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Guest Post: If You Haven’t Bought Any Gold Yet…
Submitted by Simon Black of Sovereign Man
If You Haven’t Bought Any Gold Yet…
Print. Lie. Borrow. Deceive. Deny. These are a the principal tenants
of the Greek restructuring plan that were released today from Brussels…
it’s as if EU policymakers put it together after shaking a Magic
8-ball.
The whole world knows that Greece is bankrupt and has been living
bailout to bailout for over a year. Deep in debt and devoid of cash, the
country has completely forsaken its sovereignty in exchange for
becoming a ward of the European Union; Prime Minister George Papandreou
is now a hapless stooge awaiting instructions from Germany.
It’s ironic that the Greek proposal released today calls for a
‘Marshall Plan’ of investment across Europe… given that the last time
Greece was being controlled by Germany was during the country’s
occupation by Nazi forces after being vanquished by Hitler’s 12th Army
in April 1941.
And so, with limited debate and even less fanfare, Europe has just
officially signed on to destroy its own currency. Utterly worthless,
quasi-defaulted Greek debt will become perfectly acceptable collateral,
much in the same way that the US Federal Reserve took every scrap of
toxic paper it could find off banks in 2008 and 2009.
Given the favorable market reaction, European politicians must be
feeling pretty proud of themselves. The euro is up. The stock market is
up. Oil is up. Well, never mind about oil, they’ll blame that on evil
speculators… just like food prices.
And the proposal is so deliberately vague, they can go back home and
tell constituents whatever they want. Angela Merkel can tell German
voters that the French are paying for it, and Sarkozy and tell French
voters that the Germans are paying for it. Win, win!
The European sovereign default SOP has just been set. When Spain,
Italy, Portugal, and Ireland’s time of insolvency arrives, it will be
handled just like this: Print. Lie. Borrow. Deceive. Deny.
Every day it becomes more and more obvious that the financial system
as we know it is breaking down. The United States and European monetary
union, whose currencies comprise nearly the entirety of the world’s fiat
reserves, have both signed up to debase their currencies as rapidly as
possible.
This is going to kick inflation up another notch as anyone holding on
to Greek debt is going to trade out of it as quickly as possible. All
that money has to go somewhere… and it’s a sure bet that a lot of it
will feed rising commodities price (which translates into more
inflation).
If you haven’t found a safe haven for your savings yet, it’s time to start. Now. No more excuses. A few you could consider:
Swiss franc, Norwegian krone, Singapore dollar, Chilean peso: These
four currencies are generally regarded as safer, stronger, and managed
by less obtuse central banks. In a world of fiat, these are among the
least worst of the bunch.
Unidad de Fomento (UF): This is a special unit of account used in
Chile that was set up during the hyperinflation days of the 1960s. The
UF is designed to keep pace with inflation and it’s possible to
establish a bank account denominated in UF in Chile. I’ll be telling SMC members how to do that in an upcoming issue.
Agricultural Property: Nothing hedges your risk against rising food
prices like being able to produce your own food. This idea underpins the
concept for the resilient community we’re planning in South America.
Precious Metals: Portable, divisible, durable, and scarce, precious
metals are the classic hedge against rising prices. Gold and silver
aren’t going to go up in a straight line, and gold in particular is due
for a correction, but in a world ruled by an economic magic 8-ball, it’s
a much safer store of value than a government IOU.
High quality equities: If my only two options are Apple stock and a
bank account earning 0% interest, I’m going with Steve Jobs. The chief
problem with equities is that the more money that central banks print,
the more money flows into equities… pushing valuations up to dizzying
(and unsustainable) levels.
Firearms and ammunition: Weapons and ammo serve a dual purpose of
providing better home security, as well as a reasonable store of value.
Unfortunately, they can also serve a third purpose– putting you on some
government agency’s radar.
This list is by no means exhaustive… but if you have the majority of
your savings just sitting there wasting away, it’s time to act.
»
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July 21, 2011 at 18:27 GMT
Under a bipartisan bill introduced in the U.S. House, derivatives regulators would be barred from adopting Dodd- Frank Act rules restricting the number of market participants who must receive or respond to price quotes on new trading facilities in the $601 trillion swaps market.
The bill aims to require the U.S. Commodity Futures Trading Commission and Securities and Exchange Commission to allow for flexibility in the types of trading methods on so-called swap execution facilities.
The CFTC proposed a rule in December that would allow participants in the trading facilities to request price quotes from a minimum of five possible sellers. The SEC on February 2nd proposed a rule that would allow swap buyers to request a quote from a single seller.
The House legislation would also bar regulators from requiring trading platforms to display or delay quotes for any amount of time and prohibit agencies from restricting the methods of commerce that may be used to execute the transaction.
keeping the balls in the air is the same as short contracts for gold and silver
The lesson I (and my antescendants) learned in a hard and costly way from all the years under communism is this: the problem with real property, agricultural or otherwise, is that -- except for an extremely low liquidity and lack of standarization aka expensive and uncertain valuation -- it is not portable. You can't hide it or port it out to another jurisdiction once your government comes up with a brilliant idea that land should be confiscated, expropriated for no compensation or in exchange for fiat, taxed, encumbered with 50-year almost free lease to local reps of the working class or rezoned as, say, toxic wasteland neighborhood or wildlife protection zone. If you think it will not happen today, think Zimbabwe and reconsider.
Gold and standard-quality, white-only diamonds (.25-1.5ct, GHI clarity, VVS2-VS2, good brilliant or excellent princess cut), are my choice. Silver is too cheap relative to weight for my taste.
Wouldn't trust diamonds. If DeBeers vaults ever get raided the price will plummet. Unlike Gold which is not controlled by large entities, the diamond business is a cartel and can collapse if the cartel is broken. It is carbon after all, the same as coal. http://www.edwardjayepstein.com/diamond/chap13.htm
guns gold ammo, eh?
We probably could have done without the article and just had an open comments section on this one.
"Gold" should be burned into everyone’s brain as a figurative term. PM's can hedge against fiat loss, HOWEVER, if the system collapses so does JiT shipping, distribution, shipping, services, you name it - it’s gone. In this case PM's won't do you dick. Instead of focusing on the term "Gold" and the shiny metal associated with it, you should be focusing on the real "Gold" which is that item or means of instrument used for barter, trade, etc until some semblance of normalcy (if ever) returns. When the shit goes south, PM's will be the last thing people will take, or be on their mind. Hard tangible wealth instruments, known as "currency", or only used when stable shipping and secure commodity items can be obtained, with reliable shipping and acquisition. The “currency” or instrument of trade is agreed upon, and people are allowed to conduct commerce. Until then, it’s a free for all... and bartering in the form of an equal tangible commodity or service is the preferred method.
https://www.gunsgrubandgold.com/forum
Gold, Silver, Bread, and Lead. If you ain't prepared, You'll wish you were dead!
SM, you forgot about the Pension funds. They don't do risky stuff and once inflation starts to kick in, they'll move money into PM's.
Regular Pension funds will need to invest up to 10% and agressive funds up to 15 to 17%
Now we are talking about 42 trillion in funds that will need to be protected.
There is about 3.2 trillion in gold in the world.
50% is owned by banks
50% is owned private who won't sell at any price.
AT THIS MOMENT, ALL PENSION FUNDS HAVE 0,1% OF GOLD OR PM'S!
When Inflation kick in, they'll buy. At whatever price.
And what about companies like Apple? Google? Microsoft? Who are all sitting on cash. Don't you think they'll buy PM's to protect their funds?
Apple alone can buy all the silver in the world a few times over if they would cash in now.
When the shit hit's the fan, they'll just take their checkbook and write whatever number is needed for as much as they can get their hands on.
HELL YEAH!
PM's are the most well known way to protect your money for inflation. Even if others will do better, it's best to stick to the most popular because that creates bubbles. Gold 50.000$ and silver at 4000$.
Then I think it's time to sell, unless 4000$ buys you a cola can.
And second is central banks. They'll have to start buying like crazy!
I'm not only keeping my PM's for the profit, but for the shit that commes and against that they'll have to protect my family.
Trust me when I tell you this - if (and that is a big if) PM's survive what is coming, el goberno will sanction (nice word for confiscate) and make it virtually impossible to deal in it. Regardless, the PTB are planning for worst case scenario as its all about to get ugly and out of control. Imagine millions of 2nd-5th generation welfare recipients being told no more $$$, millions out of work, no jobs, you know where this is going - when the circus and bread run out... well you should have left Rome the day prior.
That's why 50% of my silver is in numismatic silver coins.
But nothing less then crown sized.
And when the shit hit's the fan, I will probably going near the exist pretty fast :)
Somewhere warm :)
PG,
And you think they will leave you alone?.
Dream on.
By the time this happens I'm gone. Its nice to be in the circle... just trying to help some out by thinking things through. Explore options, multiple execution plans for survival, escape, skill sets, you name it. ANYTHING that you as a human, the capital you possess, that makes you viable in a condition where things are less than ideal.
My biggest fear for what comes is the unknowable "human element", and how humanity has become ego/self centric. I remember hearing stories about the Great Depression from grand parents, and everyone seemed to work together, yes crime existed, but some semblance of "humanity" was still present. When things degrade this time, its going to be savage...
I think a sanction/confiscation/excessive taxation would probably look very similar to the war on drugs.
Nothing wrong with trying to keep what little wealth you have in this day and age. Hell I'm in the same boat myself. However, things are going to degrade fairly quickly. Do not doubt for one second that you will not see ML in your life. All I am saying is, at that stage of life PM's will not do you any good - other items such as food, ammo, defense, SKILLS, etc. will fair much better. All I know is that their are some scared shitless people in rather high positions...
Actually, a nice rural environment, 2-3 hours from people would be preferred... due to such factors as language, customs, etc. wherein some may find a foreign land difficult at best when the third world status gets bumped to the 13 level of hell.
Lease w/option, if smart.
That way you do not lose major principal,and can book if needed.
A foreign country could be a blessing or a curse depending on many factors, such as - dual citizen, familiar with the culture, language, people, will you be viewed as a stinky westerner based on duality, can you possess weapons or some means to defend yourself, etc. Then the thoughts of how depraved could the country you "flee" to actually get, considering many non 1st world nations rely heavily on the western nations for aid and assistance. Many factors to consider... I do like your lease option though.
Where/how the fuck are you all living?? I believe that great levels of community and helpful neighbors will form if things get really bad. If you want to run off with your guns and gold, so be it, but America isn't going to collapse.
Dude you are dreaming... you need to get out more often and see the plethora of dregs that make up the vast majority of society. The American turd is swirling the bowl...
Miker, you must live where I live: Orange County. Living here is like living as Bubble Boy. You basically walk around with shield of false notions and a sheltered view of the world, not realizing that the American empire is overstretched financially and militarily to ridiculous levels. We used to use words like "Trillion" as a humourous punchline, now we have to resort to using words like "Gazillion". We are at empire-overstrech, financial collapse, peak oil, and environmental catastrophe. If you can't see whats coming, then you fit well within the catagory of "sheeple".
I'll see you and Miker outside Patsy's tomorrow night!
Look for me... I'm the one spending fiat like it was going out of style, intoxicated and pimping the OC dregs along side with the Sheriff's that party there.
Agreed. To the comments in response to you though, the point is well taken - but everywhere I have ever travelled I've met both multitutes of complete dipshits as well as many genuinely kind hearted and smart individuals. Which mentality will ultimately dominate is a matter of perspective. Social collapse or not those neighbors we've spent the last 10 years completely ignoring could be our best friend or worst enemy. One thing is certain, social groups tend to weed out the idiots when everyone has their lives on the line. The weakest link is simply told to stfu and get out of the way.
"Every day it becomes more and more obvious that the financial system as we know it is breaking down".
PPssstt...Have ya read the news lately...???
The system has completely collasped....
You sure are adding a lot of sweetner to your comments.
Mr Black , if there is an all out sov default in the western hemisphere , namely the EZ and US , how the fk do you think fiat will survive in Chile , Singapore , Switzerland etc ?
It wont. Please understand this concept. There is no replacement. There is nothing. Once this GLOBAL ponzi collapses , we enter the dark ages for global finance.
Paper will burn the World over.
Imagine stalking elk past department store windows and stinking racks of beautiful rotting dresses and tuxedos on hangers; you'll wear leather clothes that will last you the rest of your life, and you'll climb the wrist-thick kudzu vines that wrap the Sears Tower. Jack and the beanstalk, you'll climb up through the dripping forest canopy and the air will be so clean you'll see tiny figures pounding corn and laying strips of venison to dry in the empty car pool lane of an abandoned superhighway stretching eight-lanes-wide and August-hot for a thousand miles.
German control over Greece goes back further even than WWII. Their post Ottoman monarchy was a plant from Germany. Those Germans sure must love those Greeks...
Yes, I will take One Thousand Six Hundred cash US Dollars and give them away for a little round shiny piece of yellow metal. One Thousand Six Hundred Dollars. I wish I owned gold and could take your One Thousand Six Hundred dollars in exchange. That's a lot of money!
Propaganda is now stiring in Sweden that they should join the Euro. This is either a planned implosion, or the finance minister and others have been bought off.
Crap article.
Lol! CHF is destined to fall back below parity with USD (and also akin to buying silver at 50 - might go higher later on, but a correction is imminent); the peso is an extremely uncertain atmosphere to say the least (Humala as new president is very anti-business and very pro- big government); the NOK is basically a dead currency and nowhere near liquid enough to accept any decent sized inflows; SGD is only one i dont have too much of an issue with, except its not on anybody's radar either (not even Chinese, who are desperately looking to diversify their FX reserves).
If the author had any decent knowledge at least one out of these 4 should have showed up:
CAD or AUD directly for a commodity play, not to mention relatively safer banking systems than the whole of EZ or the USA
PLN for strength off the EUR as well as numerous benefits coming to Poland from consistently delaying their entrance into the EZ despite having strong fiscal standards
Even the RUB, not only as a comm. play, but also as recently Russia has been shown in a very positive investment light due to increasingly stringent regulations and a (supposed) crackdown on corruption in the financial atmosphere.
Listen. Like any good squirrel, stash your nuts anywhere they will fit.