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Marc Faber: "People With Financial Assets Are All Doomed"

Tyler Durden's picture




 

As Barron's notes in this recent interview, Marc Faber view the world with a skeptical eye, and never hesitates to speak his mind when things don't look quite right. In other words, he would be the first in a crowd to tell you the emperor has no clothes, and has done so early, often, and aptly in the case of numerous investment bubbles. With even the world's bankers now concerned at 'unsustainable bubbles', it is therefore unsurprising that in the discussion below, Faber explains, among other things, the fallacy of the Fed's help "the problem is the money doesn't flow into the system evenly, how with money-printing "the majority loses, and the minority wins," and how, thanks to the further misallocation of capital, "people with assets are all doomed, because prices are grossly inflated globally for stocks and bonds." Faber says he buys gold every month, adding that "I want to have some assets that aren't in the banking system. When the asset bubble bursts, financial assets will be particularly vulnerable."

Excerpted from Barron's:

On the error of the Fed's ways:

The Fed has been flooding the system with money. The problem is the money doesn't flow into the system evenly. It doesn't increase economic activity and asset prices in concert. Instead, it creates dangerous excesses in countries and asset classes. Money-printing fueled the colossal stock-market bubble of 1999-2000, when the Nasdaq more than doubled, becoming disconnected from economic reality. It fueled the housing bubble, which burst in 2008, and the commodities bubble. Now money is flowing into the high-end asset market - things like stocks, bonds, art, wine, jewelry, and luxury real estate.

 

Money-printing boosts the economy of the people closest to the money flow. But it doesn't help the worker in Detroit, or the vast majority of the middle class. It leads to a widening wealth gap. The majority loses, and the minority wins.

 

...

 

The neo-Keynesians would argue that if the Fed hadn't flooded the system with money, things would have been much worse. That might be true, but they would have been worse for a shorter period of time.

On the Bubble:

I am suggesting that in the fourth year of an economic expansion, near-zero interest rates will lead to a further misallocation of capital. I thought the U.S. market would have a 20% correction last fall, but it didn't happen. I also said the market might explode to the upside before the correction occurred. We might be in the final acceleration phase now. The Standard & Poor's 500 is at 1650. It could rally to 1750 or even 2000 in the next month or two before collapsing. People with assets are all doomed, because prices are grossly inflated globally for stocks, bonds, and collectibles.

On China:

There has been a huge credit bubble in China, and it isn't going to end well. Its economy officially grew 7.7% in the first quarter. In reality, it is growing 4% a year, at best. Figures on Chinese exports to Taiwan, South Korea, Hong Kong, and Singapore don't agree with the import figures of those countries. In each case, reported exports are much larger than reported imports.

On wealth divides and Social Unrest:

Again, the economy of the rich is booming. There has been huge wealth accumulation in Asia in recent years. But the middle class has experienced diminishing purchasing power. Throughout history, growing wealth inequality has been corrected either peacefully, through taxation and wealth redistribution, or by revolution, as in Russia.  I am not sure we will have a revolution in the Western world, but I can see European voters turning against the arrogance of the bureaucracy.

On Europe:

Investors don't fully comprehend what happened in Cyprus. In the event of future bailouts, bank depositors will lose a percentage of their money. Money in the bank isn't 100% safe anymore.

On Gold:

Gold is down 30% from its 2011 peak of $1,921, but has far outperformed financial assets since 1999. A correction was overdue. I have about a 25% allocation to gold and buy some every month. I want to have some assets that aren't in the banking system. When the asset bubble bursts, financial assets will be particularly vulnerable.

 

Gold is easier to carry than a Lamborghini.

 

Most of my gold is in a safe-deposit box in Switzerland, but I am shifting it to Asia.

 

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Sat, 06/01/2013 - 18:22 | 3617114 DaddyO
DaddyO's picture

FRN's into tangible assets like Ag, Au, Pb makes sense then?

DaddyO

Sat, 06/01/2013 - 18:45 | 3617141 SRSrocco
SRSrocco's picture

Marc Faber is totally correct.....

ENERGY DRIVES THE WORLD'S ECONOMIES, NOT FINANCE.

This is exactly what I discuss in my new post:

The Greatest Fundamental Reason to own Precious Metals

 

http://srsroccoreport.com/the-greatest-fundamental-reason-to-own-precious-metals/the-greatest-fundamental-reason-to-own-precious-metals/

Total Global Pension Funds are $33.9 trillion and the United States hold $17.6 trillion of that amount.  This will end badly,,,

Sat, 06/01/2013 - 18:57 | 3617150 Richard III
Richard III's picture

Aye, verily -- the S&P 500 is currently near nominal all-time highs; yet, in constant dollar/inflation-adjusted terms, we are still 20% below the "Winners of the New World" levels of 2000.

Never underestimate the backstopping potential of QE. The House always wins.

Sat, 06/01/2013 - 19:06 | 3617171 DaddyO
DaddyO's picture

Steve brings up the very important reality of what really drives the world economy. If you think not, just look back at the timeline of history around the discovery of and exploitation of oil and see how the world economy, technology and politics to control said oil take off like a solid rocket booster. The US domination of the oil industry has brought us all sorts of historical blips on the map. The escalation and exportation of the MIC, the FED, OPEC and the list goes on...

DaddyO

Sat, 06/01/2013 - 20:09 | 3617292 cifo
cifo's picture

Marc, not that fast. This is going to be a looooong battle.

Sat, 06/01/2013 - 23:06 | 3617586 francis_sawyer
francis_sawyer's picture

"the majority loses, and the minority wins,"

~~~

Hmmm ~ Isn't that the francis_sawyer 'asymmetry' argument?

Sun, 06/02/2013 - 00:49 | 3617707 StychoKiller
StychoKiller's picture

Shoulda patented it...

Sun, 06/02/2013 - 07:00 | 3617888 GetZeeGold
GetZeeGold's picture

 

 

Gold <--- because it's worked for Germans, Vietnamese, and countless others fleeing oppression for 6000 years....and counting.

Sun, 06/02/2013 - 11:00 | 3618068 jbvtme
Sun, 06/02/2013 - 12:17 | 3618227 AldousHuxley
AldousHuxley's picture

Catholic church recommends relics made in gold.

 

They've seen enough throughout ages.

 

So do Buddist and Hindu temples. All the gods are carved in gold not in bernanke bucks.

Sun, 06/02/2013 - 16:11 | 3618656 Motorboat
Motorboat's picture

Glad to see francis_sawyer didn't get banned by the thought police for certain views on clowns,  like others I know.  

I'm giving francis a thumbs up every time he says anything from now on, he was right all along.  

Sat, 06/01/2013 - 19:02 | 3617159 Greyhat
Greyhat's picture

Faber is funny! "Money in the bank isn't 100% safe anymore."

It never was! Did he believe in this muppet show?

Sat, 06/01/2013 - 20:39 | 3617351 Anusocracy
Anusocracy's picture

"Money-printing boosts the economy of the people closest to the money flow. But it doesn't help the worker in Detroit."

What a relief - there's a worker in Detroit.

Sat, 06/01/2013 - 21:14 | 3617415 akak
akak's picture

Hey, those drugs don't sell themselves, you know.

Sun, 06/02/2013 - 10:46 | 3618074 cro_maat
cro_maat's picture

Mayor Bloomberg quoted in the NY Post yesterday agrees with you in his argument against legalizing medical marijuana:

“The bottom line is I’m told marijuana is much stronger today than it was 20, 30 years ago,” Bloomberg said on his weekly WOR radio show. “That’s one problem. No. 2, drug dealers have families to feed. If they can’t sell marijuana, they’ll sell something else.”

So I guess what he is saying is that if you legalize marijuana then you take away the fat profits of the drug dealer which would impede his / her ability to feed his / her family. So maybe his "Stop & Frisk" policy is to ensure limited supply on the streets and high prices. Nice to know he is doing his job to support local farmers and distributors!

Sun, 06/02/2013 - 00:16 | 3617677 prains
prains's picture

Where do you think they make the Chevy Shitstain?

Sun, 06/02/2013 - 02:02 | 3617744 Never One Roach
Never One Roach's picture

Dear Valued Client:

Just a brief notice to inform you all your financial assets held with AAA+ Korzeen High Quality Triple Return Millenium Trust Fund were Rehypothecated yesterday (while you were sleeping soundly).

Your balance is now -0.00-

Please accept our deepest....

Sincerely,

The Honorable Korzeen, Esq, CEO (and Big MoFo as far as you're concerned)

Sun, 06/02/2013 - 04:39 | 3617820 Ghordius
Ghordius's picture

you are confusing rehypothecation (a status which applies to a lot of assets while their owners were sleeping) and corzined (the act of losing client money)

Sun, 06/02/2013 - 09:19 | 3617975 Its_the_economy...
Its_the_economy_stupid's picture

(the act of "stealing and then" losing client money)

-fixed it

Sun, 06/02/2013 - 21:43 | 3619258 MeelionDollerBogus
MeelionDollerBogus's picture

ALMOST genuine but if I recall, Gerald Celente said they actually reported negative balances on positions and had the gall to ask for MORE money to "keep your account in good standing".
No shit.

Sat, 06/01/2013 - 19:20 | 3617191 franzpick
franzpick's picture

Let's see: u.s. pension fund assets of $17 T, and national debt of $16 T. Wonder if oBamy, Valerie and Lois are taking lessons in doing the danse macbre of pensions, the 'argentina'.

Sat, 06/01/2013 - 19:46 | 3617242 thefedisscam
thefedisscam's picture

Yeah, right, as if that Pension figure is a constant. Wait until the stock market crash, then tell me what is the Pention fund assets

Sat, 06/01/2013 - 20:19 | 3617304 Totentänzerlied
Totentänzerlied's picture

They control stock market levels... If you believe the pension confiscation 'hypothesis', record nominal highs make perfect sense, they will take the the money and run while the bullshit nominal number is high, duh, sell, and convert to something else with a bit less counterparty risk. Then resume the stock market slaughterfest.

If you believe that 'hypothesis'.

Sat, 06/01/2013 - 21:12 | 3617413 tyler
tyler's picture

Roco what came first the chicken or the egg?  I'' cede you youre undying desire to pronounce energy God itself.  OK maybe not God but I seen your monthly presentations enough times to confidently ask, money buys energy?  No money, no currency at least no energy.  Currency keeps energy afloat.  No energy with money chasing it?  Currency wins.  Energy new maybe so is found?  You ever seen somebody starve to death, probably not I've seen some shit.  You take away a mans currency you can predict the unpredictable.  Like when they locked my road dog up took away his alcohol.

 

www.thetalkativeone.com 

 

 

Sun, 06/02/2013 - 12:01 | 3618203 tango
tango's picture

In one sense you are correct.  ZH posters ALWAYS choose the simplistic argument because it's....simple.   Resources alone do nothing.  These same resource so incredibly exploited today to give us this modern world have always been there.  It took curiousity, capital, wealth,  science and an atmosphere suited for investing.    If owning resources was all it took then Nigeria and Russia should be ruling the roost.  Japan and Singapore should be on the bottom.  Obviously that is not the case because different societies have different outcomes and policies.   After all is gone, the Middle East will rapidly return to its pre-modern tribal lifestyle and continue to make zero contributions in the worlds of science, entertainment and art. 

Sat, 06/01/2013 - 21:45 | 3617469 PiltdownMan
PiltdownMan's picture

Look at Treasuries, MBS and MBS risk over the past month. They have gotten clobbered. See this guy's charts.

http://confoundedinterest.wordpress.com/2013/06/01/treasury-yields-risin...

Sun, 06/02/2013 - 07:05 | 3617890 GetZeeGold
GetZeeGold's picture

 

 

So plunging into Greek bonds may not be a wise idea at this juncture?

Sun, 06/02/2013 - 11:06 | 3618113 Hulk
Hulk's picture

With everything you got!!!
Sell the couch too !!! 

Sun, 06/02/2013 - 00:18 | 3617679 Paul Bogdanich
Paul Bogdanich's picture

People like Mr. Faber make me ill.  They can see that financial assets are a bust and they think of everything but the one thing they will nevr do is take some of their goddamn money and invest it in a productive asset that employs people.  Buy a cattle ranch for gods sak and eat you mistakes.  A vinward, oil wells, a machine shop, a resteraunt, a shop that makes furniture - anything.  But Noooooooo.  And then these same assholes lament the state of the real economy.  Hate to be a jerk and ascribe the behavior to a particular religous minority but he sure behaves as one in the classic sense ala the Brothers Grimm.      

Sun, 06/02/2013 - 03:42 | 3617799 Oracle of Kypseli
Oracle of Kypseli's picture

All the alternatives you mentioned require hard work and life time commitment.  You cannot invest in them without participation. 

Faber likes to invest in less intensive ventures that he can control from his mini ipad while participating in enjo kosai

 

Sun, 06/02/2013 - 07:08 | 3617893 GetZeeGold
GetZeeGold's picture

 

 

People like Mr. Faber make me ill.

 

It's called normalcy bias. The world is pumping out paper full tilt.....but there can only be one Zimbabwe.

Sun, 06/02/2013 - 10:34 | 3618053 Citxmech
Citxmech's picture

Faber has advocated buying remote farmland away from cities for years.

Sun, 06/02/2013 - 09:08 | 3617965 debtandtaxes
debtandtaxes's picture

Hmmm. You're right! I'll cash out the $5K of PMs I managed to hive away just in case it all falls down and I'll buy a "productive" asset. Let's see I can afford a ......hmmm. Guess that's why some of us believe in PM's. It's all we can afford!

Sun, 06/02/2013 - 09:29 | 3617988 optionsman
optionsman's picture

-1

what about clearing price for any of what you listed as productive assets? too high! what about expectations for the future state of the economy? what are you even talking about when you say real economy? financialization of the developed world economy leads to rentier nation states and this has been in the accelerated phase for at least 20 years. for any of what you are suggesting to happen the Fed needs to stop QE, unwind the balance sheet. This goes for every central bank of the world involved in easy monetary policy. This would lead to all assets' prices correction to free market clearing levels. free price discovery once again would support the notion that markets reflect economic fundamentals. and then and only then you'd be correct.

Sun, 06/02/2013 - 10:35 | 3618032 fockewulf190
fockewulf190's picture

Faber´s message has always been that the current economic system worldwide is terminally sick and cannot be saved.  The evidence is everywhere to see.  Debt has risen so high, not only can it never be payed back, it is being increased by trillions per year on a worldwide basis.  Underneath the entire financial system ticks the derivatives time-bomb which has ballooned to over $700+ trillion alone.  There is ongoing massive printing of money, backed by nothing but the thinnest of air.  On top of that, there is also uncovered healthcare and pension iabilities amounting in the tens of trillions. Governments have been proved woefully irresponsible and ineffective in dealing with this crisis.

Faber, and others like him, are warning people to protect your wealth now so that when the Great Reset hits, and it will, you won´t be totally wiped out holding worthless fiat and the paper instruments linked to it.  Those holding phyzz and other hard assets will be in a better position to survive fiscally and do the investing again after the Phoenix rises from the ashes of the old system. 

It is every mans choice to believe the Mark Fabers of the world or not.  He has stated that he holds 25% of his assets in gold.  Frankly, I´m surprised his phyzz position is that low, but still, considering the shit storm heading our way, having at least a 25% buffer in real money can only be judged as being prudent. The Chinese, judging from the massive amounts of phyzz they have been accumulating, are  clearly trying to position  themselves to be the dominate economic power post Great Reset  They understand the message of Marc Faber well.

Sun, 06/02/2013 - 23:50 | 3619528 webspin
webspin's picture

"Debt has risen so high, not only can it never be payed back, it is being increased by trillions per year on a worldwide basis. "

Debts priced in dollars can easily be repaid in more printed dollars. It's only when the debt holder refuses to accept your fiat currency as payment that you start having 'a situation'.

Sun, 06/02/2013 - 20:05 | 3619068 MeelionDollerBogus
MeelionDollerBogus's picture

How the fuck do you know? Do you run Marc Faber's portfolio? Does he want a crowded investment / trade?

Who today would you employ, what would you invest in and be sure of a safe return, even if marginal?

If you invest in just ANYTHING odds are 100:1 you will lose it all. You have to be smart or to hold off.

Sat, 06/01/2013 - 18:26 | 3617121 terryfuckwit
terryfuckwit's picture

gold silver bitcoins and asian women bitchez

Sat, 06/01/2013 - 19:03 | 3617165 Greyhat
Greyhat's picture

Can you eat em? :D

Long farm land, seeds and the needed tools to protect these.

Sat, 06/01/2013 - 19:14 | 3617184 DaddyO
DaddyO's picture

Dining at the Y?

+1 on farm land, seed and tools!

DaddyO

Sat, 06/01/2013 - 19:35 | 3617221 Titan Uranus
Titan Uranus's picture

Can you eat farmland, seeds, or tools?

Sat, 06/01/2013 - 19:54 | 3617253 Fish Gone Bad
Fish Gone Bad's picture

You can eat the vegetables, just not their wheelchairs.

Sat, 06/01/2013 - 20:22 | 3617312 CrashisOptimistic
CrashisOptimistic's picture

We've already covered this. 

If society reaches a state where the collapse is so pervasive that gold is even remotely considered a medium of exchange, that severity defines a situation where no one with things of actual value, like calories (farmland), will trade those things for yellow metal.

Think about it.  When collapse is that extensive, only food and warmth matters.  Calories and joules.  Not ounces.  I have no axe to grind here, but it's pretty obvious.

 

Sat, 06/01/2013 - 20:46 | 3617366 I need Another Beer
I need Another Beer's picture

True enough, but we stack pm simply because of lack of faith in governments.

By the way, it is easy to put down a shallow well in the back yard and connect a hand pump.

 

 

Bury that shine here bint !!

Sat, 06/01/2013 - 21:56 | 3617486 BoNeSxxx
BoNeSxxx's picture

Still useful as a medium of exchange. Don't over think it.

Sat, 06/01/2013 - 22:54 | 3617569 CrashisOptimistic
CrashisOptimistic's picture

You didn't read it and are probably talking your book.

No one will exchange calories in a calorie scarce world for yellow metal.  Period.

Sat, 06/01/2013 - 23:23 | 3617613 Goner
Goner's picture

This is argument always misses the point.

PM's are what you buy AFTER you have the necessities taken care of. After that you buy a few extras, a few wants each month and some shinny's

I have enough access to calories. If you show up with with some gold coins I would trade with you then see about maybe trading more food for some work on the garden.

And after the collpase and we are rebuilding I have a head start. See Daddy-O's port just below this

ps - I did not ding you

Sun, 06/02/2013 - 03:49 | 3617802 Oracle of Kypseli
Oracle of Kypseli's picture

One more point on that is no matter how bad things may get there will always be rich people who would prefer to give you  what you want in exchange for PM's as these people have enough other assets.

A current example is Argentinians buying BMW's to preserve some of their money as PM's and hard currency can not be had.

Sun, 06/02/2013 - 07:19 | 3617894 GetZeeGold
GetZeeGold's picture

 

 

Can you eat farmland, seeds, or tools?

 

Take some paper cash out of your wallet. Are you going to eat that?

 

Any other stupid comment you'd like to make?

Sun, 06/02/2013 - 09:01 | 3617960 Acet
Acet's picture

If the outcome is a Mad Max style world, then indeed PMs won't be very usefull during the worst period - you're better of owning the means to produce food in a highly defensive location plus the weapons and men to defend them against the raving, starving crowds which will come down from the cities.

However if the outcome is a slide down to 2nd or 3rd world economy status, out of control monetary system and maybe even some kind of represessive regime, then PMs will be very useful because they're well understood and have a history of use as units of exchange in trade, are outside the control of the state and, at least in the case of Gold, are highly portable stores of wealth.

 

Sun, 06/02/2013 - 10:00 | 3618017 Vendetta
Vendetta's picture

in such a scenario, the crowds from the cities will have only enough gas to go one way out of the cities and then 2 weeks at most after that.

Sun, 06/02/2013 - 20:03 | 3619066 MeelionDollerBogus
MeelionDollerBogus's picture

That's overly optimistic. Already many walmart shoppers have been reported stealing gas or getting stopped out of gas on the road not even making it to the walmart in town.

Sun, 06/02/2013 - 13:50 | 3618415 tango
tango's picture

There will always be rich people because there will always be folks who are smarter, who work harder and more efficiently, who tire of the status quo and a million other reasons.  The implication (perhaps correct) is that rich folks will have a safe food supply along with fortified housing.   I am very doubtful that in a "collapse" - something many posters obviously are panting for - that will be possible.  It's apparent that the key players have enough influence to prevent such an event, especially since half the nation doesn't see a problem with anything. 

Sun, 06/02/2013 - 07:32 | 3617891 BoNeSxxx
BoNeSxxx's picture

You should have dinged him just for being a prick.  I hate it when these dickweeds can't just make their point and let their brilliance do the stomping.

I get it,... there is a point where things could get so bad that people are killing and eating each other.  Wow, deep thinking CIO. Did you come up with that yourself?

In such an environment, NOTHING really matters does it?  Except who has the better training (to grow food and keep it hidden) or the tactical skills and means to take it from you. Simple.  This raises the prospect of the value of guns and ammo in your post apocalyptic barbarian hoard word - G&A value would rival the value of food itself given its linkage to the protection and/or acquisition of said food (via force or via hunting).

So food and guns will be important.  Almost equally so.  I wonder how we could come up with a way to trade them for one another?  You know, one that would not involve carrying bushels of corn 10 miles to town or lumping 100 lbs of ammo through the woods... Or to trade 30 pounds of deer meat to someone when you can't eat it all before it spoils... what could we use in this situation that would be universally accepted? I am stumped. Hmmmm.  

Help me out fellas.  Any ideas?

Sun, 06/02/2013 - 10:22 | 3618037 SimMaker
SimMaker's picture

Tulips

Sun, 06/02/2013 - 11:24 | 3618143 TPTB_r_TBTF
TPTB_r_TBTF's picture

bitcoins?

Sun, 06/02/2013 - 13:54 | 3618424 tango
tango's picture

I have an idea.  Your ultimate catastrophe is one most likely desired by the majority on this board if their comments genuinely reflect their wishes.   So after all is said and done, those yearning for a total collapse simultaneously admit that in such a collapse PM would be ineffective.  The ONLY way PM are useful is in a slow denouement - not a mad scramble for dwindling resources.  I;m not sure I'd care to hang around in a world where I have to dodge bullets every time I went to check on the tomatoes (lol). 

Sun, 06/02/2013 - 20:01 | 3619063 MeelionDollerBogus
MeelionDollerBogus's picture

OK, I was going to hold out but I think you guys deserve the answer.

Nuka-cola caps.

With bitcoin codes stamped on them.

And /sarc on the other side.

Sun, 06/02/2013 - 06:41 | 3617865 jvetter713
jvetter713's picture

Your point is taken however two people with adequate calories will gladly trade in the shiny stuff.

Sun, 06/02/2013 - 07:22 | 3617905 GetZeeGold
GetZeeGold's picture

 

 

They don't teach that in ECON101.....but it's well covered in ECON102.

Sun, 06/02/2013 - 07:46 | 3617919 BigInJapan
BigInJapan's picture

Wrong.

If so, then travel to any famine-ravaged area of the planet, and ask if there is anybody who would trade their food for gold.

Somebody either has a surplus, or would be motivated by said gold to MAKE a surplus.

There is always some guy with a surplus, except in some koombayah socialist circlejerk dreamed up in a hash-fuelled daze.

Sun, 06/02/2013 - 09:22 | 3617979 Lewshine
Lewshine's picture

Crash,

Riddle me this...In the housing crash, who profited?? (A) Speculators who were early and decisive. In the stock market crash who profited?? (A) Speculators who bought between 666 even up to 1300.

A mega collapse doesn't stop trade - Trade survives as long as humans exist. Gold will be extremely valuable for trade for things that we take for granted today,with expectations that things will get better tomorrow. Which again is Human nature. IE: petro, guns and ammo, land, housing, rent, autos, albeit black market...Nonetheless, intelligent "speculators" will see the "yellow metal" for what it is - MONEY, real money!!

...And there will ALWAYS be a MAJORITY of fools who fail to understand these facts. As Jesus declared: "You will always have the poor among you". 

Sun, 06/02/2013 - 19:59 | 3619054 MeelionDollerBogus
MeelionDollerBogus's picture

Always have before and always will.

Not all calories are made equal and you'll get very sick and die if you're missing critical nutrients. Provided you can figure out what you are missing, if you're missing anything, you'll trade 10 to 100 POUNDS of what you've got for that one thing that you will die without. There's a lot of amino acids and minerals and vitamins you will die from total lack. You may need only a little but if you have none, you die. Period. So you'll figure out quick what you DON'T have, or die, and you'll trade for it - with yellow or silver metal. Because they don't go bad and you may need to ORDER the critical foods and WAIT or die if you refuse to risk the wait/order OR move to a new locale.

Ancient humans used both gold/silver AND nomadic travel to help solve this problem.

Will you be nomadic?
Not every terrain can be passed by vehicle & vehicles need fuel. Fuel will be scarce if food calories are scarce. Yet even tribes of old who had to hunt far and wide didn't skimp on food for the horse / mule / camel. They know that transportation is necessary to find good spots for food & water.

Did you consider this?

Those who have no silver/gold to trade will die. Flat out.

Sat, 06/01/2013 - 23:19 | 3617611 gaoptimize
gaoptimize's picture

"By the way, it is easy to put down a shallow well in the back yard and connect a hand pump."  Not in my neck of the woods: Simple Pump Hardware and 200ft of PVC: $780.  Installation in-line with electric pump: $800 (after the wife negotiates).  Damn near $1,600.

Sat, 06/01/2013 - 23:40 | 3617630 RafterManFMJ
RafterManFMJ's picture

Please elaborate on negotiates.

Sun, 06/02/2013 - 06:47 | 3617874 malikai
malikai's picture

Laughed so hard I choked.

Sun, 06/02/2013 - 07:12 | 3617896 GetZeeGold
GetZeeGold's picture

 

 

 

A good wife is hard to find. One that can save you money is even better.

Sun, 06/02/2013 - 09:15 | 3617972 debtandtaxes
debtandtaxes's picture

A good husband is hard to find. One that can save you money is even better.

There. Fixed it.

Sun, 06/02/2013 - 11:58 | 3618198 Hulk
Hulk's picture

and a hard husband is good to find, or so I hear...

Sat, 06/01/2013 - 20:48 | 3617368 DaddyO
DaddyO's picture

To a degree you're on the right path...the barbarous relic is a great store of wealth on this side of a collapse. It then becomes that same store of wealth on the otherside as well when rebuilding starts. During the rebuilding phase, the relic then becomes the means to move into other tangibles such as real estate, investing in other businesses that show signs of prosperity and such.

In the early stages of the reset, that farmland, seeds and other preps mean protection and survival is priority number one. If one makes it throught the early stages, then growth opportunities make sense. History is on our side in this respect, lather, rinse and repeat. The goal then becomes to be the latherer rather than the latheree!

DaddyO

Sat, 06/01/2013 - 21:48 | 3617473 CrashisOptimistic
CrashisOptimistic's picture

I have a worse perspective.

There is no rebuilding.

The easy oil is gone and it takes easy oil to fuel the effort to get the difficult oil.  The easy coal is gone.  The solar nazis somehow think the spare parts to repair things (like solar panels) don't travel via oil.  When trucks stop, everything stops, including the internet.

Collapse is forever. 

Sat, 06/01/2013 - 22:06 | 3617495 fonzannoon
fonzannoon's picture

It will be fine. Once we get rid of half the population.

Sat, 06/01/2013 - 22:52 | 3617565 CrashisOptimistic
CrashisOptimistic's picture

 

It will be okay, not fine, for the 1/7th of the 7 billion remaining.

But they won't travel by plane or motorized anything.  Sail.  And radio will work because foundries can make a few transistors, but not enough customers for CPUs willing to wait 6 mos for the sailed shipment.

The usual phrasing is "we survived without oil before and we will again."

1 billion survived without oil before.  1 billion will again.

Sat, 06/01/2013 - 23:51 | 3617644 prains
prains's picture

and the other 6 billion won't go quietly and that's why when you hedge you need to hedge way past gold, like CO says calories will trump everything longer than you'll remain Au solvent. What's a financial hedge when really it will be your very existence and your kids that needs to be hedged. Zero is a round number.

Sun, 06/02/2013 - 06:56 | 3617877 malikai
malikai's picture

If 6 billion people are dying, you better be prepared for thousands to come, in hoards, for what's yours.

Most importantly, you better be prepared for those hoards to first demand that the goverment come and take what's yours.

"You don't need all those calories. We're starving. It's only fair!"

Sun, 06/02/2013 - 10:03 | 3618014 CrashisOptimistic
CrashisOptimistic's picture

Very good.  And exactly -- prepared for thousands to come.  This comment is after the thread fleshed out above.  Applause for the gold folks above who seem to have an open mind.  Not common with the gold guys.

There is too much reliance on "it's always been that way".  There has never been 7 billion before about to become 1 billion.  The sheer magnitude of the carnage is beyond anything gold has ever seen before.

The rotting corpses will not be buried.  No one will have calories to spare doing that.  Cannibalism is pretty rare, too, even in famines, and given that people don't usually die of outright calorie deficiency, but rather illness that overwhelms the weakened, underfed bodies, the cannibal is eating disease.  That's probably why it is rare.

But, a world of rot.  The thousands streaming from the city will be the thousands with courage and will to live.  They will be the thousands that don't sit and wait for the government to get the trucks running again.  They will be the most formidable thousands.  My guess is they will win most of their battles.  They will take most of the farms within walking distance.  Then they will die the next year as the farm can't support them all without oil based insecticide and fertilizer.

I can almost guarantee you guys that none of those thousands are going to be able to buy their way past the farm's security forces with some yellow metal. 

And btw, the abundance scenario . . . "there will always be someone with excess" . . . that doesn't fly in a downshift from 7B to 1B and no refrigeration.  Excess is for blights.  Excess is salted/smoked and stored for the bad year.  You'd be insane to sell excess stored calories for yellow metal, and anyone with excess in a world without pressurized irrigation, vulnerable to drought, will understand that.

 

 

 

Sun, 06/02/2013 - 14:02 | 3618431 tango
tango's picture

All these detailed discussions of End Times come off as intellectual masturbation, a wet dream for a tv-like Doomsday with hero farmers, marksmen taking out the mean guys, perhaps true love and definitely a PM exchange where other survivors can trade.   When you think about it, the amont of effort devoted to such thinking is incredible and 99% is wish fulfillment without action.  

Unless aliens destroy all oil tomorrow, we will have long migrated to other platforms (natural gas, nuclear, solar, wind, hydro, photosynthesis, micro-movement, quantum fluctuations, whatever).  Oil has simply given us a breathing spell to learn a few secrets of the universe and prepare for the next stage.  

Sun, 06/02/2013 - 19:53 | 3619041 MeelionDollerBogus
MeelionDollerBogus's picture

But soylent green is made of people.

In any case corpses if properly handled make good fertilizer. And if not handled that way can be fed to machines that turn meat to fuel - like the fly-eating robot.

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

And as it happens you'd be very sane to sell excess calories of stored stuff that may go bad, for yellow metal, so that in the future you can get FRESH calories, perhaps more calories, from another source.

Markets exist for a reason. That reason is that opportunities are not constant, not always good, not always bad, frequently not repeating in patterns short-term.

One such opportunity may be the passage to MOVE from one locale to another where conditions for food are better. You can't know today if, when, how or how many times that will happen. The pollution, eco-system, farming/fishing/ravaging of the future years & decades will tell the story in its own time and give you no clues in advance. That again is why we have markets: to adapt.

Sun, 06/02/2013 - 10:05 | 3618021 Vendetta
Vendetta's picture

bankers will get their politicians to start big fat wars to cull the herd, history channel has been showing the bankers' handiwork in living color for years.

Sun, 06/02/2013 - 10:29 | 3618043 espirit
espirit's picture

Not saying I disagree of the previously mentioned thread path, but there are ways of power transmission that only utilize trace amounts of oil in its basic form.  Persons with engineering knowledge (for those that have it), can build with workarounds just about anything with available materials.

Wind turbine blades from street signs, wood gasifier systems to power gensets, etc,etc. 

Complete and utter helplessness might be the eventual accord if the knowledge to survive dies out, but even that is highly improbable unless some psycho with a nuke decides M.A.D. is the only recourse for not being able to own "everything".

Sun, 06/02/2013 - 11:08 | 3618116 cro_maat
cro_maat's picture

Your assumption here is that TPTB have not been taking technology from the aliens that they deny exist and that they have not been stealing "free energy" technology for decades and killing the inventors each time it is discovered again. The world no longer needs black goo from the ground except that all of the technologies that would make the black goo irrevelant are suppressed by the MIC so that they can continue their asset stripping and debt slavery. When they eliminate all of us they will implement this technology for themselves.

Sun, 06/02/2013 - 13:02 | 3618316 MeelionDollerBogus
MeelionDollerBogus's picture

wtf.

You forgot about the assumption I'm making that there's not Leprechaun cyborgs riding robot unicorns made of gold who will strike us with massive weather storms and PRETEND it's our own HAARP to fool us.

You forgot the assumption I'm making that there's not wee little people following us into banks and signing our names to loans when we're not looking.

Or how about... you stop assuming YOUR completely impossible nonsense is even considered by the rest of us because there's not a hint of evidence to make a person even dream of it unless they're already half-nutty.

Sun, 06/02/2013 - 12:47 | 3618276 MeelionDollerBogus
MeelionDollerBogus's picture

it won't be long before we'll use carbon nanotubes to make the transistors - they aren't even metal - and we'll be printing them, not stamping / etching. It will be very efficient & abundant. The need for clean-rooms will entirely change, maybe be gone for good. IF we do it right

Sun, 06/02/2013 - 14:08 | 3618440 tango
tango's picture

Stop with the good news!  We only want destruction, gloom and dreary forecasts of mass starvation, death and the end of civilization.  LOL  I agree 100%.  Technology is a game changer leading us into unknown territory one that WON'T include unkempt mobs armed with sticks and stones chasing all them damm "ferrners" out of town.  

Sun, 06/02/2013 - 23:11 | 3619438 MeelionDollerBogus
MeelionDollerBogus's picture

my bad. DOOOMY DOOMY DOOM.

Let's play the doom song!

http://youtu.be/fqcn_TPu4qQ (Doom song, GIR)

Also, given that robot was built from garbage on the actual show, being built from scrap into a real working robot is pretty cool: http://youtu.be/DH3O534KKqQ

Sat, 06/01/2013 - 22:37 | 3617536 quasimodo
quasimodo's picture

Pashaw! There are billions of oil deep underground in the dakota's and montanta, don't cha know? And after all, it's abiotic man!

Sun, 06/02/2013 - 11:38 | 3618161 TPTB_r_TBTF
TPTB_r_TBTF's picture

 

 

that's fracking fantastic!

Sun, 06/02/2013 - 07:40 | 3617911 Taint Boil
Taint Boil's picture

 

 

I think we burn 10 calories of energy to get 1 calorie worth of food. If or when the flow of oil stops or slows this will be the point where the SHTF. If you had 50 “bad guys” with 50 calibers taking out key refineries or crucial electrical distribution / transformer points you would brings things to a halt in a matter of days. 

Here is one example of how delicate the system is:

I am currently working out of town in a small Nebraska town. I watch 50-60 coal trains go buy the plant every day; they’re about 120 cars in length, 2 locomotives in front and 1 loco in the rear. From what I understand they unload these cars by flipping the whole car over while still attached to line of cars because a bottom “hopper type” unload is not quick enough. Imagine for a moment if somehow this supply line was disrupted for a day, week, month …….. you start to get the picture.

Sun, 06/02/2013 - 10:05 | 3618020 spinone
spinone's picture

When humans found oil, we discovered a virtually unlimited source of energy.  Oil is used to make and produce all the products we consume, including food and medicine.  You could even say that we eat oil.

The human population curve resembles any other organism that has found an unlimited food source.  Here is yeast in grape juice used to make wine:

http://enology.umn.edu/wp-content/uploads/yeast-growth.png

When the food source is depleted, the yeast population levels off, then crashes.  I'd expect thats what human population will do too.

Sun, 06/02/2013 - 02:21 | 3617754 InspectorBird
InspectorBird's picture

There will allways be some medium of exchange, simple barter doesnt scale and we all know that. You say nobody will trade calories for gold? They will, if they know they can trade that gold for ammo later or for clothes or tools or ... or ... or ...  And gold/silver have always been medium of exchange that people fall back to or you have anything better to offer?

Sun, 06/02/2013 - 11:14 | 3618126 noless
noless's picture

I'm sorry, but if i had ten cans of beans, and some starving dude was willing to trade me an ounce for one i would. The only scenario where i wouldn't would be if there was nothing to hunt (nuclear holocaust type event).

But maybe that's just because i know how to set snares/traps or forage.. If i didn't maybe my mindset would be different.

Sun, 06/02/2013 - 11:45 | 3618174 TPTB_r_TBTF
TPTB_r_TBTF's picture

 

 

I would just wait for him to starve and then take his gold. 

Why waste a can of beans on the guy?

Sun, 06/02/2013 - 12:27 | 3618245 MeelionDollerBogus
MeelionDollerBogus's picture

because he probably is armed and probably will ask before he's out of food and will move on and find another person who doesn't do what you do, then remember you're an asshole.

Sun, 06/02/2013 - 13:02 | 3618315 TPTB_r_TBTF
TPTB_r_TBTF's picture

No he is not armed!

 

If he were armed, he would point his weapon at me and demand all ten cans.

Sun, 06/02/2013 - 23:04 | 3619431 MeelionDollerBogus
MeelionDollerBogus's picture

Oh that's nice, assume everyone armed is out to get you rather than just keeping their own self-defense. I'm sure you would have got along fine in the 1800's wild west. There were robbers but there was society too.

An armed society CAN be a polite society.

Sun, 06/02/2013 - 09:40 | 3617996 fuckitall
fuckitall's picture

PMs are for maintaining wealth in a period of rapid currency debasement (unoffical) and devaluation (official), and the worse case, anticipated currency collapse.

For the concept to work you have to get PMs before the debasement/devaluation/collapse when everything appears normal and peaceful as it does now, when PM prices are unnaturally low due to lack of interest.

We saw a good example of this in the 70s.  Gold backing for USD was eliminated in 71.  Nobody in America seemed to care, but other nations did care, and started swapping US dollar reserves for gold.  Gold started rising but Americans still didn't care until price rises got pretty big, Americans suddenly woke up, tried to get in, and the price rocketed up.  I remember calls from brokers in 79 begging me to get in at 800.  But not one call prior to 79.  

Americans are the last people to see what's happening, and when they do they panic, but the real action is over by then, they're buying at the top, as big players are selling, which they did with inside information Fed was gonna spike interest rates up to halt rather stiff inflation at that time.  Americans jumped in at the top and gold started falling soon after when 18% interest rates brought big insider money out of gold back into financials.

We're in 10% - 13% inflation now, and have been since 2008.  Some say 15%.  The currency is debasing rapidly, robbing lots of wealth from people, and it's killing what's left of our consumer spending based economy. 

I don't foresee any SHTF moment for a while, just steady slide downward, keeping people in their normalcy bias, allowing Fed and its Wall Street proxies to keep PM prices down.  Only smart people see what's happening, overcome their normalcy bias, and get in now, despite howls of criticism from, well, just about everybody ...who don't see what's happening, or refuse to because they're heavily into financials (like good sheep).

When that SHTF moment comes, as it will, it'll be fast, too fast for the sheep to do anything about it.  It won't be a stock nor bond collapse.  It'll be currency collapse, the one thing nobody expects.

Sun, 06/02/2013 - 10:39 | 3618064 espirit
espirit's picture

+1 upvote for the normalcy bias meme.  Unusually hard to convince people the ponzi is dependent upon it ~and~ to an extent dependency theory.

Sun, 06/02/2013 - 10:56 | 3618093 jerry_theking_lawler
jerry_theking_lawler's picture

ahha, now you are getting it...the preppers (me included) have multiple plans. here goes:

1. I am invested in the stock market. Because it is going to continue to go up. Hopefully, I can use these gains to purchase more of the listed items below.

2. I own PMs. Because when the crash comes, people will will seek their true value. I hope to use this value to purchase more of the items listed below.

3. I own farm land and the means of production (seeds, equipment, etc). Now I don't have thouands of acres, but I have enough for myself, family, and in the time of a crash, enough to make a 'living' on.

4. I own firearms and ammo. Why? to protect the 3 items above.

5. I educate myself daily on ways to live outside the system.

So, you see, approaching things this way, if it doesn't crash, I will be OK. If their is a monetary crash only, I will be OK. If there is a total crash, I will be OK.

Got milk? I do.

Sun, 06/02/2013 - 12:22 | 3618234 MeelionDollerBogus
MeelionDollerBogus's picture

What you consider a "crash" and a bad one is what normal society considered a normal economy BEFORE paper was forced on us all.

Sun, 06/02/2013 - 12:29 | 3618248 lord of the flies
lord of the flies's picture

SURE! in case of a collapse of course...food only will save you?

And what about a nice brotherhood-gang of  jihaddists fellows with no food, few siver or any gold

but plenty of second hand nato weaponery plus a dozens of pounds of full metal jacket ammunitions coming over to your land or your store asking:

-" was this all your's?...."

know show me how you defend your seeds land home and cakes with carrot bullets smart guy?

Sun, 06/02/2013 - 14:07 | 3618439 Ignorance is bliss
Ignorance is bliss's picture

In my opinion after the reset we will see fiat that's based on a basket of commodities. The current system is based on oil and high velocity lead to the head. The next one will be based on Gold, silver, oil, grain, etc. Gold is great because it doesn't spoil and retains relative value forever. Gold and Silver have fulfilled this role before. We will exchange paper that is anchored to real commodities. You can print all you want, you'll just get less in return. The current system is based on the full faith and credit of Benny and the ink jets. If you don't like it, they will exchange high velocity lead with you. Hopefully the next system will be fairer to the global community, and like it or not we are all part of that community. Just one more opinion. 

Sun, 06/02/2013 - 13:27 | 3618364 lord of the flies
lord of the flies's picture

"-Long farm land, seeds and the needed tools to protect these."

wich are? ... anyway this land is mine! http://vimeo.com/50531435

Sat, 06/01/2013 - 18:26 | 3617123 bank guy in Brussels
bank guy in Brussels's picture

Great highlights of the Faber interview

Interesting that Swiss citizen Marc Faber, agrees with Jim Willie and is moving his physical gold to Asia, where he seems to feel it will be safer from confiscation

Jim Willie had said Hong Kong is actually the best place in the world to store gold, but that opinion seems a little edgy now after the failure of the Hong Kong gold exchange under a cloud of police activity and apparent criminal investigation

Maybe Faber is taking his gold to Thailand ... with a few pretty girls among the 'guards' perhaps

 

Sat, 06/01/2013 - 18:33 | 3617134 SWCroaker
SWCroaker's picture

I suspect the HKMerc closed (quietly) because a non-delivery scandal on something as important as gold is *not* the kind of thing they will tolerate, and they'll try their best to be miles from ground zero when that mirage pops.  Better to taper off the contracts (and closed the doors) when London starts hemming and hawing about coughing up, than have any suspicion of similar fraud in the Asian system.

Best storage is U-Stor-It, of a sort, anyway.

Sat, 06/01/2013 - 20:42 | 3617357 Kirk2NCC1701
Kirk2NCC1701's picture

Depending on the total quantity involved, a tiered approach to geographic 'u-store-it' (so to speak) is best. With a max number of driving and/or flying hrs involved.

I'd draw concentric circles in 1 hr increments. Not sure I could live with more than, say, 6 hrs of driving, flying or paddling & hiking.

Unlike MF, I don't have homes on different continents. And a SD box across the Big Pond seems impractical, if one doesn't travel there several times a year anyway.

Sat, 06/01/2013 - 19:56 | 3617259 BoNeSxxx
BoNeSxxx's picture

My guess is that he just wants it close, no?  It doesn't do him any good 1/2 a globe away... I mean that's the point of holding phyzz... the actual holding part.

What this tells me is that Marc actually believes that the time is truly neigh (this time).

Let's be honest, he has been crying wolf since 2007.

Sat, 06/01/2013 - 21:38 | 3617441 Kirk2NCC1701
Kirk2NCC1701's picture

"...he has been crying wolf since 2007"

Is he doing this because he just can't help it (a la John the Baptist), or because he actually benefits?

Remember, Bulls make money in a bull market and Bears make money in a bear market. Both markets also have their 'audience/prospects', and these people know their audience. Savvy?

And speaking of "let's be honest"... ZH is very much a Bear market site. :-)

Sat, 06/01/2013 - 23:09 | 3617578 geekgrrl
geekgrrl's picture

I don't think he can help it, and really does believe what he's saying. By and large, Faber does seem to do what he recommends and I tend to see him as ahead of the curve rather than talking his book.

As for ZH, fundamentals are screaming out that our current markets are merely a series of engineered bubbles, so I wouldn't characterize their position as bearish as much as realistic. To be honest, I expected a significant crash back around 2005, but I do have to hand it to TPTB for keeping the sinking ship afloat.

Many people here have articulated the view that this insanity will go on much longer than most think possible, and in that light, I tend to characterize ZH as also being ahead of the curve. Not kissing ass here, just recognizing the difficulty of predicting the timing, something I was wildly wrong about. Still, there is a trigger out there that will begin the cascade, and I expect to see it on ZH first. That's part of the reason I'm here. Early warning.

Sun, 06/02/2013 - 00:38 | 3617696 Caviar Emptor
Caviar Emptor's picture

Reagan proved that deficits don't matter.
Obama is proving that debt doesn't matter.
Central banks will soon prove that currency doesn't matter

Sun, 06/02/2013 - 01:14 | 3617723 geekgrrl
geekgrrl's picture

All true, but we all know what does matter: food.

Sun, 06/02/2013 - 10:58 | 3618096 jerry_theking_lawler
jerry_theking_lawler's picture

energy (which = means of production)

Sun, 06/02/2013 - 02:08 | 3617751 Kirk2NCC1701
Kirk2NCC1701's picture

That sounds eerily familiar. Reminds me of socialism/communism in Soviet Russia and its Iron Curtain satellites. How horribly ironic that we now have this in the US of all places.

Sun, 06/02/2013 - 10:10 | 3618025 Vendetta
Vendetta's picture

A buddy of mine and I were talking about the coming crash in 2002.  It took 6 years and we were surprised that it took that long.

Wed, 06/05/2013 - 22:47 | 3628506 geekgrrl
geekgrrl's picture

You were a bit ahead of me, but the thing I really wonder about now is why so many people are buying the propaganda?

Sat, 06/01/2013 - 23:04 | 3617582 andrewp111
andrewp111's picture

If the unprecedented gov intervention had not happened in 2008, the whole system would have gone down back then. Even with the intervention, it came very close a couple of times. If not for Bernanke, Faber would have been right. If the current Central Bank pumped bubble bursts, will even more massive gov intervention save the system for a few more years??  Or will they just let it go down? This is a question that doesn't have good answers. Predicting governments is harder than predicting markets, as the course of action could depend on only a few key individuals.

Wed, 06/05/2013 - 22:49 | 3628511 geekgrrl
geekgrrl's picture

Very good points. I basically agree.

Sat, 06/01/2013 - 20:08 | 3617291 knukles
knukles's picture

Switzerland is part of Switzerland.
Hong Kong is part of China.

Hong Kong was only isloated and insulated from China because of British domain from 1841 through 1984, a mere 140 or so years. 

Why the fuck put your physical in Hong Kong which is part of China when they've historically shown a greater propensity for revolution and confiscation than Switzerland, which is still part of Switzerland.

Get it?

Sun, 06/02/2013 - 00:30 | 3617685 disabledvet
disabledvet's picture

It appears Switzerland is part of the USA now. Anywho...to understand China you have to understand Italy. They dealt with Government AND banking...and until the euro came along...had a lot of family problems of course...but no "real problems." with the euro all that gold...and the economy to go with it...resides in Germany now. As far as China goes however "you're talking City States." on a MASSIVE scale. We've never seen urban projects on this level before...30 million is just for starters. There is a limit...my guess is probably close to that...could be as high as 50 though. Havn't been there in over 20 years. They were huge then. "with room to spare."

Sun, 06/02/2013 - 04:10 | 3617809 Oracle of Kypseli
Oracle of Kypseli's picture

I thought he said Asia. Maybe Singapore. He does not want to telegraph everyone where exactly.

Sun, 06/02/2013 - 07:54 | 3617924 BigInJapan
BigInJapan's picture

Gotta be Singapore.

Sat, 06/01/2013 - 20:48 | 3617372 I need Another Beer
I need Another Beer's picture

He would be better off burying his stuff in an old ammo can behind the chicken coop.

 

 

Pop the top and turn it up

Sat, 06/01/2013 - 22:58 | 3617573 andrewp111
andrewp111's picture

If a Swiss citizen can't trust Swiss deposit boxes, that means he is expecting the EU's jackboots to march over the border when the SHTF. His best bet is probably to dig deep holes in the ground and to make his digital treasure map with good GPS data.

Sat, 06/01/2013 - 23:38 | 3617626 geekgrrl
geekgrrl's picture

This does raise an interesting question as to why a Swiss citizen cannot trust Swiss deposit boxes. I would really like to hear his explanation why Hong Kong is safer than his home country.

 

 

Sun, 06/02/2013 - 00:32 | 3617688 disabledvet
disabledvet's picture

The French bury their gold in their back yard. Nuff said.

Sun, 06/02/2013 - 00:51 | 3617712 geekgrrl
geekgrrl's picture

Unless Faber had a heck of a lot of gold, I think he could also bury it himself. Nuff said. Point well made disabledvet.

Sun, 06/02/2013 - 02:58 | 3617769 Sandmann
Sandmann's picture

Remember the old story about the Harvard professor posing the dilemma to students of two men in a room with a table on which was a suitcase of money and a gun ? He expressed amazement at how many of his students went for the money

Sun, 06/02/2013 - 03:45 | 3617801 lakecity55
lakecity55's picture

"Pierre, ze Germans are comaing Again.

Ask Mama for a shovel, get her jewelry. And your coins."

Sun, 06/02/2013 - 14:10 | 3618446 Ignorance is bliss
Ignorance is bliss's picture

The fact that there is an investigation and people have been arrested tells me HK is safer then the U.S. to preserve ones hoard. At least they appear to punish fraud in Hong Kong.

Sat, 06/01/2013 - 18:26 | 3617124 Dr.Engineer
Dr.Engineer's picture

Even Switerzland's safety deposit boxes aren't safe?  What is that realy saying?

Sat, 06/01/2013 - 18:36 | 3617135 Race Car Driver
Race Car Driver's picture

 

 

Er ... if you don't hold it, you don't own it? I dunno.

Sat, 06/01/2013 - 19:37 | 3617229 otto skorzeny
otto skorzeny's picture

I think he is saying that now any time Uncle Sam wants the Swiss to bend over they do it. I think the Swiss are going to regret being Uncle Sam's bitch.

Sat, 06/01/2013 - 22:52 | 3617566 andrewp111
andrewp111's picture

Forget Uncle Sam. Switzerland will be Europe's bitch. After all, it is surrounded. When the SHTF, Europe is likely to get a new radical movement like the early 30s, and the EU will become the 4th Reich. When the time comes, it could happen so fast you will hardly notice what is happening. I predict we will see huge armies in jackboots goose-stepping down the boulevards of Europe once again.

Sun, 06/02/2013 - 07:14 | 3617899 GetZeeGold
GetZeeGold's picture

 

 

Not sure what the problem is.....if it starts raining down fire just cash out the ETF.

Sun, 06/02/2013 - 07:48 | 3617920 Cloud9.5
Cloud9.5's picture

You should go there some time. Lovely country in the summer. That barn around the bend in that two lane road is hiding a 155mm howitzer.  The Swiss keep their machine guns at home. The Germans were still fighting in the Alps when the Russians roled into Berlin.

Sat, 06/01/2013 - 23:58 | 3617652 auntiesocial
auntiesocial's picture

For the low low price of 19.99 I will dig you a hole 7 miles outside of Las Vegas to hide all of your valuables.

Sat, 06/01/2013 - 18:28 | 3617128 Atomizer
Atomizer's picture

Can we add more doom from future projections?

Dollar Sell Off Within 4 Months-John Williams

Sat, 06/01/2013 - 18:38 | 3617137 jomama
jomama's picture

except that vid was posted in January...

Sat, 06/01/2013 - 19:04 | 3617168 ebworthen
ebworthen's picture

Timing is always the hard part.

Sat, 06/01/2013 - 19:29 | 3617212 akak
akak's picture

Making predictions is always hard, especially about the future.

Sat, 06/01/2013 - 18:41 | 3617136 ebworthen
ebworthen's picture

Don't let Krugman read this tonight; he goes to the Marriner S. Eccles every Sunday morning to genuflect in front of the FED.  He needs his sleep.

Sat, 06/01/2013 - 18:46 | 3617143 russwinter
russwinter's picture

Comex and Committent of Traders In Gold Most Bullish in a Decade:

http://winteractionables.com/?p=3119

Sat, 06/01/2013 - 19:18 | 3617189 Skateboarder
Skateboarder's picture

Interesting point from the article for those who don't want to read the whole shpeal:

"JPM Morgan has 346,844 ounces in its customer vaults, and the firm still owes the May standers 100,000 ounces. Looking at the CME release through Friday night, JP Morgan needs to issue 460,500 ounces of the June futures so far. Add the missing 100,000 ounces from May, and it suggests that JPM needs to locate 214,000 extra ounces beyond its registered vault holdings and pronto. Further, there are 594,200 ounces still standing in June open-interest, and no doubt JPM is the issuer on some of it.  Key consideration: Eligible metals, are stored at Comex warehouses on behalf of banks or private parties but are not available for delivery for a futures contract. Registered metals are available for delivery to settle futures contracts."

Significant decoupling between paper and phyz markets sending everyone to scramble, and shortages and high premiums result everywhere. Phyz is getting tight...

Sat, 06/01/2013 - 20:03 | 3617274 BoNeSxxx
BoNeSxxx's picture

They will settle in fiat (as per usual).

The important shift will be that Crimex will no longer be seen as legitimate BY ANYONE.  A commodity exchange that settles in cash rather than, er ah, commodities is nothing but a betting parlor.

This is going to get interesting boyz.

Sat, 06/01/2013 - 20:34 | 3617340 Seeking Aphids
Seeking Aphids's picture

Yep.....and did you notice the sudden run up in some gold and platinum stocks on Friday just before closing? There may be some interesting news Monday am...........

Sat, 06/01/2013 - 21:12 | 3617414 BoNeSxxx
BoNeSxxx's picture

Nope.  Missed that.  Who ramped?

Sat, 06/01/2013 - 18:48 | 3617147 tradewithdave
tradewithdave's picture

If going "all out" is essentially the same thing as going "all in" does that mean that a "bail out" is essentially the same thing as a "bail in?"

http://tradewithdave.com/?p=16806

Sat, 06/01/2013 - 18:59 | 3617157 ebworthen
ebworthen's picture

Yes.

The banks already gamble with depositor's money, so when they get bailed out again with taxpayer money why not a bail in of stealing some depsoitor money while they're at it?

It will be presented as "shared sacrifice" and "the right thing to do" because "we are all in this together" even though we aren't.

Don't forget that the Cyprus deposit confiscation scheme was called a "stability levy" as if depositors had shared responsibility for the legerdemain and skullduggery of bankers and politicians.

Sat, 06/01/2013 - 19:05 | 3617169 Skateboarder
Skateboarder's picture

People will be in the streets if America announces a bail-in That will be the breaking, or should I say bailing straw.

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