James Turk: Central Banks Are Losing The War to Suppress Gold & Silver Prices

Tyler Durden's picture




 

Submitted by Adam Taggart of PeakProsperity

James Turk: Central Banks Are Losing The War to Suppress Gold & Silver Prices

My guess is that 2013 and 2014 are going to be big up year for the precious metals, but we still have to contend with the central planners and the various government policies, which have been actively trying to keep the gold and silver prices from reaching fair value. The central planners are losing the war. They may win an occasional battle or two, but they’re losing the war, and eventually gold and silver are going to go higher.

So predicts James Turk, founder and Chairman of GoldMoney.com.

From James’ perspective, gold is not an investment. It’s a sterile asset, meaning it does not generate income. What it is, is money. Its function is to store wealth.

But money, like investments, can be overvalued or undervalued. And what we’re witnessing on the world stage is a gross mispricing of money as central banks engage in depreciation of their fiat currencies via inflation (i.e. money printing).

The process causes a transfer of wealth from those holding overvalued money to those who hold undervalued money. That’s what’s been going on for the past decade as the price of gold has steadily marched upwards versus fiat currencies.

But this process is not efficient. Mass awareness of this wealth transfer is low, so confidence in paper currencies is still high, supporting their perceived value. Market intervention by central banks and other parties conspires to keep the prices of precious metals artificially low and suspect.

This maintains an arbitrage for individuals to buy gold and silver at a discount to true value, which James believes will be slowly realized in full over the next several years as the bull market in precious metals approaches its third and final phase.

A factor in this rise will be the increasing fragmentation of coordination among the central banks. Increasingly, central banks outside the influence of the US’ Federal Reserve are treating the precious metals as true money, and becoming net buyers of bullion for their reserves.

Ultimately, Turk predicts the price of gold will move to somewhere between $8,000-10,000/oz, and that we'll see even higher price appreciation in silver.

The way markets normally work is, after you do have a big move, you get a correction. Even over the past 12 years, if you look at gold, you had big moves in 2005, 2006, and 2007 where you were in some years generating over 20% appreciation in gold. Then you had the correction in 2008. Even though that was a correction, gold was still up that year. Then, in 2009 and 2010 and the earlier part of 2011, you had again big moves. Then you had the correction where basically they moved sideways. My guess is that 2013 and 2014 are going to be big moves on the upside, because what’s important here is not so much the price of gold, but whether it’s a good value.

 

The proper way to manage a portfolio is, you move assets that are overvalued out of your portfolio and you concentrate on assets that are undervalued. That’s true regardless of whether you’re talking about investments or money. You want undervalued forms of money. You want undervalued investments. I use a couple of mathematical formulas which I’ve written a lot about, one being the Fear index and the other being the Gold money index; by both of those measures, gold is still very, very undervalued, as is silver, for that matter. Silver is even more undervalued than gold. My expectation is that these undervalued assets will continue to rise in price, because the market doesn’t like levels of overvaluation or undervaluation. The market is always constantly changing, moving money out of overvalued assets and moving into undervalued ones. And that’s what we’re basically seeing in the precious metals: people are moving out of overvalued fiat currencies and moving into undervalued gold and silver.

 

My guess is that 2013 and 2014 are going to be big up years, but we still have to contend with the central planners and the various government policies, which have been actively trying to keep the gold and silver prices from reaching fair value. The central planners are losing the war. They may win an occasional battle or two, but they’re losing the war, and eventually gold and silver are going to go higher – assuming that governments and central planners and central banks still continue to follow these same policies that they’ve been doing, which is defacing fiat currencies.

 

An interesting thing is that when we saw the price drop in gold and silver at the end of 2012, the demand for physical metal rose tremendously because people recognized that these assets are undervalued, and if they’re going to be sold down to such cheap prices, they may as well just pick them up and continue to accumulate them. So it certainly has a perverse affect when the central banks intervene. In fact, as we’ve noted, gold has risen 12 years in a row against the U.S. dollar – double-digit rates of appreciation. But I guess the best way is using an analogy. If you've got a pot of water boiling on the stove and it’s bubbling away, every once in a while you have to release or pull off the lid to let a little bit of steam out, and then you put the lid back on.

 

That’s sort of what the central planners are doing. Every year they release the lid, and gold on average has risen over the last 12 years by 16.8%. Then they put the lid back on. One of these days they're not going to be able to put the lid back on, and you're going to go into the third stage of a bull market where gold just keeps rising and rising and rising because confidence will be lost in the currency. I think that’s what we have to be focusing on.

 

I can’t say that trust between central banks is waning, but you have to recognize that there are two categories of central banks: There are central banks that are in the U.S. circle of control and dominance, and then there are central banks outside the circle of U.S. control and dominance. The ones that are outside of the U.S. control and dominance are accumulating physical gold. The ones within the U.S. control tend not to do that, although it’s interesting that Germany, Netherlands, and now Austria, too, are talking about bringing their gold back.

 

It’s quite clear that a lot of promises have been made, particularly by politicians and most governments around the world, and those promises cannot possibly be fulfilled. A lot of those promises are going to be broken. Particularly when it comes to the area of gold, a lot of central banks are relying on the promises of other central banks. Oh, yeah, we’ll be good for the gold if you ever ask for it. Those promises are likely to be broken as well, as the demand for physical metal continues to grow. Whether it’s going to accelerate in 2013, 2014, I don't know. But, my guess is the demand for physical metal is indeed going to accelerate over the next couple of years, because I’m looking for serious financial problems to be hitting. 

Click the play button below to listen to Chris' interview with James Turk (34m:47s):

Click here to read the full transcript

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Sat, 01/26/2013 - 18:41 | 3188228 Ghordius
Ghordius's picture

" there are two categories of central banks: There are central banks that are in the U.S. circle of control and dominance, and then there are central banks outside the circle of U.S. control and dominance. The ones that are outside of the U.S. control and dominance are accumulating physical gold. The ones within the U.S. control tend not to do that, although it’s interesting that Germany, Netherlands, and now Austria, too, are talking about bringing their gold back."

control and dominance are decreasing

Sun, 01/27/2013 - 09:11 | 3188919 unrulian
unrulian's picture

If gold goes to 8-10k...WTF would stop it there? it would be wheelbarrow / bread time

Sat, 01/26/2013 - 17:56 | 3188153 FreeMktFisherMN
FreeMktFisherMN's picture

Indeed gold is primarily about preserving purchasing power, but it also enhances it, too. More goods/services produced while amount of gold produced is way less means prices going down in real terms (in terms of gold). 

 

Sat, 01/26/2013 - 18:04 | 3188169 kaiserhoff
kaiserhoff's picture

Same difference..., unless you are smart enough to borrow fiat and buy gold;)

Sat, 01/26/2013 - 18:29 | 3188206 francis_sawyer
francis_sawyer's picture

If you 'borrow' anything [despite gain], you're a hypocrite because BORROWED FIAT is the root of the problem...

~~~

This is probably a dilemma requiring Sun-Tzu or Confucious to solve...

Sat, 01/26/2013 - 18:38 | 3188226 kaiserhoff
kaiserhoff's picture

They maka the rules.  I playa the game.

Hypocrisy is the essence of Ben, Rufus, and the ruling class.  I am not a potted plant.  Why should I sit on the side lines and bitch, waiting for the return of free markets?

You understand inflation.  Why don't you understand that using leverage against the bastards brings it to an end much sooner?

Sat, 01/26/2013 - 20:00 | 3188355 francis_sawyer
francis_sawyer's picture

@kaiserhoff

Understand that I'M NOT AGAINST YOUR LOGIC there... Go for it!...

Sat, 01/26/2013 - 20:45 | 3188421 kaiserhoff
kaiserhoff's picture

I don't think we disagree on fundamentals.  I see credit as a tool, like a tractor or a knife. 

I can be trusted with a knife.  OJ Simpson, not so much.

I was initially trying to support your view of inflation, that fiat going down raises all durable goods values.  I don't understand why so many here have trouble with that concept.  Getting family and friends through the coming disasters... that will be more problematic.  Happy trails.

 

 

Sat, 01/26/2013 - 21:05 | 3188461 francis_sawyer
francis_sawyer's picture

Yessirree... HappyTrails...

~~~

Look ~ I'll admit 100% that I think your 'concept' is FLAWLESS... [which is akin to cutting off their dicks & then shoving them down their throats to gag on]... Like I said ~ "Hard to argue with that incentive"...

Sat, 01/26/2013 - 20:39 | 3188413 S.N.A.F.U.
S.N.A.F.U.'s picture

Besides, if you work under the simplifying assumption that the value of gold is a constant, then you have to use leverage just to break even.  When you go to spend your gold the government will tax your gold "profits".  If you didn't use leverage to "get ahead", those taxes now mean you failed to preserve your wealth.  (And who knows how high they might raise such taxes in the future - so just use as much leverage as you like to improve your odds/outcome.)

Sun, 01/27/2013 - 06:05 | 3188839 socalbeach
socalbeach's picture

True.  Ignoring interest payments and assuming like you did that gold just keeps up with inflation, I come up with the following:

If the tax rate is T, you must borrow enough to be able to purchase 1/(1-T) times as much gold just to break even.

So if you had $10K for example, and the tax rate were 0.35, then you would borrow enough to purchase $15,384 ($10K / 0.65) worth of gold.  If the inflation rate were 50% say, your gold would go up to $23,076.  Then you'd pay $2,692 worth of taxes leaving you with $20,384.  Then repaying the loan of $5,384 would leave you with $15K, or the same in dollar purchasing power as you had before.

It is easy enough to add an interest expense, say from a home mortgage, to the formula.

Since leverage can be risky, another option is to buy precious metals stocks, but that has it's own set of risks as well.

 

Sat, 01/26/2013 - 18:14 | 3188184 AllThatGlitters
AllThatGlitters's picture

I don't know, this looks kind of suppressed to me:

http://www.pmbull.com/gold-price/weekly/

And, it looks kind of like it is gonna get a lot more "suppressed" in a hurry, technically.

- I hope that means it is gonna pop real hard real fast.

Sat, 01/26/2013 - 18:35 | 3188219 unwashedmass
unwashedmass's picture

it will "pop" on Tuesday. this is naked manipulation in front of the month's expiry on monday. they have been doing this for years. everybody knows....except the bozos at the CTFC. 

Sat, 01/26/2013 - 19:04 | 3188285 AllWorkedUp
AllWorkedUp's picture

I hope you're right about that because it sure seems to me they've been winning the war for the last year and a half in gold and 21 months in silver.

If it takes another 10 years to get to $8-$10K. I will wonder if it was worth it.

Then there's the gold stocks. What a fucking nightmare.

Sat, 01/26/2013 - 18:29 | 3188207 CheapBastard
CheapBastard's picture

Bravo Zulu francis

Sat, 01/26/2013 - 18:51 | 3188254 IrritableBowels
IrritableBowels's picture

So PM prices aren't being manipulated or haven't been for the last 40 years/

Sat, 01/26/2013 - 18:54 | 3188262 The Heart
The Heart's picture

Well maybe, it is because the dollar is no longer the paper of choice?

Must Watch: The U.S. Dollar Collapse Is Accelerating. By Gregory Mannarin:

http://www.youtube.com/watch?v=US0c8POzIR4

Sat, 01/26/2013 - 21:24 | 3188492 cynicalskeptic
cynicalskeptic's picture

At the moment you are largely correct in saying that the what we are seeing is value of FIAT is going DOWN and that this is reflected in the increasing cost of gold (when priced in fiat - choose your currnecy).

However part of the increase is an increasing realization that the the current system of fiat is on the verge of imploding.  As we see a collapse in the existing financial system, you will not only see a collapse in the value of various paper 'stores of value' - currency, bonds, and any other form of 'IOU's' you choose to name - but you will see a rush to gold (and silver) that will result in a very real 'revaluation' of these hard assets.   The 'money' of old will once again be seen as  the only 'money' one can trust - and will be revalued to reflect that.

You wil not only have a situation where tangible assets will cost far more when priced in paper terms - if anyone is willing to sell hard assets like food, property or anything else for paper, BUT the buying power of gold and silver will increase relative to those other tangible assets.  In effect gold and silver will be worth far more in terms of buying power than they had been.    

Making up an exchange:

A barrel of oil priced at $100 in paper fiat today might be sold for $500 in fiat (IF anyone was willing to accept fiat in payment)

That same barrel which cost 1/15 to 1/20 of an ounce in gold could still be be bought for gold but would cost 1/100 to 1/200 of an ounce - reflecting not only the decreasing value of fiat BUT the INCREASED value of gold.


One can argue that gold (or anything) is worth only what people perceive it to be worth.  BUT when paper IOU's turn out to be worthless - as their buying power goes to zero, what alternative will remain.  Unlike past economic collapses where the problem was localized and other fiat currencies could be used as a 'store of value (think German Marks in use when Yugoslavia's Dinar imploded or the $US and Rand when Zimbabwe's dollar collapsed)  ther ewill be no other 'refuge' available.  There are simply not enough Swiss Francs, Norwegian Krones, Singaprore Dollars in existence to meet the demand for safe harbor that will arise.

Throughout history people have perceived and used gold and silver as 'money' - stores of value.  Indeed ANYTHING holding real worthwhile tangible value that is easily exchanged can fill this role.  If things really get bad then I suspect the 'buying power' and perceived store of value represented by copper jacketed lead will also increase substantially.   In post WWII inflationary Europe a carton of cigarettes (even if old, stale and for all practical reasons, 'unsokable') was perceived to have and hold value far better than paper money.  In places liek Brazil and Argentina people would buy SOMETHING, ANYTHING after spedning their wages on food.  Paper money was losing value rapidly so ANYTHING of 'value' was better than holding cash.

Given their historical role, I suspect gold and silver to hold value far better - and be of far more practical use ias  mediums of exchange and stores of value - than a carton of cigarettes.  The value of precious metals may explode and become 'overvalued' - the smart people will exchange at least some of their hoildoings for relatively underpriced assets at this time - be it land, company shares, or whatever.   Eventually, a 'new' ssytem will come into existence to replace the failed one.  I expect the 'new' value of precious metals will be far higher in buying power than their current value BUT lower than what it was at some point during the melt-down when demand for safety pushed prices to extreme levels. 

Sat, 01/26/2013 - 22:06 | 3188539 philipat
philipat's picture

"Gold isn't going up ~ fiat is going DOWN... Get that thru your domes..."

I agree with your intended meaning BUT, actually, over the last year Fiat has NOT been going down against PM's OR other Fiat because the CB's are all playing the same "Race to the bottom" game. The USDX has been in a narrow trading range around 80 for a LONG time as a result.What this means is that if the Fed wants to devalue the USD to inflate away the debt Instead of the only other alternative, which is default) it is going to have to allow PM's to appreciate against USD, taking advantage of the inverse correlation between USD and all commodities, PM's in particular. The Fed CANNOT have it every which way and given the desperate need to inflate away the debt, it will prioritise devaluing the USD and de-prioritise manipulating PM's. IMHO.

Mon, 01/28/2013 - 03:31 | 3190656 NidStyles
NidStyles's picture

Doesn't change what he said. It just gives the illusion of delaying it.

Sun, 01/27/2013 - 05:35 | 3188836 TWSceptic
TWSceptic's picture

In relative terms, gold will gain value when other assets deflate. In a PM bubble, instead of buying one suit it will temporarly buy two or more suits.

Sun, 01/27/2013 - 10:47 | 3188987 sessinpo
sessinpo's picture

francis_sawyer:   "Gold isn't going up ~ fiat is going DOWN... Get that thru your domes..."

 

This is such as false statement at the current time I don't know where to start. The worst part is all the up arrows given to francis sawyer indicates a total misunderstanding of a many on ZH of the situation. I imagine these are emotional speculators married to PMs, those destined to lose their money.

 

So, I will only say this. Even with all the massive printing, worldwide, the prices of PMs isn't where it should be. I would love to see gold above $3k and silver above $100/oz. But its not, that is reality - not wishful thinking.

 

Now the problem with francis sawyer's post is this. What is gold and silver priced in?

Answer: fiat currency.

 

So I ask you to be critical in your thinking. What are you going to pay your debts in currently? Are you going to pay your mortgage in gold? Are you going to buy your groceries in gold? How about your utility bills or the gasoline for your car?

 

No, I imagine you will pay for those goods in fiat currency. And if you have no fiat currency but you have gold, I would guess you would sell your gold to get fiat currency to pay those bills.

 

I don't like that situation, but that is reality right now.

 

I also suggest you look at long term charts of gold versus the US dollar. Both have been basically sideways, meaning no change. That would disagree with francis sawyer's post.  I await anyone to reply without personal attacks. And if you want to give me down arrows, post why. Give me a logical response to my post. I want the current fiat currency system to collapse as I believe it is corrupt.

What we have now is PMs, priced in fiat currency. Until we have the exact opposite (currency priced in PMs), such a statement that francis sawyer made, is false.

Mon, 01/28/2013 - 03:35 | 3190661 NidStyles
NidStyles's picture

The problem is that you are not paying attention to the exported fiat, and you are focusing on only two items in the economy that are being impacted.

Sat, 01/26/2013 - 17:55 | 3188148 Super Broccoli
Super Broccoli's picture

well i hope he's right since i'm totaly broke ... beside that huge pile of gold and silver coints i'm holding right here :-)

Sat, 01/26/2013 - 17:58 | 3188155 Alpo for Granny
Alpo for Granny's picture

How do you post from the bottom of a lake?

Sat, 01/26/2013 - 18:37 | 3188176 francis_sawyer
francis_sawyer's picture

In his past life, he was Jar Jar Binks [from Naboo]... now ~ he's Super Broccoli!

~~~

BTW ~ 'Alpo for Granny'... GREAT username...

Sun, 01/27/2013 - 02:59 | 3188786 LMLP
LMLP's picture

If you can hold it, it's not enough

Sat, 01/26/2013 - 17:56 | 3188154 Vegetius
Vegetius's picture

The loss in confidence in the Central Banks will not just cause a rise in the price of Gold and Silver.Loss of trust will lead to War and Ruin.

Every government degenerates when trusted to the rulers of the people alone. The people themselves, therefore, are its only safe depositories.

T. Jefferson

Sat, 01/26/2013 - 17:58 | 3188156 LongSoupLine
LongSoupLine's picture

As soon as we fucking bury the asshole paper shorts at JPM and HSBC it's all over.

Fuck you Blythe, fucking rotten stinking whore.

Sat, 01/26/2013 - 18:48 | 3188241 Muppet Pimp
Muppet Pimp's picture

So HSBC's is (potentially) preparing to cover?

http://www.zerohedge.com/news/2013-01-23/silver-bars-being-secured-hsbc-...

 

Sun, 01/27/2013 - 03:05 | 3188790 semperfi
semperfi's picture

LSL, I like your style.  +1000

Sat, 01/26/2013 - 18:00 | 3188161 Practical Cogitator
Practical Cogitator's picture

74 years was needed before the USSR collapsed.  The current experiment will die of its own weight too.  But when?  There are so many more SLUGS [Slow Lazy Unable to Grasp] at the trough now.

Sat, 01/26/2013 - 20:17 | 3188381 Bicycle Repairman
Bicycle Repairman's picture

If it makes you feel better, the USA's soviet period began some time ago.

Sat, 01/26/2013 - 21:29 | 3188495 caconhma
caconhma's picture

The USSR is a different story. Starting with Stalin, USSR was able to make & keep itself self sufficient for quite awhile. It did not need any colonies to sustain itself.

The brief history of USSR.

·        From 1917 to 1945, the USSR was trying to become self-sustained and self-sufficient, and, using the Great Depression, the WW2, and barter exchanges, to acquire industrial machinery and technology from the West.

·        From 1945 to mid 1970s, the USSR was self-sustained and self-sufficient.

·        Then the Soviet elite was facing a loss of its ideology and a runaway desire to enrich itself still adhering to a failed socialist economic model. The USSR started to move away from self-sufficiency. From this moment, the USSR was doomed since they did not have colonies to supply them with free goods.

·        In just 5 years, by early 1980s, the USSR started to disintegrate.

Consequently, it took well under 10 years from a moment of departure from self-reliance to an economical and political collapse. It has to be remembered that the USSR is extremely resources rich country.

The West is a totally different story. Just look at present England. It does not have its own resources. It does not have highly competitive industries like Germany or Japan or S. Korea. So, what is it left with to support their high standards of living? You must somehow rebuild and repackage their colonial past one way or another. As long as one can keep products and services the West imports close for nothing by paying for it with funny money then there were no problems. However, Russia, Asian and some African countries have starting to ask and demand to be paid back in real goods and buy valuable West assets, this situation became totally unacceptable to the West. This situation is totally unacceptable to the West. Consequently, the new world wide conflict became unavoidable.

In 3-5 years, China will find itself in a situation when it has to aggressively (including military) defend its own geopolitical interests. At this moment, a hell will get loose all over the world. The only question: how much longer will China and Russia accept funny money (US$ and euro)?

In a mean time, the West must keep commodities and Gold prices down.

 

 

 

Sat, 01/26/2013 - 21:42 | 3188523 andrewp111
andrewp111's picture

The USSR was doomed from the moment they stopped being able to feed themselves. From that point on, they had to use dollars to buy food.

Mon, 01/28/2013 - 03:39 | 3190662 NidStyles
NidStyles's picture

They were so "self-sustaining" because their population was starving. I love hearing the USSR propaganda material decades after their fall.

Sat, 01/26/2013 - 18:02 | 3188165 dick cheneys ghost
dick cheneys ghost's picture

How many lies does it take to prop up a ponzi empire banking scheme?

 

 

Sat, 01/26/2013 - 19:37 | 3188330 JustPrintMoreDuh
JustPrintMoreDuh's picture

16 Trillion and counting ... 

Sat, 01/26/2013 - 22:05 | 3188545 francis_sawyer
francis_sawyer's picture

I always thought it was "3"... But I like your answer...

~~~

http://www.youtube.com/watch?v=Jhjb4P_jnKk

Sat, 01/26/2013 - 18:03 | 3188166 yogibear
yogibear's picture

Germany: "Bernanke and teh the Fed I want my gold!!!"

Bernanke and the Fed: "We don't have it. I will take us time to accumulate it. Not to cause a painc let's 

                                annouce that it will take 7 years to deliver"

Sat, 01/26/2013 - 21:40 | 3188518 andrewp111
andrewp111's picture

How do you know that Z. Germans did not themselves use that gold as collateral to borrow dollars from the Fed? Perhaps they will repatriate it as they pay back the loans to the Fed, and by so doing prevent its substitution for tungsten.

Sat, 01/26/2013 - 18:33 | 3188170 falak pema
falak pema's picture

 

I can’t say that trust between central banks is waning, but you have to recognize that there are two categories of central banks: There are central banks that are in the U.S. circle of control and dominance, and then there are central banks outside the circle of U.S. control and dominance. The ones that are outside of the U.S. control and dominance are accumulating physical gold. The ones within the U.S. control tend not to do that, although it’s interesting that Germany, Netherlands, and now Austria, too, are talking about bringing their gold back....

 

Key statement. When the Oligarchy splits up and thieves fall out...

We don't know when it'll come the Sarajevo moment of financial discord to the Metternichian construct of old; but given the boiling water under the lid it will...

That gives significance to this intra CB battle of currency devaluation as the Euro climbs and the Yen/USD slide. 

Asymmetry is a bitch to putting up a common front when you are on a steep mountain climb.

First man who slips pulls down hard on the others and they start cutting the chord; very fast if they still can! 

 

Read this to complete your education on the Davos Forum and crony capitalism : 

 

Bill Black: Why the World Economic Forum and Goldman Sachs are Capitalism’s Worst Enemies « naked capitalism

 

 

Sun, 01/27/2013 - 11:05 | 3189015 sessinpo
sessinpo's picture

falak pema:  "I can’t say that trust between central banks is waning, but you have to recognize that there are two categories of central banks: There are central banks that are in the U.S. circle of control and dominance, and then there are central banks outside the circle of U.S. control and dominance. The ones that are outside of the U.S. control and dominance are accumulating physical gold. The ones within the U.S. control tend not to do that, although it’s interesting that Germany, Netherlands, and now Austria, too, are talking about bringing their gold back.."

 

Comment: the problem with your post is the following:

1) According to the World Gold Council, the USA has the highest gold reserves standing at 8,133.5 tons. In second is Germany with only 3,396.3 tons.

2) Those other nations are being stupid by storing their gold in foriegn places such as the USA. Recently, the USA has said it might take up to 7 years to give Germany some of its gold back.

 

We all know of crony capitalism. It is racketeering between the governments and corporation. It's the reason why all the shannigans have gone on for so long and why no one of importance really goes to prison.

 

Eventually, I can only hope that a majority of people in the US realize that the system must be brought down. And that might mean dramatic civil unrest and many deaths of Americans fighting for freedom. That is why I have posted several times how disturbing it is that the shortage in ammuntion was basically in military grade (223/5.56, 308/7.62 and finally 22lr(a super cheap round). If civil unrest occurred, a gun ban won't matter because you won't be able to find ammunition

 

 

Sat, 01/26/2013 - 18:06 | 3188172 dick cheneys ghost
dick cheneys ghost's picture

If Lance Armstrong can leverage a lie into $100 Million in fiat, how much could the Fed leverage its lies into?

Sat, 01/26/2013 - 18:10 | 3188178 francis_sawyer
francis_sawyer's picture

all depends on the # of blood transfusions...

Sat, 01/26/2013 - 20:50 | 3188426 S.N.A.F.U.
S.N.A.F.U.'s picture

Mr Bernanke, I rode with Lance Armstrong.  I knew Lance Armstrong.  Lance Armstrong was a friend of mine.  Mr Bernanke, you're no Lance Armstrong.

Sat, 01/26/2013 - 18:08 | 3188174 Yen Cross
Yen Cross's picture

 I called the President of my credit union branch office earlier this week. I asked him if I could store some physical bullion, in a safe deposit box.

   His reply was, we don't store metal at any of our branches, and "Thank God we don't"... My first thought was collateral, on new and outstanding loans. Am I wrong?

Sat, 01/26/2013 - 18:12 | 3188180 FreeMktFisherMN
FreeMktFisherMN's picture

Don't know why you'd want any institution to hold it in the first place. 

Sat, 01/26/2013 - 18:15 | 3188185 Yen Cross
Yen Cross's picture

 That wasn't my intention. You are correct. My intention, was discovery.

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