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Paul Tustain: Gold Is Sending A Signal That The Monetary System Is In Grave Danger

Tyler Durden's picture





 

Submitted by Chris Martenson

Paul Tustain: Gold Is Sending A Signal That The Monetary System Is In Grave Danger

"When a country's public debt exceeds 90% of GDP, that is the magic number. You get to 90%, there is no way back, and that is the number that the U.S. is going through pretty much as we speak. It is also the number which the UK has gone through; all of the PIGS are going through it, as well. They are all going past the 90% debt to GDP ratio. Obviously, Japan is miles past it already. It's up to 200%+. There does not appear, in the historical analysis, to be any great likelihood of getting back from that level of debt safely. There is this strong evidence that above 90% debt to GDP, you will experience either a cataclysmic default or some form of very serious inflation."

So observes Paul Tustain, gold market analyst and founder of BullionVault. In his view, gold serves as a beacon who's price is currently signalling the monetary system is in grave danger. He and Chris Martenson discuss the primary factors driving the price of gold and smart strategies for investors looking to build or maintain their holdings of the metal.

Click here to listen to Chris' interview with Paul Tustain (runtime 56m:55s):

Read the Transcript of the Podcast
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In this podcast, Paul covers:

  • The differences between unallocated and allocated buillion and the market problem that led Paul to found BullionVault
  • How central banks have recently shifted to become net buyers of gold after a long period of dis-hording bullion, and how this - combined with surging private investment - has sent demand for the metal skyrocketing 
  • Why we're currently experiencing inflation & deflation at the same time: our monetary policy is pushing more and more money into short-term investments, driving up the price of the things we use today (food, fuel, etc) and and lowering prices of the things we finance over longer periods (like houses)
  • Paul's approach to valuing gold and why he sees $3,844/ounce as a defensible (and conservative) estimate of it's appropriate value
  • Paul's perspective on silver, gold miners and ETFs 
  • The purpose and advantages of the allocated custodial bullion purchasing & storage model that BullionVault offers

Click here to read the transcript 

 

 


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Fri, 04/08/2011 - 14:35 | Link to Comment TruthInSunshine
TruthInSunshine's picture

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.

Fri, 04/08/2011 - 14:39 | Link to Comment Turd Ferguson
Turd Ferguson's picture

Other brilliant observations from Paul Tustain:

1) The sky is blue.

2) Nighttime is dark.

3) Paper covers rock.

Fri, 04/08/2011 - 14:48 | Link to Comment Temporalist
Temporalist's picture

Some rocks are covered with lead...the shiny kind that you can't eat rocks.

Fri, 04/08/2011 - 14:54 | Link to Comment TruthInSunshine
Fri, 04/08/2011 - 15:01 | Link to Comment uranian
uranian's picture

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.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7842235/...

 

Fri, 04/08/2011 - 16:39 | Link to Comment IQ 145
IQ 145's picture

 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.

Fri, 04/08/2011 - 15:15 | Link to Comment Hugh G Rection
Hugh G Rection's picture

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.

Fri, 04/08/2011 - 14:27 | Link to Comment trav7777
trav7777's picture

blah blah blah...Japan hasn't defaulted yet and up until Fukushima was facing FX increase

Fri, 04/08/2011 - 14:46 | Link to Comment Ahmeexnal
Ahmeexnal's picture

It's easy for you to think that way. You are on food stamps.

Fri, 04/08/2011 - 14:47 | Link to Comment High Plains Drifter
High Plains Drifter's picture

wow!  is he really?  who knew?

Fri, 04/08/2011 - 17:24 | Link to Comment trav7777
trav7777's picture

I am?  WTF...I need to go flip them for smokes

Fri, 04/08/2011 - 14:50 | Link to Comment Sudden Debt
Sudden Debt's picture

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?

 

Fri, 04/08/2011 - 15:15 | Link to Comment tiger7905
tiger7905's picture

And besides, Spain's turn is next.

Fri, 04/08/2011 - 15:20 | Link to Comment Sudden Debt
Sudden Debt's picture

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.

 

Fri, 04/08/2011 - 14:30 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

Thanks Captain Obvious. The ponzi can work a lot longer than people think, I'm not ready to think the end game is here.

Fri, 04/08/2011 - 14:38 | Link to Comment augie
augie's picture

agreed.

 

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.

Fri, 04/08/2011 - 14:44 | Link to Comment JohnG
JohnG's picture

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...

Stopped trying.

Ostritches, blissfully ignorant.

Fri, 04/08/2011 - 14:53 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

Exactly, when people quit thinking you're nuts is when we are closing in on the end game.

Sat, 04/09/2011 - 09:43 | Link to Comment Harlequin001
Harlequin001's picture

Have you ever consider that maybe you are nuts?

Fri, 04/08/2011 - 14:53 | Link to Comment augie
augie's picture

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.

Fri, 04/08/2011 - 15:48 | Link to Comment flattrader
flattrader's picture

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.

 

Fri, 04/08/2011 - 14:30 | Link to Comment Truthiness
Truthiness's picture

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...

Fri, 04/08/2011 - 14:34 | Link to Comment tmosley
tmosley's picture

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.

Fri, 04/08/2011 - 17:26 | Link to Comment trav7777
trav7777's picture

you're full of crap...most of the national debt is held by merkins.  SS is the largest creditor.

Fri, 04/08/2011 - 14:53 | Link to Comment LawsofPhysics
LawsofPhysics's picture

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.

 

Hedge accordingly.

Fri, 04/08/2011 - 17:02 | Link to Comment Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

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..

Fri, 04/08/2011 - 15:08 | Link to Comment samsara
samsara's picture

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

Fri, 04/08/2011 - 15:37 | Link to Comment DosZap
DosZap's picture

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.

Fri, 04/08/2011 - 16:09 | Link to Comment Urban Redneck
Urban Redneck's picture

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.

Fri, 04/08/2011 - 16:42 | Link to Comment IQ 145
IQ 145's picture

 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.

Fri, 04/08/2011 - 14:28 | Link to Comment redpill
redpill's picture

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.

Fri, 04/08/2011 - 14:35 | Link to Comment ReallySparky
ReallySparky's picture

Agreed, I keep thinking the same thing. 

Fri, 04/08/2011 - 15:18 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Agreed.

Fri, 04/08/2011 - 15:49 | Link to Comment spinone
spinone's picture

I wish I had been wrong to invest in silver.  Wish the economy improved and it hadn't doubled and tripled.  Suvivors guilt?

Fri, 04/08/2011 - 14:50 | Link to Comment High Plains Drifter
High Plains Drifter's picture

its fun to watch all the green, but it is sad to know why.

Fri, 04/08/2011 - 14:30 | Link to Comment NOTW777
NOTW777's picture

check wheat and soybeans

Fri, 04/08/2011 - 14:35 | Link to Comment plocequ1
plocequ1's picture

Think Thurman Munson.. " Im just happy to be here" 

Fri, 04/08/2011 - 14:45 | Link to Comment High Plains Drifter
High Plains Drifter's picture

Thurman Munson, one of the greatest baseball catchers to ever play the game........

Fri, 04/08/2011 - 14:43 | Link to Comment falak pema
falak pema's picture

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.

Fri, 04/08/2011 - 14:42 | Link to Comment ReeferMac
ReeferMac's picture

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....

Fri, 04/08/2011 - 14:46 | Link to Comment Sudden Debt
Sudden Debt's picture

DANGER ROBBINSONS DANGER!!! BUY SILVER ROBBINSONS, BUY SILVER GODDAMNED!!!

 

 

Fri, 04/08/2011 - 16:25 | Link to Comment Nate Taggart
Nate Taggart's picture

Dammit!  I can't BTFDs fast enough before it gets bid back up!  

Chasing the last of the physical!

Fri, 04/08/2011 - 14:46 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

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

Fri, 04/08/2011 - 15:18 | Link to Comment InconvenientCou...
InconvenientCounterParty's picture

"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.

Fri, 04/08/2011 - 15:29 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

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.

Sat, 04/09/2011 - 09:50 | Link to Comment Harlequin001
Harlequin001's picture

The solution is not to recapitalise the entire system, because the system begets more insolvency.

There is no solution but collapse...

Fri, 04/08/2011 - 14:52 | Link to Comment LRC Fan
LRC Fan's picture

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?

Fri, 04/08/2011 - 14:58 | Link to Comment Sudden Debt
Sudden Debt's picture

market isn't tanking that much.

ALL I SEE IS THAT SILVER IS YET AGAIN UP 3%!!!

 

BOOYYAAHHHH!!

 

 

Fri, 04/08/2011 - 14:55 | Link to Comment solidsteele
solidsteele's picture

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.

Fri, 04/08/2011 - 15:00 | Link to Comment Sudden Debt
Sudden Debt's picture

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.

 

Fri, 04/08/2011 - 15:05 | Link to Comment solidsteele
solidsteele's picture

I'm not denying the historical value of PM's and their roll, but we don't

live in those times any longer.

If walmart is told to only accept popcycle sticks as currency, better get

busy sucking on that BLOW POP.

 

Fri, 04/08/2011 - 15:26 | Link to Comment Sudden Debt
Sudden Debt's picture

It doesn't quite work that way.

A currency is what the people will accept as payment.

If you want to be paid with popcycles for your silver: do it.

I won't. But I'll take your house for 10 ounces :)

 

In Zimbabwe people only wanted dollars, in the Weimar people only wanted copper, silver and gold and when there was a lack of those they traded goods. But they didn't give a fuck about the paper. Whatever name the govenrment gave it or how it looked.

 

Sat, 04/09/2011 - 09:55 | Link to Comment Harlequin001
Harlequin001's picture

They would also take any other foreign currency, which is not an option today...

Fri, 04/08/2011 - 15:45 | Link to Comment DosZap
DosZap's picture

Any financial instrument made of paper is subject to fraud.

The system will not allow it to be otherwise.

I have read blog after blog blaming this debacle on the public.

It's NEVER been the public.

Our Gv't has gotten totally insane, and have spent the country iunto oblivion.

8x's the recivables they have spent thus far?.

What idiot does that?.Unless they are planning on walking the check.

Fri, 04/08/2011 - 15:49 | Link to Comment Hubbs
Hubbs's picture

Are you kidding me? That's the whole point of owning PM. You hand over some gold for your fence to be fixed or to buy a used car or food. You don't sell the gold to a dealer for fiat and then have him report the transaction to the IRS!

Same on the receiving side. If I sell some of my spare Glock magazines or ammo, I'll take the payment in gold or silver. I sure as hell am not going to report my acquisition of this to the IRS.

 

 

Fri, 04/08/2011 - 14:57 | Link to Comment BlackholeDivestment
BlackholeDivestment's picture

''Grave Danger'', lol. I just had a flash crash of the ''silver'' screen. The words wealth ''stransfer'' and ''code red'' sent a signal to my brain and I can't handle it. I may die laughing. 90% to GDP, lol, this article is golden Bitchez. http://www.youtube.com/watch?v=8hGvQtumNAY 

Your Honor ...I move that we for go the article 39 A session and disarm the suicidal defendant, Chairsatan, and institutionalize the poor bastard, break for lunch ...and have a Pepsi. http://www.youtube.com/watch?v=LoF_a0-7xVQ

Fri, 04/08/2011 - 15:03 | Link to Comment AN0NYM0US
AN0NYM0US's picture

from  the gentleman who helped to give us the Fed (referenced in an earlier post),  this comment from the New York Times - Dec 18, 1921

"My first conclusion as the result of observations in Europe was that there must be a new currency, dissociated from the Government printing press and related in some way to gold," said Mr. Vanderlip

 

http://query.nytimes.com/mem/archive-free/pdf?res=FA0D10F83E5D14738DDDA1...

Fri, 04/08/2011 - 15:13 | Link to Comment Blanc swan
Blanc swan's picture

While speaking of Latin PIGS, we must not forget the Anglo CAUUs.

Fri, 04/08/2011 - 15:36 | Link to Comment jimijon
jimijon's picture

My app uses bullionvault as the source for gold and silver prices!

http://www.bartercalc.com

cheers

Fri, 04/08/2011 - 21:34 | Link to Comment StychoKiller
StychoKiller's picture

Would it work on a Motorola Xoom?

Fri, 04/08/2011 - 15:40 | Link to Comment baby_BLYTHE
baby_BLYTHE's picture

The world is very fragile now. A lot of people are writing off this budget issue.

The Reps want to cut the budget, and avoid a total collapse, but they can't help slipping in an anti abortion clause (now called Women's health in new-speak) to tick off the Dems.
The Dems want unlimited spending on social programs, and couldn't care less about the consequences. Both parties lock-step on the military for the most part.

not sure how they can ever find common ground - the dems want to just keep borrowing and spending, which is TOTALLY irresponsible with respect to America's future.

Our "leaders" are children. interested only in their next election.

A total collapse is certain. Many will suffer, I am afraid

Fri, 04/08/2011 - 16:51 | Link to Comment sbenard
sbenard's picture

May I quote you? I couldn't have said it better! Thank you!

Plan and prepare accordingly!

Fri, 04/08/2011 - 15:45 | Link to Comment Vincent Vega
Vincent Vega's picture

I'm in my early 50's. When I received my most recent statement from Social Security there was a note on the front which said (paraphrase): you'll be lucky to get 75% of the benefits promised.

The U.S. is, undisputedly, in fiscal crisis. But as we have seen time and again it is not the CB's who will be shafted...it is the general populace. It will be called "austerity" but it will really be a default on the American people.

Disclosure: Long--lead/copper, Au/Ag, water, freeze dried/dehydrated.

Fri, 04/08/2011 - 17:12 | Link to Comment baby_BLYTHE
baby_BLYTHE's picture

at the age of 20, it is a waste of breath to even talk about Social Security.
I believe it is disgusting that TPTB would ever consider cutting and gutting social security after handing out trillions in free money to private entites (fascism).

There is no security anymore.

Disclosure: PMs, Booze, Gun (I know how to use it) and good friends

Sat, 04/09/2011 - 09:59 | Link to Comment Harlequin001
Harlequin001's picture

any financial plan that requires your ultimate demise requires a serious dose of rethinking, in my view...

Fri, 04/08/2011 - 16:00 | Link to Comment tek77blu
tek77blu's picture

great interview with peter grandich on gold, silver, stock market and hard times u.s.a. : http://www.youtube.com/watch?v=4XtH28M3Bbc

Fri, 04/08/2011 - 16:12 | Link to Comment Fix It Again Timmy
Fix It Again Timmy's picture

got a bunch of my deceased grandmother's 1938 Polish government bonds - oh man, all that accumulated compound interest, hell I'll be able to buy blocks of Warsaw... see where I'm a goin' with this, sweet pea?

Fri, 04/08/2011 - 16:33 | Link to Comment Zero Govt
Zero Govt's picture

Gold is sending a message that Govt (politicians) are the most incompetent and irresponsible system known in society (worse than all the criminals and robbers put together) and cannot be trusted with the best interests or over-sight of a nation.

In Britains case successive politicians of both major parties have screwed free markets, over-legislated, committed treason regards siphoming power to the unelected marxists of the EU and robbed then squandered the wealth created in the private sector.

Westminster, like Washington, has raped the country for vested interests (parasites) leaving their countries ever more bankrupt and immaciated to face recession. Enough of this sham called 'democratic Govt'. It was a shit idea from the start if anyone had any common sense regards its monopoly power structure as apposed to allowing the free (competitive) market to reign (which distributes power).

Gold is also sending the message Rob Prechter and his Elliott Wave clowns do not know what they're talking about. The Elliott Wave theory is a busted flush, a complete and constant failure, a sham and failed idea ....just like democratic Govt  

 

 

Fri, 04/08/2011 - 16:34 | Link to Comment SuperRay
SuperRay's picture

solid steel, you are assuming that the transition will be a nice orderly affair with everyone agreeing about how to proceed?  Do you still believe in santa claus, too?  We're about to see a war for oil in the mid-east, guaranteed.  Even if we won that war, there will still not be enough oil to sustain us for any serious length of time.  How many old nuclear reactors to do we have?  Who's running the country?  shit, sound's like I need more silver, gold, food guns, and preferably a nice big farmhouse on a high plain that can be easily detected.

 

Unless, of course Obama and fix everything with his forceful leadership! (barfing in background)

Fri, 04/08/2011 - 16:41 | Link to Comment lucasjackson
lucasjackson's picture

I particularly like the scenario where starving people will hand over their food supplies for metals.

Sat, 04/09/2011 - 10:04 | Link to Comment Harlequin001
Harlequin001's picture

that's because you don't understand it...

Fri, 04/08/2011 - 17:04 | Link to Comment kito
kito's picture

argentina survived becuase they had the DOLLAR to save them. whats going to save the dollar? what is it going to peg to? yuan? swiss franc? gold.......hmmm

Fri, 04/08/2011 - 20:12 | Link to Comment tomster0126
tomster0126's picture

Fiat money is the root of all evil.  Michael C. Ruppert's documentary "Collapse" spells it out so well, watch it on Instant Netflix for free.

 

www.forecastfortomorrow.com

Sat, 04/09/2011 - 10:07 | Link to Comment Harlequin001
Harlequin001's picture

fiat money is just one part of a cycle that you will revisit again and again and again...

if you live long enough.

Fri, 04/08/2011 - 21:23 | Link to Comment anomalous
anomalous's picture

Ron Paul, 2012, why not?

Fri, 04/08/2011 - 21:30 | Link to Comment Goldenballs
Goldenballs's picture

This cannot be true Gold is in a bubble everyone knows that.Ha,Ha,Ha,Ha ... yeah

Fri, 04/08/2011 - 21:33 | Link to Comment pagan
pagan's picture

"Why we're currently experiencing inflation & deflation at the same time: our monetary policy is pushing more and more money into short-term investments, driving up the price of the things we use today (food, fuel, etc) and and lowering prices of the things we finance over longer periods (like houses)"

Excellent interview. This point took care of the flation debate...

Fri, 04/08/2011 - 21:46 | Link to Comment anomalous
anomalous's picture

"Are you kidding me? That's the whole point of owning PM. You hand over some gold for your fence to be fixed or to buy a used car or food. You don't sell the gold to a dealer for fiat and then have him report the transaction to the IRS!"

Heard recently, "What will I do with my PMs further on down the road...? Spend them."

Fri, 04/08/2011 - 21:46 | Link to Comment anomalous
anomalous's picture

"Are you kidding me? That's the whole point of owning PM. You hand over some gold for your fence to be fixed or to buy a used car or food. You don't sell the gold to a dealer for fiat and then have him report the transaction to the IRS!"

Heard recently, "What will I do with my PMs further on down the road...? Spend them."

Fri, 04/08/2011 - 21:48 | Link to Comment anomalous
anomalous's picture

"Are you kidding me? That's the whole point of owning PM. You hand over some gold for your fence to be fixed or to buy a used car or food. You don't sell the gold to a dealer for fiat and then have him report the transaction to the IRS!"

Heard recently, "What will I do with my PMs further on down the road...? Spend them."

Fri, 04/08/2011 - 21:49 | Link to Comment anomalous
anomalous's picture

Oops. Got it?

Fri, 04/08/2011 - 23:32 | Link to Comment PulauHantu29
PulauHantu29's picture

 

The transcript of the Paul Tustain interview is a MUST READ article.

 

GL!

Fri, 04/08/2011 - 23:33 | Link to Comment thames222
thames222's picture

Just like in ancient times, no paper currency or fiat.  Pure goods, jewels, gold and silver, oil--trading and bartering, online currency and paperless exchange.  I personally am ready for the dollar to expire, I'm waiting for it to happen.

 

www.forecastfortomorrow.com

Sat, 04/09/2011 - 03:27 | Link to Comment Diogenes
Diogenes's picture

The US is up shit creek without a paddle, does anyone doubt it?

Sat, 04/09/2011 - 14:25 | Link to Comment augie
augie's picture

Faber interview on CNBC "in gold and silver terms, the dow jones has lost 80% of its value." Most of us know this, but what is telling is the puppets on CNBC don't even challenge this claim. They don't challenge the claim, because it is fact.

 

http://revolutionarypolitics.tv/video/viewVideo.php?video_id=14533

Do NOT follow this link or you will be banned from the site!