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Visualizing The "Real" Value Of Everything

Tyler Durden's picture


Measuring market data using fiat currencies can be misleading – even though an asset may rise in dollars, it may be because of declining currency value rather than true economic process. With central banks devaluing currencies at record rates, gold’s steady purchasing power makes it an ideal alternative pricing mechanism.



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Wed, 04/10/2013 - 22:15 | 3434898 prains
prains's picture


Wed, 04/10/2013 - 22:26 | 3434938 disabledvet
disabledvet's picture

Don't know why. Imagine "blowing trillions" and yet no positive discernible benefit can be measured. "some might be perplexed" but if you have a gold standard "everyone can call these people stupid." without a gold standard the madness of just "issuing more DEFICITS" becomes realized as basically the Government stops functioning. It's just a matter of time before a Governor repudiates Federal Authority, starts printing their own currency and and seizes all assets in their State under Ye olde "every State for itself" platform.

Wed, 04/10/2013 - 22:28 | 3434946 prains
prains's picture

i thought you could mine for bitchcoin as well, LOL

Wed, 04/10/2013 - 22:46 | 3434999 palmereldritch
palmereldritch's picture

You can.

You just have to have the stomach for it

Wed, 04/10/2013 - 22:55 | 3435027 prains
prains's picture


Thu, 04/11/2013 - 09:29 | 3435916 Pool Shark
Pool Shark's picture



Can we see it all priced in Bitcoins?



Wed, 04/10/2013 - 23:40 | 3435174 RockyRacoon
RockyRacoon's picture

perplexed  ..... really?

Even when presented in comic book form there are those who still don't get it?

Thu, 04/11/2013 - 05:11 | 3435503 BorisTheBlade
BorisTheBlade's picture

Amazing really how far people can go in their denial of things that are right in front of their eyes. I guess they WANT to believe it is not true, they WANT to believe everything goes back to where it was before, they WANT to believe they won't have to make hard choices, they WANT to believe somebody will fix everything. As much as anyone can blame the government, but if it wasn't for active participation of the majority, great many things wouldn't have happenned.

Thu, 04/11/2013 - 07:56 | 3435629 bigkahuna
bigkahuna's picture

Its difficult for people in general to have that "oh shit" moment - so they avoid it at all costs. No care for their family, friends, let alone country.

Thu, 04/11/2013 - 11:43 | 3436645 cspg
cspg's picture

gold doesn't inflate like has cash- but the cost of extracting it has increased a lot per Oz. can we really call a spade a spade here? especially considering u need a lot of USD to get the gold out of the ground in the first place

Wed, 04/10/2013 - 23:46 | 3435196 ShrNfr
ShrNfr's picture

Maimonides wrote a guide for you.

Wed, 04/10/2013 - 22:15 | 3434900 jepicza
jepicza's picture

Do I smell something -- smoking?

Wed, 04/10/2013 - 22:18 | 3434902 kito
kito's picture

Anybody get how stocks act favorable to the hints of tightening ??? Shits getting really weird.....

Wed, 04/10/2013 - 22:19 | 3434908 fonzannoon
fonzannoon's picture

they did not tighten today. that's the new time horizon. also deep down everyone knows they are never, ever tightening again.

Wed, 04/10/2013 - 22:24 | 3434929 Dick Buttkiss
Dick Buttkiss's picture

So tighten up yourselves, boys and girls, 'cause this is gonna be a wild ride.

Wed, 04/10/2013 - 22:28 | 3434947 Naked Option
Naked Option's picture

This will not end well

Wed, 04/10/2013 - 22:31 | 3434957 BLOTTO
BLOTTO's picture

Strange Daze


Its not that you think things are getting weird or are strange...but rather, its more weird and strange then you and I can possibly understand.


Wed, 04/10/2013 - 22:40 | 3434985 Dick Buttkiss
Dick Buttkiss's picture

We understand. We're just in that creepy place where we also understand that so few others do that we're increasinly looking over our shoulder.

I mingle daily with otherwise fine, well-educated, and intelligent people who just can't go there. 

As in It can't happen here.

Meaning that it will be all the worse when it does.

Thu, 04/11/2013 - 06:23 | 3435541 TJ00
TJ00's picture

It's like being in The Matrix.

Here's the scene for those at work.

When Neo wakes up, Morpheus takes him into another program.

They walk down a busy street, full of people going to work. Morpheus casually walks through them, but Neo keeps on being hit or shoved aside. As they walk, Morpheus begins to walk.

Morpheus : The Matrix is a system, Neo. That system is our enemy. But

when you're inside, you look around. What do you see?

Business people, teachers, lawyers, carpenters. The very minds

of the people we are trying to save. But until we do, these

people are still a part of that system, and that makes them

our enemy.

Morpheus : You have to understand, most of these people are not ready to

be unplugged. And many of them are so inert, so hopelessly

dependant on the system, that they will fight to protect it.

Wed, 04/10/2013 - 22:59 | 3435046 Axenolith
Axenolith's picture

When the going gets weird, the weird turn pro.

Hunter S. Thompson

Wed, 04/10/2013 - 22:26 | 3434939 kito
kito's picture

Hints fonz.....hints.....I figured even the mere hint would set the market into a tizzy.....didn't happen that way....odd....maybe we are all the loons...maybe the market is taking hints of tightening as a sign things are getting better....I give up....I'm gaining nothing from this anymore...I should be in stocks....

Wed, 04/10/2013 - 23:25 | 3435122 Professorlocknload
Professorlocknload's picture

Jawboning. The Fed sure as hell isn't going to announce it's going to keep rates at zirp, thereby messing up it's little mini boom illusion here.

The psychology is intended for the average consumer to say to himself "Wow, the Fed is talking about easing up on it's QE binge. Things must be improving."

"Maybe we should spend before the others, and before prices take off again." 

It's all BS.


Wed, 04/10/2013 - 23:32 | 3435127 francis_sawyer
francis_sawyer's picture



In the MSM [& I know you know this already]...


That's the world we live in...



If they ever do tighten [just for the LULZ], that'll be the cue that within 30 days they'll completely reverse & unleash the Kracken of all QE...


Thu, 04/11/2013 - 00:20 | 3435246 Bananamerican
Bananamerican's picture


.25 basis points-->.50--|

fiscal stewardship and all that...a lil striptease...think of the psych impact of even a couple small moves....

That's all the FED would ever DARE do....COULD ever dare do...Should ever dare do...-PeeWee Herman

Thu, 04/11/2013 - 06:35 | 3435551 malikai
malikai's picture

For once I find myself in agreement with you.

All this talk of tightening is the same shit they were doing in 2011 during QE2. The purpose of this excercise, boys and girls, is to provide the impression that they /can/ tighten, which of course they can not.

Just another sleight of hand.

Thu, 04/11/2013 - 03:15 | 3435434 q99x2
q99x2's picture

And how about

Hinting to nuke the Fukushima spent fuel pools.

Nuclear war is apparently good for stocks too.

Thu, 04/11/2013 - 11:22 | 3436498 Abrick
Abrick's picture

Stocks react favorably to tightening because it is a nod to the CEOs that there will be more downward pressure on wages. This will mean more hypothetical-short-term-paper profits for the big guys. The market is driven by the people who get to add zeros, they just need a story to sell.

Wed, 04/10/2013 - 22:23 | 3434922 Curt W
Curt W's picture

If the value of the dollar is tanking, how come the price of gold, priced in dollars is not sky-rocketing?

Wed, 04/10/2013 - 22:31 | 3434954 prains
prains's picture

verb: perplexing

Wed, 04/10/2013 - 23:44 | 3435192 RockyRacoon
RockyRacoon's picture

adjective:  decoupled

Wed, 04/10/2013 - 22:49 | 3435011 GoldForCash
GoldForCash's picture

Psychological Manipulation of the sheeple to keep them from purchasing gold for their financial benefit.

Wed, 04/10/2013 - 23:26 | 3435119 Harbanger
Harbanger's picture

And to make the dollar look stronger than it really is, that's why there's an effort to devalue currencies, mainly the Yen and Euro.  So Gold price won't be an accurate "pricing mechanism" until it decouples from paper due to demand for physical.

Wed, 04/10/2013 - 23:47 | 3435199 RockyRacoon
RockyRacoon's picture

That, in fact, is what is happening.  If fits and starts but the trend is there.  Hedgies, etc. are dumping the paper gold which is now affecting the dollar price.   They can see that the jig is about up and don't want to get caught holding paper gold.  The spot price is reflecting this activity.  JPM and others will end up taking the bullet but they'll be hansomely reimbursed for their sacrifice.

Thu, 04/11/2013 - 13:30 | 3437205 e-recep
e-recep's picture

i just checked the price of gold in GBP. after chavez got his gold back, the price has been converging to a flat line at level GBP1050, of course moving up and down but less so as time goes by.

Wed, 04/10/2013 - 22:52 | 3435018 EINSILVERGUY


Central banks are all printing to create inflation which would naturally result in Gold and Silver going up.   If Gold and Silver aren't going up, then they present no challenge to the reserve currency of the world. How do you keep this from happening?  You drive short positions in the market through the use of the banks (JP Morgan) to keep prices below an established range.  If Gold and Silver were allowed to float freely, then people would abandon the dollar and move into hard money. The US govt and the FED understand that they cannot have any alternative to the monopoly of the reserve currency. The whol standard of living for the US is built on this. That is why Gold and Silver cannot be allowed to seen for what they are.  The Fed will eventually lose this battle as other nations are seeing this and started positioning themselves to trade in an alternative currency ( country to country) or they are acquiring massive amounts of gold to use as a hard currency. In China case they are going to try and replace the US dollar but that might take a few more years.  The dollar is dying and the Govt is doing everything they can to forestall that.


Thu, 04/11/2013 - 09:24 | 3435904 ClumsyBoatman
ClumsyBoatman's picture


Wed, 04/10/2013 - 22:55 | 3435029 Axenolith
Axenolith's picture

I put most of my financial assets into either physical gold/silver or associated stocks starting about 2003.  The average annual return on that since then has been about 30%.  Is that not good enough for you???

I'm gonna go out on a limb here and assume you're not a troll [put the fookin' saws away!].  You're currently looking at a gold doldrum, a mere snapshot, in the midst of the closing of a huge experiment in global fiat currency.  At every other time in history when this type of proclaimed money system has been utilized, it has EVENTUALLY ended in disaster.  There is NO instance of a human created intangible exchange system that has survived the test of time.  Truely, the cratering of such systems often marks the end of a local era, dynasty or empire.

The price of gold will resume it's climb relatively soon.  On average, it takes about a generation for a monetary system, once cut loose from a metallic backing, to crater and we're currently on the long side of that, and only on the long side, IMO, due to the electronic nature of the current system and it's ability to shield the majority of the population from the information and price/economic disclosure they would need to be "stampeeded" out of most of the worlds paper money posthaste.

Wed, 04/10/2013 - 23:32 | 3435153 rich_wicks
rich_wicks's picture






If you have no idea how they relate to this situation, well, sucks to be you because I'm now going to throw pearls to swine.

Thu, 04/11/2013 - 00:23 | 3435253 Bananamerican
Bananamerican's picture


"If the value of the dollar is tanking, how come the price of gold, priced in dollars is not sky-rocketing?"

 *And then there is the venerable Paul Volcker, who so effectively brought down runaway inflation in the US, starting in 1980. His one regret:

"Joint intervention in gold sales to prevent a steep rise in the price of gold (in the 1970s), however, was not undertaken. That was a mistake." … Former Federal Reserve Chairman Paul Volcker (writing in his memoirs).


Thu, 04/11/2013 - 05:25 | 3435513 css1971
css1971's picture

Meh. They would also have to try to manipulate Gold, copper, soy, oil and all the other commodities which have tripled to quadrupled in price over the last decade.

Thu, 04/11/2013 - 01:54 | 3435380 Professorlocknload
Professorlocknload's picture


"how come the price of gold, priced in dollars is not sky-rocketing?"

My guess is, talk of faltering European systems, Japan on the rocks etc. is supporting the dollar as "perceived" safe haven, at the moment.

Cypriot selling of Au (and soon many other failing European economies) will most likely trigger more selling, in mad dashes for liquidity.

Add "green shoot" machinations in the US, and public faith in PM's has waned a bit here.

It's not an event, it's a process. Wouldn't be surprised to see Au get closer to production cost before heading for the cosmos. Depends on how stupid TPTB get on the way to perdition.



2001 Au $271.

2007 Au $695.

2013 Au $1570.

Adequate? At least to date, maybe?

Thu, 04/11/2013 - 04:30 | 3435474 css1971
css1971's picture

I got rid of almost all my GBP and am in USD for the short term.

Add JPY, EUR native currency owners escaping their own government's excesses and the USD is going to be the last man standing. Watch the USD index, gold is trading inverse to that at the moment.

Gold's doing exactly what it's supposed to do. Sitting there, not moving. People natively using USD should be buying gold right now, this isn't going to last.

Thu, 04/11/2013 - 10:57 | 3436306 Curt W
Curt W's picture

You picked 2001 to show the upward momentum.  But in 1980 it was 800 and thru most of the 80's and 90's it was in the 400 range.

Obviously in 1980 it was in a bubble, and I saw several comments above about manipulation. 

If fiat crashes and ceases to be used, what value do you place on your gold?  Does a gram buy you a ham and loaf of bread and a dozen eggs?

Will every transaction depend on the 2 parties haggleing over the value?

I understand keeping a store of value, but are you going to carry a scale around for every transaction?

Thu, 04/11/2013 - 11:16 | 3436452 earnulf
earnulf's picture

Because there are upteen millions of paper gold ounces that are traded daily. (I believe the number is well north of 55 million ounces per day) which translates into some 20 Trillion ounces of paper gold traded per year.

Meanwhile the world production of gold is about 2400 tons or 63 Billion ounces a year, of which more than half is being consumed in physical form by China and India alone.

Since there is so, much, more, paper gold being traded, the price of physical gold is immaterial.   Of course when the whole stinkin mess comes crashing down around their ears, all those ounce of paper gold will be gold for starting fires or wiping up the mess (regardless of where it eminated from).    That is when the real value of gold will become known and it will be known that most of the gold is in the hands of the Chinese, Indians and Central Banks.

Got Gold? (or Silver or Lead)


Wed, 04/10/2013 - 22:28 | 3434941 Cabreado
Cabreado's picture

"it may be because of declining currency value rather than true economic process."

Or rather, it may be because chaos, too, is a real thing.

"With central banks devaluing currencies at record rates, gold’s steady purchasing power makes it an ideal alternative pricing mechanism."

The world is not ready for alternatives to truth.
Alternative mechanisms of any kind neglect the real issue...
and the world goes nowhere 'til the liars are escorted away.


Wed, 04/10/2013 - 22:30 | 3434951 WHATDIFFERENCED...

If we just keep reminding ourselves, an apple is still an apple, we just  might make it through the chaos that is about to unfold.

Wed, 04/10/2013 - 22:31 | 3434958 prains
prains's picture

depends on the kind of apple

Wed, 04/10/2013 - 22:44 | 3434994 mess nonster
mess nonster's picture

Right. Like a GMO apple.

Wed, 04/10/2013 - 22:56 | 3435038 prains
prains's picture

What if you could buy a Granny Smith apple that tasted just like the real deal but wouldn't discolor if left on your plate? 




<thanks mess>

Wed, 04/10/2013 - 22:34 | 3434970 WmMcK
WmMcK's picture

And a spade is a spade --

but sometimes I prefer to call it a fucking shovel.

Wed, 04/10/2013 - 23:30 | 3435140 francis_sawyer
francis_sawyer's picture

The new sheriff is a "shovel"?

Thu, 04/11/2013 - 05:24 | 3435509 css1971
css1971's picture

A spade is not a shovel.

Wed, 04/10/2013 - 22:37 | 3434972 scatterbrains
scatterbrains's picture

I've got gold breaking the lower channel support inline with Goldman's targets and with the fed manipulaters doing what they can to force it over the edge.  After dangeling it over the cliff a few days I expect a pattern failure (which in itself  is about  the strongest,  most violent signal you'll ever see)  but not before most ZH's have puked up their paper gold and given up completely.  Gold needs a good cleansing wash out to begin the next leg above 2800.. I See the low being put in within the next few weeks and it's off to the races.

Wed, 04/10/2013 - 22:37 | 3434973 Yen Cross
Yen Cross's picture

    I don't use gold to buy my groceries YET.  No matter how you dice it, food costs are much higher. What about the huge price increases in services?

Wed, 04/10/2013 - 22:39 | 3434984 prains
prains's picture


Wed, 04/10/2013 - 22:44 | 3434997 Yen Cross
Yen Cross's picture

   Does that fall under professional or dental?

Wed, 04/10/2013 - 22:51 | 3435014 prains
prains's picture


Wed, 04/10/2013 - 22:43 | 3434993 Wanton1
Wanton1's picture

The Nazi Traitors want your bank accounts and your guns.

Guns first, of course.

Wed, 04/10/2013 - 22:45 | 3435001 lolmao500
lolmao500's picture

Kyodo quotes a Japanese defense official that a missile launcher is in a "raised position."


Wed, 04/10/2013 - 22:58 | 3435050 prains
prains's picture

don't worry it's a "Heat Seeking Kentucky Fried Chicken" Missile, nothing to worry about unless you're carrying

Thu, 04/11/2013 - 05:51 | 3435522 Disenchanted
Disenchanted's picture it's a bioweapon then, and not a nuke?

Thu, 04/11/2013 - 00:02 | 3435222 Bear
Bear's picture

Can you imagine what would happen to the market if they fired it and it was a dud?

Wed, 04/10/2013 - 23:01 | 3435058 BeanusCountus
BeanusCountus's picture

I personally think its beautiful, but it goes up and down relative to everything else on a regular basis. Nothing more than any other asset class. Belongs in everyone's holdings, but no more than anything else. Read a lot of people here that believe its going much higher. Sooner rather than later. And the rationale is sound. If the other side was right, it would be simple to fix every problem with printing more money or spending money you don't have into eternity. Big picture tells us it's not true. It's never worked before. Did the other side really just come upon the grand solution and solve the mystery of unlimited economic growth? Not likely. Almost nonsensical if one steps back and views it objectively. I'm sticking with what I believe for the long term. Ten percent of my assets will always be in this metal. Best to all the traders who try to call the ups and downs.

Wed, 04/10/2013 - 23:26 | 3435128 Aquarius
Aquarius's picture

As Samuel warned us all those thousands of years ago, worship your kings at your own full risk (I paraphrase:), and, we still don't get it!

"Eat Fresh"

Ho hum

Thu, 04/11/2013 - 00:24 | 3435262 FIAT
FIAT's picture

Got jews?

You got a real problem

Thu, 04/11/2013 - 02:05 | 3435388 blindman
blindman's picture

“Nowadays people know the price of everything and the value of nothing.”

? Oscar Wilde, The Picture of Dorian Gray
but today we know neither the price nor value !
and it is by con-temp-orary design ! and perhaps just in evi table,
like time and motion?
how can that be? to know value requires that you have
become familiar with a hierarchy of principles and have
lived by adherence to that understanding to some degree.
there ya go, that has been severally rejected necessarily
to adhere to the fallacy of the dictates of the fraudulent
debt/asset money-security scam that people bleed and die for
so tragically and uselessly but to great benefit for some, few.
April 11, 2013
To Be, or Not to Be...
"Man is made by his belief. As he believes, so he is."
Johann Wolfgang von Goethe

Thu, 04/11/2013 - 02:18 | 3435398 blindman
blindman's picture

"...The Cyprus bail-in was not a one-off emergency measure but was consistent with similar policies already in the works for the US, UK, EU, Canada, New Zealand, and Australia, as detailed in my earlier articles here and here. “Too big to fail” now trumps all. Rather than banks being put into bankruptcy to salvage the deposits of their customers, the customers will now be put into bankruptcy to save the banks."
Winner Takes All: The Super-priority Status of Derivatives [Ellen Brown]

Thu, 04/11/2013 - 02:22 | 3435400 Floodmaster
Floodmaster's picture

gold’s steady purchasing power  ??? U.S. stocks have outperformed nearly everything and gold have not moved since 2011. Gold Bugs Have It All Wrong.

Thu, 04/11/2013 - 02:24 | 3435404 blindman
blindman's picture

Tom Waits - Time
'time, time, time ...
it is time that you love.." t.w.

Thu, 04/11/2013 - 05:10 | 3435502 eddiebe
eddiebe's picture

Do not blink first!

Thu, 04/11/2013 - 05:17 | 3435504 MilwaukeeMark
MilwaukeeMark's picture

Three guys are playing Monopoly and drinking from a bottle of Tequilla. As the game goes on, a little tipsy, guy 1 explains his stategy, "I just sit back accumulating cash until I have it all.".
They play on, drinking and smoking.
Halfway through the night, guy 2, now a little drunk, smugly announces, "fools, I acquire only hard assets."
They play on some more.
By late into the night they are all quite drunk except for guy 3 who seems to be pacing himself. Guy 1 now has all the cash. Guy 2 has all the hard assets, whereupon guy 3 stands up, grabs the rulebook, rips it up, pulls a gun and shoots the other two in the head. Then he scoops up their assets and cash and declares himself the winner.
As he walks out the door he turns to his two dead former opponents and says, "and I adjust to the situtation."

Thu, 04/11/2013 - 06:08 | 3435531 ebworthen
ebworthen's picture



Tangibles versus intangibles.

Thu, 04/11/2013 - 06:22 | 3435543 100pcDredge
100pcDredge's picture


Thu, 04/11/2013 - 06:55 | 3435568 strangeglove
strangeglove's picture


Thu, 04/11/2013 - 07:02 | 3435570 ozzz169
ozzz169's picture

more bs fed balance sheet vs gold charts, both are going to go up in unstable economies when fear is high, correlation is not causation, too many damn charts on here imply that correlation is causation when most the time its not and does not examine the underline drivers of each.  the feds balance sheet is not nearly as big a problem as people make it out to be because it has shit tons of worthless mbs's that it bought from the banks to save them. The main problem from the fed is continuing to buy treasuries and manipulating interest rates, this is bubbling the economy back up from the 2007 deflation of the bubble created by Greenspan, which needed to deflate but has not been allowed to. you might start to see inflation in the coming months and years though as now you have reflated the bubble to a large degree, and they have bought up enough of the MBS's that the banks are now in a lot better shape and are probably solvent. but most likely not, as the only people getting any money are the Cronies.  banks wont loan money out at these rediculously low interest rates unless they are government backed, and who could blame them, they know rates are rediculously low, so they will borrow at zero, pay you zero for your deposits and buy "riskless" bonds and make the spread, equating to billions in profits being stolen from savers.


Thu, 04/11/2013 - 08:06 | 3435654 jeebus
jeebus's picture

This is SO SCARY. The people who don't have any gold, are so screwed, it's kind of hilarious.


Well, silver will be accepted also.

Thu, 04/11/2013 - 10:21 | 3436119 GVB
GVB's picture

They indeed will ALL wake up one day and find out they got a haircut. Probably on sunday morning. Anyhow, I'm already wondering who will be next in line to admit "some" of their banks are "in trouble". After Slovenia, would that be France or Belgium?? Uhmm.. Both!

Thu, 04/11/2013 - 10:37 | 3436213 shovelhead
shovelhead's picture

" I don't care if it rains or freezes

As long as I have my plastic Jesus

Sittin on the dashboard of my car..."


Pointless, non-sequitur post of the day.

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