Jim Rickards Tells CNBC's Joe Kernen Gold Is Going To $5,000

Tyler Durden's picture

Ealier today Jim Rickards of Omnis, formerly LTCM's GC, was on CNBC and was subjected to some "probing" questions by Joe Kernen in which the anchor asks Rickards if he is a "conspiracy theorist" for his recent insights into the potential investigation of JP Morgan's market rigging behavior by the DOJ. Rickards replies that he isn't, and follows it up with some gold price target observations based on "8th grade math": the former LTCM man sees gold going up by at least 10 times, and hitting $5,000 rather easily. We wonder if to CNBC there is any uglier word than "conspiracy theory" even when the "theory" is backed 100% by facts.

Full exchange between Kernen and Rickards:

Joe Kernen, “Jim, some of the craziest viewers I know send me stuff that I think is from you. I’m just wondering if it’s the same Jim Rickards? Are you a conspiracy theorist on silver manipulation, that it’s being controlled by JP Morgan?”

Jim Rickards “I’m not a conspiracy theorist. I gave an interview I was asked to respond specifically, I’m a lawyer also and I was shown correspondance from the Justice Department, Anti-Trust Division of the Justice Department to someone who wrote in enquiring...my comment was that it was an unusual communication because the Justice Department specifically named JP Morgan. Instead of saying thanks for your letter, they said we’re looking into the JP Morgan alleged actions and they went on to say we are not going to refer to the CFTC, we’re going to look into it ourselves. I thought both of those things were unusual.”

Joe Kernen“So you’re not necessarily saying that gold and silver would be 1,000 times higher if free market forces...?”

Rickards “No I am saying 10 times, I am saying gold will get to $5,000. It’s 8th grade math. Just look at the amount of gold and the amount of paper money, do the division, that’s where gold has to get to.”

For those who wish to hear Jim Rickards
recent must-hear interview with Eric King of King World News, in which
Jim shares his insight into the DOJ investigation of JPM,  here is the link.

Full clip here.

 


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mako's picture

I hate to tell the dumb ass but the amount of paper is shrinking... see Fed Reserve Z1 report... duh.

If the price of gold was set by the amount of paper... gold wouldn't have went from $850 to $255 from 1980 to 2000, where the amount of credit was expanding at a huge rate at a 5-14% rate per YEAR!

"This ain't no disco" -Sheryl Crow

People expecting a repeat of the 70s are in for one rude ass awakening.

 

lookma's picture

Hi Mako,

Sorry to interrupt your regular scheduled spamming, but paper money = credit inflation.  Duh.

 

 

Mako's picture

Sorry credit creation has been negative for a year... credit is being destroyed.  Get out of the trailer park.  You have read too many stupid books by people trying to sell you something, they did, they sold you the lie.  

Credit creation has been negative for almost a year.  Let me see you think people are taking on more credit?  Strange, stay off the booze.  Stop reading the stupid Peter Schiff books, he has no idea how the freaking credit market operates, neither do you if you believe credit is expanding. 

BrianOFlanagan's picture

I think you forgot about local, state and federal government credit and exponentially increasing unfunded liabilities.  Please recalculate.

Mako's picture

Doesn't matter they will never get funded because enough credit is not being generated to fund them.  Sorry. 

All the unfunded liabilities are going to have to be wiped off the map.

43 Steelie's picture

So the alternative is to raise rates, defend the dollar, invoke austerity measures, ruin the Fed's balance sheet of MBS holdings, cancel Social Security, dissolve FNM & FRM and throw Healthcare reform out the window.

On which politician's watch is that happening? 

They will print, and print they will.

Mako's picture

"So the alternative"

There is no "alternative" at the end of the cycle once you use the equation.  Collapse.

"They will print, and print they will."

Sorry credit is still going negative, there is no out, there is only in.... collapse.

It doesn't matter what you do, it will collapse.  It's pure Math buddy. 

johngaltfla's picture

I'm glad we have spammers that have yet to answer the question:


Name one debor nation with a fiat currency  that has ever experienced a deflationary default?

Funny thing is, no one has named one. In 30 years. If memory serves me correctly, there are several folks at Von Mises with large wagers waiting on that answer also.

If you've go the money, venture on over and name that nation.

Mako's picture

All financial systems have blown up and collapse, everyone in the history of civilization except for the one that is present at the moment and is in the early stages of collapsing. 

I have no idea what the question is... let me see the Roman Empire is still coining money.  Strange.  They all collapse, every single one... doesn't matter what you use as your medium of exchange... collapse.  End of story.

Argentine defaulted in 2001, I have no idea what you are talking about.  Russia defaulted on it's internal debts in 1998, even North Korea has defaulted, the US last defaulted on bonds redemptions in 1971 when Nixon closed the gold door.

 

akak's picture

.

Yes, asshat, but you STILL refuse to address the pertinent point:  All those nations collapsed via INFLATION!  There has never been a single fiat currency regime that has collapsed via deflation ---- NEVER --- but hundreds that have done the opposite.

And I agree with a previous poster, your rabid and repetitious posts in this forum calling for some mythical fiat currency deflationary collapse are little more than spam.  And particularly stupid and uninformed spam at that.

gringo28's picture

would Marshall Law constitute a "default"? sort of, kind of kidding....

i.knoknot's picture

akak - you don't need to name-call to make good points.

Mako is not like some of the trolls in here - he/she's making some rational points!

i think that if it all falls apart, the purely primal appeal of gold will make it one of the first (non-edible/'drink'able) assets to establish liquidity as we crawl out of the rubble. does this support or refute Mako? yes and no. sort of. i don't think gold in hand will be a mistake.

that's almost as bad as i think think it might get (see Argentina/ferfal: http://ferfal.blogspot.com/)

we need to encourage this discourse, even if the tone is course. those of who get it right have a chance in phase 2...

Barmaher's picture

Oh, I think Akak does need to name call.  He lives to name call.

akak's picture

.

.

And you apparently live to troll.

JW n FL's picture

I am stealing this quote from;

 

The Daily Reckoning Presents Inflation Up; Stocks Down

 

***** "Meanwhile, a potent new inflation could inflict a negative surprise for the US economy in 2010. Already we're seeing very high producer prices. The Wall Street Journal described this phenomenon in a recent article entitled "The High Cost of Raw Materials":

"Data on producer prices released by the Bureau of Labor Statistics on Thursday shows how rapidly the pressure on corporate America is mounting. The producer-price index showed that crude goods such as iron ore, construction sand and pulp shot up 44.5% year-over-year, the fastest rate since 1974. Including energy and food costs, crude goods prices rose 33.4%."

The ISM's Prices Paid Index is telling a similar story. On Monday, the ISM announced that its Prices Paid Index registered the largest year- over-year increase since the 1970s.

Promoters of the world's crazy, unconventional monetary policies (usually bankers) like to blame rising prices on things like droughts, floods, OPEC, and labor unions. But when they do so, they fail to imagine what might happen to prices if the broad supply of money and credit were relatively fixed. If that were the case, it's likely that rising prices in one sector of the economy would have to be offset by falling prices in another.

Demand typically falls in response to rising prices (depending on the "price elasticity" of demand). But when government deficits, easy money, and easy credit (rather than income and savings) drive demand, we could easily see persistently high consumer prices, even in a weak economy." *****

I am on thier mailing list so I dont have a link... but the site is here (http://dailyreckoning.com/ )

As well all of that debt held offshore getting run over by inflation? the home prices coming back.. to a mark to market value that would take the Banks from red to black (on paper any way)...

Blue Hoseshoe Loves inflation!

Blindweb's picture

pure Math... how's LTCM doing these days?

 

Yes, we all know the credit argument.  We know Mish, Denniger, Prechter.  It just aint that simple

 

Coincidentally I was just reading the 1/10th of an ounce of silver bought 60 lbs of wheat flour in ancient Rome

Mako's picture

And eventually they collapsed, and you couldn't find wheat at all which is why the population when from well over a million to like 30k.  Let me know how Ceasar is doing.

Generation after generation, humans setup systems that work like a virus in a dish... exponential growth, then peak, then collapse.

tmosley's picture

It collapsed only after the currency was debased ie inflated to nothing.

farang's picture

Yep. Denniger is quoted today talking about how the entire financial collapse is because (like Mishypoo and Michael at Financial Armegeddon) of  "Public Employee Unions and unfunded Entitilement programs like Social Security and Medicare."   It's all their fault.

Look, I agree public employee benefits and wages should be in line with the public sector and should be restarined to the actual budget whatever government (local or federal) can afford. That's a no-brainer. But how is S.S. and Medicare an "Entitlement?" How? He didn't pay my FICA, he didn't pay my matching contributions for my employees, nor did he pay the matching contributions when I was an employee.

He's asking for a pitchfork where the sun don't shine. Glad to give it to him regardless of whether he lables me a "sedionist". Let's see him say it to my face. Wonder if he jas ever had a callous on his manicured hands? He'll feel some upside his head if he ever crosses my path, guaranteed.

How about this: Just give me back what my contributions were, what my employers contributions were for 36 years, and I will waive the interest due for those 36 years I have been paying in. Is that someone seeking "Entitlements?" Who knew?

Where is the discussion of the obscene DOD budgets? The Congresional pay and benefits? "Retiring police" at 45 getting $90,000/year?

He's busy dissing the Greek citizens getting scalped, of course. I hope the Greeks find the G.S. scumbags that cooked their books and fillet them. Seriously, we need role models. Maybe better would be a repeat of "Il Duce's" fate, and get hung. Twice, in two locations. Last time upside down.

I have no idea if this LCTM alumni has any credibilty regarding gold prices. But I hope so. Gold kills Fiat tomfoolery. But what do I know: only Greenspan understand the economics of fiat money.

Cognitive Dissonance's picture

I must be really old because I remember the day when public employees were underpaid and the only thing that attracted them to the job, where they remained underpaid, was the better than average benefits package and the legal holidays off. We're talking the 70's and 80's here.

i.knoknot's picture

i'dlike to respond to some of what you assert, although i agree with much of it.

with respect to public-pensions, it's not KD or Mish's fault that promises that were made to many (like you?) were based on mandatory payment of non-public folks (like me?).  who else gets such a guarantee? and before you get your panties in a bundle about what i just wrote, note that there is absolutely no opinion in the fact that unions were repeatedly promised benefits that could not be rationally be promised... yes. they were a good deal. too good to be expected. i would have signed up too. that's rational. (for another good example, google "hope and change")

but like many places in history, a good union negotiator with a revenue-projection that pointed up went up against an unelected state-manager who was spending money that wasn't his... and look what we've all got... is there any surprise things are where they are?

they're both gone, and we all lose. seems like the end of the "Star Bellied Sneeches"...

i cannot begrudge my neighbor, the retired third-grade teacher, that which was promised to her... but nor can i afford it. so who wins? i didn't make the promise. period. and yet she showed up every friggin' school day and took on those little heathens...

sure, we can cherry pick the few high-end cases of "spiking", etc. but the good folks in the trenches aren't thugs, and the folks that can't afford their pensions aren't 'cheaping' out. we're all trying to figure out what the hell to do, and resistance to the reality of a systemic reset will only make it worse. no scapegoat exists, except, perhaps the folks that agreed to guarantee that which cannot be guaranteed... hang the state pension managers up by their toes. they are ultimately the ones who architected this mess, and we're digging ourselves out of the rubble they've left us. and i don't think most folks have figured out that scam yet. and we bitch at each other.

KD and Mish are the messengers, and clearly noting that the public unions don't seem interested in finding a way to make this reset work, so they, and many of us who would like to see everyone land softly... are at the point where if the public unions won't "give", neither will we, and we have the money you need. we default. f*#k you. (just being honest)

in reality, we've all got to bend, and the thing i resent most is not the money, but that the public-unions don't seem to understand that the promises made (retire at 50 w/90%?) were never plausible to start with.

the long term fix is to give people 'responsible' rrisk-regulated IRA/401K-like options that are NOT bound to any company or organization, and help them to help themselves. same with health-care. expand unencumbered choices and help folks help themselves, but nobody gets a backstop. nobody.

as far as SS, etc. i love the ironic progressive excuse for its creation: the "common-man" cannot be expected to reasonably manage his own future solvency, so we must provide that insurance... it looks like a "common-government" has done a much better job... yeah, more like that!

we're friggin doomed.

JW n FL's picture

farang,

           ***** "How about this: Just give me back what my contributions were, what my employers contributions were for 36 years, and I will waive the interest due for those 36 years I have been paying in. Is that someone seeking "Entitlements?" Who knew?" ***** Quoting you, farang... I offer you some reading...

http://www.google.com/#hl=en&ei=aebiS_q8MIm49gSIk4WDAw&sa=X&oi=spell&resnum=0&ct=result&cd=1&ved=0CA8QBSgA&q=privatization+failures&spell=1&fp=231d7d9be38e67c8

and... http://www.google.com/#hl=en&q=absolute+funds+failures&aq=f&aqi=&aql=&oq=&gs_rfai=&fp=231d7d9be38e67c8

Now if you think buying Gold... is a GREAT! idea with all 36 years of monies (minus interest of course) I would encourage you to buy low and sell high... is Gold a Bargain? Do I own Gold? both yes.. but your not me, you are you. http://goldprice.org/30-year-gold-price-history.html the reason I use a 30 year chart is to show what Gold looked like at its worst... and how the price curve looks very similar now. Is there room for upward movement? sure 10% - 20% and / or the world melts down.. and Gold is worth whatever someone says its worth... but the reality of the world melting down, far fetched... and if it did metl down, you better have bullets before gold.

Good Luck!

 

omi's picture

He means ALL credit, combined, is decreasing. Government is trying to plug the hole in amount of credit outstanding by issuing huge amount of debt, yet it's still falling.

BumpSkool's picture

Mako,

It is the FIGHT against credit destruction that causes Gold to rise. The Fed is printing like mad because the debt deflation/credit destruction is so huge. Tell you what - I'll admit Im wrong at $650au if you admit you're wrong at $1650 au? Deal?

 

Internet Tough Guy's picture

You aren't listening to Rickards. He says the US will be forced back to the gold standard; divide the amount of money by gold to get higher gold price.

That had nothing to do with the price drop in the 80s, we were not on a gold standard then.

Mako's picture

Gold standard has nothing to do with... the system was on what people consider a gold standard the last time, and the time before that and the time before that, etc.  Everyone of them prior systems with a gold standard collapsed... sorry the system runs on credit because all you guys think you can lend and borrow with compounding interest and you know what you can for about 60-80 years then it's goodbye system. 

You are not going to escape this.

You ran out of gold to support the equation a long long time ago. 

Internet Tough Guy's picture

You are confused; gold standard has nothing to do with compound interest. There is always enough gold to back the money supply; it is just a question of price.

Mako's picture

Sorry, you just missed 5,000 years of human history.  I mean you can tell lies all day long but don't expect me to believe them. 

Humans lend and borrow their gold attach compounding interest to it, eventually the amount credit built upon the medium of exchange is more then what exists... eventually humans can't supply or demand the amount need... bank run.  Been happening since civilization started. 

Sorry, every major financial system has collapsed since the dawn of civilization, it doesn't matter what you use as your medium of exchange is.

Sorry, you guys are not producing enough new credit right now... actually it's negative.... eventually the whole thing will collapse like Greece but much worse.   Good luck.

 

Millivanilli's picture

@mako  You are so fuckin stupid it hurts my feeling.  The top heavy debt payments in the US mean one thing, other nations/investors will not want the currency.  We are on a spin cycle where it takes more debt issuance in order service existing debt until booooooom.  People start dumping your currency.    In musical chairs, that is when the room goes quiet and everyone rushes for a chair.

 

 

 

omi's picture

Assuming that that credit will always expand is not correct as there are relatively frequent defaults which decrease amount of credit outstanding.

Burnbright's picture

No what he is confused about is the fact that just because people default on their debt obligations that it means gold losses its value as a currency.

In reality his argument makes no sense. Take the 30's for example. We essentially got off the gold standard because "there wasn't enough gold in the banks to back up paper receipts". So what do people do, blame gold...lol. When in fact it was the banks printing up more receipts than deposits.

Gold isn't the issue here, not letting banks default is. If banks were simply allowed to go insolvent during the depression and people got wiped out when they bet with a bad bank everything would of been fine. But instead everyone is so interested in saving their own ass-ets that they would rather take a small hair cut of purchasing power than lose everything at the expense of others and future generations.

And Mako, the reason gold went from 800+ an ounce to 250 an ounce was because of confidence being restored in the dollar after interest rates were set to double digits. Nothing else.

Mako's picture

I never said gold went up or down because of the amount of paper outstanding.   That guy said it goes up because you divide gold by the amount paper outstanding... which is not true and if you believe that, well then paper is going negative.  The guy makes zero sense. 

"When in fact it was the banks printing up more receipts than deposits"

Sorry, all you guys want interest, people put their money in the bank, the bank lent it out, eventually the amount owed is more then the supply... bank run... game over.   You don't even need a bank to do it... just lend and borrow with compounding interest.

Been happening since before there were things called banks.  

"If banks were simply allowed to go insolvent during the depression and people got wiped out when they bet with a bad bank everything would of been fine"

Good luck with that, see Greece, wait till the whole world looks like Greece.  Nothing has changed it's the same system that existed in 1930 or 1830 or 1730 or 1630, etc.

akak's picture

Mako, your repetitious argument is idiotic on the face of it, because you completely ignore capital formation and economic growth within an economy.  Collapse due to interest payments, no matter how low, is ONLY an inevitability in an economy that is perfectly stagnant, with a fixed money supply, and which sees no growth of any kind.  Please move on to sixth grade now --- you are really boring all of us with your foaming-at-the-mouth simplistic tripe.

hedgeless_horseman's picture

Stop junking Mako, and calling him a spammer.  Know the difference between a troll, a spammer, someone you disagree with, and someone who is smarter than you.

We need more Mako's around here.

Orly's picture

No kidding.  These gold bug types get their knickers in a twist fairly easily.  As long as you go along with the inflation theory and gold to the moon, you're a genius.

Once you say, "Uh...no," you're a moron.  It is obvious to me that Mako is much more correct than to have gold over five grand.

It is a deflationary environment we are in, people.  Credit is contracting in the private sector while growing in the public sector.  As Hugh Hendry easily points out, the credit expansion in the public sector is nowhere near enough to keep the credit contraction from accellerating.  If you want to stop it, you're going to have to print even more money.  Politically, that is no longer feasible.

Sorry, gold buggers, Mako is correct.  And while I would like to say that I hate to say it...that's not true.  You guys need a serious dose of reality.

See?  I enjoyed that.

:D

akak's picture

No, it is you paperbug deflationists who have been proven to be wildly incorrect.

Despite the fact that there is not ONE historical example of a deflationary collapse in a fiat currency regime, and hundreds of examples of INFLATIONARY collapse under the same, you keep insisting that "This time it's different!", and that SOMEHOW our political rulers are going to NOT repeat the same well-worn path of currency debasement taken in ever other historical example of a government that has spent far beyond its means and taken on an unsustainable amount of debt.

Also, your simplistic and incorrect assertion that the contraction of the amount of private debt is somehow equivalent to the contraction of the money supply is laughable in its absurdity.  You not only ignore that debt does NOT equal actual circulating money, but even assuming the validity of your assumption, you overlook the vastly expanding size of the PUBLIC (government) debt, which is overwhelming any contraction in private debt in any case.

Really, you blindly devoted followers of the charlatan Prechter are to be commended in your loyalty to his discredited notions, in the face of all evidence to the contrary.

tmosley's picture

Exactly. Credit deflation is a balancing mechanism, but it will be overwhelmed by too much printing. It won't matter one lick how much credit is available if people lose confidence in the currency.

Orly's picture

Laughable...absurd...can we please stop with the silliness and have a discussion?

Understanding the expansion of credit and the necessity that it be exponential by definition is the actual key here.  It has nothing to do with interest rates or the price of gold.  Credit will contract because it has to.  The expansion has stopped and, according the to Austrian school, once that happens, an implosion of credit availablity becomes inevitable.

No credit = no price inflation.  No credit = deflation in overpriced assets that no one can get a loan for any more.

You're right.  It is pretty simple but not for the reasons you cite.

Burnbright's picture

I think the problem with the inflation/deflation debate with regards to a fiat currency is and why so many people make really good arguments for both sides is this, fiat money is debt.

Now take what you just said and replace the word credit with debt, and it will make much more sense imho.

akak's picture

.

The crucial distinction that needs to be made is that, while fiat currency is indeed issued as debt, the converse is NOT true ---- not all debt is money!  Lumping ALL debt in with the money supply is simply meaningless as a measure of inflation vs. deflation.

taraxias's picture

Really, no longer politically feasible? 

Is is more politically acceptable to just the system collapse into a deflationary depression?

They only have ONE weapon and they are going to use it until the break the currency.

How would gold look then? I don't know but I can think of a lot of things that will fare worse.

Mako is right about the unsustainability of the "equation" but he's dead wrong about his views on gold.

tmosley's picture

Mako isn't smarter than anyone. He doesn't understand the concept of market based interest rates and their impact on savings and consumption. He can't imagine a world without an artificial rate set by some central authority. Every problem he is talking about can be fixed merely by having pure floating interest rates.

This is pretty basic stuff, but it isn't really taught in economics classes.

Not For Reuse's picture

Let me try to rephrase what Mako is saying. I don't think the two sides to this argument are necessarily in conflict, I just think he/she is just doing an inadequate job of expressing him/herself.

Most people seem to have a vague understanding that money is not a zero sum game. What most people DON'T seem to understand, is that "not a zero sum game" is not the same as "infinite growth potential." Money is the ability to make things serve you. This includes people as well as utilities like electricity, domestic animals, etc. In any event, it is IMPOSSIBLE for the sum of all money to keep growing beyond the total capacity for global human labor and utility extraction.

Currency is just a CLAIM on some fraction of that total capacity. We can of course continue to expand our currency base as much as we want. But what good is that when there are ALREADY far more outstanding claims on the total global capacity for service than could ever be backed up by actual performance.

Unless we put the IMF in a spaceship to go plant our debt service seed on some new alien planet, or unless we discover some sort of new utility extraction which is both more plentiful AND more cost-efficient than Oil to Electricity, then massive default is the only possible endgame for where we are right now in the global debt cycle.

This is all just a power struggle by debt holders who want to avoid taking the necessary haircuts on their bad debt long enough to loot as much service as they can from the system before the state of global default is officially "recognized" and the total claims on service fall back to parity with the total amount of service that can actually be performed.

I think Mako is just trying to point out that no matter what fractional claim on service gold ends up controlling, the whole pie is going to be a hell of a lot smaller than most people are counting on.

Burnbright's picture

"This is all just a power struggle by debt holders who want to avoid taking the necessary haircuts on their bad debt long enough to loot as much service as they can from the system before the state of global default is officially "recognized" and the total claims on service fall back to parity with the total amount of service that can actually be performed."

That is why inflation is the ultimate end game, it ends in a loss of confidence as "conmen" essentially steal everything through the currency.

"I think Mako is just trying to point out that no matter what fractional claim on service gold ends up controlling, the whole pie is going to be a hell of a lot smaller than most people are counting on."

Mako has made it abundantly clear to me that he thinks gold will be lose value and we will enter a period of dollar deflation. Now could gold not be worth as much as it is today if everything goes mad max style because their wouldn't be much stuff to really buy, sure. But to think that dollars will become more more valuable than gold at its current gold to dollar ratio is just plain silly when interest rates are essentially at 0%.

 

Burnbright's picture

"I never said gold went up or down because of the amount of paper outstanding."  

I didn't think you did, I said that you seem to think that because dollars will become scarce that gold will lose value. That isn't always true.

"That guy said it goes up because you divide gold by the amount paper outstanding... which is not true and if you believe that, well then paper is going negative.  The guy makes zero sense."

I actually agree on this point now that I think about it. It doesn't make sense to say that somethings value is a direct division of amount dollars by amount of thing being sold. However their is a correlation between the amount of dollars in existance and the value of something. But yes not as easy as a relationship as that.

"Sorry, all you guys want interest, people put their money in the bank, the bank lent it out, eventually the amount owed is more then the supply... bank run... game over.   You don't even need a bank to do it... just lend and borrow with compounding interest.

Been happening since before there were things called banks.

This has nothing to do with needing to have a fiat currency being that it also happens with fiat currencies whith the ability to just print money exists. Now disregarding that, that was not that point I was making. My point was not that with compounding interest etc that things fail, it was that the BANKS SHOULD FAIL, and so should THE PEOPLE THAT BANK WITH THEM. Get it? You want acceptable terms to be made on loans you won't accomplish that by using a fiat currency and essentially guaranteeing loans.

"Good luck with that, see Greece, wait till the whole world looks like Greece. ."

Yeah, you are so right, I should go out and get a second job so I can buy Greek debt so that its corrupts government can continue to spend beyond its means and its people can continue to expect to get their hand held through life. /sarcasm off

"Nothing has changed it's the same system that existed in 1930 or 1830 or 1730 or 1630, etc"

Sure, only our standard of living has plummeted and now the FED owns more US property than any other entity on the planet.

BumpSkool's picture

ran out of incremental gold maybe ... but there is always enough gold... the question is price...

GoodBanker's picture

+5,000.... oh, that's impossible. I stand corrected. +1,175