snopes.com/quotes/jefferson/banks.asp
otherwise great article.
Mike....you might want to check that opening quote. Not sure TJ said those words.
http://www.snopes.com/quotes/jefferson/banks.asp
otherwise great article.
GREAT daily headline flip flop-
9 AM- 'Stocks Extend Rally on Earnings and Data'
12PM 'Stocks Tumble on Earnings and Data'
My headline? BWAAA HA HA HA HAAAAAAAA suck it FED! Youre the ultimate bagholder youre stuck with no one to dump to!
There's a raging bull market in spurious founding fathers' quotes.