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Tokyo Exodus Part 3: ATM Shutdowns, Power Outages Put Citizens On Edge, Gold Hoarded In Evacuation Preparations

Tyler Durden's picture


The resilience of those living in the Japanese capital has been beyond admirable. After experiencing a record earthquake, hundreds of aftershocks, a historic tsunami, radioactive catastrophy 160 miles away and constant fears a northeasterly wind can bring in radioactive snow, and now unending rolling blackouts and ATM service interruptions, one has yet to hear about any mass exodus let alone coordinated complaining. That may all soon to change: Reuters reports that citizens are becoming increasingly restless and weary: " As authorities struggle to avert catastrophe at a crippled nuclear-power complex 240 km (150 miles) to the north, Tokyo faced a test of nerves almost a week after a massive earthquake and tsunami struck. Some residents are leaving, some are applying for passports or hoarding what they can -- from food to cash and gold, a safe haven during times of crisis. Premiums for gold bars rose to as much as $2 an ounce in Tokyo. At the second-floor office of the Tokyo Passport Centre in the city's Yurakucho district, queues snaked to the first floor." In other words the mass exodus we have been predicting for 3 days now, appears imminent: ""We don't know the reason but suddenly since yesterday we have had 1.5 times more people than usual coming to apply for a passport or to enquire about getting one," said Shigeaki Ohashi, an official at the passport centre." You really don't know the reason. Really?

More from Reuters:

Malfunctioning bank machines and threats of power outages on Thursday jolted a stressed Tokyo where millions stocked up on rice and other essentials, stayed indoors or crowded into airports during Japan's nuclear crisis.

Flurries of transactions at some Mizuho Bank branches abruptly shut thousands of automated teller machines and the government warned of major blackouts, adding to the disorder of a city that thrives on precision and efficiency.

 Areas usually packed with office workers crammed into sushi restaurants and noodle shops have gone quiet. Many schools are closed. Companies have allowed workers to stay home and voluntarily cut power usage, submerging parts of the typically neon-lit city in darkness.

Trade Minister Banri Kaieda said unexpected, large-scale power outages were possible but unlikley as an unusually crisp, pink sunset bathed the city.

Mizuho said its troubles were due to a concentration of transactions at some unidentified branches.

The ATMs went down for about two hours in the morning, and failed again in the evening. Customers also could not make foreign currency withdrawals and other transactions.

Outside a Mizuho branch in Tokyo's Akasaka district, six staff stood in the cold winter air apologising to customers.

"This taught me a lesson that I have to have at least some amount of cash with me," said Hiromi Sugita, a 42-year-old insurance agent as she left the branch.

Mizuho shares closed down 1.46 percent against a 1.8 percent fall in the benchmark Nikkei 225 average.

 Many people have stocked up food, milk and rice, emptying some shelves at supermarkets. Thousands have showed up at nearby airports without tickets, hoping to book flights out.

"Life and health are the priority over cost in doing this, so I'm escaping Japan even though I don't feel like it," said La Ha-Na, a South Korean student living in Tokyo.

Television showed busloads of people leaving the city. 

Expect those dubbed as "idiots" by Sean Corrigan to soon realize just how dumb they are to believe that a country whose capital is about to become a ghost town can see its GDP output surge imminently as rebuilding begins.


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Thu, 03/17/2011 - 07:39 | 1065851 Broken_Trades
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2$/Oz - Thats the premium for Armageddon in Japan????


Im selling all my gold now... 

Thu, 03/17/2011 - 07:45 | 1065865 TheGreatPonzi
TheGreatPonzi's picture

Gold is not supposed to protect from an 'armageddon'. Only an hyperinflation. 

I don't think gold around Chernobyl was very useful. But if you had food/water or iodine pills, you could have made a fortune in the black market.

Thu, 03/17/2011 - 07:50 | 1065878 Broken_Trades
Broken_Trades's picture

The premium i pay in Canada is much more than 2$/Oz.

If ATMs stopped giving out money, I think gold would become more valuable don't you?


TD:  Is this a typo?  2$/oz is a rounding error, its not even worth mentioning.

Thu, 03/17/2011 - 07:54 | 1065887 TheGreatPonzi
TheGreatPonzi's picture

"If ATMs stopped giving out money, I think gold would become more valuable don't you?"

If cash stops being given out by ATMs, then cash becomes scarce. 

In this condition, cash gains value against other goods. At least temporarily (because a bank holiday is often the harbinger of coming paper repudiations/CB monetizations). 

Thu, 03/17/2011 - 08:04 | 1065920 Broken_Trades
Broken_Trades's picture



Thu, 03/17/2011 - 12:35 | 1067014 h3m1ngw4y
h3m1ngw4y's picture

does anyone of you know the size of the gold bars? perhaps 2$ premium is a lot. lol only thinking in ounces ^^

Thu, 03/17/2011 - 07:54 | 1065891 Sudden Debt
Sudden Debt's picture

I think he means 2% per GRAMM.

Here  in europe I pay 40$ premium on 1 ounce.


Thu, 03/17/2011 - 08:30 | 1065988 i-dog
i-dog's picture

"At the second-floor office of the Tokyo Passport Centre in the city's Yurakucho district, queues snaked to the first floor."

Wow!! ... Armageddon indeed! ... in a metropolitan area of 35 million people, the queue for passports stretches for one whole floor?!! ... wow, like ..... errrrm ..... 35 people?! That's what I call a mass exodus!!

Someone needs to get a grip.

Thu, 03/17/2011 - 08:14 | 1065947 UGrev
UGrev's picture

Money, was worthless after Chernobyl. My neighbor who is from Ukraine said they didn't have much before "The Chernobyl". They owned a farm and raised chickens. Most of the rurual economy was farming. Their economy was destroyed after "The Chernobyl" and then again following the dissolution of the Soviet Union in 1991. But because they had a farm and raised chickens, they became rich and then moved the hell out of there. 

Farms and Chickens made them wealthy enough to be able to pack up and leave. I have a wonderful resource in them that I am using as a sounding board. I'll give more details after I talk with them more.

Btw.. I just have to say that so far, EVERY Ukranian I've met in their community has seemed more American to me than the Americans that were born and raised here. Just thought I'd throw that out there,  because quite honestly... if a SHTF scenario ever happened here, I sure wouldn't be hanging with the Jones' 2 houses down. 

Thu, 03/17/2011 - 08:21 | 1065961 mogul rider
mogul rider's picture

Gold protects in all cases, in all situations, in all countries.

Don't confuse CNBC knucklehead talk with the truth.

It is the ultimate protector - period.


Thu, 03/17/2011 - 16:43 | 1068251 Edmund Dantes
Edmund Dantes's picture


Thu, 03/17/2011 - 08:29 | 1065983 snowball777
snowball777's picture

You don't find 55T Yen in under a week to be 'hyper'?

Thu, 03/17/2011 - 12:23 | 1066972 Ahmeexnal
Ahmeexnal's picture

A mithril suit will protect you against anything.


Thu, 03/17/2011 - 07:40 | 1065853 Ozzie
Ozzie's picture

Yep $2/ounce is much less than we pay in Australia and there ain't no panic over here.

Thu, 03/17/2011 - 07:44 | 1065861 prophet
prophet's picture

A crane with a hose and camera - no.

Equipment staging - no.

Fast build shelters for displaced population - no.

ROVs -  no.

Mindbogglingly tragic.

Thu, 03/17/2011 - 09:29 | 1066229 eddiebe
eddiebe's picture

I'm starting to think that the Japanese are totally inept, or at least the people supposedly in command are.

 I believe they got so hammered at the end of WW2 and have since been made to toe the line by the Anglo Empire that they just are not capable to deal with any black swan event.

 Sadly it kind of reminds me of how U.S. authorities dealt with the aftermath of Katrina.

 Starve the beast!


Thu, 03/17/2011 - 07:48 | 1065872 eigenvalue
eigenvalue's picture

I suggest using 100 hydrogen bombs to wipe the nuclear plant out. Everything will become particles during the bombing and the Japanese won't have to worry about nuclear leakage from this plant any more.

Thu, 03/17/2011 - 07:50 | 1065874 sangell
sangell's picture

Are the Japanese the 'solution' to Americas foreclosure crisis? Offer one permanent residency visa if you buy a GSE or HUD REO property of $150,000 or more.

On a more serious note, we may well have to offer refuge to millions of Japanese, should Tokyo etc, be rendered uninhabitable.

Thu, 03/17/2011 - 08:22 | 1065968 bob_dabolina
bob_dabolina's picture

How bout this:

For every $150,000 of US debt forgiven 1 Japanese family gets a home equal to $150,000

Two birds, one stone.

Thu, 03/17/2011 - 09:34 | 1066239 eddiebe
eddiebe's picture

Sell them Nevada for 50 Trillion dollars( minus mineral and water rights of course ).

Thu, 03/17/2011 - 07:51 | 1065877 Judge Judy Scheinlok
Judge Judy Scheinlok's picture

We need a website to match refugees with sponsors. Japanese are good peoples.

Get on it Sacrilege, ya bum.

Thu, 03/17/2011 - 07:53 | 1065888 Sudden Debt
Sudden Debt's picture

Japanese are good people until they turn into immigrants.

And once they are immigrants, they aren't people anymore but a statistical number and needs to go down.




Thu, 03/17/2011 - 09:20 | 1066182 GrouchoNotKarl
GrouchoNotKarl's picture

Don't junk this man because he speaks the sad truth.

Thu, 03/17/2011 - 10:50 | 1066544 Eddie Stobart
Eddie Stobart's picture

No he's a simple racist.

Thu, 03/17/2011 - 11:09 | 1066611 Creed
Creed's picture

No he's a simple racist.


Racism is the knee jerk cry of the public school liberal.

Accusation is proof.

My real life observations have shown me that members of the Democrat party in America are the most racist Americans, beginning with the blacks who hate whites & take every opportunity to say so. 

The poster said Japs are good, moron, but your ADHD brain simply didn't see it.

Thu, 03/17/2011 - 13:13 | 1067170 Eddie Stobart
Eddie Stobart's picture

And who is "liberal" the knee jerk cry of?

Well we can talk about me, I'm fascinating. If saying "racist" makes me a pinko liberal lesbian I'll wear the badge, the hat and the sensible shoes.

I made the accusation on the following argument:

"The Japanese as a race and culture are unique in that unlike other races they are good, but they transform when they become immigrants and become bad."

That statement is either true and there is conclusive evidence for it. Or it is an opinion based on conjecture. If there was evidence then I assume it would be widely known. Since there appears to be no evidence then the statement is simply a blinkered opinion which serves to separate the Japanese apart from all other races as being less trustworthy. So the holder of that opinion can be regarded as a bigot.

I will withdraw my accusation and apologise when I see the evidence.

Fri, 03/18/2011 - 16:02 | 1073030 gruden
gruden's picture

Take a look at the American concentration camps.  The ones they herded the Japanese immigrants into during WW2.  They were not treated like human beings. 

Thu, 03/17/2011 - 07:51 | 1065879 QQQBall
QQQBall's picture

Where is the Black Twinkie? Mocha outside, chickenshit core. Rio? Great!

Thu, 03/17/2011 - 07:52 | 1065883 Sudden Debt
Sudden Debt's picture

silver bullions are now really almost everywhere sold out.

Give it another year before the herd wants some to when silver and gold become currency once again and we'll be looking at prices for the PM never seen in history.

Thu, 03/17/2011 - 08:05 | 1065924 virgule
virgule's picture

I was surprised to see silver coins and bullion bars freely available for sale in Shanghai recently (reputable gold dealers, not street sellers...), in no apparent limit (retail - I didn't ask for 500kg)

I was also surprised by the premium for physical, with 1z silver maple leaf selling at USD equivalent 50++

Made me think twice about buying any such coins. Perhaps I should have?

Thu, 03/17/2011 - 08:34 | 1066006 snowball777
snowball777's picture

As long as you know someone dumb enough to take Tungsten for the real deal. Why not?

Thu, 03/17/2011 - 10:18 | 1066417 GubbermintWorker
GubbermintWorker's picture

You'd really worry about tungsten cored coins? I've yet to see a credible report of even one coin with a tungsten core. Could you provide one please?

Fri, 03/18/2011 - 10:38 | 1071295 Eager learner
Eager learner's picture

tungsten no, iron yes.

Counterfeit coins from China turning up in Wash. state

Thu, 03/17/2011 - 09:56 | 1066336 Rich V
Rich V's picture

At $50 an oz there will be no shortage of coins to buy.

Thu, 03/17/2011 - 16:46 | 1068266 Edmund Dantes
Edmund Dantes's picture

you are a fool and a homosexual

Thu, 03/17/2011 - 07:53 | 1065889 Larry Darrell
Larry Darrell's picture

Moving that many people will be even more fun with Brent crude ticking back up and touching $113 again already because we all know that neither cars nor planes need oil derived fuels.

Thu, 03/17/2011 - 07:55 | 1065893 Poor Grogman
Poor Grogman's picture

Would have

Could have

Should have


Thu, 03/17/2011 - 08:02 | 1065912 gwar5
gwar5's picture

Wonder how much gold and cash $Y the Japanese can take out of the country, declaration wise, and per any capital controls.

Anybody know?

Thu, 03/17/2011 - 08:06 | 1065928 deadcow
deadcow's picture

20 workers from the power plant have been diagnosed with severe radiation poisoning. ARD cites IAEO as the source of this information. tepco released a document a couple of hours ago stating that 14 of those workers have not been contaminated. this is getting ugly.

Thu, 03/17/2011 - 08:08 | 1065932 Freewheelin Franklin
Freewheelin Franklin's picture

The resilience of those living in the Japanese capital has been beyond admirable.


Admirable, indeed. If that had happened in the US, there would be widespread looting. NY blackout, LA Riots, Hurricane Katrina, etc. The US has a long history of looting.

Thu, 03/17/2011 - 09:08 | 1066117 ibjamming
ibjamming's picture

Yup...Japan doesn't have the ni@@er problem we have...

Thu, 03/17/2011 - 11:14 | 1066639 Creed
Creed's picture

lol, now that's fucking racist


factual...but the purposeful use of inflammatory words is racist




Thu, 03/17/2011 - 08:11 | 1065941 snowball777
snowball777's picture

Flight to Safety: Radioactive Edition

Thu, 03/17/2011 - 08:19 | 1065945 Eddie Stobart
Eddie Stobart's picture

I have relatives in Tokyo and they are not panicking. On the contrary there is an atmosphere of relative tranquility. A lot of people staying at home because they have been told to by their employers because of the power outages. And there is queuing at many stores. But queues are quite common in Tokyo - there are 12 million people there.

Stories of danger, crisis and panic make for good news copy. And in the way CNBC spins bad economic news into good CNN spins a set of unfortunate circumstances into armageddon. (What is the criterion for deciding whether a story is true or not? Whether it makes the world seem like more of a shit place to be.)

You predict Tokyo will be a ghost town. Nonsense.

Thu, 03/17/2011 - 08:32 | 1065999 snowball777
snowball777's picture

If the residents of Tokyo had any sense, they'd already be on the far side of the island; pray towards heaven...row towards shore.

Thu, 03/17/2011 - 09:00 | 1066088 Eddie Stobart
Eddie Stobart's picture

But that would be a knee-jerk reaction borne of ignorance and fear.

Tokyo is 150 miles away from Fukushima. And, in even the worst case there will be a permanent 50 mile exclusion zone around the reactors.

I'm sure they will have plenty of opportunity to abandon the city if something really bad happens.

Thu, 03/17/2011 - 11:17 | 1066661 Creed
Creed's picture

Eddie, your anecdotal evidence is interesting, but statistically irrelevant.

As far as worst case goes, you have no idea what you're talking about.

I posted a NY Times article here the other day with a 1997 study that showed worst case with these types of reactors makes Tokyo a dead zone.

Your friends should go on vacation to your house for a while, just to be on the safe side.

Thu, 03/17/2011 - 12:13 | 1066919 Eddie Stobart
Eddie Stobart's picture

I meant "worst case" as in it is not considered rated as bad as Chernobyl so a similar exclusion zone will do. Not "worst case" as in everone abandons the reactors, lets them disintegrate and watches the fireworks from a safe distance.

They are welcome but they don't get CNN or any other US news media so they are content to stay where they are.

Thu, 03/17/2011 - 08:53 | 1066060 tmosley
tmosley's picture

If it's so normal, why are the shelves empty?  Why are the banks evacuating their employees?  Why have all the executives in the country fled for Hong Kong?

Your normalcy bias is among the worst I have ever seen.

Thu, 03/17/2011 - 09:42 | 1066124 Eddie Stobart
Eddie Stobart's picture

The shelves are not empty. Work it out. Why would people queue for an empty shelf?

"All the executives." Every single one? Well go ahead and name one.

Having spoken to my relatives (actually my wife's relatives) and friends who live there I'm only passing on the information I have. If being in direct contact with people who are experiencing the situation first hand skews my sense of perspective then, ok ... yes I'm biased. Besides I'm not saying everything is normal, (they have just experienced a massive earthquake) I'm just saying it isn't panic.

Thu, 03/17/2011 - 11:02 | 1066579 VinniPukh
VinniPukh's picture

"Why would people queue for an empty shelf?"

off-topic but I'm compelled to point out that's exactly what your average Muscovite did through '92 - ie: during hyperinflation. The theory being that if there's a queue, join it, thus securing your place in line, & then work out what it is you're waiting for. Anything being better than nothing, you will eventually decide what it is is worth the wait. Even the shelf.

Thu, 03/17/2011 - 10:30 | 1066468 TheDriver
TheDriver's picture

And I have an American friend in Tokyo. He, his Japanese wife, and child are on a flight to the US as I type because people near him were panicking, food stores were low, and power outages were common. As you said, there are 12 million people there -- 35 million in the prefecture. There are many, many perspectives. Your friend's is one, a reporter's is one, my friend's is yet another. It may not be a ghost town but it is most certainly not business as usual. People are leaving.

Thu, 03/17/2011 - 11:16 | 1066656 Eddie Stobart
Eddie Stobart's picture

Ok to clarify: things are not normal, some people are leaving and there is not widespread panic in Tokyo. I'm glad we agree.

Thu, 03/17/2011 - 08:15 | 1065953 max2205
max2205's picture

Americanized Japanesse = self serving and not concerned for the whole.  Bad bad bad AmJap's

Thu, 03/17/2011 - 09:38 | 1066255 Richard Head
Richard Head's picture

Not a drag on society either, unlike Americanized "other" immigrants (i.e. illegal).

Thu, 03/17/2011 - 08:16 | 1065955 TruthInSunshine
TruthInSunshine's picture

Well, all I know is that the Yen at these levels is going to break Japan's Corporations when they repratiate profits - it's going to be as if their taxes raised dramatically - and that a lot of currency traders had to have been blown to smithereens over the last 24 hours.

Hot beef injection by BOJ soon? No beef-san so far.

Thu, 03/17/2011 - 08:21 | 1065965 mogul rider
mogul rider's picture

Traders were ruined!

Gee what a shame. It's terrible being on the other side of a good trade.


No loss at all. Just Darwin cleaning up the crap

Thu, 03/17/2011 - 08:41 | 1066024 Mike in Tokyo Rogers
Mike in Tokyo Rogers's picture

Bullshit! I am in Tokyo right at this very moment. Panic my ass: 

Read this:

This sh*t is way over sensationalized by the western media (remember Saddam's Nooklar bombs? )

OK... I am in Tokyo. This shit distracts from the real problem: the people at the real problem need help. Fukushima  people need food and  water. Not BS sensationalist reporting




Thu, 03/17/2011 - 08:59 | 1066084 tmosley
tmosley's picture

Grab your camera.  Walk to the nearest convenience store.  Take pictures of the shelves.  If empty, proceed to wherever people normally get food in Tokyo, and take pictures of the shelves there.

Go to the nearest gas station, and take pictures.  Translate the signs that say "out of gas", if any.

If you want to allay fears, much better to do it with evidence than by accusing people who have actually shown evidence of panic by calling them names.

Get to it.

Thu, 03/17/2011 - 09:33 | 1066220 VinniPukh
VinniPukh's picture

Glad to hear it, Mike! & always good to hear from someone with boots on the ground...

I'm not in Tokyo but, having lived/worked there 10 years ago, still maintain close contacts with friends/colleagues in town. We've been chatting regularly over the last week; Facebook's been handy for that.

It's a very small sample - roughly 2 dozen people, all 30-something professionals, some with young kids. All call Tokyo home & all are shaken but otherwise unaffected by events over the last week. That said, 25% have left in the last 2 days - all foreigners, with their Japanese partner + children in tow. All citing potential catastrophe at F'shima & concern for kids as their reason for bugging out. Of the remainder (foreign & Japanese), they're staying put for now & express F'shima as their main concern, although empathise with ongoing suffering up north.

There is some confusion as to the information they're receiving from Tepco/Gov. locally & what they're reading online. That's created enough tension they *all* have scoped out accomodation in either Osaka, Kyoto or abroad & they all have a rat-run should catastrophe occur - eg: Kyoto via Shinagawa station, <edit: replaced Osaka>Okinawa via Haneda, & onward abroad if necessary.

I'm prone to completely misreading things on occasion, so feel free to shoot holes in me if I'm wrong, but your post suggests you see no potential for catastrophe at F'Shima affecting you, or your family - normalcy bias?

Gimme your take on things


Thu, 03/17/2011 - 09:07 | 1066120 romanko
romanko's picture

Been watching the news direct from Japanese TV, and coupled with reports like these from Tokyo, it’s obvious the Japanese are in no panic, unlike all the armchair-nuclear-experts on the other side of the planet, very strange.


Here come the junks, sorry but I want the real story, not willing to blindly join in the doomsday-orgy-circle-jerk.

Thu, 03/17/2011 - 09:22 | 1066197 Zina
Zina's picture

I'm starting to think that the only people "in panic" in Tokyo are the foreigners...

The locals are not in panic... Maybe because they don't have anywhere to go, since Osaka can't receive 30 million refugees. And they don't have a job in Osaka. So, if you don't have anywhere to go, it's better to not be in panic...

Thu, 03/17/2011 - 09:49 | 1066303 Semper Augustus...
Semper Augustus Gloop's picture

This is at least the second time Tyler has said a northeast wind would be bad for Tokyo.  If the nuke plants are themselves northeast of Tokyo, wouldn't a southwesterly wind be the bad one?

Thu, 03/17/2011 - 10:38 | 1066504 Eddie Stobart
Eddie Stobart's picture

A northeast wind is one that comes from the NE not flows in a NE direction. In the same way a "north wind" is a cold wind (in the N. hemisphere it is) as it comes from direction of the arctic.

Thu, 03/17/2011 - 10:20 | 1066425 americanspirit
americanspirit's picture

The wind direction indicates where the wind is coming from, not where its going to. A Northeast wind would be coming from the Northeast.

Thu, 03/17/2011 - 12:44 | 1067045 jmc8888
jmc8888's picture

Well the only real way out is to make sure gold doesn't go parabolic.

If it does, we are all screwed. Even those with gold, unless they have a few weapons generally reserved for well think the highlights of 'Charlie Wilson's War', you're screwed.  Even then, it'll be bloody, and most of the peopel with the 'new wealth' will be those who took it from YOU.

During Armageddon, you're screwed, even with gold. You become a target, it isn't edible, and you can't exactly lug tons of it around.

Make money as he prints, but remember, the key is GETTING IT RIGHT, not destroying the world by making sure your investment pays off into the millions of oz. (which would make one as bad as Bernanke if they wished for that and put their weight NOT behind solutions....because they still wanted to make more)

At some point, the banksters best friends might indeed become, the biggest of gold owners.

Of course if the SHTF that much, it's better to HAVE it, than NOT.  BUT to think it's going to be a cure all, or really a cure any, is a bit much. 

Everybody will live better righting the ship, and then making REAL money.  Gold isn't automatic protection.  It just gives one the chance to have a currency to spend, whatever that means.

Remember FDR didn't outlaw gold until AFTER the SHTF.  At some point, it may be neccessary here.  Because in of itself, there is no point to it.

Good thing we have laws like Glass-Steagall which negate the need for gold, as it rights the ship, taking the catalyst away from parabolic gold. IN A REAL WAY.  It's the banksters debt and subsequent bailouts that is causing gold to go up.

Again, make your money now, but realize it's only temporary.  At some point if the SHTF, it may be outlawed, and then gold won't be worth shit.  So is it better to push gold up to 1 million? Or cancel the fraudulent debt so there is no need to print so that gold is forced to go to 1 million?  It really is that simple.

Cutting the head off the snake, is better than letting it live and stocking antivenom (gold).

Good to have some, if one is investing - gold-silver (until a liquidity crunch) is the superior investment now, but BEST to nip it in the bud.  Glass-Steagall.

Besides after seeing it go up to a million an ounce, how hearbroken will you be to pay an oz of gold for 1 toilet paper roll.  Gold isn't the answer, it offers limited protection. (obviously better than others).  But in the end, we must right the ship OVER making money.  Which will obviously be the toughest thing to do given the circumstance.

If not, we're toast.  Including most gold owners.

(I'm not against gold, I just look at it realistically, and the right way, that it is worse than getting the economy right and on track via Glass-Steagall)

If the point is survival, we don't want gold at 1 million an oz.  Because that means, we won't.

Thu, 03/17/2011 - 13:13 | 1067183 tiger7905
tiger7905's picture

Good comments jmc8888. I always view gold as an insurance policy, yes there are times when you might get ahead holding gold but it should be considered a mechanism to preserve wealth.
Now, if people like Armstrong are right and it overshoots to say 10-12,000/oz, where he see's $5000 as more likely, i'll take the bonus.

Rob McEwen's ideal situation, is ride gold up near a top (ie gold-dow = 1-1) and then go back to cash when you have maximum purchasing power and you can likely make a much higher interest rate on your money if that's the path you choose.

If SHTF then I agree this is somewhat pointless discussion, but I'd still rather have some, as you mention above.

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