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Peter Schiff Sees Gold At $5,000
The congressional candidate is the latest to chime in on perspectives of where gold is going. This ties in with our expectations that the Fed's generous excess liquidity, coupled with a declining dollar, will likely see gold as the primary focus on new capital flows. If gold does really hit $5,000 expect a military coup by the various governors of the Fed.
As to Schiff's contention that a plunge in the dollar will be accompanied by Chinese dumping of Treasuries, we are not so sure it is that simple. Bernanke is well aware of the game of poker (where courtesy of the reserve currency he can raise into infinity, even on blind), and this is the only bluff he would be unable to respond to. Which is why the tacit assumption that China will keep USTs in exchange for Geithner backing off from allegations of renminbi manipulation, seems very sensible.
Either way, if Peter Schiff ultimately does get elected into Congress, it will be amusing to watch the Grayson-Schiff financially astute tag team take on the rest of their underedcuated associates, and hopefully, the administration and its flawed economic policies.
h/t Shanky
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I automatcly want to trust him more.
The selection of Obama doesn’t say much about Obama but it does say a lot about the Nobel people. Up to now, the Nobel Peace Prize has been an embarrassment, but this award is different. For the first time, the motive of the committee, which clearly is world socialism under the thumb (boot?) of the financiers, has been opened for all to see. For at this point in history you don’t select someone like Obama, who wants to turn his back upon the United States and surrender the standards that rewarded achievement and excellence for socialism, unless your goal is socialism. Obama never misses a chance to say things are different now that he’s in the White House—even in his Nobel acknowledgement speech he is talking about how the U.S. is going to “change.” And, of course, for the first time in her life, Michelle is proud of her country. Perhaps they should have split the prize.
“Socialism is bound sooner or later to ripen into Communism, whose banner bears the motto: “From each [country] according to his [its] ability, to each according to his [its] needs (paraphrasing mine). —V.I. Lenin: The Task of the Proletariat, 1917.
What fucking socialism; learn your ideologies my good man; this is at best a fascism with a human face, and will be at worst fascism with guns, prosecutions, distortion of law, oligarchy ... oh wait ... there is nothing even remotely communistic about Obama ...
In general, fascism is a term that applies to Mussolini’s state program. There has been nothing quite like it before or since and most people don’t recognize fascism as being something other than in Italy’s history.
As for socialism, this is exactly what we’ve been moving into in the United States on the way, IMO, not to fascism or communism, but to totalitarianism whereby a small faction controls all levers of government. We get closer and closer ever year. The totalitarians use socialism as their mechanism for change. The healthcare legislation working its way though Congress is the latest example of their socialism--the operation of healthcare by the State.
The State doesn’t own all the property in the U. S. but it exercises state control to the point that government is the final decider in most areas of our lives. The main point is that the thieves we’re all concerned about are using socialism, and that includes Obama, on their pathway to totalitarianism for a world government and a world currency. The goal of the prominent socialists at Bretton Woods was world socialism. And they didn’t intend for individuals to have a say. If what they were after was Mussolini fascism, they would be working with corporations so corporations could run the world, IMO—not keeping exclusively within the private cartel that owns the Fed that is taking over all industries.
So, I restate my case: all that recent past administrations have done is to increase socialism. If you prefer fascism, that’s okay by me.
Incidentally, here’s Ludwig von Mises on guild socialism and corporativism, i.e., socialism.
“The Italian Fascists badly needed an economic program of their own. After having seceded from the international parties of Marxian socialism, they could no longer pose as socialists. Neither were they, the proud scions of the invincible Roman legionaries, prepared to make concessions to Western capitalism or to Prussian interventionism, the counterfeit ideologies of the barbarians who had destroyed their glorious empire. They were in search of a social philosophy, purely and exclusively Italian. Whether or not they knew that their gospel was merely a replica of British guild socialism is immaterial. At any rate, the stato corporativo was nothing but a rebaptized edition of guild socialism.” (British socialists yearned for a specifically British brand of socialism,…sort of an individualistic variety of collectivism.) Human Action Third Revised Edition, p. 817.
Fabian socialists, whose most well known member is John Maynard Keynes, only disagreed with Communism in that the Communists wanted to establish socialism quickly through violence and revolution, and the Fabians slowly through propaganda and legislation. The word “socialism” was never to be used. Instead, it was to be done by gradualism, speaking of the benefits for the people such as welfare, medical care, higher wages...
They adopted the turtle as the symbol of their movement; their crest, the wolf in sheep's clothing...
That's exactly right. The US is in pure fascism right now whether you accept that fact or not.
Go Peter! Go to the Senate and tech them illiterate idiot bastards a thing or two.
With Grayson in the House and Schiff in the Senate the status quo would have a hard time being maintained... trying to get those two to play along and not say what is on their minds would be next to impossible.
I can't wait for them youtube clips to emerge. Imagine both of them together nailing Bernanke in a hearing!
That would really rock... in fact just so there might be even a remote chance of that happening I'm going to give a little to Schiff's campaign...
It would give a whole new meaning to the word "bipartisan"...
What a tag-team duo they would be... the entertainment/education value for the masses... priceless.
I think you are right... it would actually be the essence of bipartisanship... and likely how our founding father's envisioned it... neither Grayson, Schiff, or for that matter Ron Paul can be bought IMO...
Uh, excuse me, ever heard of Ron Paul?
I am Chumbawamba.
Oh I forgot Chummy... Ron Paul is definitely in the mix :-)
Yeah, I would PAY to see the three of them and Bernanke face-to-face.
Grayson may have it right on the fed, but he is a putz on just about every other issue. If you think he is going change things in Washington then you should nominate him for the next Nobel.
CH is 100% correct. I think he primarily does not like the Fed because he wants Congress to control all the levers without the Fed in the picture. He is a big fan and really big government.
Sounds like he has a good a shot as anybody these days... standards seemed to have slipped a little...
Hey, enough with the Bastards discrimination here
Golden Gordon Gekko,
Cheekster has a point here. I am guilty of it too. You give bastards a bad name by putting them in the same class as most senators. You've been warned.
Signed,
The Anti-poltical Correctness Squad.
Guilty as charged, Madame.
The whole dollar collapse theory only works if we're the only country inflating its currency; unfortunately all countries are doing it; so by that logic the uptick in gold is because the Swiss Franc is DOOOMED, DOOOMED, DOOMED, or the Yen is GOING POP POP POP, or the Yaun is Toilet Paper. On a relative basis China is printing money faster than Bernanke could even dream of printing.
The dollar and rest of the fiat currencies will collapse against Gold and other commodities.
If the dollar starts crashing, TPTB will behave like a drowning man in a pool and will attempt to pull every other currency in the pool down with him. The US still has a lot of firepower and can jerk all the smaller countries around, witness the recent UBS tax brouhaha.
I hear this quite a bit. I wonder about context. If the US had a surplus, I'd say "bring it." But we don't. China does. Shouldn't this matter in the caluculation of who has toilet paper for currency?
Right on HeeHe...big picture.
Currency collapse is not a monetary phenomenon, but a dearth of confidence. It is a uman psychological issue. Convince people the dollar is sound and it will survive. Continue printing money with reckless abandon while spending it all away on wars and $1,500/hr whores and it won't.
I am Chumbawamba.
News Flash: Nobel Prize in Economics given to Gideon Gono for his work giving people a simple way to cope with a wide range of numbers by having the Zimbabwe Reserve Bank print denominations from one dollar to one hundred trillion dollars.
They could've might as well gave it to Bernanke; after Obama has won; it became a worthless piece of paper; supplemented with some moolah ...
It became worthless for me after Krugman won it.
I'd argue since Kissinger's peace prize in '73.
I have alway found Nobel prize for literature and Noble prize for economics to be worthless, also the same goes for Peace prize. Physics and Chemistry and Medicine are so so.
When you go and invent the basic tools of WMD's you can't really expect anything good to come from it. Fuck Alfred Nobel with a giant stick of dynamite.
Bingo.
I am Chumbawamba.
gore... same stink.
I've figured it out. The Peace Prize goes to Obama for keeping a lid on the violence that should be errupting in the USA.
It sure ain't because he stopped our own wars.
Yes sir error fat.
And also for using violence on G-20 protesters to keep them "peaceful".
Eat, drink, be merry (for crying out loud!).
What the hell is being defended? Screw it!
A shitload of midases seem to think gold is a cureall.
Look inward, make this shitty planet a tad bit better.
a very sad team of mules
not mules... idealists and thinkers.
Other than that... +100
gold is not the cureall...
You sound like an AmeriCorp candidate; go make the world a better place and stop bugging the grownups with the gold.
Having said all of the above, I in no way condone the actions of the FED in inflating the US currency. It is theft pure and simple. I would certainly vote for Peter Schiff over Chris Dodd any day of the week simply because Schiff is for getting rid of the Fed. However, it is quite a leap to imply a hyper-inflation scenario from current events without that same scenario playing out in the rest of the world when every country is engaging in the same behavior and some of them on a much larger degree than the US.
You don't understand hyperinflation. See my above (terse) explanation.
I am Chumbawamba.
In the Schiffian big picture, most if not all of the significant other countries besides the US, are savers, producers, and exporters. The US is none of those, and has a massive deficit. That's the difference between them.
I would love to see financially astute people elected too. That's my hope & change. Do I get my Nobel Prize now?
http://cheezburger.com/view.aspx?ciid=5429303
oh geez. how come gorbachev never got a prize?
http://www.patriotroom.com/images/upload/Barack_Gorbachev.jpg
creepy!
Have to view that over the weekend, I guess. But these were good reads in the meantime:
http://www.boston.com/globe/search/stories/nobel/1991/1991x.html
Dear American reader, you should not be naive. The blood-stained, as say Christians, see mark on his forehead. Gorbi is the same criminal as Hussein.
http://www.boston.com/globe/search/stories/nobel/1994/1994c.html
By redefining the prize from a citation for past achievement into a spur for future good behavior, the Nobel Committee may have kicked out the moral struts that gave the award its towering authority. "What consequences will result," Kristiansen wonders, "when a terrorist with such a background is awarded the world's most prestigious prize? . . . Can there be any doubt that this award is going to downgrade the prize and weaken respect for it?
OMG he did get a NPP! pardon my ignorance.
:::gag::::
I just threw up. Nice.
It's already there bro...! Take an ounce of gold and swap it for a Sponge Bob Square Pants doll, then sell the doll for 5k, and voila! You got 5k gold...
I'll do 10,000 of those in case anybody's interested, I've got some discretion on the dolls...
Best regards,
Econolicious
Buy gold for not being richer but only for not being poor.
TK
This is always a fun topic. Gold will get to $5k an ounce. Ever since the dollar came into existance, all gold has done is go up. That being said, gold could easily collapse back down to $650 over the next 10 years or so, you never know what crazy new government program is going to get sh*t out next week.
The only real problem I have with gold under the 'epic fail' premis is how impractical it is. Unless you have 1/10 oz eagles or 5g bars, what is the point of owning gold? Say it really does all come tumbling down? Is it practical to trade that $5k 1 oz worth of bullion to have someone fix your water heater in the middle of winter? Or purchase food for you and your family? It just gets worse from there. What good does that 1000 oz of bullion sitting in the Perth mint in Austraila that Peter Schiff sold you do to protect you and your family when martial law is in effect and WW3 is breaking out? If your worried about total failure, silver offers a much more practical alternative than gold, 90% junk coins, silver rounds, eagles, whatever. Silver is much more barter-able than gold and always will be. I could see getting a loaf of bread for the silver content in a 1963 dime, gold, not so much, unless your trading in raw flakes or something.
Personally, before silver or gold, I would 'invest' in a sustainable, comfortable, subsistence and localized lifestyle, weather that means buying a cabin in the woods, stockpiling food, growing your own garden, buying a windmill, digging a well, purchasing weapons, before I would go 'all-in' on gold bullion.
If epic fail ever does happen, given how woefully unprepared this country is for it, food, water, shelter will be worth much more than any shiny metal.
Yes, yes, yes and yes. Gold is a store of wealth. You don't really ever use it (at least I don't). Silver is your day to day money. Guns are your security. Your garden is your source of food.
Simple living. Gotta love it.
I am Chumbawamba.
+1 with regards to silver; but...
a modest bar of gold may soon buy a choice peice of property, vehicle, tractor, etc. just wait until the panic, then stick it to some ex-rich arrogant prick.
Yep. When your gold can buy a nice piece of property then that's when you trade. Even better: your gold buys you a piece of property with gold on it :)
I am Chumbawamba.
Exactly. Which is why I keep trying to tell people that the gold runup is just like the oil runup of last summer. It ends in tears for the longs.
Yes, as they laugh so hysterically at all the morons that keep saying gold is a bubble that their tear ducts get compressed and fluid comes out.
I will remember this comment and shed a tear for you.
I am Chumbawamba.
If your long enough baby, it just doesn't matter.
nice.
Are sure about oil?
I suppose that depends on your time horizon. Au traded at $250/oz (roughly) in 2000. It is now at $1040/oz. Let's round things off to $1000 and call the time window 10 years, just to be conservative. Using a well known formula for some of us:
1000 = 250(1+r)^10
Refresh your memory of how to use logarithms and you end up with a return rate of around 14% per annum.
No tears at all there for someone who is long, my friend.
No problem with 'insuring' today with quality-of-life and social-breakdown hedges. I think it's lunatic to have a $100K in a 401K and not have a few months' food/water safety net in the back closet... but that's just me.
But consider the average value of a bag of gold coins (for the average joe, not the rothchilds...) over a 20 year period. No capital gains, no estate taxes, fairly liquid in larger chunks (not loaves of bread...), well understood by everyone. Not 'something you can eat' but for the long-term buffers, best thing going right now. Hated by all governments who want their piece of the action...
Consider the usual hyperinflation scenario...
- gold $1000 today (a week's UAW worker pay)
- $10,000 tomorrow (great collapse)
- the new 'amero' or whatever comes out, 10/1 conversion
- gold finds a new level... roughly a week's UAW pay again in these new 'ameros'...
Few folks talk about the gold pricing in Deutch-Marks after the Wiemar (sp?) currency (Reich-Marks) conversion happened.
Forget the "currency" of the day, gold/silver will always vacillate around a ratio relative to the median-man-hour. When it's "bent" in either direction, short or long accordingly. Some use a house price, some use a 'well-tailored-suit', some use a commodity automobile (rabbit/neon/escort). It's roughly the same issue, and folks will only buy it if they have a relative financial comfort - e.g. if someone's net worth is $2.00, 20cents might be a good price for that suit, or perhaps an ounce of shiny yellow metal. (extreme to make a point...)
When you buy-and-hold gold, I don't think you are going to "make any money", but you won't lose when everyone else gets taken to the cleaners.
Right now I think it's a bet against the Fed, and that makes me nervous in the short-term.
2cts
Gold is easy to melt. Propane/Oxygen works well. You can make your own money with a bar of gold. Sand casting is easy too but any engraved steel will work as well. Put your own face on your own money.
Good job there is gold and currencies to trade. They may as well switch the S&P's off, would anybody notice?
I actually read Schiff's last book. It had some good ideas but the best was stocking up on those airline bottle's of booze. Believe me in a hyper-inflationary scenario you'd be needed in every transaction in your neighborhood. You'd be the only person who could make change with something everyone wanted.
Yep, got my alcohol stash going as well. Jack Daniels and Jim Beam are my compatriots.
I am Chumbawamba.
I dont uderstand how people can do this successfully.
Alcohol has an indefinite shelf life. Good choice.
get rid of the i'm cm,,,,, it's irritating
hmmmm........
1oz Gold = 659.80 SDR's
http://coinmill.com/SDR_XAU.html#XAU=1
Why all this fuss about Gold? It's gone from 975 to 1050. Wake me when we start going up 100 bucks a day, and Silver is above 100. Which will happen.
Can someone explain to me, please, why the Fed does not like to see gold go up - and what is so dangerous about the scenario?
Central banks control the fiat money supply. Gold has been an alternative form of money throughout human history. It is the belief that people will abandon paper money for gold as Central Banks print more money because the gold supply is finite and will keep it's value relative to printed money.
In a nutshell:
Gold is the anti-dollar. The dollar can be printed, and thus controlled by a select few. Gold cannot. Thus, those in power cannot control your money if you don't use it. Those in power will thus lose power if people start to abandon the dollar for gold.
Simplistic, but that says it all.
I am Chumbawamba.
"Those in power will thus lose power if people start to abandon the dollar for gold."
Ah, less we forget our history. The O-Team and Big Gubbermint will 'call-in' gold and set the price before they let it unsurp the 'nightcrawler'.
Executive order: By virtue of the authority vested in me by Section 5(B) of The Act of Oct. 6, 1917, as amended by section 2 of the Act of March 9, 1933, in which Congress declared that a serious emergency exists, I as President, do declare that the national emergency still exists; That the continued private hoarding of gold and silver by subjects of the United States poses a grave threat to the peace, equal justice, and well-being of the United States; and that appropriate measures must be taken immediately to protect the interests of our people. Therefore, pursuant to the above authority, I herby proclaim that such gold and silver holdings are prohibited, and that all such coin, bullion or other possessions of gold and silver be tendered within fourteen days to agents of the Government of the United States for compensation at the official price, in the legal tender of the Government. All safe deposit boxes in banks or financial institutions have been sealed, pending action in the due course of the law. All sales or purchases or movements of such gold and silver within the borders of the United States and its territories, and all foreign exchange transactions or movements of such metals across the border are herby prohibited.
Tell you what, I have some metal the government can come and get, but it ain't gold or silver! Seriously though, you would be wise to not give away your personal information when making large purchases of bullion unless you want Uncle Sugar's bullion brigade knocking at your door and rifling through your things in a couple of years. Buy locally from dealers and pay cash.
This is a great post among some other very good ones. Too bad we have to wade through so much Chumbawumba and Gordon_Geck spam to see it.
This quote should be taught in government run schools as an example of socialist inspired totalitarianism. Instead you learn that FDR was a "Great President", when in reality he was a socialist and under heavy communist influence via his advisors. Interesting that we the people are referred to as "subjects of the United States", which is clearly an unconstitutional concept of the citizen and their relationship to the federal government. It's also interesting to see a U.S. President issue an order like this that is so contrary to anything the original founding members of our country would have ever written or declared.
I think the contemporary modus operandi is to ignore gold and hope it goes away or to keep people as ignorant as possible as a defense of fiat currency. You won't see a ban on gold but you might see a ban on reporting of gold prices on CNBC, or the trashing of anyone who advocates ownership of anti-fiat money.
There used to be a correlation of price of gold with interest rates. Interest rates down<=> gold down.
That broke down around 2000. Gold is up; interest rates down. If such a correlation should appear again, forget about zero percent and quantitative easing. Being in debt won't be fun then.
In a paper system the real interest rate can be negative. Even with interest the money looses purchasing power over time. To cure a debt problem the Fed might make that happen. If cash goes down, that creates a huge incentive to go to gold simply to store value. That limits the Fed's choices.
you obviously have no idea what your speaking of.....interest rates down and gold down????????? whoa
Things to barter with.....coffee, tobacco, sugar,, booze,
rice, chickens, Paxil, and a good collection of Seinfeld episodes.
i could google it, but perhaps there are a few folks in here that already know of some good barter advice sites? A couple of good lists might be good to scrutinize...
50% gold/silver, 10% cash, 30%???, 10% barter-goods...
anybody?
Here you go:
http://www.thepowerhour.com/news/items_disappearfirst.htm
I wonder what will happen to the internet?
thank you mscreant. a few things on there i hadn't considered!
great list.
Niles, Bulldog, Roz, Eddie, Daphne, & Frasier.
You forgot Pot, its as good as Gold in this neck of the woods.
indeed rusty shorts indeed.
600 gold brothers! Don't believe the hype. Maybe in mid-2010 when inflation actually arrives.
It's all about the poker. If dollar crashes, China will be f**ked, for want of a better word. Bye, bye reserves, bye bye exports...
600 gold brothers! Don't believe the hype. Maybe in mid-2010 when inflation actually arrives.
It's all about the poker. If dollar crashes, China will be f**ked, for want of a better word. Bye, bye reserves, bye bye exports...
China will not be f%#ed. Thier exports become cheaper and the bonds they carry as reserves will yield more. Who's to say they are not part of the dollar devaluation frenzy. Also note the recent scheme from the Chinese authorities to scam their citizens into buying PM's. Don't you think they will confiscate? I say absaf#*kinlutely. Sorry, spelled f%^ed wrong....there I go again.
Long term treasuries down, gold down, stock market and dollar up! What is this? Getting suckers in before reversal?
The only way it will go to $ 5,000/oz. is if all of the Fed Governors personally own large amounts of physical gold.
Which I am 100% sure they do.
Nearly all bloggers seem to believe some catastrophe is about to happen. I disagree. I think the fed and other CBs will balance the stimulus and excess liquidity risks well enough and the recovery will continue in a stop-start fashion, but without any major corrections.
good call on silvercorp schiff..........................long svm
Why do they need to bomb Moon. It is ridiculous. We used to show Moon to our children and play with them , feed them. Now, they are going to bomb it.
you mooned children?? And what exactly is "them" you let them play with......never mind
Schiff's clients have been butt raped listening to Schiff's advice over the last 3 years. Why is anybody listening to him?
He picked inflation over deflation--oops.
Peter may be a fine fellow, but his comments are a bit brash, as are Graysons.
On a long enough timeline, everything will be worth $5,000 an ounce. (At least in this parallel universe.
Bernanke is trying to reinflate our depreciated assets so the banks notes will have value.
Once asets are reinflated and loan security recovers, he will gently tighten the reins.
President Obama knows this. So gold will go up along with real estate, then it will go down, when old folks can get 4% on their cd's and cash in the coins. Heck, I'm thinking of cashing my two old wedding rings. What do they pay for those little diamonds?
jim willie on max keiser today.
http://maxkeiser.com/
sorry, but Schiff was the FIRST to chime in on where gold is going.
I will consider relinquishing Gold immediately after ALL of the CB of the World do so and No Sooner.
10 bucks says schiff is really just pumping gold and is really short.
-btw, can the math question be easier please?
mine = what is the squared root of 231
You guys oughta jack off some more, you're all too uptight.
I am turning Japanese
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