World Bank Head Is Back, Says Don't Ignore Gold Which Is Now "The Elephant In The Room"

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Wed, 11/10/2010 - 10:20 | 716001 DollarDive
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The niece is nice !

Wed, 11/10/2010 - 11:07 | 716153 Bananamerican
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YUAN Bitches??

niece is nice, wide and milk-able.... i dub her "Daisy"

Wed, 11/10/2010 - 11:26 | 716266 Huxley Ann
Huxley Ann's picture

I wouldn't mind using the Yuan instead of the US$ or Mexican$peso. Both are crap currencies and I've made money on a Yuan ETF (though I've since moved it into silver.) I just have the cash I earn weekly in fiat and all my savings (since I started walking to Banamex to buy cheap Ag coins with my allowance) are in gold and silver. But why not switch to the Yuan?

As an aside, my favorite fiction genre is SciFi and two of the all time great SciFi books ("Man in the High Tower" by P.K.Dick and "China Mountain Zhang by Megan McHugh) both deal with the USA being taken over by the Chinese. Neither mentioned the Yuan, thouigh.

Wed, 11/10/2010 - 10:20 | 716003 Red Neck Repugnicant
Red Neck Repugnicant's picture

The amount of damage that the United Auto Workers have done to the world economy is truly staggering.  The more I watch Glenn Beck, the more sense this all makes. 

 

Wed, 11/10/2010 - 10:23 | 716018 sourgrapesson
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I'd rather have my fingernails pulled out one by one then suffer through Becks two bit bad acting.

Wed, 11/10/2010 - 12:13 | 716514 LowProfile
LowProfile's picture

Sucks for you, because aside from not revealing the influence of corporations in our government (TTBOMK), he's spot on.

Wed, 11/10/2010 - 10:24 | 716022 Tortfeasor
Tortfeasor's picture

Unrelated personal vendetta is unrelated.

Wed, 11/10/2010 - 10:43 | 716082 RockyRacoon
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That's tautological, no, actually it's redundant.

Correct nonetheless.

Wed, 11/10/2010 - 10:30 | 716048 tmosley
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This "Hate of the Week" brought to you by the Democratic National Committee. 

Be sure to bring up how much you hate him, preferably using dumbshit satire, in any and all conversations you see, relevant or not.

Wed, 11/10/2010 - 11:01 | 716099 Red Neck Repugnicant
Red Neck Repugnicant's picture

It's absolutely relevant.  Last week, Glenn Beck - using his famous connect-the-dot game -blamed the American unions for QE2. That segment was posted on ZH. 

This article is about the various FX wars and the call to return to the gold standard rather than debasing our currency with policies like QE2.

Thus, by adding one more dot, one can easily assume that the American Auto Workers are to blame for the FX wars and the parabolic rise of gold.  

It's perfectly relevant, and I'm actually considerate enough to use the same connect-the-dots logic that Beck employs so that all the Beck followers can easily understand without having to activate their brain. You should thank me. 

Since I'm so god-damn considerate, here's a Glenn Beck flow chart for you:

Stupid, selfish unions --> QE2 --> destruction of the world. 

 

Wed, 11/10/2010 - 11:10 | 716177 Bananamerican
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lol

"why do we scream at each other? This is what it sounds like when Glenn cries"

Wed, 11/10/2010 - 12:32 | 716606 Ragnarok
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If anyone wants to watch what glenn actually says, commercial free full episodes can be found at:

 

The Daily Beck

http://www.watchglennbeck.com/

Wed, 11/10/2010 - 10:44 | 716087 RockyRacoon
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The more I watch Glenn Beck, the more nonsense this all makes.

There.  That's better.

Wed, 11/10/2010 - 10:21 | 716008 johngaltfla
johngaltfla's picture

Shouldn't that read a "herd" of elephants.

Wed, 11/10/2010 - 10:34 | 716060 Abigail Adams
Abigail Adams's picture

Right? They'll hafta start giving those Ringling Bros. elephant trainers huge bankster bonuses, just to contain the stampedes.

Wed, 11/10/2010 - 10:47 | 716092 RockyRacoon
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Reminds me of the concept of the rope that tethers the elephant to the stake.  It's flimsy but the elephant doesn't know he can simply break it.  The rope is the chimerical dollar.

Wed, 11/10/2010 - 12:15 | 716521 A Nanny Moose
A Nanny Moose's picture

+1

Wed, 11/10/2010 - 10:53 | 716112 the not so migh...
the not so mighty maximiza's picture

herd of elephents or herd of donkeys same shit.

Wed, 11/10/2010 - 11:12 | 716181 Bananamerican
Bananamerican's picture

different feed stock/same effect

Wed, 11/10/2010 - 11:56 | 716431 quasimodo
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ya, um, you ever seen an elephant shit? It's like a small earthquake.

Wed, 11/10/2010 - 10:21 | 716010 Goldenballs
Goldenballs's picture

As far as I am concerned the higher Gold Price shows we are in an unofficial Gold Standard,people trust Gold more than official Fiat.However its put over thats the situation.

Wed, 11/10/2010 - 10:49 | 716103 RockyRacoon
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The evolution of the old gold money standards was slow and fraught with peril.  The new evolution to a gold standard appears to be just as disorderly.  This is how "markets" develop.  Now if we could just convince governments to leave us the hell alone!

Wed, 11/10/2010 - 10:23 | 716020 Mediocritas
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So the IMF is finally going to get its day in the sun and do what it was always supposed to do? Expand the SDR to include the Yuan (plus other currencies) and make it the global trading currency.

If that happens, Bernanke better be Johnny-on-the-spot with some inflation dampeners.

Wed, 11/10/2010 - 10:25 | 716026 Bob
Bob's picture

Dollar already dead, obituary to follow: 

http://www.youtube.com/watch?v=8P1fihT5B7o&feature=player_embedded

 

Wed, 11/10/2010 - 10:26 | 716030 Tortfeasor
Tortfeasor's picture

It's the elephant in the room that they want to shoot down, Ted Roosevelt style.

Wed, 11/10/2010 - 10:26 | 716032 Ragnarok
Ragnarok's picture

Freegold?

 

- Two tier currency system dependent on time for the deployment of capital (i.e. Gold to save, fiat to spend).

- End of fractional reserve banking

Wed, 11/10/2010 - 10:27 | 716034 Internet Tough Guy
Internet Tough Guy's picture

Very suspicious of World Bankers. The WB has historically been a tool of the US and the Z man has a long history of being a beltline power elite. Methinks he speaks with forked tongue.

Wed, 11/10/2010 - 10:28 | 716039 TWORIVER
TWORIVER's picture

Silver headed to 25 today, Gold to 1370.

Wed, 11/10/2010 - 11:06 | 716122 Turd Ferguson
Turd Ferguson's picture

don't hold your breath.

More likely, consolidation with the new "reality" of higher margin requirements. Sideways between 1390 and 1405 until late morning tomorrow. PMs then begin to breakout and head higher in advance of $10B POMO on Friday.

If I had to guess right now, on Wednesday morning, Gold finishes the week around 1415-1420, silver maybe 28.50-29. Another solid, up week. Volatile but solid.

Next week should be a lot of fun with new highs in both as we get $33B in POMO by Thursday. Gold to 1450 and silver to 30, at least.

Again, add that up. That's $43,000,000,000 in fucking POMO by late morning next Thursday. $43B!! Now, I suppose all kinds of crap can happen all over the world that would cause panic and preclude dollar-denominated asset rallies but, you have to admit, the apocalypse is not likely to happen before next Thursday. Buy everything. Gold, silver, crude, wheat, AAPL, NFLX, AMZN, whatever. That thundering you hear in the distance is the sound of 43 billion fucking dollars coming over the horizon.

Wed, 11/10/2010 - 11:49 | 716403 AGoldhamster
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Pls where did you get that numbers from? (Usually they are here - not?: http://www.ny.frb.org/markets/pomo/display/index.cfm?showmore=1&opertype=orig)

Wed, 11/10/2010 - 11:56 | 716425 Turd Ferguson
Turd Ferguson's picture

Helpfully provided yesterday by your friends here at ZH:

http://www.zerohedge.com/article/advance-look-upcoming-pomo-schedule-130...

Admittedly, these are projections. The actual announcement is later today. 

Btw, there should be a lot of support for gold near yesterday's lows, between 1380-85.

Wed, 11/10/2010 - 11:58 | 716434 AGoldhamster
AGoldhamster's picture

this the latest schedule - in the meantime overdue or course?

http://www.ny.frb.org/markets/tot_operation_schedule.html

ok ... last reply clarified it - projections, thx anyway!

Wed, 11/10/2010 - 11:04 | 716152 Kina
Kina's picture

A representative of JPM giving advanced notice of today's manipulation?

Wed, 11/10/2010 - 10:29 | 716042 Arius
Arius's picture

Viva Mr. Z !!!

you bet against him at your own peril...

Wed, 12/08/2010 - 00:47 | 716097 Z
Z's picture

.

Wed, 11/10/2010 - 10:29 | 716044 Cognitive Dissonance
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“I don’t believe we are going to be in a currency war; I think this is an overstated description,” he said. “I have had to deal with real wars in my career, so I know what they are and I’m sensitive to the use of the term.

Well, I've had my belly laugh this morning. Were those real shooting wars you were involved in?

It's amazing how arrogant these ass hats are when all is going well with their “relentless incrementalism” when it comes to the slow but steady debasement of currencies. But God forbid we don't accept your word that your currency is "as good as Gold" because them there are fighting words.

FU AssHat

Wed, 11/10/2010 - 10:33 | 716057 Charley
Charley's picture

The last big currency war was in the 60s -- the US won simply by reneging on its obligation to redeem in gold.

Wed, 11/10/2010 - 10:40 | 716074 ZackAttack
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Well, from my friends in Sao Paolo, I am given to understand that there are sometimes shootouts with the bodyguards when Brazilian kidnappers snatch a wealthy professional off the downtown streets in midday to ransom. So I suppose his shooting war could refer to how he Brazil treats its poor. There's always that interpretation.  

Wed, 11/10/2010 - 12:19 | 716545 A Nanny Moose
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Do food fights in the cafeteria count? It's all fun n' games till someone loses an eye.

Wed, 11/10/2010 - 10:31 | 716049 Steak
Steak's picture

random tunes on a random day

playlist throwback

game recognize game (a playlist): http://www.youtube.com/view_play_list?p=33135E8E214454B3

Wed, 11/10/2010 - 10:31 | 716050 Charley
Charley's picture

"Mr Zoellick said the use of gold indicated that the largest economies 'need pro-growth policies, structural reforms, open trade and an anti-protectionist agenda'. He said that would build confidence in private sector development. This means that no matter how high the margin requirements on precious metals, the inevitable move in the price of gold and silver is just one, as there is no way that the FX tension can ever be resolved now that the only possible outcome for the global economy is a race to deflate."

His words have the exact opposite meaning. "Pro-growth" mean dollar devaluation. "Open trade" means a growing US trade deficit. "Anti-protectionism" mean a shift of US industry to less developed regions of the world market. "Structural reform" means removing US treasuries as a savings option.

This is not a suggestion for the use of gold as money; it is a prescription to prevent gold from emerging as an alternative money. Zoelick is stating that the US must continue to devalue its currency, increase its role as the absorber of global surpluses, move its industry offshore, and prevent US public debt from being a safe haven for global surpluses.

There will be no currency war, not because Brazil doesn't want one, but because it has no weapons to fight it.

Come on people, the last time this happened the US just stop paying its debts in gold. Everyone grumbled, but no one could do a thing about it. It will be the same here as well. Washington has declared war on Bretton Woods II.

Wed, 11/10/2010 - 10:37 | 716069 Charley
Charley's picture

The very things that make gold a good play, makes it impossible for any nation to allow it the opportunity to become money. Gold immediately places a zero interest rate floor under the global economy. Without negative interest rates no nation has the ability to pursure montary and fiscal policy.

All fiat currency is is money with a negative interest rate -- to discourage saving and force holders of money to find investments!

Wed, 11/10/2010 - 10:58 | 716130 Oh regional Indian
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Charley,
Thanks for both the thought-provoking post above.

ORI

Wed, 11/10/2010 - 10:59 | 716132 Oh regional Indian
Oh regional Indian's picture

Charley,
Thanks for both the thought-provoking posts above.

ORI

Wed, 11/10/2010 - 11:37 | 716330 Snidley Whipsnae
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Question Charley: Gold exists, gold has historically been used as money, now that fiat currencies are being printed in a race for market share of export markets (as stated by Obama that we want to double exports in five years) and people/banks/soverigns are exchanging their fiat currency for gold; what do you propose the 'leaders' of the world do about it?...by 'do about it' I mean the fact that gold exists and many are now using it for a store of value?...Would you confiscate all of it and shoot it into space toward the sun? What is your solution? 

Thu, 11/11/2010 - 10:02 | 719082 Charley
Charley's picture

The fact that gold is the preeminent money makes it a deadly threat to every national government issued fiat, not just the United States. Gold allows society to resist the predations of government on productive activity - to siphon off that activity into purely unproductive pursuits.

With gold money, India has no nuclear arsenal -- neither does the Russia or China; the US could not maintain its empire. To imagine India, China, or Brazil would want gold money when it threatens fundamental domestic national policy flexibility is to suffer delusions. The complaint from these nations is not that gold should be money, but that the US should cease doing to them what they are already doing to their own citizens!

But, they will not have their way. Unless China introduces gold money to its citizens, it cannot have gold money as the world reserve currency. It can rob its people through state issued fiat only so long as the US can rob it through the dollar. Further, it will have to dollarize its economy for the very same reason that its own citizens must accept the yuan as payment for goods.

I do not think this crisis is over until every nation on the planet dollarizes its economy. Global prices are denominated in dollars, which means, ultimately, only Washington can pursue sovereign economic policy. Dollarizing the Chinese economy is the only way China can maintain its exports surplus without crippling currency and capital controls or hyperinflation.

Wed, 11/10/2010 - 11:13 | 716185 MsCreant
MsCreant's picture

it is a prescription to prevent gold from emerging as an alternative money.

I find this compelling. I felt it but could not say it. The two announcements so close together. "Don't ignore this." 

Desperation.

For all you conspiracy theorists out there, there are many competing conspiracies afoot. None of them are in control of this. Smell it. They are scared. They may get the outcome they want, but the future is wide open. They are afraid. 

That makes me feel pumped, folks. Something can be done about this shit. It may be as simple as going to a PM based system. Make war on them by handing the system back it's stinking, feces slimed toilet paper, and converting it to pms and other commodities that you have in your possession 

We are making war on these bastards by checking out of their bullshit system. I am waiting for my coin dealer to open. Think I'm gonna go all in, not as a trade, a little bit as insurance, but mostly, mostly, as an act of civil war. War against the crooks I was conditioned to trust; war against the media who would lie to me hourly and distract me with trash entertainment; war against a financial system that I was born into and given no opportunity to decide if I wanted to participate in it, or not, that was designed to help the government steal from me via inflation; war against immoral wars raging over seas; war against a materialistic culture that encourages me to mindlessly consume. I'm taking my stores of value out of the system and I am going, fucking, home. 

Gold is WAR BITCHEZ. Dare I whisper, it may well be the road to freedom.

Wed, 11/10/2010 - 12:47 | 716665 Treason Season
Treason Season's picture

You go golden girl!

Wed, 11/10/2010 - 13:33 | 716844 Ragnarok
Ragnarok's picture

Nice.

Wed, 11/10/2010 - 13:55 | 716922 Tortfeasor
Tortfeasor's picture

Best comment I've read in weeks, anywhere.  Gold is war, indeed, the new battlecry of the enlightened.

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