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If gold is sending that major signal, the poor man's gold, silver, is sending a signal that Joe Q. Publics everywhere are hatin' on their fiat.
"Hey boss, I don't want this filthy BernankBuck paper. Give me some silver, Cochise?"
The trend is not The Bernank's friend.
Other brilliant observations from Paul Tustain:
1) The sky is blue.
2) Nighttime is dark.
3) Paper covers rock.
Some rocks are covered with lead...the shiny kind that you can't eat rocks.
To be fair to the guy, he does have a very good website that explains the difference between unallocated and allocated bullion, for example. When I first started to buy gold, I read it a lot, as there's a lot of other useful info for the PM newbie. galmarley.com
But then I lost a lot of respect (and stopped using bullionvault) when they sold a chunk of their company to the Rothschilds a while back.
It's an excellent article that needs to be downloaded and read as reference material; it explains the mechanism of signficant inflation from "small" printing exercises. He's a brilliant man who sold the banks their system of international money transfer, which he developed.
Isn't this a little dumbed-down for the ZH community?
This post should be on a site geared toward the moron-low grade imbecile crowd.
debt bad gold good durrrr. Gold sucks buy silver, at least until we get back to 15/10-1 range.
blah blah blah...Japan hasn't defaulted yet and up until Fukushima was facing FX increase
It's easy for you to think that way. You are on food stamps.
wow! is he really? who knew?
I am? WTF...I need to go flip them for smokes
Japan hasn't defaulted because:
1. The loyal citizens buy all their crappy debt because it looks cool.
2. Because America has always been there.
hmmm... have you bought any US bonds lately?
Who's going to pull out the US from the quicksand?
And besides, Spain's turn is next.
with expectancy of 500 billion for Spain, that will indeed be the kicker.
June/July is the forecasted date.
And with low summer volumes, that's going to leave a sting in the markets.
Thanks Captain Obvious. The ponzi can work a lot longer than people think, I'm not ready to think the end game is here.
The system works as long as people believe it works.
"all is well, we were always at war with eurasia"
I wonder what would happen if the ZH community got politically active and began speaking sense to people within their own communities.
Tried that. All I get is blank stares and comments that I'm crazy, or just get blown off. I got yelled at once for even suggesting that the "Government didn't have things under control...
Ostritches, blissfully ignorant.
Exactly, when people quit thinking you're nuts is when we are closing in on the end game.
Have you ever consider that maybe you are nuts?
I feel ya man, but we need to remember this country was founded because brave men DIDN't stop stop trying.. Not trying to be dramatic just the way i have to force myself to feel.
Some of us are very politically active (and have been) in the real sense (not the keyboard commando sense.)
You'd be amazed at how few people on your block vote in fall elections if you pulled a voter list.
Sigh...90% is grave danger. But then Japan has 200% and is still muddling through (or at least they were until the quake)...
The logic here is a little inconsistent...
Japan had the benefit of being a net exporter alongside the fact that their "debt" is to a large extent owned by its own people--which means it was very analogous to a tax. If they defaulted, domestically at least, it would be exactly analogous to a tax.
Very little US debt is held by Americans, unless you count the Fed as "American", which I am proud to say I don't.
you're full of crap...most of the national debt is held by merkins. SS is the largest creditor.
No, Japan held most of it's own debt and is a tiny island. No one gave a shit. The holders of the U.S. debt will respond very differently. National parks and resource reserves will be theirs for pennies on the dollar and the essentially free slave labor of the American people will go get it for them.
Nobody's getting national parks or the Washington Monument. Creditors will be converted into glowing ash before that happens. It's good to have a few thousand multi-kiloton warheads around if you want to steal from the world..
Japan was 200% with the rest of the world Not being.
Among 4 guys, three can hold up one drunk, If all 4 are drunk, They're all going down....
That's your analogy
Big difference in J's GDP ratio, to ours.
Their people purchased most of their own debt with Japanese cash. For the last 30yrs, the personal savings rate in Japan was approx 25%.
We, have been at under 2%, until after '08, now up to approx 5-6%, and I hear dropping again.
Americans have no money, and cannot buy our debt, or will not put it in Treasuries of Bonds.with good reason.
This makes the logic between they and us tenable.
His logic fails me when he states there is "magic" to the 90% number, since it is determined by ACCOUNTING REGULATIONS, and it is not like FASB cares much too about mark-to-market or off-balance-sheet assets and liabilities... Almost forgot- FASB gives the Government an even longer cheat sheet than it gives the Banksters. If the 90% number was magic, this nightmare would be long over by now.
There's nothing wrong with the statements in the article; timing is always the problem. Read it again, it's a statement from a book detailing the fate of many real world paper currency/credit systems. It doesn't say anything is supposed to happen today; it says there's no polite controlled exit from this degree of financial irresponsibility.
On days like today when PMs go parabolic, it's bitter sweet. Even knowing that I have plenty stashed away, the fact that they are skyrocketing is an entirely undeniable sign that the foundations of the modern global economy are eroding beneath our feet. When it finally breaks, it is going to be a very dark time.
Agreed, I keep thinking the same thing.
I wish I had been wrong to invest in silver. Wish the economy improved and it hadn't doubled and tripled. Suvivors guilt?
its fun to watch all the green, but it is sad to know why.
check wheat and soybeans
Think Thurman Munson.. " Im just happy to be here"
Thurman Munson, one of the greatest baseball catchers to ever play the game........
Bingo! At last somebody is saying something that goes beyond navel gazing...Monetary system in danger...the golden calf...in danger...if it breaks...all else will seem derisory.
Look beyond the obvious and take stock of ALL that this implies.
Lesse, a guy who makes his living hoarding gold for a small fee for other people is bullish on the barbarous relic?
Shocked I am....
DANGER ROBBINSONS DANGER!!! BUY SILVER ROBBINSONS, BUY SILVER GODDAMNED!!!
Dammit! I can't BTFDs fast enough before it gets bid back up!
Chasing the last of the physical!
I don't see public debt as a big problem - all that private credit creation however created a huge amount of deposits / liabilties in a banking system with little capacity to generate revenue with its assets.
The assets are also grossly overvalued
You can see this more clearly in Ireland or Iceland but the problem is everywhere in the western world.
The ECBs policey in Ireland seems to be about draining these deposits. ( although favouring bond holders) This may however create further disequilibrium - its best to push term deposits into Gold and recapitalise the money system
Public debt is not really debt - it may devalue the currency but it ain't debt
"Public debt is not really debt - it may devalue the currency but it ain't debt"
That's good, because collateral sure ain't what it used to be either.
Ask yourself why public debt is rising ? - its because the private banks cannot produce the private credit money supply and must buy off debt from the goverment and when they are stuffed the Central bank buys the stuff.
The central problem is that private banks balance sheets have been a illusion for decades and were finally found out to be a ponzi in 2008.
The entire system needs to be recapitalised by transferring private deposits into Gold and then installing this new Gold price on the CBs/ treausury balance sheet.
The solution is not to recapitalise the entire system, because the system begets more insolvency.
There is no solution but collapse...
Is there any news I'm missing? Market has just tanked pretty hard in the past 30 min...
Should I just shut up and BTFD like Bill Griffin wants me to?
market isn't tanking that much.
ALL I SEE IS THAT SILVER IS YET AGAIN UP 3%!!!
Why wouldn't owning equities be the safest bet? Anymore when you go
to sell PM's your taxed at around 30%, in addition to whatever the spot
dealer robs you for. If there is a run on PM's, and the New currency is $GX
(global exchange notes????or whatever) the value would be obviously reset
to whatever the global banking system sets as the value.
It's my opinion that being vested in solid no consumer driven securities
would be the safest investment. In the event that we do wake up and
our financial accounts are newly valued in the NEW currency, the run/rush
to convert would drive up the equity value just like QEx is doin right now.
No newly created currency would be accepted if it's not going to be backed by gold or silver.
So to do so, trade of PM's must be set lose for this creation.
Thats history repeating itself.
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