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The US Is Like A Ship With No Lifeboats (Full Of Suicidal Bankers)

Tyler Durden's picture


Authored by Hugo Salinas Price via The Burning Platform blog,

“If the U.S. inflates and devalues the dollar, gold will go much higher in price”  Jim Rickards.

The last dollar devaluation took place under President Roosevelt in 1934, when from being worth 1/20.67th of an ounce of gold in 1933, the dollar was devalued to 1/35th of an ounce of gold.

The last opportunity for devaluing the dollar took place in August 1971, when the dollar was still pegged at 1/35th of an ounce of gold. Nixon took the advice of Milton Friedman and made the worst mistake in history; Nixon did not devalue the dollar as he should have done, but simply took the US off the gold standard, such as it was, and thence forth the US refused to redeem dollars held by Central Banks around the world at any price.

Since August 15, 1971, the dollar can no longer be devalued.

Since the dollar is the reserve currency of all Central Banks in the world, all other currencies – the euro included – are only derivatives of the dollar. The proof of this statement is that the value of each and every currency in the world is calculated in dollars,

The world’s currencies are devalued or revalued against the dollar in the world’s currency markets every day of the year.

There is a “Dollar Index” which shows a value of the dollar against a basket of other currencies. However, the currencies selected for the basket are arbitrarily selected and some relatively important currencies are not included in the basket. Besides this, the movement of the dollar in the “Dollar Index” cannot signify either devaluation or revaluation of the dollar, because the currencies in the Index are themselves undergoing either depreciation or appreciation in dollar terms, due to their own national circumstances.

The US cannot declare an official devaluation of the dollar because there is nothing against which it may devalue, or rather, it does not wish to recognize the existence of gold as money, against which it might devalue.

In order for the US to devalue the dollar effectively, it would first be absolutely necessary for the US government to establish gold as the referent for its value. The US government would have to declare that the value of the dollar is equivalent to a given amount of gold, and solemnly promise that that value will be upheld and made good by offering to buy any amount of gold tendered to it, and pay for it in dollars at a price slightly below the officially established price of gold in dollars, as well as offering to sell any amount of gold paid for in dollars, at a price slightly above the officially established price of gold in dollars.

Once an official value of the dollar in gold were established, it would then once again be possible for the US government to renege on its promise and devalue the dollar by establishing a new and lower value of the dollar in gold. In other words, the dollar must first of all be freely convertible into gold at an official rate, before any devaluation can take place.

As things now stand, it is impossible to devalue the dollar.

A rising price of gold does not devalue the dollar, because there is no official link between gold and the dollar. The world’s monetary and financial systems have no link to gold. Gold can be any price without causing any effect upon those systems. We have seen gold at $1900 dollars per ounce, and things were running just as they were when gold was $300 dollars per ounce.

However, the rising price of gold is a huge embarrassment to the US government not because it devalues the dollar (it does not do this) but because it provokes a loss of confidence in the dollar. When the dollar is seen as falling in value against gold, its fall causes investors to exchange dollars and other currencies for gold as a means of protecting wealth. The rising price of gold is a blot on the prestige of the US dollar and the prestige of the US itself.

The price of gold in dollars is therefore under strict government control. This fact, once derided as ridiculous, is increasingly accepted as truth by those interested in monetary matters around the world. The means for controlling the price of gold lies in the massive sales of “paper gold” which take place to suppress its price, as so many investigators have amply documented.

US monetary policy considers that the dollar is here to stay forever, and that gold is no longer – and never again will be – the world’s ultimate money.

The governments of several nations around the world do not share the same conviction with regard to the permanence of the dollar. China invented irredeemable paper money – which is what the whole world uses today – some one thousand years ago, and several dynasties of Chinese emperors learned to their cost that paper money always degenerates into simple trash.

The Chinese government knows that the dollar will not be around forever. China is purchasing enormous amounts of gold to add to their huge pile of US Bonds in the reserves of the Bank of China; the government of China is more enlightened than the government of the US, because it is encouraging the Chinese to purchase gold and silver.

The US government tells the world that it possesses some 8,000 tonnes of gold; the fact that it cannot deliver physical gold held for Germany’s account belies the assurances regarding the physical gold stock of the US.

The situation for the US – and for the world – is dangerous: the US is like a ship with no lifeboats, because it is presumed to be unsinkable.

The US and its allies are allowing the Chinese and Asia in general, to take possession of huge amounts of gold every year, while the US, the UK and Europe are drained of gold by shipments to the East.

The US evidently believes that the dollar is here to stay and that gold is just a passing fancy. This is classic hubris or arrogance.

When serious problems for the dollar surface – as they surely will – and the US has little or no gold to fall back on, the US with its back to the wall may become a very dangerous entity in the world. Would it be possible for those running the US to loose their heads and decide for a suicidal nuclear war in response to a desperate economic situation? Does the destruction of the whole world matter to men about to take their own lives? Do suicidal bankers worry about the fate of the world?


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Sat, 03/29/2014 - 13:08 | 4605546 Seasmoke
Seasmoke's picture

Full of homicidal bankers. 


Fixed it. 

Sat, 03/29/2014 - 13:23 | 4605583 whatthecurtains
whatthecurtains's picture

More like "Full of sociopathic bankers"

Sat, 03/29/2014 - 13:42 | 4605609 rubiconsolutions
rubiconsolutions's picture

"More like "Full of sociopathic bankers""

Isn't that redundant?

Sat, 03/29/2014 - 14:01 | 4605638 0b1knob
0b1knob's picture

rising price of gold...provokes a loss of confidence in the dollar

<loss of confidence in the dollar...provokes a rise in the price of gold

You say tomato, I say DIE HERETIC SWINE.

Sat, 03/29/2014 - 14:40 | 4605733 ZerOhead
ZerOhead's picture

No lifeboats?

There are actually more than enough lifeboats if you happen to be a well connected economic terrorist...

Sat, 03/29/2014 - 15:04 | 4605789 0b1knob
0b1knob's picture

While we are waiting for the ship to sail, please watch this short instructional video from your cabin crew....


Sat, 03/29/2014 - 15:16 | 4605814 boogerbently
boogerbently's picture

"When the dollar is seen as falling in value against gold, its fall causes investors to exchange dollars and other currencies for gold as a means of protecting wealth."


Seems kinda like buy high/sell low.

Sat, 03/29/2014 - 18:40 | 4606344 Squid-puppets a...
Squid-puppets a-go-go's picture

Sting could re-release his hit song

"what might save us, me and you... is if the bankers loooooove their children, too"

Sat, 03/29/2014 - 23:08 | 4607002 MontgomeryScott
MontgomeryScott's picture


I don't mean to interject about some song by 'The Police'. Personally, I liked 'Spirits In The Material World'... so this isn't about some attack or opinion on a non-sequitorial quote from some unknown song, whose title won't be known by most.


I couldn't help but notice the picture in this story, and the similarity to "My Avatar Picture".

I'm SHOCKED, I tell you, SHOCKED and SHAKEN! The Olympic (oops' 'Titanic', I mean) died on April 15, 2012, in the early hours of the morning, most likely sucked down by a giant Atlantic Squid-puppet straw-man of the Federal Reserve scheme.

Maybe today IS a good day to die! Prepare for RAMMING SPEED!

The bankers DO love their children. They just had a few of them for lunch.

NO, not 'over' for lunch.

They like to eat them. NO, not eat 'with' them. THEIR children, YOUR children, ANYONE's children; all are welcomed on the menu.

They LOVE the taste of CHILDREN in the morning. It tastes like... It tastes like... victory... Trafalgar...

And, I'M a sick mother fucker for pointing this shit out, I suppose.

Sat, 03/29/2014 - 16:11 | 4605935 svayambhu108
svayambhu108's picture

Sociopats don't kill themselves, those people that did where among the wrong crowd.

Sat, 03/29/2014 - 14:04 | 4605645 zeroheckler
zeroheckler's picture

yeah, redundant as Peter O'Toole

Sat, 03/29/2014 - 14:32 | 4605715 flacon
flacon's picture

Could you elaborate on the Peter O'Toole example? Thanks.

Sat, 03/29/2014 - 19:18 | 4606461 Theosebes Goodfellow
Theosebes Goodfellow's picture

Dick Peters?

Sat, 03/29/2014 - 20:16 | 4606625 weburke
weburke's picture

oh? the enslaved are going to throw off new rome and the currency it uses to fund its global military? poland missing government comes to mind ! plane crash? there is film of the crash sight, and all those missing people are not on board. film proof? yup. dead film guy? yup. any uprising in poland? no. any western media reports on that? no.

Sun, 03/30/2014 - 10:02 | 4607540 zeroheckler
zeroheckler's picture

almost, Dick O'Dick

Sat, 03/29/2014 - 23:18 | 4607021 MontgomeryScott
MontgomeryScott's picture

'Lawrence of Arabia'.

Try watching the movie that Peter O'Toole made in his honor.

Does this help, plebe 'falcon'?

Sat, 03/29/2014 - 13:45 | 4605615 maskone909
maskone909's picture

If a tree falls in the forest and nobody is there, does it make a sound?

If most people dont undertand the function of gold and the price rises, does it impact the dollar?

Sorry but this ponzi lifestyle has made me jaded.

Sat, 03/29/2014 - 15:18 | 4605821 boogerbently
boogerbently's picture

If a man makes a statement in the forest, and his wifes not there to hear him, is he still wrong ?

Sat, 03/29/2014 - 23:33 | 4607043 MontgomeryScott
MontgomeryScott's picture

A man dies one day, and approaches the gates of heaven.

There are two lines; one with a sign that says' Men who were the rulers of their house', and another, which states 'Men whose wives ruled the house'.

Seeing the line with the second sign being quite long; and no one at all at the first, the man decides to shortcut the second line, and steps up to the first.

St. Peter, upon seeing this man standing in the first, became quite animated, and stopped the second line momentarily. Bowing down, he questioned this man as to his tenacity. "Were you REALLY the ruler of your house, man?" St. Peter smiled, awaiting the response.

The man shuffled his feet and looked down. "Well, honestly, no. My wife told me I could stand here, and I always do what she says."

The Gates opened...

Sat, 03/29/2014 - 13:23 | 4605585 Deathrips
Deathrips's picture

Hmmmm...why such a big ship?


Id argue that the bankers and crony corps/politicians are like a 2000 ton anchor, on a 10 ft dingy (the USE). The anchor is in the water..with about 500 yards of rope over the Marianas Trench. The USE is standing there watching the rope fly out the coils...wondering whats going to happen. The USE is going down like a 2 dollar hooker in a truck stop bathroom. The bankers/cronies/collectivists are just the pimp that slaps her when she stops sucking.


What happens when quadrillion dollar margins are called?


Nothing good. Hold on to you seats ...its about to get wild.



Sat, 03/29/2014 - 13:40 | 4605605 Eeyores Enigma
Eeyores Enigma's picture

Gold will not replace dollars, it is just another way to hold/store dollars.

When you need to turn that gold into something useful it will be turned back into dollars or something else tangible PRICED in dollars.

The dollar is here for ever or until they pry it from our cold dead hands which is how world reserve currencies are really born and that may yet happen but there ain't nothing you can do to hedge for that one.

Sat, 03/29/2014 - 13:45 | 4605614 Mr Pink
Mr Pink's picture

I'm sort of in the same boat...the FALLING price of silver is MY embarrassment

Sat, 03/29/2014 - 14:45 | 4605746 ZerOhead
ZerOhead's picture

You should really sell your silver... the sooner the better.

It deserves a less embarrassed owner.

Sat, 03/29/2014 - 15:19 | 4605824 Mr Pink
Mr Pink's picture

Nah...I've already come this far. My only option is to keep buying more

Sat, 03/29/2014 - 15:39 | 4605860 ZerOhead
ZerOhead's picture

That's the spirit!

Sat, 03/29/2014 - 19:20 | 4606469 Theosebes Goodfellow
Theosebes Goodfellow's picture


Sat, 03/29/2014 - 23:55 | 4607072 MontgomeryScott
MontgomeryScott's picture

Are you paper silver, or physical?

The paper is worth less than the paper it's printed on, you know.

You could trade paper silver derivatives for USD derivatives or GLD derivatives or Real Estate derivatives or camel shit derivatives or Comic Book derivatives or Bitcoin derivatives or MyPetRock derivatives or... whatever crap you think is worth something as you wish you had a warm place, some clothing, and a place to sleep in peace; and the promise of food in the morning.

When all that shit you think is going to save you falls; and you are holding a bunch of paper that you can't transfer in to physical wealth; and you' re put in a position of punery and subservience: when your only option was to 'BUY MOAR SHIT', and you complied obediently to those who are your Overlords in the Monetary Scheme; when these options are called, and YOU are left with less than 30 days survival: Will you then ask this question of the value of physical versus paper?

Careful, my pink friend.

Sat, 03/29/2014 - 15:40 | 4605859 TheReplacement
TheReplacement's picture

A good sailor would take an axe and chop the rope in half.

We need to rise up, take power, hold trials and potentially public exectutions for the traitorous bankers, politicians, and spies, then the main event - debt repudiation and the confiscation of ill gotten gains from said actors.  Let the anchor sink to the bottom and save the ship and passengers.

If we want to survive this we need to take action.  We need to be the victors and real history has to be written and taught to future generations.  They will still screw it up at some point but all we can do is give them the chance.  First, we have to take our chance.

Sat, 03/29/2014 - 17:59 | 4606203 Deathrips
Deathrips's picture

Excellent point Replacement.

Without a solution, its crying.

For Me:

The ax that cuts this rope is working on independence from the system, so at least I have a choice of saying no. It does not need to be done overnight. With some time you can start simple banking, investments (physical), barter- then move to food, water and energy basis. Making healthy choices. Working with my community. And then sometimes i dont....but i make a conscious effort. I like it.

Nobody needs to rise up. With out a host ...parasites die. With the over leverage of this rehypothication nightmare, 10 % withdrawing consent..should do the trick. Remember, Its exponential in both ways.


They may writhe around as a injured beast does before it goes down..and that part is dangerous... keep your distance (independence) and the impact will be less severe.


The beast is wounded, make sure you are not dependent on it..and you should be better off.


One thing is for sure ..history will be told by the winner.


We will see. I think its exciting and a privilege to see it all go down. Its only "the end of the world" for their pets.


The change is internal, not externaly caused






Sat, 03/29/2014 - 20:29 | 4606658 Ifigenia
Ifigenia's picture

Proscription on the 1% would help.

Sun, 03/30/2014 - 00:26 | 4607115 MontgomeryScott
MontgomeryScott's picture

Take a ride on the Interplanetary Motorcycle of AGW/Climate Change!

The 1%, of course, are excused.

Your proscription, Dr. Ifigenia?

PLEASE. my children are DYE-ING...


Sun, 03/30/2014 - 15:23 | 4608214 Buck Johnson
Buck Johnson's picture

"The US evidently believes that the dollar is here to stay and that gold is just a passing fancy. This is classic hubris or arrogance.

When serious problems for the dollar surface – as they surely will – and the US has little or no gold to fall back on, the US with its back to the wall may become a very dangerous entity in the world. Would it be possible for those running the US to loose their heads and decide for a suicidal nuclear war in response to a desperate economic situation? Does the destruction of the whole world matter to men about to take their own lives? Do suicidal bankers worry about the fate of the world?"


I think it's a combination of both Hubris and Arrogance.  Because we in the US have over estimated our competence, accomplishments and capabilities, especially when we think that others can't come to our level.  They are delusional in their thinking.  Arrogance because of our pride in being overbearing and outright rude to people that we believe aren't us including people who aree in the US.  If this was a movie you would be screaming that the US is going to get their comeuppance, but since it's real life it's truly scary.

Your right, when our financial problems hit we will be extremely dangerous as a country and we will be looking for a fight.  What I think will happen is we won't attack Russia or China, but all of our friends in the West.  Remember Bullies go after individuals and countries that they deem weak.  The US will bribe, conjole, steal, threaten and blackmail politicians in those countries to allow things that they wouldn't have done otherwise. 

Sat, 03/29/2014 - 13:08 | 4605547 no more banksters
no more banksters's picture

Greece ready to be transformed into a 1973 Chile

Sat, 03/29/2014 - 13:09 | 4605550 Caveman93
Caveman93's picture

I never compare $$ to gold. One day really soon, when we hit that inevitable "40% of income goes to just buy food to eat mark" that Max Keiser has deliniated many times as the ultimate trigger for revolt (see Arab Spring, etc.), you will know the dollar has died. I believe I just read something on ZH about food price index up 19% for quarter? Prepare accordingly folks.

Sat, 03/29/2014 - 13:52 | 4605623 El Vaquero
El Vaquero's picture

I suspect that magic 40% number will not hold in the US.  I think it will take a smaller percentage, simply because our society is set up to force people to do a bunch of unnecessary shit.  It is when people have to choose paying the necessary fees to do business, or paying their mortgage or paying their property taxes or eating, or etc... that I see things coming to a head.  It is when none of the choices allow people to participate in our modern society without being non-compliant with all of the rules that either the rules will change, or there will be violence.  We have made life overly complex, and there are costs to that. We're pretty much there, or at least on the cusp.  Now it is just a matter of waiting until people realize this, if not explicitly, implicitly through seeing the tyrannical result of all the BS that we have been a part of.


We have managed to overshoot in this and we have yet to pay the real price.  Lag times are a bitch.



Sat, 03/29/2014 - 14:27 | 4605705 PeeramidIdeologies
PeeramidIdeologies's picture

That a great point. If you sit down and crunch the numbers most people making under a 100g are using almost 70% of their annual income on compulsory costs. Add a few unexpected expenses and you have to be pretty prudent to save anything. This is the point at which the truth rears it's ugly mug. The system is a farm, very similar to the movie the matrix, that uses the energetic potential of the masses to sustain it's massive consumption habits. Those doing the harvesting reap the rewards while those at the providing the sustenance are either unaware or worse unable to disconnect.
Now what's curious about the situation is; Has this system been designed bottom up to function in this manner? Or is this simply human nature that, if left unchecked allows these hierarchies to develop?

Sat, 03/29/2014 - 14:34 | 4605722 El Vaquero
El Vaquero's picture

IMO, it is human nature.  Sociopaths and control freaks are a reality in the human population.  Given a chance, they'll take the reins and distort or manipulate whatever system we have in place.  I have no grand solution to this, except to say that a prerequisite to being free is having the physical ability to kill those who would rule your life. 

Sat, 03/29/2014 - 14:44 | 4605742 Beam Me Up Scotty
Beam Me Up Scotty's picture

Don't forget about the sheep.  They let the sociopaths and control freaks run wild.  The sheep are in a constant state of begging to be lead by someone other than themselves.  If people would wake the fuck up, and take control of their own lives, and embrace freedom, instead of slavery, the sociopaths and control freaks would be in big trouble.

Sat, 03/29/2014 - 16:14 | 4605943 PeeramidIdeologies
PeeramidIdeologies's picture

The Great Awakening, yes sir, this an idea of immeasurable potential and something that I find extremely interesting. You hear of unintended consequences and in my opinion this is one that isn't getting enough press. If ever there were to be any meaningful change in the sentiment of general population this is the type of event that must occur. This might sound a little far fetched, but if you consider that all that really needs to happen is for people to understand, or for it to become common knowledge, that they would be better off in virtually all aspects of life were they to withdraw from the system. It would be difficult at first, but let's be honest, things are not easy now and aren't going to be getting any easier for the majority. Most people, I believe, are much closer to that realization then they get credit for.

Sat, 03/29/2014 - 17:14 | 4606079 Beam Me Up Scotty
Beam Me Up Scotty's picture

I am not so sure.  At least 50% of the population are permasheep.  There will be no awakening.  They are either stupid, or dumbfucks, or both.  On my way to work today I saw 2 idiots in a broken down car on the side of the road.  One guy is pouring gas into the tank.  How do you run out of gas in todays day and age?  They make it so when your car says its empty there is still 2 or 3 gallons of gas in the tank.  And they both looked like losers.  Just because your financial situation is poor doesn't mean you have to act like an idiot.  Problem is, these people's financial situation IS poor BECAUSE they are idiots.  These are the people who are born with a bad case of "dumbfuckitis".

Yes, there are lots of people in the other 50% that are intelligent people that are still jacked into the system.  These are the people that do need to wake up and probably will in time.  Might not be enough to overcome the masses of idiots out there however.

Sat, 03/29/2014 - 18:08 | 4606232 PeeramidIdeologies
PeeramidIdeologies's picture

lol I'm sure you could imagine the circumstances that would cause any individual to be driving around on empty. I don't know anyone that does that by choice. More likely then not, they are well aware of the "situation" but without land of your own and some financial stability, withdrawing from the system can appear to be an insurmountable task.
IMO this is the real problem, not people's intelligence, but lack of available information. If you look at the informational inputs the average person receives throughout the day it's no surprise they are operating in a disorienting fog of misplaced priorities.
But, and this is a big hypothetical arse, you were to see an increase/change in the inputs, say the availability of community gardening, or accessibly to self sustainable infrastructure then, I would think, people's priorities would begin to shift naturally. Of course that would require the cooperation of you-know-who.
That said, I do think this shift is already underway and that deep down most individuals would choose to be self sufficient. It's just a matter of increasing exposure to the benefits and possibly creating an easier path and BAM you've induced a cultural shift. Nothing to it.

Sun, 03/30/2014 - 03:15 | 4607254 The wheels on t...
The wheels on the bus are going to fall off's picture

Unfortunately the masses are still asleep, un-beknown to the daily raping of their future prosperity and life. Not many people understand how this system works and most people would rather complain than do anything about it.

I agree, that the only thing that will bring affirmative action will be at the point that the sheeple cannot afford to put food on there table, it needs to be a survival moment before a revolution starts.....

Hyperinflation could be a catalyst.....

Sun, 03/30/2014 - 14:29 | 4608060 Rafferty
Rafferty's picture

Not sure about that.  If I may say so I'm well educated (post-doctoral) and well travelled yet I never connected the dots until I'd nearly finished my working life ..... even though the racket should have been blatantly obvious. What chance will a guy working every minute just trying to get by have?

Sat, 03/29/2014 - 14:50 | 4605756 john39
john39's picture

"C. G. Jung, the great doctor of the soul and one of the most inspired psychologists of the twentieth century, had incredible insight into what is currently playing out, both individually and collectively, in our modern-day world. He writes, “If, for a moment, we look at mankind as one individual, we see that it is like a man carried away by unconscious powers.” We are a species carried away — “possessed” by — and acting out, the unconscious. Jung elaborates, “Possession, though old-fashioned, has by no means become obsolete; only the name has changed. Formerly they spoke of ‘evil spirits,’ now we call them ‘neurosis’ or ‘unconscious complexes.’”

Sat, 03/29/2014 - 15:54 | 4605891 PeeramidIdeologies
PeeramidIdeologies's picture

Thanks for the link, sounds like good brain food.

Sat, 03/29/2014 - 15:01 | 4605781 GeorgeHayduke
GeorgeHayduke's picture

That's been my concern about this economy for some time now. It is set up to kill us all (except the 0.01%) in a death by a thousand cuts manner. In nearly anything you do, there's someone somewhere that's figured out a way to get a nickel or a dime out of you in the process without adding much of anything. All of that friction adds up to just kill everything in a slow, agonizing death.

Sat, 03/29/2014 - 15:50 | 4605884 Drachma
Drachma's picture

"40% of income goes to just buy food to eat mark"


Here is the sad (and criminal) truth for communist Kanada:



Canadian families are now spending more on taxes than on food, clothing, and housing combined, new research has claimed.

The Fraser Institute's Canadian Consumer Tax Index tracks the total tax bill of the average Canadian family from 1961-2012. It adds up the various taxes paid to federal, provincial, and local governments; including income, sales and property taxes, Employment Insurance and Canadian Pension Plan contributions, and "hidden" taxes such as import duties, profit taxes, and gas taxes.

The Institute calculates that last year, 42.7% of the average family income of CAD74,113 (USD72,200) was spent on taxes, while just 36.9% went towards other expenses. In 1961 the average family earned income of CAD5,000, but used just 33.5% of this on taxes and 56.5% on shelter, food, and clothing.

The 1,787% growth in the average tax bill has outpaced the 1,290% rise in the cost of housing, and the 607% and 578% increases in clothing and food respectively.

"Taxes are far and away the largest and fastest-increasing expense in the average household budget," report co-author Charles Lammam said.

With the federal and most provincial governments now running budget deficits, today's taxes do not cover spending levels, Lammam added. The resultant outlook for taxpayers "is bleak, since deficits must one day be paid for by working Canadians unless governments take serious steps to reduce spending."


And yet the sheeple here continue to believe that this type of (theft) taxation is necessary for a 'civilized' nation.

Sat, 03/29/2014 - 17:57 | 4606200 Tegrat
Tegrat's picture

Tax is the one category you and everyone spends most of their money on in the US and other countries with any tax system. When idiot liberals think they are "hurting" "evil" corporations by taxing them, the corporations count that as an expense in their pricing. If you count gas , (cigarettes, booze) sales (consumer), income taxes and the higher cost of everthing created by corporations at a 39% tax that they pass to their customers - almost every person is paying more over a lifetime than they spent on their cars, houses and other assets combined.

  This has been common knowledge (or I thought) for decades.

Sat, 03/29/2014 - 13:12 | 4605555 Robot Traders Mom
Robot Traders Mom's picture

The smart Americans have already left and established a new community elsewhere. There will be a lot of blowback against expats in the coming years. The US will be the last place in the world you'll want to be when Americans go feral. As Ron Paul said, a border fence would be used to keep Americans in... 

Sat, 03/29/2014 - 13:17 | 4605565 Uncle Remus
Uncle Remus's picture


The US will be the last place in the world you'll want to be when Americans go feral

So, feral reserve then.

Sat, 03/29/2014 - 13:23 | 4605573 Carl Popper
Carl Popper's picture

You are one ugly motherfucker. No wonder robotrader disappeared. 


I doubt a backlash.  Semi wealthy, semi powerful expats will always do OK with a modicum of social skills.  


It is better the population fear and respect you rather than love you anyway.  A semi decent expat with a semi decent income will always have lots of doors open for him, particularly in America's back yard. 


When I travel in Columbia or Venezuela I dress like my ex bodyguard.  I have the confident look in my eye.  Everyone on the street assumes I am carrying.   They don't know what to think, so strangers stay away from me lol. 

Sat, 03/29/2014 - 13:26 | 4605590 xtop23
xtop23's picture

True that. If you look and act like a victim, it is likely at some point you will become a victim.

That being said, I would rather actually BE carrying than have others simply THINK I'm packing.

Sat, 03/29/2014 - 13:32 | 4605596 Carl Popper
Carl Popper's picture

Lol. It isn't necessary.  Speak the language.  Respect the locals.  You are their guest.   If you must travel to the absolute most dangerous areas never be alone at night.  


If I actually need to pull a weapon I fucked up several hours earlier lol. 

Sat, 03/29/2014 - 14:14 | 4605666 El Vaquero
El Vaquero's picture

No amount of planning can prevent a random encounter with a thug or a nutter.  You can minimize the chances that you'll come face to face with one, but you cannot totally eliminate the possibility. 

Sat, 03/29/2014 - 13:21 | 4605578 dogismycopilot
dogismycopilot's picture

i keep telling you mofos GET A SECOND PASSPORT!!!! espeically if you live outside the USA. FACTA? FACTA YOU!

Sat, 03/29/2014 - 13:23 | 4605586 xtop23
xtop23's picture

Plenty of smart Americans that have the intelligence, but lack the wealth necessary for true relocation.

It should also be noted that if things go REALLY sideways .......

there will be NO place you can relocate to that will be far enough.

That being said, still a bright idea to get your house in order prior to such events. You never know ..... 

Personally, I've been looking at Nuuk, Greenland for some time.


Sat, 03/29/2014 - 13:44 | 4605604 dogismycopilot
dogismycopilot's picture

you are correct. it will be the proverbial line from Lord Humongous, the Aytollah of Rock n Rolla, "You! You can run, but you can't hide".

That said, living outside the US with a second passport in a tax free regime allows one to stash a considerable amount of legal tax free income and frees your brain up to really see what is going on. The time i used to spend on my taxes (with a CPA) i now convert to freebasing Drudge, Infowars, ZH, and all sorts of other 'non msm...make hay while the Sun is shining boys and girls.

Sun, 03/30/2014 - 14:38 | 4608088 Rafferty
Rafferty's picture

I agree and that would be great if you could avoid taxes.  In  my case I have a lot of money in a retirement fund which gets hit for 45% tax if I cash in.  Other assets will attract Capital Gains Taxes of about 35%.  

Sat, 03/29/2014 - 13:44 | 4605612 Carl Popper
Carl Popper's picture

I think you have a winner in Greenland.  It is a very long term play.  However. 

Sat, 03/29/2014 - 15:45 | 4605870 cynicalskeptic
cynicalskeptic's picture

Problem is that history says a melting Arctic ice cap slows down the Gulf Stream and has even stopped it.  No Gulf Stream and Greenland  (along with much of Europe and the north end of North America) becomes one big glacier - uninhabitable.

Ironic - global warming has its own 'blowback' - Gaia gets even and tries to lower the thermostat.

BTW - Not a lot to do in Nuuk......  pretty small place.  Just sayin'..........

Sat, 03/29/2014 - 18:01 | 4606211 Tegrat
Tegrat's picture

"Gaia gets even" the earth is not alive - it has life on it - their's no conciousness at the earth - any more than in a rock. If you "believe" then at least admit it's an earth worshipping religion.

Sat, 03/29/2014 - 21:23 | 4606787 StychoKiller
StychoKiller's picture

There are more possibilities than are dreamt of in your philosophy.

Sat, 03/29/2014 - 13:55 | 4605629 lakecity55
lakecity55's picture

Iceland is on my list!

Sat, 03/29/2014 - 14:10 | 4605658 El Vaquero
El Vaquero's picture

Realistically, my options are to stay and weather the storm or head south by land. 

Sat, 03/29/2014 - 13:12 | 4605556 world_debt_slave
world_debt_slave's picture

In all else fails, World War

Sat, 03/29/2014 - 13:25 | 4605589 cpnscarlet
cpnscarlet's picture

"RAND PAUL OR CIVIL WAR" is my 2016 bumper sticker

Sat, 03/29/2014 - 13:28 | 4605592 Uncle Remus
Uncle Remus's picture


Sat, 03/29/2014 - 13:42 | 4605608 Chuck Knoblauch
Chuck Knoblauch's picture

There is no political solution to the problem.

CW is inevitable.

Sat, 03/29/2014 - 14:04 | 4605646 El Vaquero
El Vaquero's picture

I agree.  And I also think that it is not something to look forward to, even if you think that the end result will be a life worth living.  A lot more people will die in a CW than people realize.  A lot more than most people can fathom, I would wager. 

Sat, 03/29/2014 - 14:38 | 4605728 Chuck Knoblauch
Chuck Knoblauch's picture

It has to be fought surgically. Bypass all the pawns.

Sat, 03/29/2014 - 14:46 | 4605751 El Vaquero
El Vaquero's picture

Shit like CW never goes down like that.  You have to worry about people having their own ideas.  You have to worry about the pawns putting themselves in front of their masters.  You have to worry about supply chains breaking. 

Sat, 03/29/2014 - 14:54 | 4605764 NemoDeNovo
NemoDeNovo's picture

Nobody lives #Forever


De Opressor Liber



Sat, 03/29/2014 - 15:25 | 4605834 boogerbently
boogerbently's picture

You "conspiracy theory" guys kill me.

You are smart enough to recognize the wealthy rule business/govt/military, but NOT smart enough to recognize their WHOLE income/lifestyle DEPENDS on us buying their stuff.

Sat, 03/29/2014 - 15:39 | 4605858 Chuck Knoblauch
Chuck Knoblauch's picture

Use your imagination.

Sat, 03/29/2014 - 13:49 | 4605621 Greenskeeper_Carl
Greenskeeper_Carl's picture

I wish like hell I could give you a compelling reason why you are wrong, but it looks increasingly probable that both those things will happen. To the poster above, you REALLY think rand Paul is anything like his dad? Cuz even if he is, he won't win for the same reason Ron didn't. There is a tiny fraction of this hopelessly stupid country capable of understanding the truth of his positions, the rest believe what the prostitutes on the teevee tell them without question

Sat, 03/29/2014 - 14:54 | 4605769 NemoDeNovo
NemoDeNovo's picture


Sun, 03/30/2014 - 14:49 | 4608108 Rafferty
Rafferty's picture

Bullseye!   That is the nub of the problem.  Censorship and control in the West are more insidious than say in the USSR.  In the latter 95% of people knew they were being lied to. But here, especially in America, they believe everything the presstitutes tell them.


The one good thing is that more and more are waking up.

Sat, 03/29/2014 - 14:36 | 4605726 KickIce
KickIce's picture

No More Bread Until the Bankers are Dead

Sat, 03/29/2014 - 14:09 | 4605656 WillyGroper
Sat, 03/29/2014 - 15:07 | 4605796 kchrisc
kchrisc's picture

Like the powers that be, the ones that put Obama in office, are going to let anyone take over that they don't control.

Last time someone turned on the owners they were "removed" in November, 1963.

As they say, "If voting worked, it would be illegal."

See you on the battlefield.


"My guillotine takes it's oath to the Constitution seriously."

Sat, 03/29/2014 - 13:13 | 4605558 Carl Popper
Carl Popper's picture

Bankers better hope that china crashes and the brics hit a deflationary spiral with demand for natural resources falling thru the floor.  


900 gold or 1900 dollar gold?   If I knew the answer I would be rich. 

Sat, 03/29/2014 - 13:52 | 4605626 Greenskeeper_Carl
Greenskeeper_Carl's picture

There are far too many derivatives out there that rely on everything staying pretty much as they are now to retain their value for that to save them. They are all, and will always be, a few margin calls away from catastrophe. Interest rates move too far a little quick, it's 2008 on steroids. Or meth. Or meth AND steriods.

Sat, 03/29/2014 - 15:49 | 4605883 cynicalskeptic
cynicalskeptic's picture

Friends left on Wall Street say it's far WORSE than in '07 and the upcoming crash will be far worse as well.  

We didn't send anyone to jail but instead rewarded them for their crimes - so OF COURSE things are screwed.  The bankers got the message that ther's free money to spend at the casino and gove will make good any losses.  Some of these morons are playing 00 over and over and over again on the slim chance they'll win because there's no penalty for losing.  It's NOT THEIR MONEY.  

Behavioralism works - the problem is that we've been rewarding the WRONG behavior.

Sat, 03/29/2014 - 13:14 | 4605562 Gringo Viejo
Gringo Viejo's picture


"We dumb down everything for the emotional benefit of the incapable." ................Fred Reed

Sat, 03/29/2014 - 13:18 | 4605571 Uncle Remus
Uncle Remus's picture

Ol' Fred has a way with words.

Sat, 03/29/2014 - 13:20 | 4605577 Quus Ant
Quus Ant's picture

"Life isn't complicated.  It actually unfolds easily and beautifully if we let it.  Those who tell you differently by wrapping simple issues in convoluted beaurocratic trappings or circular philosophy are trying to sell you something."


Sat, 03/29/2014 - 14:42 | 4605739 The Wisp
The Wisp's picture

Until Reality Hits you in the head with a Brick

Sun, 03/30/2014 - 02:19 | 4607226 Bearwagon
Bearwagon's picture

After hovering over your head for a few years exactly the way that bricks don't!

Sat, 03/29/2014 - 13:17 | 4605567 I Write Code
I Write Code's picture

So just why is ZH running in overdrive for the last week - either Tyler got a new shipment of meth, or the financial apocalypse is finally upon us.  Maybe both.

Gold?  Who talks of gold anymore?  When China starts hording bitcoins, then we'll worry.

Sat, 03/29/2014 - 13:19 | 4605569 Chuck Knoblauch
Chuck Knoblauch's picture

I can make a lifeboat out of the skin of a suicidal banker. You just need a sharp knife and a needle and thread. There's plenty of room in the belly and ass for a family of four.

Sat, 03/29/2014 - 13:41 | 4605582 Jackagain
Sat, 03/29/2014 - 15:12 | 4605804 kchrisc
kchrisc's picture

Sad. For my guillotine that is.

Sat, 03/29/2014 - 18:33 | 4606320 lakecity55
lakecity55's picture

Yes, but my scenario has more "action."

Sat, 03/29/2014 - 18:32 | 4606315 lakecity55
lakecity55's picture

Hmmmm run over by a hit and run minivan on flat terrain, no trees, excellent weather and road conditions, expert cyclist.

Must have been a text-while-driving accident, hmmm?

Man, you can visualize that hit so easily, especially his confused expression as the killer stomps on the gas. The next camera shot shows a bloody bike helmet slowly turning about and his crumpled bankster ID card next to it.

Sat, 03/29/2014 - 13:23 | 4605584 Quus Ant
Quus Ant's picture

The titanic band is taking five. 

Sat, 03/29/2014 - 13:31 | 4605595 orez65
orez65's picture

It's not the Government, I'm sad to say.

The majority of the American people have become idiots that follow whatever the demented liberals latest lunacy is.

They were, purposely, not taught what money is by our liberal education system. Nor do they have the motivation to spend a few hours learning what money is.

Truly sickening!

Sat, 03/29/2014 - 13:33 | 4605598 mcgoverntm
mcgoverntm's picture

Re: "The rising price of gold is a blot on the prestige of the US dollar and the prestige of the US itself."

Would it be better to say, "the prestige of the US government?"  The US government, not the US people, is responsible (along with the Fed) for the decline of the prestige of the US dollar.

Sat, 03/29/2014 - 13:44 | 4605613 Spungo
Spungo's picture

"900 gold or 1900 dollar gold?   If I knew the answer I would be rich."

Simple answer: countries that have full control of their currency almost always see inflation. Countries that do not control their currency will see deflation.  America had deflation during the 1930s because we were still on a gold standard and we can't print gold. If we had fiat money at the time, we probably would have tried to print our way out of trouble. That's what we saw in Argentina, Venezuela, Zimbabwe, Turkey, Slovakia, etc. Europe is likely to see deflation because the euro is similar to having a gold standard. None of the individual countries control the printing press. Japan's deflation was a very unique case because the deflation was caused by having a high savings rate. If that savings rate starts to reverse as old people start retiring, they'll see extreme inflation.

Sun, 03/30/2014 - 14:58 | 4608134 Rafferty
Rafferty's picture

Not necessarily. Tere's nothing - Germany excepted - stopping the ECB printing away like the Fed inevitably leading to inflation in all Euro countries.

Sat, 03/29/2014 - 13:47 | 4605618 I am Jobe
I am Jobe's picture

Hey Hey , marchmadness is on for the sheeples and don't forget TV and Iphones are full of shit to keep em happy. 

Sat, 03/29/2014 - 13:48 | 4605620 lakecity55
lakecity55's picture

"The US evidently believes that the dollar is here to stay and that gold is just a passing fancy. This is classic hubris or arrogance."

Great quote, but is it more of a case that they have backed themselves into a corner due to the Nixon Decision and are now left with no alternatives but to manipulate with paper gold?

Gold is an historical standard, has been for thousands of years. You can ignore a tornado warning, but the force of nature will overwhelm your intentional ignorance. If you don't take shelter, you're still gonna die!

The Nixon Decision forced the USG to sell its bullion to prop up the dollar, and is now in a kamikaze situation. The acquisition of bullion by the East will only postpone the collapse. Once The East has obtained all the bullion possible, there will be no need to pay lip service to the dollar as part of the price of 'low-cost' bullion.

I see the abandonment of the gold standard in 1971 as an aberration. It achieved the purpose of prolonging the life of the fiat FRN, but once you have no more bullion to trade for acquiescence, it is game over. The faults have begun to manifest themselves (no gold for Germany in those vaults), and will begin to increase in number.

China is not collecting bullion for the sheer enjoyment of feasting their eyes on a pretty metal. They will patiently wait, conclude more currency-swap deals with other countries, then when they have those in place, they can revalue their currency to some mix of PMs or other hard assets.

The Russians are likewise obtaining bullion, but they have the added asset of the oil commodity.

I suppose we are seeing the last stages of the dollar. Once China and their Russian partners have their chess-pieces in place, they can overthrow the dollar.

That, I suspect, is the core of the USG policy of using its last asset, military power, to 'contain' the monetary threat.

As usual, it probably means War.

Hedge Accordingly. Gold and Silver are Constitutional Money. They are also International Money.


Sat, 03/29/2014 - 14:05 | 4605647 Greenskeeper_Carl
Greenskeeper_Carl's picture

I agree with much of what you say, but I still think the fear of china or any other country making any kind of gold linked currency is irrational. China, just like every other country in the world, is a currency manipulator. No currency manipulating country wants to peg their unit of currency to anything un-printable. They won't go onto any kind of gold standard for the same reason we wet off of one. They would just be setting themselves up for the same cycle we are now concluding with the dollar.

Sat, 03/29/2014 - 14:12 | 4605660 lakecity55
lakecity55's picture

Thanks. I learn a bit more every day.

I like to listen to all opinions; these machinations by the big powers are must-follows by us if we are to 'hedge accordingly.'

Sat, 03/29/2014 - 14:19 | 4605680 Tinky
Tinky's picture

What you say is true as far as it goes, but it doesn't go far enough. When confidence is lost in the current, unsupportable fiat system, it will have to be replaced by a more stable system – or at least a more stable appearing system. That is why it is likely that, at least initially, there will be a link between the only 'good' collateral left standing – gold – and (likely) a new basket of currencies.

Your perspective will hold only as long as the Ponzi scheme remains viable, which won't be much longer, in my view.

Sat, 03/29/2014 - 18:17 | 4606255 lakecity55
lakecity55's picture

If we take that point, go further with what you think would be the next iteration.

I feel there should be a commodity/PM connection, but.....who knows?

Any ideas?? SDR is one of them.

Sat, 03/29/2014 - 13:50 | 4605622 buzzsaw99
buzzsaw99's picture

Would it be possible for those running the US to loose their heads...

Their heads are already "loose". ;)

Sat, 03/29/2014 - 14:11 | 4605659 WillyGroper
WillyGroper's picture

Same as their morals.

Sat, 03/29/2014 - 13:58 | 4605633 Ancient Landmark
Ancient Landmark's picture

The article mentions Milton Friedman as against the gold standard. As I read Friedman I tend to think he was simply describing the societal and political reasons and attiudes as to why it was undesirable and not his personal pragmatic opinion of its functionalaity. 

Sat, 03/29/2014 - 14:02 | 4605634 Kirk2NCC1701
Kirk2NCC1701's picture

"Good ladder, wrong wall" - Kirk

"If the model does not explain the situation, then you either have a problem with the data that you used for your model (have a 'bad ladder'), or your model is wrong (the 'ladder is against the wrong wall')." -Kirk

IOW... If TPTB in the US (DC and NY) are seemingly acting irrational or even insane ('suicidal'), it may be that you're using the wrong model (paradigm). 

Suppose -- just suppose (for argument's sake) that they have NO intention of backing the USD with AU after the Big Reset.  And suppose that they intend to back it with something else -- like another "Precious Resource".  Wouldn't it make sense, that they let someone like China load up on AU -- if they only plan to keep some for industrial and cosmetic use?  And Russia is even richer than the US with resources on a per capita basis -- now and in the long run.  Hence America's "hard on" for Russia's resources: its culture has always been plundering other people's land and resources, going back centuries.  China, on the other hand, is more limited in key resources per capita, so they may have to load up on AU.

It could be, that after the Big Reset -- all pre-planned and orchestrated, BTW -- that they use the IMF's "SDR", or use the USD as a REGIONAL Reserve Currency.  In any case, as long as the banksters can front-run everyone else -- even ZH (sarc) -- why should they worry?

It's you and me who need to worry and plan for a number of most probable scenarios, and the associated disruptions, dislocations and perturbations.

Sat, 03/29/2014 - 14:45 | 4605747 PeeramidIdeologies
PeeramidIdeologies's picture

Although I think you may have poached that quote from some where, your on to something IMO.

It seems to make a helluva lotta sense for the next system to be based on energy, or energy producing resources.

One thing is for sure, you can devalue the dollar alright, and the best way to do that is start implementing sanctions against those who use it. Stupid moves that that will kill dollar faster then the printing press ever could.

Sat, 03/29/2014 - 14:00 | 4605637 Donlast
Donlast's picture

A higher gold price DOES devalue the Dollar since it means one ounce of gold buys more Dollars.  Whether other fiat currencies maintain their value against gold or follow the Dollar is purely a matter of how other fiat currencies are managed, or how they perform on forex.  But for anyone wishing to preserve their wealth, gold is the ONLY GLOBAL currency.  It cannot devalue: it is the numeraire.

Sat, 03/29/2014 - 14:09 | 4605639 Hannibal
Hannibal's picture

Nothing seems to matter.

Enjoy your lifes 'cause in the end we all "expire",...naked!

Sat, 03/29/2014 - 14:06 | 4605651 Son of Captain Nemo
Son of Captain Nemo's picture

Boy oh boy Hugo Salinas Price must be best buds with this guy!

If you want to be objective and see where this metaphor in this article will take us, this is about the best 1 hour of your time you could spend this weekend.

When you're finished listening to it you will come to the same conclusion that I did hopefully, that words are hollow and meaningless without reinforcement of action...

We still have time if we really want to change it!

Sat, 03/29/2014 - 14:07 | 4605652 Jack Burton
Jack Burton's picture

The official government reactions to the 2008 financial crisis laid the ground work for a much more extraordinary collapse to come sometime soon. Like the settlement of WWI that trashed Germany, who was no more guilty of causing the war than anyone else, laid the ground work for WWII. The money printing and asset price manipulation since 2008 has doubled down on a vast failed business model of speculative bubbles and money printing. The next blow up will be epic as all the fundamental problems have grown worse.

Sat, 03/29/2014 - 22:05 | 4606871 Ifigenia
Ifigenia's picture

The impunity of the criminals that made the 2008 subprime crisis sound the death knell for the wall street around the World. Unfortunately, the sheeps have to pay too.

Sat, 03/29/2014 - 14:14 | 4605663 Donlast
Donlast's picture

It does not matter what the US government decides to do about the Dollar's relationship to gold. Its the rest of the world that decides, the marketplace.  Maybe all fiat currencies will devalue against gold, some worse than others, but one thing is for sure - they will not upvalue.

Sat, 03/29/2014 - 14:22 | 4605687 Fox-Scully
Fox-Scully's picture

But we are the galley slaves that are chained to the oars in the hold!

Sat, 03/29/2014 - 14:49 | 4605755 Uncle Remus
Uncle Remus's picture

There is no spoon.

Sun, 03/30/2014 - 02:28 | 4607230 Bearwagon
Bearwagon's picture

Exactly. Everything derives from you - and that's where everything comes home to roost ...

Sat, 03/29/2014 - 14:23 | 4605692 Joebloinvestor
Joebloinvestor's picture

It could always sink from overcrowding......

Sat, 03/29/2014 - 14:26 | 4605698 Ignorance is bliss
Ignorance is bliss's picture

All this talk of World war. The Soviet Union collapsed and there wasn't a world war. There might be a civil war. Drought, Dollar collapse, and Dumb asses the three evil D's of America probably means we will see a civil war. The polarization of America is extreme on many fronts. These frictions have created an unstable environment. War is simply one way for an unstable environment to resolve itself. The U.S. Has had a civil war before and that generation got through it. Things will get better once the smoke clears and the unsupportable and unstable are stripped away and replaced with a stable and stronger environment. I predict many years from now the U.S. will rejoin the world community as a partner and not as it's master.

Sat, 03/29/2014 - 15:12 | 4605805 Beam Me Up Scotty
Beam Me Up Scotty's picture

Good thing the FSA is only getting Obamaphones and EBT cards, not free guns.

Sat, 03/29/2014 - 14:34 | 4605716 q99x2
q99x2's picture

Would it be possible for those running the US to loose their heads and decide for a suicidal nuclear war in response to a desperate economic situation?

Fuck ya dude. Of course, haven't you been following Holder, or Obama or Hillary, or for christs sake Lindsey fucking Graham? John McCain? These people have Putin and Xi yinyang looking like angels. Don't mention Rumsfeld. These people are fucking psychos and they are armed to the teeth. Yous got to be defusing these living bombs soon or we are all toast. 

And my suggestion for the bankers since they are so fond of jumping is: JUMP mother fuckers, JUMP.

Sat, 03/29/2014 - 14:36 | 4605727 Perimetr
Perimetr's picture

Minor point, gold hasn't exactly been rising lately. 

Sat, 03/29/2014 - 14:54 | 4605741 Cacete de Ouro
Cacete de Ouro's picture

Most of the US Treasury's gold bars, are what's known as coin bars. These are low grade gold bars with a fineness or purity of between .899 and .9167. They were made by melting down coins. In fact, US Treasury gold bar fineness is even more variable than the standard ~.90 coin bars, and contains some even lower grade stuff, and lots of weird sizes and weights of bars.

See the following full weight list reports:

Treasury gold at Fort Knox, Denver and West Point - 699,515 bars - pdf and xls

Treasury gold Stored at the FRBNY, 31204 bars
List begins page 128 of file

These lists have not been confirmed in any way by independent audits. Remarkably, these weight lists have gotten zero coverage in the mainstream media.

It's also relevant that the Bundesbank refuses to publish its gold bar weight lists, held at the Fed, sighting grounds of confidentiality, and then the House Committee on Financial Services goes and publishes all weight lists of Treasury gold held, including their gold held at the FRBNY.

Sat, 03/29/2014 - 14:44 | 4605743 withglee
withglee's picture

Any Medium of Exchange (MOE) that doesn't freely certify trader's trading promises while guaranteeing zero inflation at all times everywhere cannot compete with one (properly managed) that delivers these attributes.

Money (MOE) is "a promise to complete a trade". Gold is "stuff" just  like pork bellies and wheat to be traded in simple barter and not nearly as useful in simple barter as circulating trading-promise-certificates of a properly managed MOE.

To properly mange any MOE:

  • Freely certify trading promises
  • Recover certificates and extinguish them on delivery of trading promise
  • Monitor defaults
  • Collect interest equal to defaults

The governing relation is INFLATION = DEFAULT - INTEREST = zero


Sat, 03/29/2014 - 16:24 | 4605970 Acidtest Dummy
Acidtest Dummy's picture

Gold is the stuff necessary to extinguish the fire that would otherwise consume the scrapyard of broken promises.

Sat, 03/29/2014 - 14:46 | 4605752 pitz
pitz's picture

Should get into rope sales.  This could get very fun.

Sat, 03/29/2014 - 14:51 | 4605760 Snidley Whipsnae
Snidley Whipsnae's picture

"the societal and political reasons and attiudes as to why it was undesirable "

The political reasons, forget attitudes, boil down to; When any fiat is decoupled from some form of currency backing then the gov/central bank can print the currency at will.

The world financial system of today could not exist without unlimited printing of unbacked fiat.

If you happen to be in the small percentage of those who are buying up the assets of the world with unlimited fiat paper you are making out like a bandit... cause you are a bandit.

...and, Salinas Price is correct. Without gold (or some other) backing there is no way to effectively devalue a currency. Instead central banks cooperate and print on schedule... floating fiats bobbing upon a sea of liquidity with bubbles appearing hither and yon. Each currency is like a tide rising and falling as it is printed in turn. 

It's an interesting experiment to watch... too bad that the outcome is going to effect us all so dramatically. 

Economics is dismal and isn't a science and damn few people want to think about or discuss it... even after it changes their lives they won't know what happened to them and will gladly latch onto any scapegoat pointed out to them. Have a nice day :)

Sat, 03/29/2014 - 14:58 | 4605774 kchrisc
kchrisc's picture

Most of the banksters won't commit suicide, unfortunately for mankind, but will 'return.'

Sat, 03/29/2014 - 15:16 | 4605816 MrBoompi
MrBoompi's picture

I respectfully disagree. The dollar can be devalued by simply creating more of them without a corresponding increase in real wealth. Proof of this is seen in the value of the dollar itself which has lost at least 96% since 1915. This was not caused by one or two devaluations against gold, but constant dollar creation. We don't need gold to figure this out. Just go to the grocery store.

Sat, 03/29/2014 - 16:00 | 4605907 Snidley Whipsnae
Snidley Whipsnae's picture

I believe Salinas Price used the word 'effectively' devalue. Of course the dollar has been slowly devalued over a long time period but doing a quick devaluation as FDR did against gold is not so easy without something to devalue against... imho

Though I certainly see your point and agree. I buy groceries too.

I think that the current policy/experiment, with the enormous quantity of dollars being created in a very short time span, is unprecedented in the US.

We've been here before... what happens next?



Sun, 03/30/2014 - 00:14 | 4607099 Cthonic
Cthonic's picture

What's already happening? Historians will argue about when it happened, later.

Sat, 03/29/2014 - 15:47 | 4605878 mogul rider
mogul rider's picture



WTF - you guys still pumping that crap

Sat, 03/29/2014 - 16:03 | 4605918 Herdee
Herdee's picture

I'd like to see them justify an increase in interest rates with the shear size of the overall Frederal Government debt.But,not just Federal debt of course.State,County,City,Municipal,all of it would climb rapidly.I can't see where Congress intends to get the extra taxes from to pay for the increase in the deficit.These guys have dug themselves a pretty big hole with the severe structural problems that exist in the economy.Trouble is that includes general society,including taxes of all types.You put taxes up in a stagnant economy to pay for increasing deficits and you get further problems from being uncompetitive.Devalueing the Dollar,increasing taxes across the board is a receipy for disaster.Increasing interest rates would signal inflation and gold will climb.Interest rates will move with gold but I don't see them ready for it yet.

Sat, 03/29/2014 - 16:04 | 4605920 EggSlayer
EggSlayer's picture

"Do suicidal bankers worry about the fate of the world?"

excellent quote

Sat, 03/29/2014 - 18:36 | 4606330 Stud Duck
Stud Duck's picture

Ammo, guns and land have done as good or better than gold in the last 5 years. They also have a utility value and long shelf life!

A gun has a lot more trading value (especially with a good supply of ammo) than any gold coins or bars!

Sat, 03/29/2014 - 19:22 | 4606478 Rubbish
Rubbish's picture

And what exactly do I want to receive in trade for an extra 9mm & a thousand rds.? FRN's? no thanks, Gold? ok but they won't have any. Besides you never give a desperate person a gun with ammo to kill you.

Sat, 03/29/2014 - 19:39 | 4606522 free_lunch
free_lunch's picture

"The US evidently believes that the dollar is here to stay and that gold is just a passing fancy. This is classic hubris or arrogance."

" The US"? Who is "the US"?


Let's go hypothetical:

The real power behind the scene, whoever that might be, has no ties with "The US" nor with any other country. If one believes that their goal is one world government, then this implies there will be no more nations, no borders, no different currencies. Inevitably the dollar will have to go, only to replace it with another currency which will cover a greater piece of the world (US-EU-... ?) The TTIP is a giant step in this direction, it will virtually melt US and EU together, aligning laws and policies.

There must be another motive behind this gold being transfered to the east, obviously this transfer has the approval of the real powers behind the scene, how do we know this? Simple: if they did not want this, then it would not be happening!

Remember the real power has no national ties, it does not matter for them where there office is. So are they moving HQ to the East? Are the goals in the west completed with the creation of the European Union, the EURO and the melting of EU and US into one entity by means of the TTIP?

Are they now moving to get the East in one big Eastern Union? The creation of the united states of BRICs? With a common currency? (gold?)

If they also succeed to work out a union between the Middle East countries, all that is left to do is join the blocks by means of a trade pact and there is your one world government..

If one was to create a world government by starting with a few counties and then try to add the others one by one it would fail due to the many ideological differences and the people not willing to give up their nations.

But if one can create a big block like EU/US and ensure that this block poses like a military and economic threat, the other countries are forced to form a block as well, even if they would otherwise never want this. They will have no choice left. It will be sold to the citizens that there is no alternative, and they will swallow it. (the easiest way to unite people is to create a big external treat)

At one point there will only be 3 or four blocks (nations?) left. Then you would only have to find a way to melt 3 or 4 blocks together to get the desired end result: one world government with one currency.

The melting of EU and US is about to take place with the TTIP. This means that all European countries will be united with the US. Do you think this would have been possible if they had tried this by adding one county at the time to the US? Surely not. But now it is happening. So this method of first creating bigger blocks and then melting the big blocks together has proven itself to work.

If one was to believe the scenario above, one must conclude that "the US" and the dollar are nothing more then tools, which will be thrown in the trash once their function is no longer needed. Which would be when they want to replace it with another currency which would span an even a larger part of the world.

If one was to propose such new currency voluntary, likely people would protest. So how would one get around this? The easiest way to implement such a new currency would be when the dollar falls, in the chaos that would be the result, people would have no other choice then to embrace the new currency to end the chaos. To make the acceptance even smoother, one could back this new currency with gold, which would greatly improve trust in it, especially when introduced immediately after the big fail of non-backed fiat.

In such a scenario, the fall of the dollar would not be a failure, but it would be a goal...


Just a crazy thought from an over-scaled imagination..


Sat, 03/29/2014 - 20:02 | 4606594 ATG
ATG's picture

Time to save America from the DC

Sat, 03/29/2014 - 20:04 | 4606600 ATG
ATG's picture

How many countries have the NeoCons invaded for gold and oil?

Sat, 03/29/2014 - 20:40 | 4606691 gwar5
gwar5's picture

If you think there's no lifeboats, then you ain't in one.


Sat, 03/29/2014 - 23:04 | 4606994 David Wooten
David Wooten's picture

"...made the worst mistake in history..."


Nixon was right to close the gold window. The American people were barred from even owning gold at the time so had he not closed the window, foreign central banks would have gotten all our gold.

Sun, 03/30/2014 - 09:38 | 4607511 Last of the Mid...
Last of the Middle Class's picture

It's not their fault. Each one of them simply believes that all you have to do is develop the next derivative, or rehypothicate one more time for his or her own $100 million commission so that they can buy their own massive house/compound that can be seen from the space station. What could possibly go wrong?

Sun, 03/30/2014 - 10:27 | 4607565 ArmyofOne
ArmyofOne's picture

Taking your own life is quite different than taking your wife and childrens life as well.   So far the forces of greed and vanity haven't succeeded in including social nihilism. 

Sun, 03/30/2014 - 11:52 | 4607732 Quaderratic Probing
Quaderratic Probing's picture

"A rising price of gold does not devalue the dollar, because there is no official link between gold and the dollar"

Any link requires Gold to be fixed in price as it was in the past. They could pick any price to make that fix say $1200. Then they could only print money to make loans when more gold is mined out of the earth. If it costs $1800 to get it out no one would mine it and no loans could be made. Now any country that holds Gold would be the best place to get Gold and so war would make the winner the one who could create loans. If you think of the world in the past was it not always that way? One Nation against the other with their Gold as the prize.

Sun, 03/30/2014 - 17:47 | 4608537 Youri Carma
Youri Carma's picture

"This isn't a country, it's an American aircraft carrier."  FROM: Gore Vidal's United States of fury

Didn’t you find it strange that despite all the media attention it didn’t inspire any action to stop the bankers?

You see hidden within the banker unconsious there is a insatiable desire for self destruction. So you’re not fighting me so much as you are the bankster condition.

All I want to do is own all the Silver and Gold. Bankster collapse on a massive scale is inevitable. They’ll do it themselves within a few years. All I have to do is wait.” gna gna gna ... Prof. Moriarty Explains:

The Loan Boat

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