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Guest Post: Roubini Attacks The Gold Bugs

Tyler Durden's picture





 

Submitted by Detlev Schlichter of DetlevSchlichter.com,

Earlier this month, in an article for “Project Syndicate” famous American economist Nouriel Roubini joined the chorus of those who declare that the multi-year run up in the gold price was just an almighty bubble, that that bubble has now popped and that it will continue to deflate. Gold is now in a bear market, a multi-year bear market, and Roubini gives six reasons (he himself helpfully counts them down for us) for why gold is a bad investment. Roubini does not quite go so far as to tell his readers that there is no role whatsoever for the yellow metal. Investors should have a “very modest” share of gold in their portfolios, as a hedge against extreme risks, which, the good professor assures us, are almost so negligibly small that they are “irrational fears”, really, but beyond that there is little reason to bother with gold.

Interestingly, “very modest” is indeed a good description of gold’s share in the global asset mix. According to some studies gold accounts for only around 1 percent of global asset holdings. In terms of asset breakdown we already are where Roubini thinks we should be. So why bother? Those of us – such as yours truly – who hold a more pessimistic outlook as to the efficiency of current policies and the sustainability of the current monetary infrastructure, and who accordingly hold a bigger share of their wealth in gold, are evidently “paranoid”, and as they now reap the deserved reward for their dreadful negativity courtesy of a declining gold price, why not ignore them? It is, after all, a tiny minority. But it is evident from Roubini’s essay that he not only considers the gold bugs to be wrong and foolish, they also annoy him profoundly. They anger him. Why? – Because he thinks they also have a “political agenda”. Gold bugs are destructive. They are misguided and even dangerous people.

Roubini’s case against gold

But let’s first look at his arguments for a continued bear market in gold. They range, in my view, from the indisputably accurate to the questionable and contradictory to the simply false and outright bizarre. Here is the list (with some of my commentary. Apologies to Professor Roubini.):

1)   Gold is only useful in extreme economic scenarios (such as 2008/2009) but even then its price is highly volatile (and so it was in 2008/2009).

2)   Gold is only useful when there is risk of rising inflation. Despite unprecedented policy measures, such as multiple rounds of QE, there is no inflation, according to Roubini. – Why is there no inflation?- Because the newly created money is stuck in the banking system and the wider financial system where it finances a happy merry-go round of asset trading without boosting broader monetary aggregates. Outside finance (and government, I might add) nobody wants to take on more debt. The normal transmission mechanism is not working. – Additionally, Roubini makes some heroic assumptions about there being no pricing power and no wage inflation.

3)   Gold produces no running income and will thus be at a disadvantage in a recovering economy when equities and bonds do better. – Wait a minute. Recovering economy? Where did that come from? I thought none of the monetary stimulus was getting through to the real economy and hence failed to ignite inflationary pressures? How can it then stimulate real activity? Or are the two somehow unrelated?

4)   Gold does best when interest rates are low or negative but the present recovery – recovery, again! – will allow central banks to unwind their present easy monetary policy stance and to hike interest rates. –- OK. Good luck with that. But again we are asked to take the present talk of recovery at face value. On the one hand Roubini cites ubiquitous deleveraging pressures, “lack of pricing power” and “excess capacity” (these are his words!) as reasons for why the extraordinary expansion in base money supply is not translating into money growth in the wider aggregates that usually drive the wider economy, and why therefore standard inflation measures remain benign and, on the other hand, evidently sees none of this as an obstacle to the self-sustained recovery story. — And if the economy indeed does recover without the help from easy money then, maybe, monetary policy is easy for other reasons, such as keeping an overstretched banking system from collapsing. In that case, better growth momentum as such may not be sufficient to allow central bankers to exit their present policy program.

5)   Fears of sovereign default have been driving people into gold but now the greater risk is that struggling sovereigns may sell their gold holdings. – This is potentially a risk but I would counter that while selling from official sources could affect the gold market in the short-term, liquidating the family silver (no pun intended!) and removing the remaining smidgeons of hard assets at the bottom of the inverted pyramid of the über-leveraged paper money economy and replacing it with government IOUs is not going to instil a lot of confidence on the part of the public. Gold liquidation is a further sign of stress, of a check-mated policy elite running out of options, and the public may end up scooping up willingly whatever desperate politicians sell. But I guess that reasonable people can disagree on this point. – But now it gets really interesting:

6)   In large parts the gold bull market was the work of, wait for this, “extreme” political conservatives, of the “far-right fringe” and conspiracy theorists. That hype is now coming undone. According to Roubini gold is not simply another asset but an indicator of political extremism, of an unhealthy mistrust of the established order. Roubini: “These fanatics also believe that a return to the gold standard is inevitable as hyperinflation ensues from central banks’ ‘debasement’ of paper money.” – Well, I guess it is time for the IRS to conduct a couple of customized tax audits!

Monetary policy prevents economic healing

Roubini does not provide much explanation for his claim that we are now in a self-sustained recovery that will allow central bankers to exit the extreme policy positions they adopted in recent years. He seems to rely on the healing forces of the market. I am the first to agree that these forces do exist in a capitalist economy and that they are incredibly powerful. That is why the market should always be left to its own devices, be allowed to unwind and liquidate accumulated dislocations that are now barriers to renewed growth, and to bring the economy back into balance. But these are precisely the very processes that present monetary policy sabotages with all its might: zero interest rates and unlimited bank funding, plus ongoing asset price manipulations, numb the market’s power to cleanse and heal and re-adjust, and instead allow banks and other financial operators to continue in their policy of pretend and extend, to keep on their books underperforming, bad or even toxic assets at unrealistic prices.

Policy makers have to decide whether they want the market to operate its healing powers (even if some of the healing imposes near-term pain on the patient), or whether they rather trust they own powers to continuously drive the economy, imbalances and all, to higher levels of performance with their money-printing, market manipulation and deficit spending. We know which path they have followed so far, and that is why placing your hope on self-healing market forces is naïve. Strangely, Roubini himself has on numerous occasions warned against a strategy of kicking the can down the road and has repeatedly warned of new credit bubbles. I wonder which Roubini wrote this article.

At the core of Roubini’s argument is a paradox: Easy money – the monetary ‘stimulus’ – is stuck in the banking industry and the wider financial system, and that is his explanation – together with excess capacity, deleveraging and the absence of ‘pricing power’ – for why the standard measures of inflation – consumer price inflation in particular – have not risen more dramatically. Unless you are a derivatives trader or a hedge fund manager you have not seen any of the money. But when you will, finally, believe me, then the prices that matter to you will also go up. Roubini cannot have it both ways: easy money has no effect on inflation but a stimulating one on growth – not even his funny New Keynesianism can square that circle.

But the real criticism of present policies is not that they will lead to instant hyperinflation – I believe they will eventually lead to much higher inflation and probably hyperinflation – but that they don’t solve anything but make economic imbalances much worse. They do not have an exit, and this is why they will ultimately destroy money. Roubini is overstating the ‘healing’ argument considerably, and in the course makes some big blunders: “Ongoing private and public debt deleveraging has kept global demand growth below that of supply.” – This is evidently not supported by the facts. As I have argued before, private sector deleveraging is minor, and in most countries, governments are issuing massive amounts of new debt, certainly in the US, the UK (contrary to what the public debate there would make you believe), and Japan.

Are owners of gold ‘extremists’?

But what is most worrying, and most disturbing, is Roubini’s pathetic attempt to label gold bugs political extremists. Central banks run policies today that only a few years ago would have set the average middle-of-the-road central banker’s hair on fire. Of course, the public is worried, scared and skeptical. Because the political and monetary elite, the establishment of which Roubini – senior economist for the Council of Economic Advisors under Bill Clinton and senior economic advisor to Timothy Geithner when at the United States Treasury Department – is a member, has lost the plot. The paper money bureaucracy has painted itself into a corner. The public has very good reasons to be worried, skeptical and scared.

Early in his article, Roubini makes the following observation: “During the global financial crisis, even the safety of bank deposits and government bonds was in doubt for some investors.”[my emphasis.] – What does he mean, for some investors? Banks did fail and governments did go bankrupt in the crisis. Was that just a figment of the imagination of some investors? – The only reason that not more banks went under (yet) and more governments went bankrupt is unlimited money printing. Unless monetary policy changes meaningfully we won’t even know which entities are truly solvent and which are not. And then we might find out the hard way.

Of course, people who are already predisposed to skepticism towards the political elite and their ongoing meddling with the free market will be more inclined to buy gold. But that only makes them libertarians, or individualists, or simply people who are suspicious of power and politics. I have met many of them and have yet to meet anyone who deserves the label ‘far right’, with all the connotations that Roubini invokes here, deliberately, I assume. — I am the first to acknowledge that the pro-gold community – and it is not even a real community – has its fair share of eccentrics but the majority of those who piled into gold is simply worried about where our unhinged monetary system will take us next – and justifiably so.

Roubini simply resorts to smear tactics. The same approach has been shamelessly employed for many years by Paul Krugman. The idea is to unilaterally determine the acceptable parameters of enlightened economic debate. The high gospel of John Maynard Keynes is not to be questioned, and the wisdom of having highly-trained academicians running a central bureaucracy in charge of monetary policy, administratively setting interest rates, creating bank reserves at will, and manipulating the prices of a growing number of assets to the benefit of the greater good, a system that not only did not exist 50 years ago but that back then nobody even advocated, is not to be challenged under any circumstances. Those who do are not worthy of debate. They are evidently members of the Montana Militia. They are crackpots and dangerous subversives. As Roubini stated: Advocates of a gold standard are fanatics.

This is, of course, utter gibberish. A well-articulated, rational and sophisticated theory exists for why paper money systems are unstable and why they fail, and why hard money systems work better. The Austrian School of Economics explains this convincingly. Its leading intellectual light was Ludwig von Mises (1881 – 1973) – urbane, sophisticated, highly intelligent, and a man of principle, one of the greatest economists of the twentieth century, who lived and taught in Vienna, Geneva and New York. – Not your average backwoodsman.

Roubini may be right on one thing: maybe gold will go down to $1,000. So what? – It won’t stay there. For whatever happens next to the gold price, or for whatever the Fed does next, Roubini’s overly geared paper money economy will not survive in its present form.

In the meantime, good luck with that ‘exit strategy’!

 


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Thu, 06/13/2013 - 20:36 | Link to Comment One And Only
One And Only's picture

What a cunty fucking fuck.

Fucking economists.

Thu, 06/13/2013 - 20:38 | Link to Comment kliguy38
kliguy38's picture

stop giving cunty fucks a bad name

Thu, 06/13/2013 - 20:50 | Link to Comment Zer0head
Zer0head's picture

Roubini, Larry Summers

separated at birth and reunited when Nouriel needed some backers for RGE

http://graphics8.nytimes.com/packages/pdf/politics/20090403whitehousefor...

 

and Roubi partying hard http://i.imgur.com/E2zeZLN.jpg?1?9749

Thu, 06/13/2013 - 21:21 | Link to Comment Pladizow
Pladizow's picture

Easy, what was the outcome of his 2009 gold forecast?

http://www.businessinsider.com/roubini-gold-has-topped-2009-6

NOOBini needs to STFU!

Thu, 06/13/2013 - 22:20 | Link to Comment SafelyGraze
SafelyGraze's picture

"struggling sovereigns may sell their gold holdings."

talk to the crown(s):

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

the goldfoil-hat crowd .. they believe crazy stuff like -- my extended inter-marrying tyrranical family that formerly ruled the world will one day soon rule it again

Fri, 06/14/2013 - 01:06 | Link to Comment imaginalis
imaginalis's picture

He sounds shit scared of gold

Fri, 06/14/2013 - 01:15 | Link to Comment hit_the_bid
hit_the_bid's picture

well he needs to download this then if he ever finds himself short of that other scarce resource, which can easily double as fiat money.

http://www.guardian.co.uk/world/2013/jun/09/phone-app-venezuela-supermar...

 

why is there no TP index/futures?

Fri, 06/14/2013 - 02:06 | Link to Comment markettime
markettime's picture

Over a quadrillion $$$ worth of deravitives would agree. 

Fri, 06/14/2013 - 06:12 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Only a quadrillion......what the hell could possibly go wrong?

Fri, 06/14/2013 - 05:55 | Link to Comment Anasteus
Anasteus's picture

Exactly, Roubini has just demonstrably proven how dangerous gold is for the central manipulators and how potentially valuable gold is. They must be damn nervous if he so offensively resorted to label goldbugs as being extremists. No wonder, physical gold reserves go rapidly down despite massive propaganda and price manipulation, which strongly limits the continuation of the farce. Once the last ounce of German gold will be withdrawn from the JPM vaults, the game is over. Well, once argumentation is lacking, offensive speech and intimidation start taking place; nothing new. Nevertheless, I would strongly recommend Nouriel Roubini finding out who really caused the problems and not to confuse cause with consequence.

However, it's interesting he didn't mention Asia and overall Eastern buys whatsoever, where, in fact, far the biggest part of the stuff is outflowing. Compared to that Western buys are almost negligible, yet Roubini addresses the message solely to the Westerners. This indicates how he, as well as the whole establishment and the FED, are scared of gold sentiment change that could penetrate the Western mind from the East. That's why the manipulation is so desperately intensive these days; they have to smash down the sentiment at all costs. They rather prefer to hand over all reserves to Asia to risk the gold perception paradigm shift. But I think it's already too late. After all, it's virtually irrelevant whether all gold reserves will be repatriated to the East with or without a little help from Western buys; it just postpones a bit the date when physical gold becomes generally unavailable. I think, a clear message to all dear gold&silver bugs.

Fri, 06/14/2013 - 06:53 | Link to Comment Doubleguns
Doubleguns's picture

3 billion chinese right wing gold buying extremists would disagree with Roubini. 

Fri, 06/14/2013 - 12:49 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

It is interesting to me that even "gold agnostics" like Harry Browne (who allocated a mere 25% of his portfolion in gold) would probably fit Roubini's definition of "extremist".  I wonder if Roubini would accept even the concept of gold as a currency hedge, which any investor worth their salt always does 100% of the time.  

Fri, 06/14/2013 - 15:32 | Link to Comment Anasteus
Anasteus's picture

Frankly, who cares?..

Fri, 06/14/2013 - 01:21 | Link to Comment Manthong
Manthong's picture

!!!

Some might NOT not understand ..

LARRY SUMMERS DECLARED GOLD RESERVES TO BE  A DETERMINATOR OF INTEREST RATES MANY YEARS AGO..

DO SOME RESEARCH.

BUT ok, The party thing was cool to us "open minded" types.

Fri, 06/14/2013 - 07:41 | Link to Comment chubbar
chubbar's picture

google "gibson's paradox" for that research paper he co-authored.

Thu, 06/13/2013 - 20:42 | Link to Comment Crisismode
Crisismode's picture

 

 

Rou == bee == nee

was made famous for one call, and one call alone.

That was 5 years ago.

He has missed 14 out of his last 16 calls since then.

Why is anyone paying any attention at all to this pissant???

 

Thu, 06/13/2013 - 20:57 | Link to Comment Jack's Digestib...
Jack's Digestible Ideas's picture

"Of course, the public is worried, scared and skeptical."

 

"Of course, the public is ignorant, docile, and obedient."

 

fixt

Thu, 06/13/2013 - 20:59 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

Crisismode

 

Quite right.

Ahh, Roubini...  ZZzzzz.  Roll me over in an hour or two...

Thu, 06/13/2013 - 21:36 | Link to Comment ali-ali-al-qomfri
ali-ali-al-qomfri's picture

Oh DCRB, "ZZZZZZZZZZZZZZ" is the sound a gold bug makes, sleeping at night, calm and peaceful.

Thu, 06/13/2013 - 21:48 | Link to Comment TheGardener
TheGardener's picture

Gold extremist are into how many grains make an ounce.

No charts, no charters, no rules.

Thu, 06/13/2013 - 22:36 | Link to Comment logicalman
logicalman's picture

I think it's the paper guys that are the extremists, or they wouldn't be shouting so loud.

 

Thu, 06/13/2013 - 20:58 | Link to Comment DeadFred
DeadFred's picture

This is an extremely important post. When someone is lying to you and you know that he knows he's lying, grab your wallet, he's trying to scam you. Such an absurd thesis from an intelligent human being means he's desperate to get you to sell gold.

This is a highly bullish contrarian signal.

Thu, 06/13/2013 - 22:24 | Link to Comment caconhma
caconhma's picture

Born

Istanbul, Turkey

Institution

NewYork University

Alma mater

Harvard University (Ph.D. 1988)

Influenced

-         John Maynard Keynes

-         Larry Summers

-         Jeffrey Sachs

 

Shall I say more?

 

Fri, 06/14/2013 - 06:14 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

I'm good.

Thu, 06/13/2013 - 21:04 | Link to Comment lewy14
lewy14's picture

Roubini's student, Brad Setser, blogged for some time prior to joining the Obama administration. He co-authored some of the papers that "called" the crisis. Unlike his mentor, he had the intellectual honesty to review those papers and enumerate what they got right, and what they got wrong. (Look back at the archives at the link above).

What they got wrong is that they assumed the 'orrible 'orrible deficits of the Bush era would cause a run on the Treasury market and the Dollar. Obviously that's not how the crisis played out.

But the Obama deficits are OK. It's all good. Just a bunch of doomers and baggers screeching about nothing. Likely racist. 

The Financial Times in general and Izabella Kaminska in particular have been leading the political demonization of gold. It has become akin to the opinion that immigration ought to be limited: it labels one as a "dangerous far right extremist".

Thu, 06/13/2013 - 21:51 | Link to Comment Non Passaran
Non Passaran's picture

You're right on Aphaville. I rarely go to that blog now because of her ridiculous anti-gold crusade.

Fri, 06/14/2013 - 01:18 | Link to Comment hit_the_bid
hit_the_bid's picture

well they were all in on the pro euro spiel, so they have form. consistent at least.

Thu, 06/13/2013 - 22:58 | Link to Comment DanDaley
Thu, 06/13/2013 - 23:41 | Link to Comment SnobGobbler
SnobGobbler's picture

we're talkin' pussy right? cause nouriel IS certainly the name of a hard-core pussy! 

just like hillary is a boys name..pussies...all of-em.

Thu, 06/13/2013 - 20:43 | Link to Comment flacon
flacon's picture

Gold/Silver is the only commodity with no known price. And don't tell me that $1,383 is the price of gold. Pffft. Do you think that people are going to be buying GLD to hedge against financial Armageddon?

Fri, 06/14/2013 - 09:42 | Link to Comment Long-John-Silver
Long-John-Silver's picture

Paper Gold and Silver going to ZERO while Physical Gold and Silver is going to infinity in USD.

Thu, 06/13/2013 - 23:14 | Link to Comment RafterManFMJ
RafterManFMJ's picture

I'm sick and tired of people buying, and hoarding mud! Mud is a relic of an ancient, filthy people! Mud is no good! Etc.

See, I don't get if gold is such a barbaric waste, and the people who buy it hopeless nutjobs, why all the complaining?

Why all the virulent attacks?

Seems to me the lady doth protesteth too much.

Fri, 06/14/2013 - 01:10 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

Just like when 'climate skeptics' are attacked.  Their arguments aren't addressed, the facts aren't addressed, no dialogue is started.  Instead, you get ad hominem attacks from 'authority figures'.

Yep, thats enough to convince me to sell my gold /sarc

Fri, 06/14/2013 - 01:50 | Link to Comment James_Cole
James_Cole's picture

Just like when 'climate skeptics' are attacked.  Their arguments aren't addressed, the facts aren't addressed, no dialogue is started.  

Facts? By facts I take it you mean comical levels of ignorance? 

Fri, 06/14/2013 - 12:55 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

"Facts? By facts I take it you mean comical levels of ignorance?"

By you, yes.  Pretty simple.  Compare the data on increases in CO2 into the atmosphere, vs. the change in temperature.  I take it by being here that you are familiar with the basics of charts and correlation.  Tell me if you think the correlation is weak or strong.  

Fri, 06/14/2013 - 00:43 | Link to Comment Hammurabi
Hammurabi's picture

yes, I remember when Roubini was telling his fans in december 2008 to sell the stocks they have because the Dow is going to zero in the next year. or he is a hypocrite or donkey

Thu, 06/13/2013 - 20:37 | Link to Comment Quinvarius
Quinvarius's picture

Bullish.

Fri, 06/14/2013 - 13:43 | Link to Comment DosZap
DosZap's picture

 Roubini’s pathetic attempt to label gold bugs political extremists.

That settles it he is a .gobers shill.What is a gold bug?, anyone who diversifies their portfolio's(as suggested for many years),as a hedge is a political extremists?.

I think he falls into the same pan with Krugman.

Thu, 06/13/2013 - 20:37 | Link to Comment slimething
slimething's picture

"I was for gold before I was against it"

Thu, 06/13/2013 - 20:40 | Link to Comment Racer
Racer's picture

Two thousand year old gold artifacts have great value and gold is only made in a sun

The dollar is made of paper, errr toilet paper, printed by maniacle key pressers

I rest my arse on the case err toilet bowl

Thu, 06/13/2013 - 22:33 | Link to Comment logicalman
logicalman's picture

Gold is made in a suprnova, FYI

 

Thu, 06/13/2013 - 20:41 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Not sure who Detlev Schlichter is, but one thing is certain, Nouriel Roubini is a spectacular assclown on gold.

Thu, 06/13/2013 - 21:39 | Link to Comment FreedomGuy
FreedomGuy's picture

There are two classes of gold buyers. First are the investors. They get in and out like anyone buying and selling commodities. The second class and seemingly more numerous here are what I call the insurers. We buy gold as insurance against government, central planner, central banker arrogance and stupidity. Making fun of this class of gold bug is like making fun of someone with car insurance or home insurance before the disaster hits.

Keep laughing and pray for unending good luck.

Fri, 06/14/2013 - 01:25 | Link to Comment hit_the_bid
hit_the_bid's picture

poor analogy, insurance industry prey on ppls fears to sell insurance........whereas i think most ppl who buy gold need no forceful persuasion, they have worked it out for themselves that gold is a decent hedge against what prob willl happen.

 

Thu, 06/13/2013 - 20:42 | Link to Comment nmewn
nmewn's picture

Dr. Doom Tries On Krugman's Tutu.

Thu, 06/13/2013 - 20:52 | Link to Comment Wakanda
Wakanda's picture

It's not pretty and neither one can dance.

Thu, 06/13/2013 - 21:19 | Link to Comment nmewn
nmewn's picture

But fat ass Nouriel ripped it, so, Krugman still has the whole Broken Window fallacy thingy going for him...lol.

Thu, 06/13/2013 - 22:51 | Link to Comment Wakanda
Wakanda's picture

We've gone from not pretty to pretty ugly.  : - P

Fri, 06/14/2013 - 00:09 | Link to Comment Schmuck Raker
Schmuck Raker's picture

Nouriel was getting blow jobs from heroin-chic NYC wannabe fashion models before Krugs even had the courage to ask Larry Summers for a hand job.

Not that there's anything wrong with that(the former), or right(the latter). Or vice versa.

Thu, 06/13/2013 - 20:43 | Link to Comment Traianus Augustus
Traianus Augustus's picture

Roubini has as much credibility as Jim Cramer.  Both are MSM charlatans!!

Thu, 06/13/2013 - 21:48 | Link to Comment Non Passaran
Non Passaran's picture

But how can that be?
Roubini is a doctor, just like Ben and Larry!

Thu, 06/13/2013 - 22:29 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

What in the hell is a doctor doing at the World Economic Forum talking about economics??

Fri, 06/14/2013 - 06:26 | Link to Comment jmcadg
jmcadg's picture

That's a bit unfair on Cramer.

Thu, 06/13/2013 - 20:44 | Link to Comment dudeman
dudeman's picture

If you gave me a choice betweeen productive assets and gold, I'd choose productive assets in a heartbeat. There's a lot of leverage and speculation in the gold markets and I would much rather own somthing like farmland rather than gold.

Thu, 06/13/2013 - 20:54 | Link to Comment Ignatius
Ignatius's picture

And what if you're a net producer wishing to store excess wealth?

These are not mutually exclusive choices.

 

Thu, 06/13/2013 - 21:31 | Link to Comment margaris
margaris's picture

Exactly.

Let's not forget that we are looking for the perfect form of money.

Comparing it with production facilities is silly. It's a common mistake in these crazy "last minutes of the titanic" times to mistake money for the only thing you need to savely retire...

 

Thu, 06/13/2013 - 21:13 | Link to Comment spinone
spinone's picture

Farmland is not portable, is taxable, and subject to confiscation where it is impossible to hide.

Thu, 06/13/2013 - 21:27 | Link to Comment BidnessMan
BidnessMan's picture

Case example: White farmers in Zimbabwe

Thu, 06/13/2013 - 21:47 | Link to Comment Non Passaran
Non Passaran's picture

Correct.
Land owners in Zim sounds more precise.
Does anyone know, did most of them buy those farms at full cost without coercion?

Fri, 06/14/2013 - 01:13 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

I think we all know the answer.

But for those that don't, the farmers were either chased off the land or killed.

Thu, 06/13/2013 - 21:30 | Link to Comment nmewn
nmewn's picture

Ping!

Holding property (legally) depends on government...thinking on two levels now here...if you can't hold it, you really don't own it...ask Robert E Lee about Arlington Cemetery being started in his front yard. 

Thu, 06/13/2013 - 21:10 | Link to Comment scatterbrains
scatterbrains's picture

Farm land is great until you take a gun shot to the head and or get run off your land in a civil/revolution.  Gold on the other hand can be sewn into your clothes and is easily transportable/concealed  until things settle out.

Thu, 06/13/2013 - 21:26 | Link to Comment Free Wary
Free Wary's picture

I like it too, but metal detectors are a problem, must avoid checkpoints. I think there will be a lot of treasure map making.

Thu, 06/13/2013 - 22:00 | Link to Comment NidStyles
NidStyles's picture

Metal detectors work on magnetism. Think about that for a bit.

Thu, 06/13/2013 - 22:16 | Link to Comment nmewn
nmewn's picture

;-)

Thu, 06/13/2013 - 20:45 | Link to Comment tony bonn
tony bonn's picture

boobini is an hysterical economic whore.

Thu, 06/13/2013 - 20:46 | Link to Comment CDNX fan
CDNX fan's picture

ROFLMAO!!!! "Cunty fucking fucks"? That is the best I have EVER read ANYWHERE.

I am going to go up to my boss and call her a "cunty fucking fuck" (and duck).

Thu, 06/13/2013 - 21:12 | Link to Comment jumbo maverick
jumbo maverick's picture

Ha, you must have read the recent article that "quitting" your job is good for the economy. Thanks for doing your part I guess.

Thu, 06/13/2013 - 20:46 | Link to Comment Yen Cross
Thu, 06/13/2013 - 20:48 | Link to Comment Al Huxley
Al Huxley's picture

So what the fuck, his thesis is that now that the economy's all better, gold can go back in it's hole?  'All that's left to do now is unwind a few hundred trillion in derivatives, get every government in the world to stop running 10% annual deficits, clean up the balance sheets of the central banks and we can put this whole nasty little 'financial crisis' behind us'.  What a fucking stooge this guy is.

Thu, 06/13/2013 - 20:50 | Link to Comment fonzannoon
fonzannoon's picture

what concerns me is not Roubini's stupidity, it's that I will be long dead before they go to unwind it and we find out how stupid he was.

Thu, 06/13/2013 - 20:54 | Link to Comment Antifederalist
Antifederalist's picture

Fear not. Unless you are pushing 95 I think you see the end of this show.

Thu, 06/13/2013 - 20:59 | Link to Comment Al Huxley
Al Huxley's picture

Sometimes I think maybe the best scenario we can hope for is that these fuckers are able to keep their 'fuck the public and steal all their stuff and then brag about it' game going for another 50 years.  Because much as I hate all those smug, self-serving pricks (and all their MSM lackeys and fanboys and girls), the alternative if this all comes apart is probably going to be a lot fucking worse.

Thu, 06/13/2013 - 22:44 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

I strongly disagree. I believe, and still do, that the longer it goes on, the worse it will be. If it comes apart now, it wouldn't be as bad a crash compared to the crash after another decade or two of the current status quo. If this goes on for fifty more years then I guess 'ole Ben Bernanke will be the last one standing, and he will be standing alone as the last person on earth, making love to his printing press to the very end.

Fri, 06/14/2013 - 01:17 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

Exactly.  The more delay, the more pain.

I also think recovery is actually possible post-crash, whereas right now things are so corrupt and crooked its hopeless (and wrong) to hope for recovery under current conditions (fiat currency, usury, fractional reserve banking).

Thu, 06/13/2013 - 22:41 | Link to Comment logicalman
logicalman's picture

You fucking realist!

Thu, 06/13/2013 - 20:50 | Link to Comment Spastica Rex
Spastica Rex's picture

American?

Thu, 06/13/2013 - 23:00 | Link to Comment HeavydutyMexica...
HeavydutyMexicanOfTheNorthernKingdom's picture

No, he's Douchebagian i believe.

Thu, 06/13/2013 - 20:51 | Link to Comment Antifederalist
Antifederalist's picture

FUCK YOU Nouriel.

Go back to fucking NYU Co-eds.

This sound money thing is above your pay grade.

Thu, 06/13/2013 - 20:51 | Link to Comment toadold
toadold's picture

See "Jobless Recovery." See "redefined inflation index" CPI now doesn't include food, fuel, medicine, prostitutes, bribes, booze, clothing, shoes, cars, manufactured or imaginary items.  No inflation at present, move along, nothing to see. I'll trade you this apple for a BJ. 

Thu, 06/13/2013 - 20:57 | Link to Comment bad craziness
bad craziness's picture

Either he believes his own bullshit which makes him batshit stupid or he's a paid basher / troll which makes him evil. 

Thu, 06/13/2013 - 21:24 | Link to Comment Free Wary
Free Wary's picture

2nd option, he's a clintonite

Thu, 06/13/2013 - 20:58 | Link to Comment rlouis
rlouis's picture

So glad to irk the putz. Go print some fiat, Nouriel.  

Thu, 06/13/2013 - 20:58 | Link to Comment Pancho Villa
Pancho Villa's picture

But Roubini said gold had topped in 2009 when the price was about 950:

http://www.businessinsider.com/roubini-gold-has-topped-2009-6

 

Thu, 06/13/2013 - 20:59 | Link to Comment bugs_
bugs_'s picture

Definetly a case of self loathing Keynesian

Keynesians!  What have you wrought!

Thu, 06/13/2013 - 21:00 | Link to Comment Duc888
Duc888's picture

"famous American economist Nouriel Roubini"

 

Well, there ya go.

 

We can stop right there.

 

A legend in his own mind.

Thu, 06/13/2013 - 21:05 | Link to Comment NoDebt
NoDebt's picture

Ahem.  Excuse me, just clearing my throat.  OK, Mr. Rubini (or is it Doctor Rubini?  I suspect it's Doctor.  Nonetheless, I shall refer to you as Shithead.  Excuse me.  Mr. Shithead.).

I rarely take on a direct conflict but this one is like shooting fish in a barrel.  So I will, just this once, give it the old college try, point by point:

1)   Gold is only useful in extreme economic scenarios.  You must like living above everyone else.  Where I sit, it's pretty damned extreme (middle to upper-middle class) and NOT improving.  Only our investments have recovered, our livelyhood and future prospecs are flat at best.  If you lost your job in this mess, you're fucked.  Nobody hires the unemployed. 

2)   Gold is only useful when there is risk of rising inflation.  Or when you think that paper assets are at increasing risk of confiscation/taxation.

3)   Gold produces no running income and will thus be at a disadvantage in a recovering economy when equities and bonds do better.  Neither does cash.  You wouldn't tell people to hold NO cash, surely.  And when you look at the long term would you rather inherit Grandma's old $20 bills from 1952 or the equivalent amount of gold that cash would have purchased in 1952?  Some of us still understand what "long term store of value" means.  Return on investment is nice, but return OF investment is more important in certain situations.

4)   Gold does best when interest rates are low or negative.  You make this too easy for me, sir.

5)   Fears of sovereign default have been driving people into gold but now the greater risk is that struggling sovereigns may sell their gold holdings.  True, but also false.  Those are brokered, direct deals between sovereigns in most cases.  Sovereigns are smart enough to know what would happen to the price if they "dumped" a couple million ounces on the open market at 2:00 some random Tuesday afternoon.  Any large transaction is NOT done in the open market.

6)   In large parts the gold bull market was the work of, wait for this, “extreme” political conservatives, of the “far-right fringe” and conspiracy theorists.  This sounds like political opinion much more than economics to me.  Nonetheless, in a free market IT DOESN'T MATTER THE REASONS.  There is a buyer and a seller.  If some idiot wants to pay 2X the market rate for their own personal reasons, that's none of our business.  Let them buy.  It's their business, let them conduct it as they see fit.  And, by the way, gold has not been in a bull market for almost a year now, so perhaps you should consider checking the data before putting up a straw-man argument to support your political opinions.

<Drops mic, walks off the stage>

 P.S.  I'm still not a gold guy.  Just callin' 'em like I see 'em.

Thu, 06/13/2013 - 22:14 | Link to Comment Cobra
Cobra's picture

+1. Well done, sir.

Fri, 06/14/2013 - 00:13 | Link to Comment Savyindallas
Savyindallas's picture

Great post

Fri, 06/14/2013 - 00:23 | Link to Comment FreedomGuy
FreedomGuy's picture

Reason, logic, analysis...very satisfying. Well done.

Fri, 06/14/2013 - 01:33 | Link to Comment hit_the_bid
hit_the_bid's picture

i am sure its a typo and they mean god.

 

i thought CBs were accumulating gold in record vols....?

Fri, 06/14/2013 - 01:49 | Link to Comment Urban Redneck
Urban Redneck's picture

Gold is only useful when there is risk of rising inflation -- this supposition is MEANINGLESS.

What does "useful" mean in this context?  What is difference between actual risk and perceived risk of rising inflation in regards to his investment thesis?

Since the resumption of open gold trading in the 1970's (and the launch of the Comex contract) there have been three major upward movements in price, 1) the first rise to ~$1000 in 1980 2) the second rise to ~$1000 from 2000-2008 and 3) the rise from $700 to ~$1900 from 2008 to 2011.  What was this intellectual lilliputian's perceived risk of rising inflation from 2008 to 2011?  

The price of gold is a direct function of the supply of gold (or acceptable substitutes), available in the marketplace, and the demand for gold, at a given point in time.


Thu, 06/13/2013 - 21:03 | Link to Comment JonNadler
JonNadler's picture

zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

Thu, 06/13/2013 - 23:08 | Link to Comment slavador
slavador's picture

You've picked an interesting name. Any idea what became of the Jon Nadler of Kitco fame? I liked his columns...

Thu, 06/13/2013 - 21:11 | Link to Comment Payne
Payne's picture

I hope that my buying Silver or gold is dangerous to the status quo.  I hope that is spells disaster for the Banking system.  I hope and pray that my personal choices actually can make a difference with Fascist State of the FED.

Thu, 06/13/2013 - 21:23 | Link to Comment Free Wary
Free Wary's picture

you sound like a really scary guy! Maybe I should flag this post for NSA- threatening to cause a monetary disaster. . .

Thu, 06/13/2013 - 22:51 | Link to Comment Room 101
Room 101's picture

Why?  It's already been flagged. 

Thu, 06/13/2013 - 22:46 | Link to Comment logicalman
logicalman's picture

Vote with your wallet - it's the only vote that's hard for greedy bastards to ignore.

Thu, 06/13/2013 - 21:13 | Link to Comment erg
erg's picture

Roubini. Sounds like a slight-of-hand adept. The Great Roubini! Or a broken shyster magician.

I'd rather the Flying Roubini without a net.

I remember seeing a reporter shockingly stating that gold isn't backed up by anything at all.

http://www.naturalnews.com/033740_gold_journalism.html

Thu, 06/13/2013 - 21:15 | Link to Comment proLiberty
proLiberty's picture

Just like when government can't keep its hands off of private data, government cannot keep its hands off of private wealth. When government forces people to use its currency (legal tender laws), it induces them to store their wealth in that form. But it doesn't stop there. Fiat money allows government to embezzle private wealth by dilution. Government just cannot help itself. That is the nature of government.

People who support fiat money are enablers. They are like the liquor store owner who sells the booze to alcoholics. We could not have nearly as big a government as we have now without fiat money and its fellow traveler, perpetual debt. We could not afford massive privacy destroying agencies, and character-destroying welfare programs but for government's ability to embezzle our wealth by money-printing.

Something that can't go on forever, won't. --Stein's Law.

Thu, 06/13/2013 - 22:49 | Link to Comment logicalman
logicalman's picture

Fractional reserve banking and interest are the real demons - fiat is just the fuel.

Fri, 06/14/2013 - 01:31 | Link to Comment Herd Redirectio...
Herd Redirection Committee's picture

Still, at this point you have to feel its a combo deal (usury, fractional reserve banking, fiat currency) and we could do with replacing (outlawing) the lot.

Fri, 06/14/2013 - 01:37 | Link to Comment hit_the_bid
hit_the_bid's picture

and oh for why they didnt teach you in economics the meaning and purpose of fiat money.

 

at least not in my borstal.

Thu, 06/13/2013 - 21:16 | Link to Comment Free Wary
Free Wary's picture

This article makes me want to bite a gold coin then bury it in the earth ARRRRR!

Thu, 06/13/2013 - 21:18 | Link to Comment criticalreason
criticalreason's picture

Id say Roubini has been correct so far at least he does a rational case. if gold is such an undervalued commodity then why is the west selling it to the east on the cheap? makes no sense.

 

Thu, 06/13/2013 - 21:35 | Link to Comment Non Passaran
Non Passaran's picture

The West didn't exactly demonstrate the art of prudent investing since 1971 so I wouldn't attempt to emulate it.
Could the West (actually the corrupt governments and the Ponzi Lords at CBs, to be precise) be running a big scam? Perhaps.
Rich individuals aka the strong hands haven't been selling their gold to the east as far as I can tell from what I've read.

Thu, 06/13/2013 - 21:18 | Link to Comment thisandthat
thisandthat's picture

Oh my God! You terrists! You're killing Benny!

Just send it all to him, already, so he can dispose off that barbaric relic for you in a civilized manner. Unfortunately for me, it's too late; I already lost it all in an alchemic accident... :´(

Thu, 06/13/2013 - 21:23 | Link to Comment greatbeard
greatbeard's picture

Gold is over represented by the right wing lunatic fringe, I'll grant Roubini that one.  One of the down sides of being a gold bug, to me, is the fact that virtually all metals groups are populated by said right wing fringe.  I'm more left wing lunatic fringe, so Roubini is wrong in his assumption that bugs are righties.  One needn't be "right wing lunatic fringe" to realize the bankers, the Fed and the government are screwing our pooch.  I don't want to be part of the system, period. Fuck Roubini, and fuck all the people that have to put us all in our little boxes.

The left is dead, long live the left.

Thu, 06/13/2013 - 21:29 | Link to Comment Free Wary
Free Wary's picture

don't forget the extreme libertarian lunatic fringe goldbugs! Everybody's a lunatic unless they hiel the dictators.

Thu, 06/13/2013 - 21:52 | Link to Comment Nue
Nue's picture

When it comes to the left vs the right I always go with Frank Herberts quote

"Safaris through ancestral memories teach me many things. The patterns, ahhh,
the patterns Liberal bigots are the ones who trouble me most. I distrust the
extremes. Scratch a conservative and you find someone who prefers the past over
any future. Scratch a liberal and find a closet aristocrat. It's true! Liberal
governments always develop into aristocracies The bureaucracies betray the true
intent of people who form such governments. Right from the first, the little
people who formed the governments which promised to equalize the social burdens
found themselves suddenly in the hands of bureaucratic aristocracies. Of
course, all bureaucracies follow this pattern. but what a hypocrisy to find
this even under a communized banner Ahhh, well, if patterns teach me anything
it's that patterns are repeated. My oppressions. by and large, are no worse
than any of the others and, at least. I teach a new lesson."

-The Stolen Journals

It's easier to deal with someones fears than it is somes desire to rule and have power ove his fellow man.

Thu, 06/13/2013 - 21:26 | Link to Comment Nue
Nue's picture

T.V economist lesson 101:  If you want to buy something tell people to sell it. If you want to sell something tell people to buy it

And extremist? How long before we start refering to precicous metal holders as Terrorist. In a market I make a bet you make a bet and if your right you profit if I'm right I do. The language he's been using just seems so "Hack-ish" lately it's kinda tells me he's in someones back pocket right now.

Thu, 06/13/2013 - 21:29 | Link to Comment sodbuster
sodbuster's picture

Who's Noel Rubitinme? Never heard of the wanker.

Thu, 06/13/2013 - 21:33 | Link to Comment Seeking Aphids
Seeking Aphids's picture

How many thousands of trillions in derivatives are floating around the planet right now? Don' t know? No one else does either......the whole concept of counter party risk is avoided like discussion of STD's at a cocktail party...whoever holds an asset really has no idea of the counter party risk involved in that asset.....with the exception of precious metals (held directly by the owner) and,  maybe, real estate. Everything else (T bills, cash, bonds, equities) is totally encumbered.......how many major corporations list 'assets' on their books which are actually part of the backstop for the derivatives trade? How liquid would the global economy be without the derivatives trade, insanely overleveraged as it is?  Govts and CB's have lost control of this trade and have no idea what to do about it.....until that elephant in the room is dealt with they will be kept busy just shoveling his shit. What can be done? Turn off the computers and start all over again...with new controls in place. Other than that......just keep swimming........

Thu, 06/13/2013 - 22:54 | Link to Comment logicalman
logicalman's picture

No worries, the rainbow shitting unicorns will save the day, for sure!

Fri, 06/14/2013 - 02:16 | Link to Comment Seeking Aphids
Seeking Aphids's picture

Sorry for the duplication..............

Thu, 06/13/2013 - 21:33 | Link to Comment caimen garou
caimen garou's picture

the whole gang of economist were born out of bernake's ass, i did'nt even read the artical tylers and knew it was nothing more than a shit spewing fool!

Thu, 06/13/2013 - 21:34 | Link to Comment notadouche
notadouche's picture

The world I live in tells me inflation is actually running rampant.  Out of control but that's just real world living experiencing massive inflation.  I can't compete with the stealth manner in which corporations try and fool you or the government manipulated and adjusted statistics that prove low to no inflation over the last 5-10 years.  

I suppose if a tree falls in a forest and the government isn't there to verify it then it didn't really fall.

Thu, 06/13/2013 - 21:35 | Link to Comment ISEEIT
ISEEIT's picture

Bet your ass this POS has a shit ton of gold stashed.

Asshats like this need to be..

Well I won't say it, but if you've got 1/2 a mind you already know.

Thu, 06/13/2013 - 22:53 | Link to Comment SqueekyFromm
SqueekyFromm's picture

Well, I am sure not surprised at this. No not one bit at all. Which makes me think of an Irish Poem:

 

Pasta Time To Get Rid Of Gold

A really smart guy named Roubini,

Turned the Gold Bugs' legs to linguini.

When he told them that Gold,

What's you don't want to hold,

When the rate of inflation is teeny.

 

Squeeky Fromm, Girl Reporter

Thu, 06/13/2013 - 21:40 | Link to Comment loveyajimbo
loveyajimbo's picture

Save the ink... revised article:  "Roubini is an asshole."

Thu, 06/13/2013 - 21:57 | Link to Comment TrulyBelieving
TrulyBelieving's picture

Isn't it strange that he calls people that choose to own gold or silver "political extremists" when in fact it is those who support the fiat paper regime, (which is literally unconstitutional) that are the true political extremists.

Thu, 06/13/2013 - 22:03 | Link to Comment Big Ben
Big Ben's picture

This is very positive news. Now if we could just get a confirmation from Cramer...

Thu, 06/13/2013 - 22:04 | Link to Comment Downtoolong
Downtoolong's picture

When they have to attack you over something they claim they don't care about, that's how you know you're getting to them.

Never give up, never surrender.

 

Thu, 06/13/2013 - 22:09 | Link to Comment Bloody Chiclitz
Bloody Chiclitz's picture

I sniff this as post as the most bald faced, naked   clickbait....................but....................................... Although .......I'm fighting.... it ....I ......can't.............

                          resist.

 

Roubini at one point may have been an economist. Now he is only an infotainer. His firm was for sale last year.  I hope someone will buy it and then tell him to sit in the corner and STFU!

 

What a pathetic bag of crap spewn from a pathetic bag of crap.

Thu, 06/13/2013 - 22:10 | Link to Comment web bot
web bot's picture

So this is from the guy that "clubs" for a past time with women 1/2 his age, and who is part of the establishment.

Ohhh wait, I guess he's not like Snowden (who doesn't have a degree), which means that he must be credible. Do yourself a favor and move on from this shill.

Thu, 06/13/2013 - 22:23 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

Definitions, we need definitions:

AssHole OK that we know.

AssHat:

AssClown:

Asswhipe:

 

Thu, 06/13/2013 - 22:39 | Link to Comment newworldorder
newworldorder's picture

Roubini is the Banksters pim_.  He cannot see in front of his nose that the COMEX is trading thousands of paper contracts, without physical backup. He cannot see that shorts are shorting GLD without having the requisite physical to back up the short. He cannot see that paper gold is the fraudulant price setting mechanism, rather than physical demand all over the world. He has shacked up with his bankster buddies and can no longer see the fraud that exists in the world wide banking system.

Thu, 06/13/2013 - 22:56 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

That much emotional response against gold is not rational.  Games are afoot.

Thu, 06/13/2013 - 22:57 | Link to Comment Room 101
Room 101's picture

Well I'm certainly not a goldbug.  But if the economists and TPTB think of them as radical extremists, then I gotta say that's a great argument for becoming one. 

So how does one become a goldbug, anyway?  Do you become one once you've bought your first ounce?  Your tenth?  Twentieth? 

Is there some sort of secret ritual?  Pissing a picture of bernanke perhaps?   

Thu, 06/13/2013 - 23:05 | Link to Comment Dungeness
Dungeness's picture

Poor Roubini. Someone must have bought him out, or perhaps an ET walk-in?

I wonder if he is aware of the BRICS and ROW plan for GTNs (gold traded notes) as a system for international trade?

Thu, 06/13/2013 - 23:30 | Link to Comment sawman
sawman's picture

Hmm An arrogant Academic dick (plenty of them around) who needs to go out and get a proper job and his flawed economic models desperately trying to justify his life's work like a mother protecting her baby.

So it's the establishment and it's ponzi fiat system that's right and the rest of us who invest in gold that are political extremists. So the banksters and their bitches against us little people and our ideas of what constitutes sound money.

So it's the 1% and their propaganda whores against little old me an a few others - Oh wait and the Chinese and the Rssians and the Indians and over fucking half the worlds population. Lets look at which side are best placed in economic terms. Hows that working out for you keynsian assholes.

Propaganda of a system in it's dying convulsions. Quick someone throw them a straw to grasp as they go under. Must be emotional realising you spent your entire life studying for a degree that's as much use in the real world as a fart in a space suit.

Thu, 06/13/2013 - 23:29 | Link to Comment q99x2
q99x2's picture

He used to be ok but Money and GS seems to have gotten to him.

Thu, 06/13/2013 - 23:43 | Link to Comment williambanzai7
williambanzai7's picture

He is a one trick poney and his rodeo left town years ago.

Thu, 06/13/2013 - 23:50 | Link to Comment dojufitz
dojufitz's picture

ROubini comes across as so arrogant i can't listen to him.....

Fri, 06/14/2013 - 00:40 | Link to Comment MagicMoney
MagicMoney's picture

Meh Roubini is a wannabe. He makes 50/50 predictions, another words, he doesn't know. Roubini increased his fame late in the housing bubble of 2008 claiming he sees a bubble, and that a bubble is based on euphoria. Even gained the moniker of Dr. Doom. He never really in details described the happenings of the bubble. He just wants people to accept his brand of voodoo while trying to get as much street cred as possible. He doesn't provide much explanation, because "he can't" explain much at all.

Fri, 06/14/2013 - 00:46 | Link to Comment Stuck on Zero
Stuck on Zero's picture

I need more gold.  Roubini's comments should be broadcast everywhere and put on the front page of the NYT and WSJ. 

 

Fri, 06/14/2013 - 00:52 | Link to Comment boeing747
boeing747's picture

Just another bought out professor in east coast schools.

Fri, 06/14/2013 - 01:08 | Link to Comment boeing747
boeing747's picture

Why do we still set gold price here? We are neither biggest gold producer nor biggest consumers. Most of our people don't have gold and hate gold anyway. We value iphones, facebook, coach&lv bags, houses, hybrid cars, footballs, human rights, wars.......

Fri, 06/14/2013 - 02:34 | Link to Comment Manipuflation
Manipuflation's picture

Been here before.  Heard this shit before.  Fuck off Roubini.  We all know where this trainwreck will end up.  Audit the the muzzle of my M1A and my wife's AK-47.

Fri, 06/14/2013 - 03:49 | Link to Comment Iam Yue2
Iam Yue2's picture

A fanatic is a man who consciously over compensates a secret doubt.
(huxley).

Fri, 06/14/2013 - 04:59 | Link to Comment falak pema
falak pema's picture

for those who understand Roubini economics no explanation is required, for those who don't understand it no explanation is necessary; they are dangerous and irretrievable...

I'm paraphrasing Saint Thomas of Aquinas when talking about God. 

So yes, Mr Roubini shows all the signs of "scholastic paranoia".

The irony of the situation is that many consider Roubini as a progressive economist not constrained by the "straight jacket" of Austrian rigor mortis. Just as historically many considered that Saint Thomas's scholasticism saved the Catholic church from the rigor mortis of the ROman school of reactionary catholicism. It is only when Erasmus and Luther opened up the debate towards revolutionary Reform or break away Secularism that the world of catholicism realised they had been ideologically outflanked and that Popes would no longer run the world as beacons of universal truth. The age of science had arrived.

Roubini, self anointed Saint Thomas of progressive economic catholicism, has yet to meet his Luther and Erasmus; and economics has yet to become a true science, if it ever will. 

PS : You could say the same thing about Aliens Krugman, as said here about Roubles Roubini.

Fri, 06/14/2013 - 04:19 | Link to Comment dunce
dunce's picture

All governments are financed by extracting wealth from the people, the people try to limit the amount but always fail eventually because of fiat based monetary systems that tie all wealth to paper promises. All gold bugs frustrate the process of wealth extraction and transfer. This is the burr under their saddle as they treat the people as beasts of burden. Any retention of wealth is a retention of liberty and a denial of complete control.

Fri, 06/14/2013 - 05:01 | Link to Comment Surprese
Surprese's picture

What??? Didn't we ZH guys know that we are political extremists?

If not, wtf have we been doing here?

Fri, 06/14/2013 - 05:30 | Link to Comment resurger
resurger's picture

Guys, whoever is selling physical gold am buying!!!

Fri, 06/14/2013 - 06:12 | Link to Comment Shevva
Shevva's picture

How are banks surpose to do fractional reserve banking when everyone owns gold?

My guess is they don't want everyone running to gold from goverment IOUs that pay crap when the price starts rising again.

Fri, 06/14/2013 - 06:24 | Link to Comment jmcadg
jmcadg's picture

Hey no worries. When Roubini finally gets it, he'll plough his fortune into GLD.

He's a shrewd cookie that one.

Fuckmonkey.

Fri, 06/14/2013 - 06:45 | Link to Comment BeetleBailey
BeetleBailey's picture

JUST bought 10k more for a client...gorgeous double eagles....got "physical" with the client...

..and read this...chuckled all the way through it.

Fuck off Roubini - what a total cunt.

Fri, 06/14/2013 - 07:41 | Link to Comment NEKO
NEKO's picture

Roubini Attacks The Gold Bugs "Gold is only useful in extreme economic scenarios"...

Well isn't that what a black swan event is? and haven't you warned people to take that into account?

Puzzling.

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