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"Panic" For Physical Gold Spreads To UK Where Royal Mint Sales Of Gold Coins Triple
Following the entire "developing" world (where faith in paper money "backed" by $1 quadrillion in derivatives is at times questioned, and instead the people, for some inexplicable reason, fall back to hard currency equivalents) scrambling out to their local precious metal dealers to find "out of gold" signs virtually everywhere, yesterday it was the US Mint's turn to announce it had halted shipments of the popular one-tenth ounce gold American Eagle coin as it had run out, following a surge in demand (we expect this shortage will soon spread widely to traditional one-ounce denominations shortly).
Things in the US have gotten so bad, not only are most online dealers backlogged weeks and months in advance for most PMs (as the CEO of Texas Precious Metals explained in detail), but respected bullion vaults are also now on the verge of running out of inventory. As Reuters described, "Michael Kramer, president of Manfra, Tordella & Brookes (MTB), a major U.S. coin dealer in New York, has been inundated by orders from existing and new wholesale and retail customers. "It's panic. This is one of the busiest times in quite a while. People think gold's at the lows and they want to take advantage."
It was only a matter of time before the last bastion of paper money, London, also succumbed to the soaring demand for physical, and sure enough moments ago Bloomberg reported that the "Britain’s Royal Mint, established in the 13th century, sold more than three times more gold coins this month than a year earlier as prices declined."
Sales are more than 150 percent higher than last month, according to Shane Bissett, director of bullion and commemorative coin at the Royal Mint.
“Since the dip in the price of gold we have seen increased demand for our gold bullion coins from the major coin markets, and this presently shows no sign of abating,” Bissett said by e-mail in response to questions from Bloomberg. “The Royal Mint continues to supply to its customers and is increasing production to accommodate the higher demand.”
Its not only the UK Mint, but a pervasive global "panic" to get as much gold as possible while prices are as low as they are, courtesy of the recent takedown in spot.
Standard Chartered Plc said yesterday its gold shipments to India last week exceeded the previous record by 20 percent and were double the total of the week before.
“The concern is really how long it can last,” said Dan Smith, an analyst at Standard Chartered Plc. “A lot of people surge in on the low prices and then they are likely to back away a bit as prices rally and they’ve restocked.”
Don't worry, Dan: for now the surge is going on, and on, and on, and so on. We will be sure to inform you, however, when physical demand is finally satisfied. Until then, we have several months of backlogged demand to catch up on, and possibly the default of one or two depositories in the meantime.
Finally, for all those confused by the non-linear relationship between paper gold (selling via ETFs and other), and physical gold (buying via retail and corporate channels), here is Bank of America with a quick and dirty summary of how to think about the relationship:
With prices now below $1,500/oz, we expect a pick-up in jewellery demand in the medium term and see considerable pain for miners should prices dip below $1,200/oz. As such, we believe the downside to gold prices may be limited to an additional $150/oz. In fact, we estimate that jewellery demand may become so pronounced by 2016 that prices could trade above $1,500/oz even if investors remain net sellers. Looking at sensitivities from a different angle, investors would need to buy merely 600t of gold to sustain prices at $2,000/oz by 2016, compared to non-commercial purchases of 1,798t in 2012.
So yes - physical demand can and will offset even virtually unlimited paper selling, assuming of course demand for physical persists at the recent pace.
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No you're quite right. Tulips should be planted. Gold should always be carried on your person, even on fishing trips in leaky boats..
Keep Calm, This is just a transitory episode of people converting pounds into barbarous relics, once they figure out they can't eat it, they'll take it back and exchange it for pounds.
https://www.youtube.com/watch?v=fyklt01lN_I
pounds of what...
rice or .beans
At first, I thought I was getting Rickrolled by another harlem shake video but I'm glad that I gave this one a chance. Good one!LOL That song drives me up the wall.
Check out the SVP of APMEX claiming no manipulation - he either is stupid or in the pockets of JPM - either way time to find another dealer I guess https://www.youtube.com/watch?v=9FFbp8l4ruA&feature=player_embedded
APMEX and JPM are best buds. APMEX gets all kinds of kickbacks form JPM for banking with them and using JPM as their clearing banker.
I don't think that's true anymore. I believe they're now using the bank of oklahoma.
Again, I was assured by a customer service representative at APMEX that they bank with the Bank of Oklahoma, a division of BOK. BOK is not related to JPM. I think you need to document this charge.
from a business viewpoint, a normal bbusiness does not want to say manipulation or conspiracy as it tends to drive the customers who are new away.
If thoise customers take some time to figure it out, when the Fed says its keeping rates down thats manipulation, When it buys MBS, thats manipulation. So then, once past that the newbies and uninformed might get the idea that there are no free markets, only interventions. But you have to work with them so they understand.
Blight masters must be working furiously in the bowels of the jp morgue.
Verrry verrry veeerd.
BTFD!
Obsolete, thuggish brutes
/sarc/
Lots of folks turning into barbarians, it seems...
"People who buy gold are uncivilized" Charlie Munger, crony capitalist and all around jerk.
Charlie Mungers On
What is good in life?
Conducting your affairs like the sidewalk barker for the Matress Barn
Come on, Trav, call him a "bagholder" and out yourself already.
Yeah, What you said
Fucking barbarian.
Stop commenting, moron.
And stop drinking.
Yeah, okay.
You got a point.
the more they buy.... the more they check youtube... and the goldvirus hits...
I got some swampland out in front the new interstate they building too
Really? Gold goes on sale and folks are surprised by increased demand?
If tomorrow Apple put its I-crap on sale for $5, what would the lines look like?
It would look like a long line of idiots going around the block trying to get into a port-a-pottie.
I can't decide if this is what "they" want or not.
It is hard to imagine how they would benefit from peasants stacking. It appears to us they attempted to frighten the serfs into trading physical for fiat. And it backfired. Maybe they aren't as smart as we give them credit for.
You're so right, but it just seems too......awesome...and that's what is bugging me.
Strictly speaking, the word "awesome" should only be used when speaking about The Holy Spirit. So, perhaps you are RIGHT! Maybe this is the beginning of the FIGHTBACK!!!! We are issuing a challenge to all (including us) ZHers: Stop bashing "sheeple" because without them you are toast. Instead, try to wake them up. We are all Marines now....
The sheeple I talk to are starting to get it although I haven't seen any of them take action. They aren't as dismissive as they had been previously. I keep trying.
Keep it up brother, for when you give up it is certainly over.
I do believe "they" are loading up on physical as well. I mean, they hold paper silver/gold which they know they can dump to suppress the price of paper silver/gold. They know the game will end badly for those who hold paper silver/gold. They know they need to load up on physical... so why not kill 2 or 3 birds with one stone? Exchange all your paper silver for currency, decreasing the price of PPM and slightly jacking up the purchasing power of currency, buy physical with currency. PROFIT. I think this is the sign of the ENDGAME. I think even the banksters are putting all their shit into physical bullion. Amark and CTM are out. Go look at Apmex's website-- either out all together or CRAZY premiums. I think the end is nigh.
Today, someone I knew asked me about gold coins, and he said he was going to buy £50,000 worth- not bad for the initial purchase. Are there any others like him ?
Tell them to make sure they can take possession at the same time they plunk their fiat down.
Without a doubt, brother. The fire is lit!!!!
Is it just me or is there a noticeable Macho Man Randy Savage inflection when you say brother? Not that that's a bad thing.
If you are speaking of the wrestler, yes. If you are speaking of the poster from the San Francisco Pink Pages, no.
Maybe the sheeple aren't all as dumb as they think either?
Maybe someone was looking out for us and did us a favor.
Can we get a hallelujah in the house!
Hallelujah, brother! [flexes biceps, points to the sky, nods] OH YEAH!
OH YEAH
Those who make the rules always benefit:
http://www.zerohedge.com/article/1099-tax-reporting-requirements-half-ou...
Exactly! Here in Kalifornia you have to pay sales tax on PM transactions of $1,500 or less. The little guy gets fucked again so he can remain the little guy.
The power of arrogance . . . or the very real nature of the trap they put themselves in.
I'm going to need three fingers of single-malt scotch and a Macanudo cigar if we're going to wax philosophical about barbarous relics and the nature of man.
I'll have a Partagas and 5 fingers of Ardbeg.
See you at the fire pit.
I'll have a Glade aerosol and a Testors glue tube back
What a crock of shit
That rule never happened. It was repealed before it ever took effect.
http://www.govtrack.us/congress/bills/112/hr4
Hanlon's razor?
You could be right. It's definitely true that many so-called educated and brilliant people (self-designated and/or otherwise) lack a basic understanding of human nature. Maybe this was a horrific miscalculation on their part.
Hanlon's Razor - was that invented by a defense attorney, or improvised on the gallows by a tied-up man?
Never underestimate the lack of common sense coming from pH Dee economists who have degrees from accredited Ivy League universities. It is unlikely their Nobel Prize winning "mathematical" models predicted this surge in demand.
+1. Hubris does not enter their calculations. Perhaps theirs is incalculable.
bingo.
I've been a "physical" guy for decades, but I have no idea where this is going.
The bullish side of me looks around and realizes that 95% of people have no clue what is happening in the gold/silver market and no clue what is happening to the dollar.
The contrarian/bearish side of me sees all these stupid adds on TV to "BUY GOLD NOW" and I know suckers are falling for that crap or there wouldn't be so many adds on TV.
We all know where this fiat game ends...will gold touch $500 before it touches $5,000? who in the heck knows..but i'm willing to take another leg down to just buy more.
I don't have a TV so thanks for the gold ad info. Physical won't hit $500, supplies running out now at current low prices.
I don't know where prices are going either but there is no way gold goes to $500, whereby the common schmuck can purchase anywhere near that price. If we are to believe current research the cost to mine gold is between $800 and $1200 per oz.
$500/oz just ain't happening.
$265.00
Is that your monthly salary for trolling sites like this?
If so, your paymasters are not even getting their money's worth.
I think this is ultimately a side effect. I don't think "they" want peasants to have AU, but honestly I doubt they care much, other than knowing that eventually the physical market will be dry and that'll be the end of that.
What "they" want is to keep the ponzi going, at least a little longer. The central banks want their bullion back, and the bullion banks don't have it and were days away from going boom, so they imploded the price to save them, in hopes that some of the physical can be recovered.
My guess is that plunge in COMEX inventory is going to BBs and COMEX is selective who actually gets physical to make sure it goes only to the BBs. Same with GLD liquidations, if there is any physical backing GLD it's probably going to BBs too.
The end point is the same, though. Physical is going to be in mighty short supply, and the paper markets will have little credibility.
Long warehouse receipts?
Makes perfect sense. Thanks...my headache is going away.
I think the retail market might be getting supplied now from stolen stocks of medium-sized holders.
i.e. those guys who thought they had 20 million bucks worth in der Schweiz but now discover that they can't withdraw it.
I think the Powers have pretty much finished looting the national stockpiles by now.
But indeed -- it's a little hard to figure out the rationale for deliberately destroying whatever remaining confidence there is in the futures market.
"I think the retail market might be getting supplied now from stolen stocks of medium-sized holders."
Interesting thought. I have nothing to contribute by way of pro or con other than to note that it wouldnt surprise me at all.
"But indeed -- it's a little hard to figure out the rationale for deliberately destroying whatever remaining confidence there is in the futures market."
I think its the belief that as a group, the elites will be intact when the current system fails and will be in a position to change the rules and screw the people yet again.
Well, yeah.
But they already have all the gold.
And they have their deep holes in the ground.
So at what point do they stop bothering to do this nonsense?
Or are we seeing the B Team now?
Has the A team already gone to their deep places?
It's an issue of short term versus long term and of self delusion. Short term there is an abundance of new cash, long rotting in mattresses and bank carcasses. This is what they wished for. Long term, however, somebody in the old status quo (the central banks?) is out of the real money - gold. Thus they get it and only later come to regret it.
They thought that by bringing the same conditions that previously indicated good times ahead they would somehow bring the same outcome.
Mallumed was right!!!!
Capital controls coming in 3...2..1....
Look for 1) Windfall tax legislation 2) Cash limited transactions 3) Transportation limitations ...
Don't think that TPTB are simply going to let this happen....no no my friend - they will attack it with avengence . Look at Argentina - it is financial terrorism to conduct business in gold now - against the law - coming to a Homeland Security check point near you....
I'm afraid you might be right on this. TPTB will do anything and everything to control all threats to their system.
Perhaps they should go read deSoto, they harder they clamp down-- the larger the black and grey markets grow, and the less efficient their revenue skim becomes...
Bingo, saw it first hand in East/West Germany in the 80's...
Or more simply: "The more you tighten your grip, Tarkin, the more star systems will slip through your fingers."
- Princess Leia
Let's see... I have yet to pay tax on any craigslist sale/purchase. Limit my cash, I'll take bitcoin too. Transport limits... hmm, sounds like another job for bitcoin!
Capital controls never work, just ask the Argentinian bank that sells .99 gold instead of .995, as .995 is outlawed.
If DHS has checkpoints up, they won't just be looking for gold, that'll be the least of our worries.
I want to thank the gold-shorting manipulators for the after-Christmas sale for PM's.
Ha. You think they did it for you?
Absolutely.
I'm so narcisistic that I believe that the manipulators shorted 400 tonnes of gold so that I would be coerced into believing that the Fed's QE policies are working.
let's get physical - Olivia Neutron Bomb
That would be a great name for a band.
One article a little bit back saying food banks have surged 200,000 in one year to panic buying gold in another thread?
What gives ZH, Durden? I'm here on the ground and most if not the vast majority are struggling to get by, is this the 1% trying consolidation?
We are fucked, lost in a boat out at sea without a paddle.
Probably yes the 1%'ers. As the gold trail and FOFOA put it, the "Giants are waking". A shift from paper financial assets to physical assets is about to take place something akin to stock markets pre-1980's to today's price levels. And there's a whole lot less metal than there are digital shares of companies.
My take straight off alpha,
There aint many folks got a grand on hand for one once of the gold stuff, fuck me, most folk round here would call a grand a MONTH good fucking wages.
This must be the top lot having a go at each other.
Agreed - somebody's buying, but it ain't the hoi polloi. I saw five full page ads in this Sunday's paper, and three were for "we buy gold and silver" places.
Could you imagine selling to a dealer using this spot price? What a hose-job.
I haven't investigated too closely, but I think they buy at 60%-70% of spot. Those ads ain't cheap.
This is purely anecdotal but there are reports from around the world of ordinary people taking their savings of paper money and turning it in for gold, some of them for the first time.
A Chinese grandmother
An old man dressed like a tramp
A mid level bureaucrat in a suit and tie.
An Indian man buying for his 6 year old daughter because it is never too soon to accumulate a dowry, especially at these prices.
In Asia it seems to be mostly older people with long memories. In Australia, North America and Europe the kind of people who read Zero Hedge lol.
Silver.
I am going to guess that increased, almost panic, buying of gold would correlate with hard times among those not able to afford gold. Those buying gold are looking to preserve their wealth in an uncertain and dangerous environment.
That is why I am trying to buy gold when possible. Why I have always bought gold.
I hear you re fucked and lost at sea. Because our governments have failed us, it is now every man (everyone) for himself.
DoChen,
If anyone bothered to read or watch the State of the Union speech AND the Boston Cathedral speech, that is exactly what Obama is saying.
All the talk about values and the rule of law has been replaced with only one ethic--please, take care of each other.
Subtext: No one is coming to help.
Inflation mate... Cause of both. It's gonna get worse. Much worse.
Aye 1971, inflation is sky rocketing here, thats why I find it hard to believe your average joe in England is buying gold.
We just dont have the disposable income available. Fuck me, I dont own one ounce, I am in silver as I just cant afford gold, the wife, two kids, and the vans for work pluss the lads' wages, there just is'nt enough left for the bright yellow stuff, I can only afford silver.
And after reading the fucking up-surge about food banks by 200,000+, I am fucking stunnened and saddened this is happening in 2013. We are going backwards mate, at an alarming rate.
It isn't your average Joe, they haven't heard of gold or silver. I suspect it's people with a bit of cash in the bank saw that get expropriated in Cyprus and have decided the interest rate isn't worth the risk.
Hate to break it to you but there's another decade at least and probably two decades of more of this to go. The goal is to rob the average person to pay the national debt through inflation. Gold and silver can protect you but any hard asset can as well.
Gold and silver are proxies for other real stuff. You know; energy, corn, wheat, land even. Check the chart, 300% up since 01. Almost all the commodities have followed almost identical path and as the printing kicks in again from Japan and the UK when the new guy arrives, they'll be heading back up.
http://www.indexmundi.com/commodities/
It might be worth getting other real assets in place before saving with silver though. Particularly if you can get hold of productive ones.
Inthe you can buy gold for as little as 30£.! You can't afford that?
"We are fucked, lost in a boat out at sea without a paddle."
I think the phrase you are looking for is "up shit creek without a paddle".
In Queer Street = up shit creek
A long way up Queer Street = up shit creek without a paddle
By the way for our non English readers, being up Queer Street isn't what it sounds like.
I love bubbles- that's a cheaper buy-in point some day when people rush for the exits during a commodity-crushing deflation event.
Right, what the cost of food, fuel, and healthcare in fiat now, compared to 5, 10, 15 years ago? - FAIL.
so-all of those things have never increased in price during other bubbles-FAIL
So now you want to argue that an increase in money supply and bubbles is "deflationary" - Contradict yourself much loser? fucking halarious.
increase in money supply has nothing to do with velocity-and you spelled hilarious wrong -fuckhead. now go shove an AGE up your ass or at least try to buy gas w/ it- oh yeah-you can't.
Try addressing the question loser troll. So now rising commodity costs/bubbles are "deflationary"? I have never had trouble exchanging any PM for anything or the value of anyone's labor loser. Not even a good troll.
troll this bitch- you can run up to Shell and the attendant will gladly give you change back for you $1300 AGE? maybe I'll give the landscaper that's mowing the grass right now a few ASEs for his labor-do you think he'll ever come back? you guys and your worship of gold are amusing.
Hmmm...it seems to me that at least three states have legalized or are contemplating the legalization of gold and silver as legal tender...why is that? And if your landscaper had a brain, he'd take you up on your offer...
A few months back I took a 100oz Englehard brick to my local dealer. He took it and gave me a check. The whole process took 15 minutes - including the drive.
Ask those same questions in a year or two, and I'll bet my shoe you get different answers. I've noticed many more folks on Craigslist accepting bullion now, for instance.
weak, I can turn gold in any fiat I like, price the _________ in whatever fiat you like, it won't matter one bit, an ounce will still be an ounce. How many states accepting gold as payment now?
FIAT - Fail. Or soon to be fail.
That's been the word since the Roman empire
That's right, people are rushing for the exits. They sell their worthless paper (USD, COMEX Futures, GLD shares...) and buy real money (physical gold) with it.
As for whatever relation this has with commodities, I'm unable to see it. Which commodities are you talking about?
Look at the cost of diesel now relative to 5, 10, 15 years ago. No significant price drop there. My tractors don't go without it.
We're talking about gold, not commodities... :-)
BUY. GOLD. RIGHT. THE. FUCK. NOW.
Gordon I'm not supposed to trade off comments sections on websites!!!
But you are Gordon Gekko!
Also, if you want a friend... get a dog.
fonz, Gordon has been giving that advice since I first came to ZH.
He has been absolutely right. Tomorrow I buy more, if it is available.
I am glad that I have been buying since the 1980s. If they run out, at least I have a decent amount.
Too bad I don't have any spare cash now or I would.
Have anything you can sell? Sell it! BTFD!
1/10 oz GAE had their premiums increased by $30/coin overnight!
Came across this gem as well: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/23_Sinclair_-_Swiss_Bank_Just_Refused_To_Give_My_Friend_His_Gold.html
JWillie indcates that the premium on one ounce of gold could go as high as $500......
We prolly wont know the true price of Gold until after WW3 is over
"In Gold We Trust"....just add the ''L'' if you know what I mean...
Free willie indicated that tonnage plus orders for major players like central banks and large soveriegn funds were seeing 2k an ounce, and 35-40 for silver.
This again is in multi ton orders of good delivery 400, or 1000oz bars. I have zero trouble believeing it.
Panic on the streets of London
Panic on the streets of Birmingham
I wonder to myself
Could life ever be sane again ?
HANG THE BANKSTERS, HANG THE BANKSTERS, HANG THE BANKSTERS...........................HANG THE BANKSTERS
The Smiths were awesome but Morrison is a mentally deranged tool
Morrison is dead, ALLEGEDLY. Morrisey, on the other hand, is alive and well.
Morrisey is a problem.
He won't listen and he is not the least bit obedient.
https://www.youtube.com/watch?v=KKoS5X4SMrY
Learn to love me assemble the ways
Now today tomorrow and always
My only weakness is a list of crimes
But last night the plans for a future war was all I saw on channel 4
First hang the oligarchs. I would hate hang the banksters if I thought it would distract long enough that the oligarchs go free.
+1 for The Smiths reference
Saw Johnny Marr recently. If he is coming to a town even remotely near you do NOT miss it.
In a world where unlimited amount of fake "money" can be printed by gangsters, Gold is the only thing that can reveal the BANKRUPTCY of the system.
And it shall in the not too distant future.
I agree. But, remember that when money fails, violence gets real. Not enough people will have any gold or silver in any quantity to use as money. Folks on this site need to keep this in perspective.
This might be more relevant:
http://www.bloomberg.com/news/2013-04-23/u-s-mint-runs-out-of-smallest-american-eagle-gold-coin.html
How does paying 20% VAT on a gold coin make it a good deal ?
Gold is exempt from VAT. I think in all EU.
If your (insert fiat of choice) is made worthless over time.
80% is preferable to 0%
No VAT on gold and, people in the UK quite like the British coins as well because being legal tender with a face value, they are Capital Gains Tax free too. Krugerrands, Eagles you have to pay capital gains on, not so Britannias and Sovereigns.
there was VAT on coins/gold but then some fancy guys took invoices to claim back the VAT, once it was re-paid cancelled the order and ran. There was serious money missing, so they stopped VAT on gold because of the open ticket created to defraud the revenue
It's really funny that they sold their gold reserves few years back. Here's a quote from wikipedia:
"The UK government's intention to sell gold and reinvest the proceeds in foreign currency deposits, including euros, was announced on 7 May 1999, when the price of gold stood at US$282.40 per ounce.[8] The official stated reason for this sale was to diversify the assets of the UK's reserves away from gold, which was deemed to be too volatile."
What would be scary is if the skuttlebutt about Brown's bottom was true and Bernanke pulled a Rinse, Repeat on the rationale-
Freaky Deaky
DIE COMEX DIE!
In German that means "THE COMEX THE!"
They are just as unethical and immoral over there as here.
Gold mining is extremely dangerous work for children. Yet still today, tens of thousands are found in the small-scale gold mines of Africa, Asia and South America. Children work both above and under ground. In the tunnels and mineshafts they risk death from explosions, rock falls, and tunnel collapse. They breathe air filled with dust and sometimes toxic gases. Above ground, children dig, crush, mill, and haul ore – often in the hot sun. Some stand for hours in water, digging sand or silt from riverbeds
some of the world's leading jewellers, gold refiners and traders are meeting at the Precious Metals Conference in Hong Kong about the state of the gold business globally. The focus is on the growing importance of China in the gold sector and the global economic crisis. Unfortunately, child labour and other human rights issues will not be on the agenda. But that's not because it's a marginal issue.
Some 1 million children work in artisanal and small-scale mines that rely on basic techniques and often belong to the "informal sector" that avoids government regulation. Mines in Africa, Asia and Latin America produce 15 per cent of the world's gold. This gold often reaches traders and refiners in Switzerland, Dubai and elsewhere.
SO, GO GET THOSE KIDS OUT OF THE MINES...
Oops, sorry...You're only armchair ethical and morally superior.
My bad.
That can only happen if you withhold your support of this brutal industry and refuse to buy gold.
Otherwise you are complicit
If you are using the dollar, you are complicit to the acts for the Federal Reserve Bank, their theft, and criminals acts of their proxy (Primary dealers and the Industrial military complex), go fuck yourself pud, very appropriate name by the way...
I buy tobacco company stock too so fuck off.
then you are a most evil man
The most evil man is the disingenuous and malicious liar who tries to convince the passengers of a sinking ship that the lifeboats are not only unsafe, but don't even really exist --- and even if they did exist, it would be "immoral" to use them because some trees were cut down in their construction.
You are contemptible.
PS: PUDdle of shit, why are you not equally, if not even more, concerned about the mining of "blood diamonds"? After all, nobody really needs diamonds, right? What good do they serve? Isn't diamond mining immoral too?
For that matter, what about professional sports? Isn't that a waste of resources for no productive end? What about television programming, political campaign spending, entertainment of all kinds, gourmet food, music, art ---- all "unproductive" and "unnecessary", right?