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Grant Williams On Gold As An "Unsure-ance" Policy
The Fed has launched everyday Americans and investors into uncharted economic territory... The Fed’s money-printing policies have driven the markets straight upward, lighting up a new post-crash asset bubble. Their constant price fixing creates, prolongs, and inflates the cycle of booms and busts... and since gold is the ultimate insurance policy against that type of uncertainty, it is very likely to benefit from the Fed’s policies. What's more, consuming ever more than it produces, the US has slipped into record debt levels. The national debt has hit the astounding sum of $17.5 trillion, surpassing America’s total GDP for the first time in 2012. As Grant Williams asks (rhetorically in this brief interview): does the Fed have all of this under control? Probably not... and that is why you need an "unsure-ance" policy.
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"What's more, consuming ever more than it produces, the US has slipped into record debt levels."
The U.S. consumes more than it produces because a few guys at the top benefit from selling goods made overseas to U.S. consumers on credit. Like the devil convincing the world he does not exist, they have convinced the population that credit is the same as wealth. We could make virtually everything we need right here at home, and the extra cost would more than be offset by the higher wages associated with doing so. But, alas, higher wages for workers would mean lower bonuses for the oligarchs. And so we've been taught as a society that we must buy cheap goods overseas for our own benefit. Free trade, trickle down, etc. Now we're reaching the end game, and the guys who brought us here will convince the same sheep that they are our saviors when the shit hits the fan. Long moats.
Yeah, but you get more for your money in the us. For example, if you eat micky d fries, you get 17 ingredients instead of a typical three.
We do have that going for us.
I always see insur-ance as bit of snake oil...but i like this unsure-ance talk.
Buy gold bitchez.
Bingo!
Exhibit A: http://www.reuters.com/article/2014/04/24/cme-gold-asia-idUSL3N0NF2D320140424
Exhibit B: http://twoshortplanksunplugged.blogspot.com.au/2013/05/gold-weak-hands-shake-out-terrence.html
Exhibit C: http://twoshortplanksunplugged.blogspot.com.au/2013/10/gold-us-sovereign-coup-detat-and.html
Nuff Said!
American cuisine breaks the law of conservation of mass, one can gain ten pounds by ingesting one ounce.
Of course, most of that mass is wasted on bloat and tumor weight.
Hmmmmm........... there are around 8 million folks in the U.S. financial services industry. Goldman Sachs alone, employs 30,000 folks at an AVERAGE salary of over $300K per employee.
I know that 30,000 carpenters can sure make a lot of stuff, and that 30,000 truck drivers can move lots of products, and 30,000 doctors can provide a lot of health care.
I thinking 8 million people moving 1's and 0's around may not be such a great thing for the U.S. in the long run.
Thread winnner. People doing nothing stealing the work product of the producers.
I agree. I think capitalizm works when people are rewarded for creating value. Financial engineering and creating debt does not equal value.
Winner winner chicken dinner! Its a crying shame that the sleepy majority cannot grasp this concept.
Funny how Hosts can be portrayed as dependent on their Parasites(TBTF?)
Since the Ford admin.
I think the debt to GDP would be closer to 200% if the numbers were even remotely accurate.
>> and the extra cost
When the manufacturing of consumer products moved overseas, the price of the product didnt' go down, corporate profits and executive compensation went up. I dare say the manufacturing could be brought back with not much more cost than trimming corporate fat and management compensation.
And think of the savings on "Homeland Security." But then again, we pay for that, so nevermind.
Gold is something that a person should buy in order to protect from widespread economic collapse. Many treat it as a commodity to be traded on a day-to-day basis; however, that's not what gold is. It is, instead, a hedge against the idiocy and the arrogance of central banks. Thankfully, we live in a world where the largest global central bank (the Federal Reserve) has largely consigned gold to the "dead end survivalists." For me, this is a welcomed approach, as it seems that the Fed mostly ignores gold. No sanctions against owning the stuff. No tax penalties for owining. Etc. The day will come when they seek to punish gold owners, however that day is not today. And I am thankful for that.
Nice. Well written, good take on gold as unsure-ance.
The US Mint still produces gold and silver coins so I would say that at least that part of .gov is still our friend.
That's kinda why I quit buying eagles a while back. Still have them, but haven't bought those in a while. Not our friend. There are plenty of worthy private businesses who mint various types of bullion whom I would rather give my money to than a govt. It doesn't really cost anymore to make an eagle then it takes to mint a sunshine or a silvertowne bar, yet eagles are a good bit more expensive. Where do you think a large part of that premium goes? No thanks.
I like your comment and you got my upvote, but I think you are very naive believing that the FED ignores gold.
You are seriously mistaken friend.
Who knows, the FEDsters may be privately hoarding gold. May be one or two on ZH too!
buy manhattan real estate.
http://www.reuters.com/article/2014/04/25/us-realestate-china-manhattan-...
it is the safest place to be if the country implodes. manhattan will be the first to receive food, medical aid and security. its the playground of the 1%. you can bet it will be well fortressed. just make sure you have a spot to land your helicopter since they will close off tunnels and bridges into manhattan....
Just like Rome, the colonies and outposts will be abandoned first.
By the way how IS Japan doing?
I'd like to consider myself an ex-pat Byzantine.
When the country implodes, it starts in Newark. Manhattan is too close to the zombies. Best place to own land is where you can defend it. Nyc is not that place.
Yeah close off all those access points to Manhattan. Then the rest of the country will know exactly where to find all those worthless fucks.
Wasn't there a movie that went something like that?
It's long in the tooth, isn't it?
Kyle Bass on BBC's Hardtalk April 12th
https://www.youtube.com/watch?v=7bI4BX3Euzo
He's a gold bullion owner because capitalism without bankruptcy is like Christianity without hell.
Thank you Thank you Thank you
Thank you
Hm ...
This guy actually sounds credible. Thanks for the link.
Wow.
Bass really ripped her a new one. And provided solid info to boot.
What an embarrassment for BBC.
Kyle Bass April 22, 2014
https://www.youtube.com/watch?v=VBPZ58dzjfE
Utica Club...
Bass makes a comment during his presentation... "He who has the largest blue water navy rules the world".
I would put the following question to Mr Bass... Who is going to sail a large blue water fleet into the Black Sea or the Persian Gulf, knowing that the fleet will face quantities of land based, extremely fast, land based missles?
As Halford Mackinder pointed out; navies are not effective against the 'world island' (world island is the area of land from the English Channel to the Pacific shores of East Asia). The world island has all the natural resources inclusive and need not ship much via sea lanes if pipelines and rail transport are in place...and secure.
Halford lived prior to ICBMs and strategic bombing but his theories regarding the world island and resources are still relevant.
There is also the question about the effectiveness of navies. The Spanish Armada was once the largest blue water navy in the world and it did not do so well.
Today, submarines are the most important part of any navy.
http://en.wikipedia.org/wiki/The_Geographical_Pivot_of_History
i think the air arm is the most important part of navies today. you wont be sailing into any inldand seas without 1st destroying any air power that can cover that sea.
Air power?
Air power in small bodies of water are Sun Burn and later generation missles with launch from many platforms... hidden in cliffs, mobile launchers, sea launch, air launch, etc.
As yet, there is no way to protect aircraft carriers against these missles.
Not so different than battleships in WW2.
nuke Ukraine bitchez
.
Chernobyl is just the start of my retirement
I think Grant Williams raises some great points in the clip and I am bullish on the prospects for Gold also, but disagree with some of the comments he made in this interview and some of his previous writing on Germany's Gold repatriation. He says in the clip that the German bars were smeltered before leaving the US, but Bundesbank said it occurred in Europe and that the bars were checked off their list (no doubt ensuring prutiy, weight & indetification matched up):
http://www.bundesbank.de/Redaktion/EN/Interviews/2014_02_19_thiele_hande...
Unfortunately many precious metals commentators are getting the facts about Germany's Gold wrong, another recently was Dave Kranzler which I wrote about here:
http://www.bullionbaron.com/2014/04/dave-kranzler-gets-it-all-wrong-on.html
& previously wrote about repatriation conspiracies here: www.bullionbaron.com/2013/08/is-germanys-gold-repatriation-causing.html
Yea but you are going to need Captain America's shield as well as gold to get through what the Belgium banksters have planned.
Gold has been wrong for the last couple of years. Just like the insane nonfundamentally based MoMo stocks, in dot.com 2.0, that were bid up to insane multiples in this rigged market, gold was bid up in a rigged market.
I do not see why people cannot see this and understand that gold has very little fundamental value and that they have been taken in a SCAM.
Please share with us what you think has fundamental value. Be specific. I want to invest in your sure bet.
These are gold, USD and EURO monthly's.
Gold: http://bullandbearmash.com/chart/spot-gold-monthly-spikes-possibly-compl...
USD: http://bullandbearmash.com/chart/dollar-monthly-closes-remains-channel-s...
EURO: http://bullandbearmash.com/chart/euro-monthly-throws-channel-technicals-...
If gold goes up, the USD will have to go lower than its all time lows - fair enough. If the USD goes below its all time lows, the EURO will go beyond all time highs - that may be a problem.
If you subscribe to buying at bottoms and selling at tops, then the USD is the one to own - as unpopular as this sounds.
According to Tullett Prebon Group Limited:
http://www.tullettprebon.com/Documents/strategyinsights/TPSI_009_Perfect_Storm_009.pdf
perfect storm
energy, finance and the end of growth
Summary
The economy as we know it is facing a lethal confluence of four critical factors – the fall-out from the biggest debt bubble in history; a disastrous experiment with globalisation; the massaging of data to the point where economic trends are obscured; and, most important of all, the approach of an energy-returns cliff-edge.
Through technology, through culture and through economic and political change, society is more short-term in nature now than at any time in recorded history. Financial market participants can carry out transactions in milliseconds. With 24-hour news coverage, the media focus has shifted inexorably from the analytical to the immediate. The basis of politicians’ calculations has shortened to the point where it can seem that all that matters is the next sound-bite, the next headline and the next snapshot of public opinion. The corporate focus has moved all too often from strategic planning to immediate profitability as represented by the next quarter’s earnings.
This report explains that this acceleration towards ever-greater immediacy has blinded society to a series of fundamental economic trends which, if not anticipated and tackled well in advance, could have devastating effects. The relentless shortening of media, social and political horizons has resulted in the establishment of self-destructive economic patterns which now threaten to undermine economic viability.
We date the acceleration in short-termism to the early 1980s. Since then, there has been a relentless shift to immediate consumption as part of something that has been called a “cult of self-worship”. The pursuit of instant gratification has resulted in the accumulation of debt on an unprecedented scale. The financial crisis, which began in 2008 and has since segued into the deepest and most protracted economic slump for at least eighty years, did not result entirely from a short period of malfeasance by a tiny minority, comforting though this illusion may be. Rather, what began in 2008 was the denouement of a broadly-based process which had lasted for thirty years, and is described here as “the great credit super-cycle”.
The credit super-cycle process is exemplified by the relationship between GDP and aggregate credit market debt in the United States (see fig. 1.1). In 1945, and despite the huge costs involved in winning the Second World War, the aggregate indebtedness of American businesses, individuals and government equated to 159% of GDP. More than three decades later, in 1981, this ratio was little changed, at 168%. In real terms, total debt had increased by 214% since 1945, but the economy had grown by 197%, keeping the debt ratio remarkably static over an extended period which, incidentally, was far from shock-free (since it included two major oil crises).