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Yale Ph.D., And Former Fed Member Tells Obama To Pull A "Gordon Brown" And Sell All Of America's Gold
Edwin Truman, a senior fellow in the Peterson Institute, who is of course a former Fed member, and of course a Yale Ph.D., writes in the FT, suggesting the brilliant idea that it is high time for the US to sell its gold. In other words do precisely what Gordon Brown did a few thousand percent ago, and now has to defend against allegations he did so merely to protect the LBMA cartel which was on the verge of being margin called into oblivion. And even if one ignores the fact for a minute that there has not "really" been an audit of the US gold holdings in who knows how long, who is to say that Goldman, of all people, may not be right and gold will be at $1,700 in a year? Or Dylan Grice for that matter, and it will be about 10 times higher. One thing is certain: converting real hard asset value into paper to patch up 2.25% of government debt as a % of GDP is easily the dumbest idea we have ever heard. Especially, since as we disclosed yesterday, the Fed will have to force Congress to increase its deficit, and thus debt funding needs, simply so that there are enough Treasuries for the Fed to monetize. We hope Mr. Truman is in the contention for next year's economic and peace Nobel prizes, because with articles such as this he has certainly proven he belongs to that unique category of brilliant economists that only Princeton, Yale and Harvard can produce.
From the article:
Gold is back in the news. Its price is soaring in what some analysts say is a reflection of a weak economy and a lack of confidence in government policies. Naturally, investors are looking at a new sure thing in the expectation that prices will continue upward. My advice to the US government, however, is that this may be the best time – to sell. Doing so would help President Barack Obama and Congress reduce indebtedness, at little cost.
It is an article of faith in bullion markets that the US will be the last country to dispose of its gold stock. For 30 years it has had a no-net-sales policy for reasons ranging from resistance by US gold-producing interests to concerns about the international monetary system. That assumption may remain plausible. Yet the administration has an obligation to re-examine its policy.
And now for kicker #1: gold is up due to "fraud and misinformation" - oddly there is no mention of the fraud accompanying the Keynesian ponzinomics that the world is fighting tooth and nail to preserve:
The market price of gold has risen for more than a decade propelled by low interest rates, the hype of the bullion dealers (holding large inventories) and no doubt the normal amount of fraud and misinformation accompanying asset price bubbles. The Financial Times has reported that the precious metals industry expects the price to increase by a further 11 per cent over the next year.
So here is Truman's modest proposal: take the gold, convert it to linen, and use it to patch up just over 2% of US debt. Brilliant
Meanwhile, the US Treasury holds 621.5m fine troy ounces of gold. The government has been sitting on that gold since the Great Depression, receiving no return. At the current market price of $1,300 per ounce, the US gold stock is worth $340bn. The Treasury secretary, with the approval of the president, has the power to sell (and buy) gold on terms that the secretary considers most beneficial to the public interest. Revenues from sales must be used to reduce the national debt.
If the US were to sell its entire gold stock at the current market price, it would reduce the gross government debt by 2¼ per cent of gross domestic product. Based on the average interest cost from 2005 to 2008, this reduction in debt would trim the budget deficit by $15bn annually. Thus, the Obama administration would be doing something about the US fiscal debt and deficit without reducing near-term support for the ailing economy.
Kicker #2: Truman had graduated from economist to financier, recognizing the importance of buying (or confiscating as the case may be) low and selling high:
This proposal has several other benefits. First, the US would be obeying
the maxim to buy low and sell high. Second, it would be performing a
socially useful function. Demand for gold exceeds normal production,
driving up the price. To the extent that the gold craze is being fed by
concern (rational or irrational) about government policies, public
welfare would be enhanced by giving citizens something tangible to hang
around their necks or place in safe deposit boxes. Third, if the price
is a bubble, as seems likely, the sooner it is burst the better for the
average investor.
Lest Truman be accused of being a biased idiot, he himself provides some counter arguments to his Darwin award worthy suggestio:
Some people point to possible costs. Aside from political pressures from those who want to protect the value of their holdings, above or below ground, two principal arguments are made against US gold sales. The first is that such sales would disrupt the market. But the US government can be cautious in its sales, avoiding disruption of gold sales programmes of other countries, as it has in the past. There is little risk. In recent years, sales under the Central Bank Gold Agreement have dwindled, and some other central banks are buying gold. (The US is not a party to the agreement.) Also the International Monetyary Fund has completed more than three-quarters of its own planned sales of 403.3 metric tons.
Another counter argument is that the US should hold on to its stock in anticipation of the return to a monetary system based on gold by itself or with other nations. Returning to the gold standard would reinstate a system that has not existed for a century, however. It is not going to happen. The gold standard was associated with unstable prices, wages, output and employment. The current official discussions of the reform of the international monetary system do not include any advocates of a return to gold, and the IMF articles of agreement prohibit doing so. The sooner thoughts of a return to the gold standard are laid to rest, the better. A related argument for retention of the US gold stock is as a “rainy day” precaution. But after the recent economic and financial crisis and with the prospect of further misery for several more years, how much more rain must pour before the US acts?
So now you know - the gold standard "is not going to happen." What else is there to say - arguing with such brilliant logic which sees the benefits in 100 years of dollar devaluation, coupled with the greatest credit bubble ever, which has led the world to the precipice of all out currency, trade and soon, actual, war and assumes that the barbarous relic is actually worse than this is, well, pretty much pointless.
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I'd inspect that 'gold' VERY carefully coming out of Ft Knox if I were the buyer of it! Bunch of tungsten filled gold leaf is what I highly suspect resides in those vaults, if anything at all.
Gold looks pretty crappy compared to this guy's 100 floor Ivory tower. Jesus, can these Econ Ph.Ds stop massively embarassing the entire profession? You would think by now, they would shut up, stop writing things, and fall in line behind Jan, who actually knows what he is talking about.
Great job Edwin!
To think that some actually believe that sophisticates like Truman whom come from the most prestigious universities are exempt from being as dumb as a sack of rocks.
Yes, hock the one true and tried "currency", real "money", for 3 months worth of Ben's QE bucks?
Truman = tool.
Poor Truman didn't know all there is left in Fort Knox is tungsten. How do you sell when you don't have it.
Wait... that's what's going on @ CRIMEX everyday. Never mind.
Asset stripping is what the banksters do best.
Ph.D.s "that unique category of brilliant economists that only Princeton, Yale and Harvard can produce."
Don't forget Chicago...home to brilliant Nobel Peace Prize winners too!
"Turd Ferguson, a Senior Fellow at the Arrogant-Wiseass Institute, thinks that Edwin Truman is a complete and total douchebag".
lol thank you. If I ever get involved in giving money to a school then I will demand it go towards setting up the Arrogant-Wiseass Chair of Economics.
I think he is a pillowbiter
so the gold that was taken by gunpoint from our grandparents should not be returned to those who hold $US, but rather sold for more $US.
...wait, you're saying, ...what are you saying?
Exactly.
If they need more gold they can simply pull an FDR and confiscate privately held gold all over again.
Why do you think they passed that $600 transaction form for the IRS?
A'yup!
Buy any gold or silver coins at $599 or below in batches folks!
Won't go to the average American. They will have a hard time confiscating gold that gets sold to Russia and China. Americans are not the big players in this market. Besides I seriously doubt that A. America has not sold/leased a lot of gold already. B. Assuming they had some left it's not super likely they sell it all as it would give an asset for our creditors to buy that they really want without smashing the price up. I can assure you China would love to see America sell it's remaining gold.
Actually, this act could be interpreted as an all in backed by a nuclear threat if "imf articles of agreement" gold standard prohibition is violated thereby maintainin reserve currency status at the barrel of a gun, again.
God, what an ignorant tool.
Not only ignorant, but illogical too:
Without knowing how much gold the US actually has, it is illogical to predict what effect the sale might have.
For all he knows, selling "all" the U.S. gold might yield enough fresh capital to pay the electrical bill at the White House for 1 month.
*nm
I think Edwin Truman is just bucking to become Prime Minister of the United States.
"I think Edwin Truman is just bucking to become Prime Minister of the United States."
...worked for Brown...onward and upward and all that
Ehum... what gold?
exactly!
BWAHAHAHAHAHAHAHAHA!!!
Lemme see, now where did I put that gold. Oh! here's a receipt and some official looking documents...
Here, I sell you my paper, bitchez!
Tyler,
Don't forget the University of Puerto Rico! They have an economics elective class second to none!
Course prereq: Flying out 2nd story windows 101.
On the "flying out of 2nd windows" meme: the guy in this vid has it all figured out, almost.
http://www.youtube.com/watch?v=Q2ZunA1ZI_Q
"i believe I may have overreached myself... whatever."
Regards
$340 billion worth of gold, hell thats only a few weeks worth of Bernanke POMO money laundering/monetization activity.
Yes!! PLEASE sell us the gold, bitches...
Exactly! That is the only way any American will ever benefit from the gold. Otherwise they will never see a gram of it.
Of course, if they did sell the gold, we wouldn't see a gram of it either. They would trade it to China for iPads.
They could sell it to us for $1350 and then confiscate it back. That kind of plan would actually make some economic sense.
This tells you how stupid/foolish they think Bam has become / is. And they just might be correct .... :-)
Someone once said, and I paraphrase ... some ideas are so absurd that only an intellectual could come up with them ...
sschu
They can't sell the gold in Fort Knox as it will be seen that the US doesn't have those approx. 275 mln ounces anymore....A Ph.d. is nowadays def. NOT a signboard, eh?! What a joke....
sell it to me bitchez!
Stock not allowed to fall. There is ZERO risk buying stock from the long side, ZERO NADDA NONE!
Oh look the 100 point fall in the Dow was just a dream, now only down 28.39.
Thank you, ZH
you are currently mankind's only defense against these fuckers
Skull and Crossbones educated idiot states that America can kill itself faster by aiming for major arteries.
I'd love to buy the dip this asinine suggestion would cause.
+1
This is yet another sign that certain folks (JPM, anyone?) are getting desperate
Hey, Sancho, are you upside down in your house? Your comment about JPM may be closer to the mark than you think. It's a case of eating your seed corn. Bad juju, bwana.
Negatory, just a sign of the times.
Ph.d = Piled higher and deeper.
LOL unbelievable, what a tosser, too.
The SUPPOSED US Gold holdings are in four locations.
Knox
West Point
Fed Bank of NY
And one more,I cannot recall.
I got yer fourth place right here!
Saudi Arabia?
Fortress Chumbawumba?
Lloyd's basement?
The mint locations hold the balance
Denver Mint, where the Shadow Government resides.
A lot of that gold is coin melt worth less.
What's more interesting is this:
In terms of Gold Reserves and %Forex Reserves backing,
US second to EC, and Portugal and Greece actually have more gold as a % of Fx than US, third.
Hey, if CA can sell the Reagan and other State Buildings to Houston and Antarctica, why can't Bomba sell the family silver and gold?
http://www.usmint.gov/about_the_mint/mint_facilities/?action=DV_facilities
http://en.wikipedia.org/wiki/Gold_reserve#Officially_reported_gold_holdings
great info, ATG. thanks.
according to Bernake, the Fed Reserve Bank in NY is in a "foreign country" but he did not name the country. Absurd, but true, on the record in one of Grayson's youtube gruelings wherein he laughs at Bernake over the coincidence comment. So that supposed gold in not in the U.S.
I thought the name was Ponzitopia the capital of Fraudania. If memory serves teh Fed is also holding about half of Germany's gold. Gold they are not going to get back.
Afganistan. Our gold is there, we just need to dig it out...
Which makes me wonder - how come OUR gold is in THEIR land... weird... (paraphrasing Chris Rock)
Wow, COMEX and the LMBA must be in pretty bad shape to get this thing floated.
I would recommend, before anyone decide's to sell any of the people's gold, that they address the structural fiscal problems at the federal level.
Instead, this proposal reads like someone advising a sprendthrift who has just run through all of their regular savings and then some, to go raid their nest egg, instead of changing their ways.
The stupidity of this is amazing on so many levels.
The peoples gold? Try to get your share; they won't let you. It's not ours and you will never get any of it.
And if you think you are free, try walking into a deli and urinating on the cheese.
Are you implying that the deli owner might be charged after he pulls the trigger?
Ha! The "urinator" might wind up looking like swiss cheese.
if i unrinate on a family deli counter it is society's fault, not mine.
I don't expect to ever get any of it, assuming that there much left.
Your idea of freedom and mine don't quite map up. Since when did damaging someone else's property constitute freedom? I guess you are free to do it, and free to bear the consequences of your actions. Sadly, a concept missing in much of our society these days.
nah.. don't mind him, he's just stupid!
lmao
You just defecated from your mouth onto my lapto screen... it's a free country...
The Dow hasn't sold off substantially because gold remains firm.
The XAU is holding up nicely for now:
If gold goes to $1,650, then the Dow is most certainly going to 12,000 by the end of the year.
You know I rarely agree with you, Robo, but I sense you are correct here.
Buy everything. Gold. Silver. Equities. Oil. Corn. Soyas. Pork Bellies. Cattle. Cheerios. Raviolios. Anything you can get your hands on. The world is soon to be awash in dollars. In fact, it already is. All dollar-dominated assets are going much higher.
+100
Don't forget the whiskey!
Turd, how "priced in" are we at the moment? Will QE's second coming blow the top off or what?
Hard to say, Jimi.
If you have access, pull up an 8-hour chart on gold that goes back to the end of the correction in July. On that chart, you'll see a slow, methodical price rise. In TA terms, its called a "Swiss Stair" and it reflects a steady, fundamental accumulation. So, though QE2 may make headlines and cause short-term volatility, I suspect gold will continue its long-term bull market with a steady grind higher.
I hope you and everybody else figure it out soon. We're smack dab in the middle of a game of economic chicken. There is a cliff there is a gas pedal there are brakes. Our mysterious buyers may or may not be out to break the comex and strangle hold or they may be the ones pushing the gas. Gold is the savings account, equities is the checking account when checking=savings anyone not on the brakes goes over the cliff.
Good thing we have HFT to keep it a secret when that occurs. If you're not on the inside you're going to get robbed. Leave it to the banksters to lie about every account everywhere.
Until dow and gold reach parity there is no reset. And no way forward. If dow goes to 12,000 gold will hit 13,000 on overshoot, maybe 14,000. It's all debasement mechanics.
What a brilliant way to audit the USA's gold holdings.
That WAS funny. You connect the "sale" of gold to "verification" of value or its existence. The way the SEC audited NANEX charts to see what the HFT transactions really were? Or the way Congress got to the bottom of all that Fannie/Freddie nonsense. And all the securitization behind the CDO products. Bernanke has probably got holographic bars, like the Faberge Egg in Ocean's Twelve?
ROFL! Audit. got credit default swaps?
Actually the gold standard was so stable (and thus unable to be manipulated by central bank fraudsters) that gold coins were made that had the exchange rates in different currencies, stamped right on the coin!
Old dictionaries, presumably meant to be kept for years, had exchange rates published in tables in the back of the book.
See http://www.coinlink.com/News/us-coins/unusual-items-1874-dana-bickford-t...
Deflation to central bankers is like garlic and silver crosses to vampires... doesn't seem to harm regular people however.
Thanks for that Boats. I was going to make a similar comment but it's taking me so long to get thru these (I have to keep stopping to recover my wind from laffing my bag off) that you beat me to it.
Huge thanks to Tyler and the mob of ZH commentors for being rare voices of reason in an otherwise world of total insanity.
I gotta stop reading now. My belly hurts!
The dirty little secret is that a few of the TBTF banks have already sold most of it, and are now seeking to be bailed out at the expense of the American people.
Rickards suggestion of revaluing the gold and holding it to strengthen the currency, albeit at a devalued level, is much more to the point.
The banks are shameless.
Expect JPM and HSBC to start pumping this insanity.
"The government has been sitting on that gold since the Great Depression, receiving no return."
Unreal. We are supposed to believe that holding this gold did not allow us 65 years of post-WWII seignorage benefits? After all, these benefits probably only totalled into the trillions over 65 years!!
I've spent a lifetime around Economics professors, so nothing should surprise me by now.
on what? it has crushed fiat money. isn't that a 'return'?
Fiat money can only generate a return in a bad money for good scam. Then gold get's all "I'll be back" on it's ass.
Edwin Truman is a smart guy but has not heard of gold leasing?
That makes the entire thesis void.
http://www.kitco.com/market/LFrate.html
great point, detective!
@RobotTrader
"The Dow hasn't sold off substantially because gold remains firm."
ROFLMAO
Robo, a master at filling in the blanks with whatever suits him. 'DOW hasnt sold off because of gold'. Idiot statement of the day by far.
I have to go with Harry Wangers 'AAPL is the economy and will save us' meme.
Jesse:
Congratulations on your site's 10 million hit milestone. I greatly appreciate your insight.
You are 'Da Man'
+10,000,000
Jesse is a honourable man fighting the good fight against the banksters who no nothing more then to reduce capital to express a false profit.
Bravo Jesse.
I hope we will all be around to see those fuckers bleed.
Yuzz guys quit kissing Jesse's ass everytime he posts..Jeez Louise...
Hulk - do I get the brown nose award ?
Robo just likes to throw crap around and hopefully some of it sticks...notice how he will never respond to a critique...a sign of a man with no ability to substantiate his claims.
Mr. Truman,
Let's audit the US gold reserve holdings first. Then we can place a true value prior to selling.
PhD from Yale must mean Punk head dip shit
Cause only a complete asshole could think of such a thing.
Come to think of it being completely devote of any reality is a prerequisite of admission at those ivy league school. At least when it comes common sense
Elvis Presley - Poison Ivy League
http://www.youtube.com/watch?v=cdxC0jefysM
DO IT! I'm 110% behind this man's plan! If they still have gold it will be a great buying opportunity, same as Brown's Bottom. I'm certain the Chinese would love to buy it all off us, and could come up with the Fun Bux to do so. Can see the headline now "USA to dispose of Gold Holdings to Chinese: America unloads barbarous relic on the Yellow Menace". And after the smoke clears gold bugs will know there is no more bullets left in the gun. Or more likely they will sell paper gold and the gold will be held in the US Govs possession, naturally trying to take physical possession will be regarded as an act of terrorism trying to destabilize the gov.
I would also second checking each bar that comes out, would be a real knee slapper if they sold tungsten bars into the open market :)
Wow, that's like returning to the gold standard, but without the fiscal prudence that it imposes on the government. When a government on a gold standard spends wildly, they deplete the treasury quickly, which is exactly what this bozo is advocating.
Fine by me. I don't like this stupid country anyways. Sell me the gold, and I'll be happy to watch it go down the toilet. Sure, I might be miffed that the gold I already own has gone down in value, but that should be more than made up for by the future value of the gold I buy, which would cement my position as an oligarch in the soon to be third world USA.
+1
disappointing, isn't it?
Why sell your gold, when fools are still accepting paper?
exactly
No surprise here. "They" would like to transfer all the public assets of the world over from public balance sheets to private ones, thereby further solidfying their class power.
What a total wanker.
Yes by all means, lets sell that shiney stuff that is taking up all this storage room.
Think of how many (monoploy) T bills and dollars we can park here from the printing press.
And since Russia, China, India, Saudi Arabia, etc are so stupid for increasing their holdings, lets just totally remove any semblance of assets from this country to somewhere else once and for all!
Dumb idea ... Now we know what a PhD from Yale is worth. The dollar is worthless. Mr. Truman wants Obama to accumulate something the US alone can manufacture in return for the yellow metal? The logic of the situation dictates the opposite tack: print worthless dollars by the trillions and buy gold with both hands.
"Yale Ph.D., And Former Fed Member"
this has got to be a conspiracy against the American people. how could anyone describe it otherwise?
...these are seriously bizarre days we find ourselves in.
only if we cling to the mythical storyline we were sold all our lives. . .
if we simply call what we see, and add all new information that supports the Truth of what is actually happening, it actually falls easily into place, doesn't it. . .
Is the gold being refered to, the same gold that's on the Fed's balance sheet? If it is, the Fed may have something to say about selling it.
This could be one big ploy to state they are selling their 8,000 tons (or whatever number they use to give the impression of something substantial) to jam the price down...remember the days of the IMF selling a hundred tons...imagine the headlines and CNBC coverage of a few thousand tons.
The problem is everyone in the world would hear the open laughter an high 5s coming from Beijing. With America's "enemies" buying you bet they would snap up every oz America was willing to put up. Imagine what would happen if China just ate the whole amount and came asking around for seconds. Whole demeanor of the gold market would change.
sure lets exchange our shit T bills for the shiny shit.... hey Ben you can be the number one holder of this worthless crap paper... more power to you tough guy (idiots)
I can see the headline, China swaps T bills for Fort Knox. No need to move it, since they already own just about everything else around here
We sell our supply of gold, and a huge portion of any remaining hard assets underlying our currency, to China in exchange for printing money to pay down our debt.... to China. Brilliant!
http://i596.photobucket.com/albums/tt45/SH00TTH3H0STAG3/Guinness-2.png
I might be a better plan to sell the gold and then buy Guinness with it vs treasury paper. It's something of value and will help pacify J6P. Sure the ECB and Ireland would be a fan to. Guinness for Strength!
China drools at the thought.
A way to offload a substantial amount of their treasury holdings for undilutable currency without directly affecting market prices.
This idea is so blatantly and self-evidently stupid, I almost hesitate to condemn it. Could we be overlooking something?
Just wait until Gordon Brown becomes the head of the IMF.
I am disgusted that the insane, pant pissing, snot goblin is not in gaol pending his execution for treason
Sell gold and buy stocks.
As usual, The Onion is way ahead of the PhD's:
http://www.theonion.com/video/us-to-trade-gold-reserves-for-cash-through...
Wouldn't it be great if the government was that smart? I like the idea of selling the White House furniture on Craig's List!
LOL....Absolutely beautiful Reductio ad Absurdum...Absolutely beautiful...LOL
I have a degree from Yale and I have to say I am absolutely appalled by the idiocy of people like Truman or Krugman....There needs to be a mechanism when someone like this has their credentials recalled for the exercise and display of blatant stupidity whereby they are either stripped of their Yale degree to prevent further embarrassment or maybe shipped to the proverbial glue factory where they can no longer do further harm. I honestly don't know who is more stupid....these clowns who parade unfettered as "experts" or the sheeple that continue to give these morons any public airtime or positions of influence when by now they should have been so thoroughly discredited that they are hardly worthy of a job loading beer at the back of a truck.....and my apologies to the honest folk who derive a living from handling beer.
"I have a degree from Yale.... "
That's where I stopped reading..... ;-)
...its no big deal, this asshole is only dictating our lives.
we'll probably only lose 60 million lives in the next World War that is caused by central money planning. they'll still be plenty of livestock for the next game of RISK. good times!
Deepest sympathies on your degree TT. I bought mine online from Phuk U. for $200. I could have got one cheaper but I wanted one that would earn me as much respect as one from Yale.
Who owns the US gold? Is it the Fed or the Treasury? Obviously huge difference.
As mentioned above, any gold sales would represent an exceptional opportunity for the PTB to load up, just before the fiat collapse.
All the other CB's would love the opportunity to buy the gold. In the currency wars, they can sell their currency, buy dollars, and then buy gold from the Treasury/Fed, which would then (according to the dipshit plan) use the money to 'pay down' the debt. For an opposing CB, that would be a home run...
The Federal Reserve owns the gold, the Treasury is the custodian.
That would make the owners of the gold the following:
Federal Reserve and the Federal Reserve System
-Rothschild Banks of London and Berlin
-Lazard Brothers Bank of Paris
-Israel Moses Seif Banks of Italy
-Warburg Bank of Hamburg and Amsterdam
-Lehman Brothers Bank of New York
-Kuhn, Loeb Bank of New York
-Chase Manhattan Bank of New York
-Goldman Sachs Bank of New York
-Approximately 300 people, known to each other and/or relations of the "owners," who hold stock in the Federal Reserve System. They comprise an interlocking international banking cartel of wealth beyond comprehension.
great info!
"has been sitting on that gold since the Great Depression, receiving no return. "
Is this guy as big of a fucktard as I think he is? WOW, lol so hard my co-worker just gave me a very nasty look.
Must be One Gigantic Egg! lol
Gold is a risk asset.
Just like the S & P 500, Aussie Dollar, Oil, etc.
The Perma-Gloomers hoping for a huge launch in gold and a crash in stocks and the economy are cheering for their own demise.
Because if the economy crashes, gold will crash with it.
Just look at the XAU in 2008.
Why would next time be any different?
Yes it might be different. Yes, gold might go down in a great liquidation.
But gold is not a risk asset. It's an alternative currency with some minor industrial uses. Whether it becomes a currency that is used in the future, obviously remains to be seen.
Obviously you are not a student of financial history. A brief review of the the 1930s will show that while the Dow did collapse the gold miners did stupendously well despite corrections along the way. Please tell us again how you have the privilege of posting charts on the website?
Gold is just like stocks huh? The old everything is everything ploy. If you are going to troll, try to be clever and entertaining.
Your "Double D's" are as dumb as dogshit.
I don't know if you noticed, but gold recovered to a much greater extent than stocks. Now, gold tends to go up more than the dollar in a flight to safety, and in a major panic, is likely to skyrocket as people run for cover as fiat currencies start hitting like Deep Impact (ten years too early, that movie).
He doesn't brag about selling his yellow rocks any more. Now he needs gold to crash to validate his genius. Heh.
thats pretty obvious. i'm just wondering why he doesn't short gold and put his money where his mouth is.
If the economy crashes or hyperinflates Gold will explode higher. The one downside for Gold is government nationalization as was done by Roosevelt in 1933. But is that really all the bad?
Gold holders received a %75 premium for their Gold. If the same thing were to happen today the Fed would have to revalue Gold far higher. Why? Because revaluing Gold would allow the Fed to elliminate the National Debt.
Gold holders would receive a %615 premium if the Fed revalues Gold to $8000/oz. Not a bad investment.
Of course Gold could go down if interest rates rise but that's not going to happen as our National Debt is currently floated with an Adjustable Rate Mortgage. Not going to happen.
Robot is time to flush out your head gear:
http://www.gata.org/files/QBAMCO_Who_is_John_Galt.pdf
great analogy.
I like this part:
And what about the equity crash in the spring of '09 that saw gold's price continue to move higher?
"The gold standard was associated with unstable prices, wages, output and employment."
Yeah, like fiat ponzi FRN's have like totally stablilized prices, wages, output and employment. Go to hell Edwin.
This is a good example of what went wrong.. a public employee thinks he has the Right to decide.
Nice,.. A "Brown Bottom" - That's just Perfect
If they won't buy our Treasuries then why not offer what we've got?...
So, what is an Oz. of tungsten selling for these days?
Okay, this PhD can't do math...621.5m * $1300 == $808B, not $340B.
And at $8k/oz, about $5T.
Well spotted. However this seems to be a typo - his figures (621.5) were jumbled. The calculations are based on the correct figure of 261.5 million ounces (equivalent to 8133 tonnes).
Geraldo Rivera, opening of Fort Knox. I would watch that.
*cough* Capricorn One *cough*
If the gold was to be sold, the ponzinomics would cease to occur and the US frn's become worthless. In comparison to commodities, reducing the value of gold only inflates the next most precious item, whether it be foodstuffs, oil, or iCrap.
Dumb and dumber from our finest intellectual institutions.
great point.
America doesn't have any gold.
Brilliant! Bring it on! Let's see what that does to the dollar.
Next they should sell Alaska back to Russia (see http://en.wikipedia.org/wiki/Alaska_Purchase). @ $3,000 per acre Alaska could fetch (according to my possibly wrong calculation) close to $1 trillion - that should be enough to partially fund next lunatic fiscal move of the US government.
Buy low (@ $0.023/acre for a total of $7.2M in gold), sell high!
After all, "after the recent economic and financial crisis and with the prospect of further misery for several more years, how much more rain must pour before the US acts?"
What remarkable propaganda in the ongoing war to determine the medium of exchange/savings! Paper or Rock? From the paper corner, just roll-out a Yale Ph.D to propose a government initiative to sell gold that can serve to reiterate that paper is more important. This reinforces a popular ideological notion in the American populace: selling gold can get you out of "real" paper debt trouble.
I don't believe that a Yale Economist looks past the Austrian argument as if it did not exist... I think that the Keynesian path pays better when "paper" = TPTB. Just ignore that the Austrian path even exists in any statement/declaration, and you can continue to extend and pretend as if that were not a part of the solution set.
How isn't this line of thinking more evidence of a last-ditch "all-in" effort to preserve the valuation, debt, and resulting power structure of the fiat currency models?
like i said, this has got to be part of a conspiracy. this is absolute lunacy to a level that is downright suspicious in every way.
It's not suspicious, it's obvious.
It's not conspiracy, it's fact.
Traderjoe- an important issue that seems unresolved- about a year ago it went around that the Fed and T both claim 262million ozt..... Anyone know the one true answer???
CB
My favorite:
"The gold standard was associated with unstable prices, wages, output and employment."
Perhaps the most ignorant statement I've ever heard.
Mr. Truman states that a gold standard does not maintain stability in price and value? This is typical of Ivy League re-writes of history and madness. He's an idiot on the scale which can only be accomplished within the vacuum of Harvard, Yale, Princeton et al. The history of adherence to a gold standard in America has been the hallmark of some of the Nations,... nay the worlds, most productive and stable economic times. There are hiccups to be sure, but they are usually based upon either a major influx of gold and silver production or supply which, when these situations do occur, can be remedied if the natural associations of banks which spring up in a truely 'free banking' environment, are allowed to prosper. That was the original intent of the Federal Reserve Act of 1913 as sold to America,... tho we all know it was a monetary take-over of America whose intent was to enslave and contain 'FREEDOM', which is the last thing that 'monied interests' want and exactly that which turned Amercia into a Nation.
And now we must fight that 'Revolution' all over again.
"Viva la New American Revolution"
See you at the ballot box!