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Bill Gross Gets It

Tyler Durden's picture





 

Last night, when breaking the Buba repatriation story, we summarized it simply as follows "in brief: this is a momentous development, one which may signify that the regime of mutual assured and very much telegraphed - because if the central banks don't have faith in one another, why should anyone else? - trust in central banks by other central banks is ending." We are happy that the implicit message is so clear that everyone now gets it, including Bill Gross:

 


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Tue, 01/15/2013 - 17:37 | Link to Comment SmallerGovNow2
SmallerGovNow2's picture

But the amount of cash or paper equivalent dollars dwarfs gold at current prices.  US gold is worth much less than a trillion right now.  There are hundreds of trillions in derivatives, bonds, cash.  If that paper collapses they lose their asses, even with gold going to $5,000 and ounce...

Tue, 01/15/2013 - 18:29 | Link to Comment Pairadimes
Pairadimes's picture

You are thinking about this from this side of the collapse, where currency still has relative value (or appears to). When paper dies and gold takes its place, the transactional value of gold will expand dramatically. You will be able to buy far more with an ounce of gold then than you can today. There will be no paper currency of worth any more. Everything will be valued against another standard, namely gold, in this scenario. Bingo, instant immense wealth for gold owners. Wealth that could potentially dwarf paper-based fortunes, since relatively few will have accumulated large gold holdings.

Tue, 01/15/2013 - 20:21 | Link to Comment lasvegaspersona
lasvegaspersona's picture

Pairadimes

and at that time it will be owners of gold and other physical, non-vaporized assets who will have the responsibility of reforming society. When the government tries to get it , it will be up to us to ensure the new politicians understand the fundamentals of private property that once made America great.

So  often one hears that 'they ' will not allow this or that. In the future 'we' will be 'them'.

Tue, 01/15/2013 - 22:03 | Link to Comment andrewp111
andrewp111's picture

You will still need US Dollars to pay the IRS. As long as the USA exists, the dollar will never be worthless.

Wed, 01/16/2013 - 02:54 | Link to Comment akak
akak's picture

With all due respect, that is an idiotic argument that smacks of historical ignorance and an unwarranted faith in the omnipotence of government, if not actually siding with the status-quo PTB.

PLENTY of governments have printed their (fiat) currencies into utter worthlessness and still survived --- the government of Weimar Germany never fell during or after the German hyperinflation of the 1920s, for example, nor did the governments of Mexico in the early 1990s or that of Russia at around the same time.  Fuck, even Mugabe and his central bankster Printmaster in Chief, Gideon Gono, are both STILL in power in Zimbabwe despite the ruinous hyperinflation there a few years ago.  And I could go on and on.  Suffice it to say, you don't know what you are talking about.

Wed, 01/16/2013 - 00:52 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

Bingo, instant immense wealth for gold owners.

Why gold will be confiscated again.  No "immensely wealthy gold owners" except the elite.

Who knows, they may confiscate gold so they can round up enough to give Germany theirs ...or ours... whatever.

I can't imagine this govt not going after privately held gold when USD really starts collapsing.

Tue, 01/15/2013 - 17:12 | Link to Comment Zap Powerz
Zap Powerz's picture

I share your opinion. At the very least, I do not disagree that your opinion could be correct.  So, the way I see it, they are not the only ones that can play that game.  They arent the only ones that can take their fiat currency and buy cheap gold and silver. 

Tue, 01/15/2013 - 17:12 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

Hunger Games here we come!

Tue, 01/15/2013 - 17:28 | Link to Comment Temporalist
Temporalist's picture

But how does your thesis play into the Indian population holding more gold than anyone?

Tue, 01/15/2013 - 19:15 | Link to Comment Ignorance is bliss
Ignorance is bliss's picture

Rich Indians, own more Gold then anyone. Things will stay the same as they are now.

Tue, 01/15/2013 - 22:40 | Link to Comment jomama
jomama's picture

are you sure it's all been accounted for?

Tue, 01/15/2013 - 21:38 | Link to Comment AllWorkedUp
AllWorkedUp's picture

Interesting take, makes alot of sense. Imagine how much phyzz they were able to accumulate with all those phony FRN's in the mean time.

Tue, 01/15/2013 - 23:19 | Link to Comment dtwn
dtwn's picture

By families do you mean the entire population of India?  Because I believe they have more gold than anyone in the form of jewlery.  Better start learning Hindi.

Tue, 01/15/2013 - 23:34 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

 

the ones with the bulk of the gold will be unbelieveably wealthy forever. Everyone, which is most of the rest of the world, will forever be trapped in servitude, period.

 

World gold holdings (2008)

(Source: World Gold Council)[26]

Holding     Percentage
Jewellery     52%
Central banks     18%
Investment (bars, coins)     16%
Industrial     12%
Unaccounted     2%

 

 

http://en.wikipedia.org/wiki/Gold_reserve

Tue, 01/15/2013 - 17:00 | Link to Comment The Heart
The Heart's picture

Actually, the German folks know what is coming so it is time to boogie. Get yer gold and get before the planned war with china starts.:

http://www.businessinsider.com/us-f-18-fighters-japan-f-15-fighters-patr...

 

Tue, 01/15/2013 - 17:03 | Link to Comment Temporalist
Temporalist's picture

The Fed will just hire Lance Armstrong to bullshit the world for another decade or so.

Armstrong: Gold, yea we got your gold.  We never touched it.  It's been sitting there all along.  We've heard these accusations for years.  After returning the world to economic stability after the last near collapse why would we even need to mess with the barbarous relic?  That would be stupid!

Tue, 01/15/2013 - 17:04 | Link to Comment NeedleDickTheBu...
NeedleDickTheBugFucker's picture

TRUST.  It seems to me that if there were any logic to our language, trust would be a four-letter word.

Joel Goodsen

 

Tue, 01/15/2013 - 17:06 | Link to Comment WatchingIgnorance
WatchingIgnorance's picture

Now we know where all the tungsten went . . .

Tue, 01/15/2013 - 17:07 | Link to Comment Colonel Klink
Colonel Klink's picture

Lance Armstrong and Ben Bernanke have something in common, they're both doping in their respective fields.  Steroids are to cycling as tungsten is to gold.

Tue, 01/15/2013 - 17:08 | Link to Comment Wolferl
Wolferl's picture

Actually there´s so much surplus gold supply on the market, so they can do it without causing much trouble. Go short gold. 

Tue, 01/15/2013 - 17:14 | Link to Comment Peter Pan
Peter Pan's picture

So please remind me again why they bother to crash it all the time and why Bernanke will not agree to an independent audit of US gold reserves.

Tue, 01/15/2013 - 17:08 | Link to Comment NoDebt
NoDebt's picture

What is this strange feeling that I'm feeling? 

I can't describe it, but I know what's causing it.  A fine upstanding gentleman like Bill agreeing spot-on with a tinfoil hat fringe blog like ZH?  That's got to be one of the signs of the apocalypse. 

 

Tue, 01/15/2013 - 17:30 | Link to Comment Reptil
Reptil's picture

LOL the tingly feeling, does it resemble:
"that was not chicken" or "I should've used a condom" or "that's not a moon"

Tue, 01/15/2013 - 18:50 | Link to Comment sdmjake
sdmjake's picture

More like "those aren't Pillows!"

Tue, 01/15/2013 - 23:30 | Link to Comment knukles
knukles's picture

More like that's not a moon, those aren't contrails and that weird buzzinghum at 2.8hz is normal (once in a while) frequently associated with strange cloud shapes and patterns

Tue, 01/15/2013 - 17:09 | Link to Comment F. Bastiat
F. Bastiat's picture

There is no reason to trust Hussein Obama's regime, whatsoever.  That's the issue - the recognition that Hussein Obama is a delusional sociopath.

Tue, 01/15/2013 - 23:32 | Link to Comment knukles
knukles's picture

Sociopaths by definition are not delusional, but fully aware, functional and operating in abject clarity.  They just don't give a fuck.

Tue, 01/15/2013 - 17:11 | Link to Comment The Gooch
The Gooch's picture

The "system" eating itself.

Good.

 

Tue, 01/15/2013 - 21:17 | Link to Comment mt paul
mt paul's picture

wonder if the "system"

tastes like seal....

Tue, 01/15/2013 - 23:49 | Link to Comment The Gooch
The Gooch's picture

Baby, even. Just kindly refrain from Alopex Lagopus I did a report on them in 6th grade. They stood out in Funk & Wagnalls as a pretty hearty sort.

Tue, 01/15/2013 - 17:17 | Link to Comment besnook
besnook's picture

all these guys know what the others are doing since they are all doing the same thing. this gold repatriation thing(chavez was first)is a clear indication that there is a fear of collapse so the prudent path is first mover because last mover will find an empty vault. now, the big first move will be to jump off the ponzi train into a trillion dollar coin vehicle(state money instead of central bank money a la hitler, kaddafi, jfk and lincoln. my bet is on japan.

Tue, 01/15/2013 - 20:20 | Link to Comment new game
new game's picture

long vaults

Tue, 01/15/2013 - 17:21 | Link to Comment linrom
linrom's picture

Our Hero: Bill Gross? Move the gold back into Reichstag.

 

What does Gross get? "The Central Banks are run by a bunch of assholes, all they do is give money to the bankers so they can speculate, running assets up in BRICs." But this does not raise interest rates on bonds! F...ken bankers"

...Bill Gross, bond rentier

Tue, 01/15/2013 - 17:17 | Link to Comment surf0766
surf0766's picture

50 is the new 70 what fucktards.

Tue, 01/15/2013 - 17:24 | Link to Comment jomama
jomama's picture

a couple important things have yet to develop:

 

1) Buba needs to formally announce the repatriation

if; then:

2) then remains to be seen if the NYF actually has said gold to be transferred

if; then:

shit's gonna get real interesting real fast

Tue, 01/15/2013 - 21:42 | Link to Comment AllWorkedUp
AllWorkedUp's picture

The formal announcement is supposed to come tommorrow according to Ambrose.

The paper kings at Comex will probably whack gold  limit down on the news, the crooked bastards.

Tue, 01/15/2013 - 17:25 | Link to Comment Marcuz Aurelius
Marcuz Aurelius's picture

They trust eachother for having compounded the price discovery mechanism into the ground thats for sure ! . The one who deviates first from this so called "game-theory" does it best, so having some Weimar-DNA in that good ol' wirstschaftswunderbank aka the Bundesbank might be a key asset on their balance sheet :-).

Tue, 01/15/2013 - 17:34 | Link to Comment Genève Barbegazi
Genève Barbegazi's picture

Nonsense! Vat about Merkels Election in November!!!! Zee rothchilds cannot play sat card card just yet!!!! Zen must first secure zee political ground..... Only after nov 2013 can brobama use all of those bullets he ordered on us....

Tue, 01/15/2013 - 17:36 | Link to Comment Genève Barbegazi
Genève Barbegazi's picture

Sorry zose*

Tue, 01/15/2013 - 17:36 | Link to Comment Genève Barbegazi
Genève Barbegazi's picture

Sorry zose*

Tue, 01/15/2013 - 17:36 | Link to Comment Genève Barbegazi
Genève Barbegazi's picture

Sorry zose*

Tue, 01/15/2013 - 17:58 | Link to Comment IridiumRebel
IridiumRebel's picture

Baba babe! Please be who I think you are.......

Tue, 01/15/2013 - 17:41 | Link to Comment Dr. Engali
Dr. Engali's picture

Bill Gross doesn't get it until He's read it on the Hedge first....then it's....light bulb!

Tue, 01/15/2013 - 17:58 | Link to Comment MyBrothersKeeper
MyBrothersKeeper's picture

I think the truth is they don't trust each other AND the Germans are making sure THEIR gold is 100% certifiably authentic.  I mean China could claim to have a billion tons but 75% might be gold foil covered chocholate bars

Tue, 01/15/2013 - 19:05 | Link to Comment Genève Barbegazi
Genève Barbegazi's picture

You mean tungsten bars...

Tue, 01/15/2013 - 18:09 | Link to Comment plata pura
plata pura's picture

the germans would be much wise and trade gold for the precious by using the gsr. verily much wise indeed.

Tue, 01/15/2013 - 18:28 | Link to Comment etudiant
etudiant's picture

This is quite a statement.

Allianz is the worlds largest insurer and a German company. Bill Gross works for Allianz.

So his comment is essentially a way for the German financial establishment to express their view.

Solidarity seems to be on the wane.

Tue, 01/15/2013 - 18:35 | Link to Comment Lord Of Finance
Lord Of Finance's picture

At least King Bill is telling the truth, unlike most of top royal fund managers/investors. It's refreshing and encouraging to see giants such as Bill speaking out against fed policy so repititously.

    All the "others" know what is about to happen, but they stay silently planning their own fortunes, not giving a rats ass about the truth.

   Sometimes I feel as if I am losing my mind in the midst of all this madness. When heavyweights such as Bill come out and speak, it reassures me that I am not.

Tue, 01/15/2013 - 19:36 | Link to Comment samsara
samsara's picture

As I said yesterday in the other article, and my comment was just validated by Bill Gross no less....

----

Well Gentleman,  I do believe I just heard the OFFICIAL 2 Minute warning.

(Heard it that is, over the din of some fat women singing)

 

Please Place your final bets Gentlenan,  Window will be closing in 10,9,8,7...

 

 

Tue, 01/15/2013 - 22:04 | Link to Comment Winston Churchill
Winston Churchill's picture

Singing ?

Think that Fat Lady's yodelling.

Looks like the 'you show me yours" moment is arriving.

Just whose has got the longest vault, and whose has got the codpiece ?

Tue, 01/15/2013 - 22:42 | Link to Comment MrSteve
MrSteve's picture

Who'd a thought to hide yer pot 'o gold in yer codpiece?!?! This is brilliant on your part.

Tue, 01/15/2013 - 19:47 | Link to Comment jonjon831983
jonjon831983's picture

This repatriation news finally hit the MSM earlier today.  That seemed fast...

 

Interesting.

Tue, 01/15/2013 - 19:49 | Link to Comment Iam Yue2
Iam Yue2's picture

Gross the sham/an.

Tue, 01/15/2013 - 19:51 | Link to Comment q99x2
q99x2's picture

I believe this shortens the amount of time I have to prepare. 

Tue, 01/15/2013 - 20:13 | Link to Comment lolmao500
lolmao500's picture

On Kudlow today :

Medicare will run out of money in 38 months!

LOL I hope it's true. BRING IT ON ALREADY!!!!!

Tue, 01/15/2013 - 20:26 | Link to Comment jonjon831983
jonjon831983's picture

It's cool.  Just put it on the tab. "Geithner says gov’t will borrow from federal employee pension fund to avoid passing debt limit"

http://www.washingtonpost.com/politics/congress/geithner-says-govt-will-...

Tue, 01/15/2013 - 22:06 | Link to Comment El Hosel
El Hosel's picture

The country has been way out of money for a long time. Move the debt over to the taxpayers side of the ledger and order more hookers, booze, and botox.

The system runs on confidence... bring it Bithchez

P.S. How long can these Jaggoffs keep stocks and bonds up?

Tue, 01/15/2013 - 20:28 | Link to Comment Insideher Trading
Insideher Trading's picture

Any of my neighbors can store their gold in my house.

Once they do, I will still allow them the privilege of calling it "their gold".

Tue, 01/15/2013 - 20:26 | Link to Comment helping_friendl...
helping_friendly_book's picture

PM ETFs are but a vice to collect all the PM in one place to ease cofiscation.

The Treasury's notional value of gold is, only, $42.22 per ounce.

How many of you know this fact?

http://www.fms.treas.gov/gold/index.html

to wit:

Status Report of U.S. Treasury-Owned Gold Overview

The Status Report of U.S. Treasury-Owned Gold (Gold Report):

    http://www.fms.treas.gov/_images/bullet.gif);">
  • Reflects gold bullion and gold coins owned by the federal government
  • Summarizes the fine troy ounces and the book value of gold held by various facilities
  • Identifies the value of gold coins and bullion on display at Federal Reserve banks; coins and bullion in reserve at the Federal Reserve Bank of New York; and gold held by U.S. Mint facilities

The book value of gold is currently $42.2222 per troy ounce. The information used to compile this reporting is received from the U.S. Mint, Federal Reserve banks, and FMS.

Current Report: December 31, 2012

Contacts:

If you have questions about this report, please call (202) 874-9866.

IS ANYONE AWARE? IS ANYONE AWAKE OUT THERE?

They plan on giving you $42.22 for every ounch of gold they confiscate from you.

Tue, 01/15/2013 - 20:27 | Link to Comment jonjon831983
jonjon831983's picture

Never understood why they kept the book price of their gold at that.

Tue, 01/15/2013 - 20:38 | Link to Comment helping_friendl...
helping_friendly_book's picture

The $42.22 per ounce nominal value cited by Treasury is a relic but, never updated. That is what you will get when they come for your stash. That is why I won't chance holding gold.

You don't think they will let you play on their court do you?

Get used to it.

 

Tue, 01/15/2013 - 21:35 | Link to Comment Northern Lights
Northern Lights's picture

I live in Canada and have 2, 1oz gold American Eagles.  One of which I drove into the States to purchase.  Not too sure how Obama is gonna get his hands on it though.

Tue, 01/15/2013 - 22:13 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

.

That is what you will get when they come for your stash. That is why I won't chance holding gold.

You're taking a much bigger chance not holding it.

You don't think they will let you play on their court do you?

Who would want to play on a burning court?

Get used to it.

Things change. Get over it.

Tue, 01/15/2013 - 22:48 | Link to Comment helping_friendl...
helping_friendly_book's picture

I have no other way to purvey my conviction tptb will never tolerate any notion of allowing equality, allow equal footing or equal terms to diminish their, demonic, power.

tptb will kill half the men, and women if they must, on this planet to maintain the status qou.

I am a student of history, ground down by the years of struggle to maintain a warm and dry place to sleep and a warm meal. To fantasize otherwise has only been folly. Life is not fair. Some are more equal than others. To try and honestly match a cheater will always end in ruin.

When you rule out violence and dishonesty you will spend your life reckoning with entropy.

I have resigned myself to my fate. To, try and, feel blessed for what I have and not bitter for what I lack.

I am what I is.

 

Tue, 01/15/2013 - 23:10 | Link to Comment Cathartes Aura
Cathartes Aura's picture

being present, and comfortable with whatever that "is" for you puts you leagues ahead of anyone holding "visions of sugarplums" dancing in their heads.

IMHO.

Tue, 01/15/2013 - 23:58 | Link to Comment helping_friendl...
helping_friendly_book's picture

who junked me? For what? Misspelling? Jeez!

Tue, 01/15/2013 - 22:21 | Link to Comment Ralph Spoilsport
Ralph Spoilsport's picture

They can't come for PM coins paid for in cash at coin dealers that let you wear a Groucho Marx disguise while not carrying a cell phone.

Tue, 01/15/2013 - 22:09 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

.

They plan on giving you $42.22 for every ounch of gold they confiscate from you.

They'll get about 150 grains of lead and like it.

Tue, 01/15/2013 - 22:29 | Link to Comment Ralph Spoilsport
Ralph Spoilsport's picture

Dispensing lead to PM and gun confiscators has been approved.

Tue, 01/15/2013 - 23:12 | Link to Comment Cathartes Aura
Cathartes Aura's picture

it's the   like it   part that got my upvote, heh.

Tue, 01/15/2013 - 20:32 | Link to Comment joego1
joego1's picture

Honey! Pimpco said bury more gold!

Tue, 01/15/2013 - 20:33 | Link to Comment new game
new game's picture

90 percent of change happen in 10 percent of time.

 

 

 

Tue, 01/15/2013 - 20:37 | Link to Comment Alhazred
Alhazred's picture

Honestly, i am sooooo over this shit.

 

Time to take a trip to france to unwind

http://cognac.com/category/news-features/cognac-travel/cognac-tours-and-tasting/

***must remember to bring a tower shield to save me from evil left wing protesters.

Tue, 01/15/2013 - 22:26 | Link to Comment Ralph Spoilsport
Ralph Spoilsport's picture

Cognac tastes like cough syrup.

Tue, 01/15/2013 - 23:19 | Link to Comment moonstears
moonstears's picture

You have to warm the Cognac filled glass in your hand 10 mins or so. Buy better stuff, too! No syrup taste.

Frenchie's not so good at warfare, but Cognac, not too bad!

 

Tue, 01/15/2013 - 20:37 | Link to Comment Alhazred
Alhazred's picture

Honestly, i am sooooo over this shit.

 

Time to take a trip to france to unwind

http://cognac.com/category/news-features/cognac-travel/cognac-tours-and-tasting/

***must remember to bring a tower shield to save me from evil left wing protesters.

Tue, 01/15/2013 - 23:14 | Link to Comment moonstears
moonstears's picture

Having a Hennessee VSOP as I type this. Ahh Cognac.

Tue, 01/15/2013 - 20:43 | Link to Comment The Duke of New...
The Duke of New York A No.1's picture

The only real clout the Bond Vigilantees have these days is to buy PHYISICAL Gold or Silver .... fighting the Fed on a paper/bond level is like going on a Twinkie diet - not very healthy.

Tue, 01/15/2013 - 20:45 | Link to Comment strangeglove
strangeglove's picture

It seems to me that based on these past few gold articles there less than 1 oz gold per person in the USA. That ain't much!
What's the big deal?

Tue, 01/15/2013 - 20:48 | Link to Comment Haole
Haole's picture

Well of course, knowing the game and making the rules as they go along again, they know all the other kids aren't to be trusted inherently. 

I can't believe we're living through the world's first quasi-global reserve currency collapse and as it's taking a really long, grinding time I have to say, I'm a little dissapointed so far.   People like us want to see Rollover, not The English Patient...  ;)

Tue, 01/15/2013 - 23:40 | Link to Comment CrockettAlmanac.com
CrockettAlmanac.com's picture

And certainly not The Unbearable Lightness of Being.

Tue, 01/15/2013 - 21:04 | Link to Comment The Duke of New...
The Duke of New York A No.1's picture

Physical Gold Buyers/Repatriators are the new Bond Vigilantees. 

Tue, 01/15/2013 - 22:01 | Link to Comment Son of Loki
Son of Loki's picture

"Possession is 9/10ths of the law."

 

Better to have it in your possession then letting it be 'Corzined.'

Tue, 01/15/2013 - 22:02 | Link to Comment earleflorida
earleflorida's picture

"Ground Control to Major [Tom]'Bernanke"-- perhaps Captain Krug'errand`man?, can meet the Martian's Half-Way?'

http://www.youtube.com/watch?v=AFks9A9TCF0

http://cftc.gov/oce/web/gold.htm      

http://cftc.gov/dea/futures/other_lf.htm

Gold... for your eye's only???   

Tue, 01/15/2013 - 22:53 | Link to Comment stateside
stateside's picture

Of course this German repatriation news is not allowed to be talked about on CNBC and Bloomberg.  However, watch Part 1 of the 1:30 PM market call on BNN (Canadian Business Network).

http://www.bnn.ca/Shows/Market-Call.aspx

You can watch the stream for $6.95/month - infinitely better if you prefer PM over Paper.

stateside

 

 

Tue, 01/15/2013 - 23:03 | Link to Comment UTICA CLUB XX PURE
UTICA CLUB XX PURE's picture

Hey ZH writers: where is the outrage over the second ammendment bloodbath I'm taking here in NY?

Tue, 01/15/2013 - 23:05 | Link to Comment H E D G E H O G
H E D G E H O G's picture

who voted these twerps fucktards IN?

Tue, 01/15/2013 - 23:53 | Link to Comment helping_friendl...
helping_friendly_book's picture

Bilderbergers!

You didn't know?

Voting machines are programmed, by the Board of Directors, during their annual meeting.

http://www.bilderbergmeetings.org/index.php

Tue, 01/15/2013 - 23:15 | Link to Comment blackcrow
blackcrow's picture

Simon says " I want my gold back"

(Die Hard with a Vengeance - 1995)

Tue, 01/15/2013 - 23:21 | Link to Comment blindman
blindman's picture

"..Any gains by the large middle and lower classes will tend to be short term and illusory, involving more household balance sheet problems and debt until the system is reformed. Some of this has to do with a policy bias that considers the vast mass of the people as consumers, but not as workers.

Merely adding more financialized money into an unreformed system will further compound the problems, and ultimately force a more significant crisis and change. This is true whether done does it via more debt issuance or flashier gimmicks like modern monetary totems.

The underlying social tensions can only be ignored by the comfortable for so long. As a corollary, applying austerity without reform is insanely self-destructive. The proof of this is forthcoming.

Japan has been able to hold their system together for a protracted period of slack recovery due to their demographics, their industrial policy position in the world economy, and a largely homogeneous and communal society that cares for its own. The US and the UK will have a shorter half life I am afraid.

The situation is Europe is a bit different, and likely to result in serious dislocations in their organizational fabric fairly soon if some of the problems there are not addressed. The monetary union without fiscal cohesion is inherently unstable. Only fraud allowed it to last as long as it did.

There is a possibility that the current policies in the US may succeed if austerity if not applied, and something happens in the currency war to affect the balance of trade. I am not optimistic So let's see what happens.

The UK may provide a good counter example to the US Some new school of economic thought may find some useful data from that, if they can free themselves from the 'say for pay' mentality that currently impairs the public policy discussion in a disgraced profession."
jca.
.
15 January 2013
Money Supply Figures: Monetary Inflation But Real Economy Is Dysfunctional
http://jessescrossroadscafe.blogspot.com/2013/01/money-supply-figures-mo...

Tue, 01/15/2013 - 23:37 | Link to Comment Harry Dong
Harry Dong's picture

I think you missed the best quote from this :

Aggregate demand is not stimulated because sufficient money does not reach consumers, as it passes through a corrupt and broken financial and political system, being diverted largely to insiders at 'the top.'  Nothing could be more clear than looking at the statistics regarding income inequality.

Tue, 01/15/2013 - 23:49 | Link to Comment blindman
blindman's picture

regarding jca quotes, it is hard to highlight
the most salient and important, thanks.

Tue, 01/15/2013 - 23:23 | Link to Comment newengland
newengland's picture

Pimpco, German owned, does get it. The central banksters fall out among themselves. No physical bullion will cross the See. 

They are just quibbling about the price, and gaming each other.

Tue, 01/15/2013 - 23:38 | Link to Comment hawk nation
hawk nation's picture

Anyone that travels should do so with a few onces of gold and silver in their possession. I cant predict when the collapse will occur but i can prepare

Tue, 01/15/2013 - 23:55 | Link to Comment IamtheREALmario
IamtheREALmario's picture

There are a couple of power centers that need to be destroyed for a global empire to take hold under the control of a communist (its not really communism) dictator.

1. Congress, which has no credibility and by not exerting its power is being systematically neutered and destroyed. I wonder if they know that they are digging their own graves... they know too much to be allowed to stay around when the power grab comes into the open.

2. The banks. The banks will be blamed for making people poor through their greed. They will be sacrificed as well... and they do not realize that they are also digging their own graves. In reality the overspending (and other tactics) by Obama is destroying the people who could challenge the power grab.

Think Stalin. Think Mao. Think Hitler. IMO, When it comes, it will be brutal and those who think they are important and powerful will be purged. It is not the common man that should be most afraid. It is those who are not using their power now to stop it. The common man will at first applaud the purge ... then they will not.

Why are the Islamic countries being attacked? They are not within the circle of power and must be put under control, otherwise they could cause real problems, not just made up problems. I wonder if the media leaders will survive.

Wed, 01/16/2013 - 00:26 | Link to Comment alfbell
alfbell's picture

What's the use in buying bars and bullion?

People are going to finally wake up and start buying gold and by then it will be $5,000+/oz (if there is any physical left). They'll use their cash, they'll liquidate assets for cash to buy, they'll trade, etc. and then the government will confiscate and give everyone $42.22/oz for their gold. Those who bought earlier will just have less of a loss.

The governments, CBs and international bankers win.

Wed, 01/16/2013 - 00:38 | Link to Comment akak
akak's picture

And the point of your specious, fearmongering speculation was .....?

Yes, EVERYONE is going to wait until the very peak price before buying gold, they'll liquidate ALL of their other assets to do so, and then the government WILL 'confiscate' (door-to-door) all of that gold, every bit of it, for all time.

Are you Jon Nadler?

 

Allow me to propose an alternative (and much more likely) scenario:

What's the use in buying stocks and bonds?

 

People are going to finally wake up and start buying stocks and US Treasuries and by then the Dow will be 25,000 and long-term interest rates will be 0.5% (if there are even any government bonds left). They'll use their cash, they'll liquidate assets for cash to buy, they'll trade, etc., and save it all for retirement, and then the government just will confiscate their IRAs and 401k accounts and give everyone a "guaranteed lifetime annuity" (that will yield a nominal 3%, and a real annual loss) for their investment savings. Those who bought earlier will just have less of a loss.

 

The governments, CBs and international bankers win.

Wed, 01/16/2013 - 00:52 | Link to Comment alfbell
alfbell's picture

Point? What I wrote was my point.

It happened in the Great Depression.

It is going to happen on a larger scale this time because it will be the Greater Depression.

You'll either turn in your gold and get something back that you can use to survive.

Or, based on your "principles", you'll go "illegal" and not turn it in. And then you'll just sit and look at it for the rest of your life all frustrated by the fact that you can't use it to buy the things you need to survive.

Goldbugs are as difficult to reason with as Born Again Christians.

Wed, 01/16/2013 - 03:01 | Link to Comment akak
akak's picture

You sound like a typical, ignorant, conformist paperbug who is desperately trying to convince himself that his faith in government promises and government-issued paper is not misplaced, all the while subconsciously realizing that he is well and truly fucked unless he chooses to finally grow a spine and take action contrary to his government-sponsored programming.

You should listen to your subconscious.

Wed, 01/16/2013 - 08:35 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

how much gold does syria have and where is it .....NYC,,, Seems we need to liberate another ME kingdom, to return the riechland's gold

Wed, 01/16/2013 - 08:37 | Link to Comment PMakoi
PMakoi's picture

German gold in FBNY
Bubba wants their gold.
FBNY nods and yawns, “Well then let’s figure out what we owe those Krauts.”
German gold, all official 3,396 tonnes
German gold, of which 45% is held in New York
3396 x 45% = 1528.2 tonnes

Gold is measured in Troy ounces and 1 Troy ounce equals 1.0971428571 ounces.
1 metric tonne = 32,150.746 Troy ounces
1528.2 x 32,150.746 = 49,132,770.0372 ounces

Book Value @ Federal Reserve/Treasury = 42.22 per oz
49,132,770.0372 x $42.22 = $207,438,555.970584

$207,438,555.970584 / $1,678 (currently) = 1,236,225.00057847 ounces.

FBNY says, “Gee Willakers, looks like we have to buy some gold for Germany”, tallies the book value, goes to the Comex and places an order. Tells Germany that their contract order is in and will be held for delivery. Germany objects, complaining, “Ve have more than 49 million ounces of gold vith you! Und, you vant to pay us vith a mere 1.2 million ounces? Dis ist robbery!!”

FBNY responds, “Your gold has vaporized”.
Germany ends up with less gold, or receives delivery in GLD, or FRN’s. Lawyers or guns, bitchez??

Wed, 01/16/2013 - 12:11 | Link to Comment fiddy pence haf...
fiddy pence haff pound's picture

what looks like gold, yet isn't, but sounds like a bell?

 

TUNG-sten

 

how will they check for authenticity. If they've got jipped, will they announce it? It would blow up the markets, so 'no'.

If the US/UK/FR refuse, or delay, will Germany squack? again, no.

However, it is a nice sign that things are disintegrating, thanks to globalisation, free flow of electronic cash, HFTs, CDSs,

-fck it, I'm sick of this shit. Getting my marshmallows ready for the bonfire of the banksters.

.

Wed, 01/16/2013 - 13:41 | Link to Comment helping_friendl...
helping_friendly_book's picture

Tungsten has a density of 19250 kg/m3.

Gold has a density of 19300/ kg/m3

Bars are a uniform size, if I am not mistaken, and it would be easy to tell tungsten from gold if you could, very accurately, measure the volume and weight of the bars.

Insert bar into water and measure and measure volume to .001 m3

Weigh bar to .001 kg.

Divide mass by volume.

19300 kg/m3 =1 kg/ 0.000051813 m3.

So if you weight a bar and it weighs 2.256 kg the volume should be:

2.256 * 0.0000518 = .00011686 m3  or 116.8 cm3

If the volume of the bar is 114.285 cm3  then the bar is not pure gold.

If you are talking coin melt then you would have to determine the density ration of coin melt gold....???...but it can be done.

If I were Germany I would melt it down by a certified smelter/mint and reconstitute the gold to 99.90% purity before I accept delivery.

I would pay whatever fee for the service to ascertain that the bars are absolutely, and without a doubt, 99.90%

Why take someones word for it? Only an idiot would trust the FRBNY.

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