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Dear Willem Buiter: If Gold Is A 6000-Year Bubble, Then What Is This?
Citi claims gold is a 6000-year-old bubble, perhaps Mr. Buiter has not seen this chart?
...and funny how Mr. Buiter never wrote any extensive essays about the bubbleness of Citi at any point between 1995 and 2007?
* * *
“A friend asked me to choose one investment that I would want to leave to my great-great-grandchildren. I immediately answered that it would be gold coins. The reason I explained is as follows – corporations can disappear, stocks can collapse, governments can change and they can fall, booms and recessions come and go – but gold is intrinsic money, and no man or nation has ever doubted its value. And they never will.”
Richard Russell
Source: The Burning Platform blog, and Bullion Management Group
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Interesting graph... Gold is what the ages used for currency when they lent money for interest ..
http://hedgeaccordingly.com/launch-real-time-charting
The troubling solid bubble of righteous conviction.
You are dumb. This is spam. Click on it.
https://www.youtube.com/watch?v=tOW5eljyjms
What I'd like to know is, as Citi is a love-child of the U.S. government, why doesn't Mr Buiter dispense the same advice he gave to the Swiss and advise the U.S. government to sell their 8,000 odd tonnes of gold?
re. Citi's bailout:
"...But our government’s bailout program was in the hands of the crony New York Fed, where Sandy Weill had served as a Director from 2001 through 2006, and the U.S. Treasury Department, run at that point by Hank Paulson, former CEO of Goldman Sachs.
Instead of nationalizing the bank to protect the taxpayer’s interests, the Wall Street cronies did the opposite; they doubled down to the tune of $326 billion. That’s almost one-third of a trillion dollar commitment to a bank that had $2 trillion on its balance sheet, $1.3 trillion off its balance sheet, zero confidence in the marketplace, a serial history of egregious market violations and a stock value of $20.5 billion. And, at this point, the SEC knew Citigroup was lying about its exposure to subprime debt and likely shared that with the Fed and Treasury. (See Part One.) ..."
http://wallstreetonparade.com/2012/08/the-untold-story-of-the-bailout-of...
Looks like my 2 shares of TVIX....fuck you Ben!
Lets us also not forget that the merger of Travelers and Citibank into Citigroup was the reason the 1999 Financial Modernization Act was passed and created the TBTF bank.
Fuck you Willem
This chart tells me that Citi outperforms gold by a LOT.
We come and say that Bitcoin is lurking in the shadow. Not dead. Not bubbly. If we go away you say ran away. Not hid under like a true blue Zealotry. Not to be but to come, you walk over each manhole and you wonder now?
+ 1 for Bitcoin poetry...
Who knew such a thing was possible?
EDIT:
And if the BTC:Au ratio ever drops back below, say, 2.0, you can always BUY gold with your Bitcoin.
The pure idiocy of Buiter is just amazing:
https://soundcloud.com/olav-nurk-1/black-diamond
We bubbled some folks...
Stop with the Greensppam quotes. He is a scumbag that has been a willing director of the crash of the world. One could argue that he is worse than the others cause HE KNEW MORE THAN THEM.
Hang them all
So, according to this chart, Citi, which makes its money by issuing money from thin air and then charging interest, has performed EXACTLY as well as gold. That is IRONIC. So much for "intrinsic value".
SUCKAHS!
"6000-year bubble". Is there any other single, solitary statement, direct from the ivory tower of the nation's most respected economists, that demonstrates more succinctly the complete and utter madness, incompetence, and insanity of today's entire economics profession?
And the question that is completely unasked: would I rather invest in something that has sustained a 6,000-year bubble through all of man's wars and upheavals and crises and revolutions, or one that has only sustained a 7-year or 10-year or 30-year bubble based on bits of paper and fairy dust?
That is a great observation!
How can anything valued by man be in a bubble for 6000 years? These guys are blowing smoke...
The other long term bubbles are food and shelter.
I thoroughly approve of your avatar. Dave.
why not? a bubble can last 6 years, 60 years (many fiat currencies lasted that long), 600 years or 6'000 years
that gold has been so long a bubble is an excellent reason to expect it to last longer then our lifetimes
gold was "artificially introduced" in Asia Minor, probably/allegedly in Gordium, by King Midas, by the act of issuing the first gold coins
we know that when Athens started exploiting the Laurium silver mine, it "artificially introduced" silver coins, and one the first monetary wars started
we also know that Sparta was still using iron coins, and Spartans refused to switch to gold or silver, and Athenians laughed about this archaic stubborness, and noted a decline in Spartan trading activity, which led to an increasing trading isolation of Sparta
my theory is very simple: in between, the discovery of how to smelt iron ore "happened"
so the original money was meteoritic iron. very well suited for value storing, and for amazing, godlike weapons, too, with poems like Homer's remembering Achilles' imperviousness to arrows and blows
what Midas did was to back gold coins with... iron and/or a basket of whatever was available, possibly wheat, which comes from the region and was stored in great quantities. and of course he collected taxes and duties in his own gold coins
once launched, those gold coins became the first currency in the modern sense, and became money better suited to trade then sheep or salt, the other "great contenders"
--------
so, to recap:
1) money is a human invention. based on agreements. and has a function, that of price calculation. besides that of value storage (yet if in conflict, trading issues trump value storing issues)
2) a human tradition that is 6'000 years old has the best chances of going on for further 6'000 years
So you don't believe the big banks will usher in a new 6,000 year reich?
I believe Wall Street crooks will lead us to the promised land of opportunity creating well paying companies and won't be too greedy and destroy any company , person or government they touch.
Oh Wait I think I just retched!
great comment, which means that, by definition, gold is not, cannot, and will never be, in a bubble.
Gold is gold.
lol max2205
I have two shares of uvxy for the exact same reasons as you.
What is that a 10k loss? mine is 20k. to $25 ...lol. might as well laugh.
if we had any balls 2015 will be the year to buy these rigged products. low percentage possibility but super high return casino chip!
My balls go as buying paper physicall phys . It, s all i can do to leave the system in some way. for now. Just cannot bring myself to losing 50% to these fuckers over the years and just give up. I cannot have the phys at home in what is left. So i keep on gambling with cardboard pms.
What I'd like to know is, as Citi is a love-child of the U.S. government, why doesn't Mr Buiter dispense the same advice he gave to the Swiss and advise the U.S. government to sell their 8,000 odd tonnes of gold?
Well, everyone knows that the US Dollar is backed by the Federal Reserve, whereas Gold isn't backed by anything:
https://www.youtube.com/watch?v=k8Htfcjk_JA
"everyone knows that the US Dollar is backed by the Federal Reserve"
I guess through the back door you can say that, but it's purchasing power isn't backed by anything!
"Well, everyone knows that the US Dollar is backed by the Federal Reserve, whereas Gold isn't backed by anything:
"Well, everyone knows that the US Dollar is backed by man, whereas Gold is backed by nature."
"Well, everyone knows that the US Dollar is backed by somebody, whereas Gold is backed by everybody."
The stalker must have gotten to him ...
http://www.zerohedge.com/news/2013-07-03/meet-willem-buiters-sexy-dement...
Buiter had a PDF which got published on ZH a long time ago, which I liked.
I think the unfortunate reality for any economist in professional employment of anything remotely connected to banking is they slob knobs when they are told, data be damned. Some sell their souls, some move on because they know that old saying is true; don't dip your data in crazy!
Regards,
Cooter
I clicked on it, it was spam, I am dumb
Good chart, very good chart indeed.
Please ban this guy.
His ass is a bubble. Hate to mess with that shit. Pin his ass already.
wow, gold is fucking "golden"; now just shut the fuck up about gold. go get some and stay shut the fuck up...
Draghi?
You could go to a blog that often posts about gold, click on an article about gold, log in and leave an angry comment about gold OR you could GTFO and EABOD. Pretty funny that you choose the first option >.<
Banksters = Snake oil salesmen
No such thing as an energy bubble or a refining bubble either.
Used vehilces are selling big where I'm at. Hold on to your "junker." Or "Junker" as the case may be...
Especially Toyota Corollas and Hyundais...
Don't forget that Citi bought $45b worth of subprime loans after they had started going bad.
And oddly enough, they received $45b worth of taxpayer money in the bailout. Weird coincidence, aye?
https://www.youtube.com/watch?v=bz4cLwVVu9w
And if they didn't get taxpayer bailout $$$, wouldn't Citi "investors" have lost 100% of their money, not 97.7%? lol And is the reverse split factored in as well? lolololol
I would click on your link, but I'm only interested in apathy.
Touche! I don't think we'll be hearing from Mr Buiter anytime soon. Exposed as a hypocrite and a tool.
I'm not sure what Greenspan means. Clearly gold is not a currency now. It is a great asset, a store of value and I believe soon to be come the number one reserve. I like gold, I own gold. I say buy gold, lots of it and soon.
But gold is not and I do not believe and fervently hope will never be a currency. Letting governments declare the value of gold by setting the price is just allowing them to manage it lower one more time.
FOFOA,
Is that you???
Or did you morph into FOA hisself?
Or maybe, maybe you
are Another in the flesh . . .clarify?
Good question. He said some really strange shit today about Draghi, the ECB and gold.
Gov's that don't have much will say it's worthless, Gov's that have lots will say the opposite.
Gov's like fony paper currency, because they can print it.
If you or I had a printing press it would print non stop until the currency became worthless.
Just like now!
I sure hope the brics/Russia or China gold back their currency.
If banks are indeed doing God's work, I would like to apply for the position of atheist. With my monthly wage to be paid in Maple Leafs.
As an atheist, there is no group of sheeple to pay you to abuse them.
Look, anybody with common sense knows that the piece by Willem Buiter is complete rubbish & without foundation.
But what I'd like to know is, as Citi is a love-child of the U.S. government, why doesn't Mr Buiter dispense the same advice he gave to the Swiss and advise the U.S. government to sell their 8,000 odd tonnes of gold?
If he is so right and gold is "worthless" then surely it makes no sense for America to hold their reserves!
Buiter is a well-known whore
for the Fed, the NWO, and the Oligarchs.
Nothing to see here folks,
move along.
I don't believe the government has that much gold, they never let anyone see it. And we know how dishonest they are.
Buiter... Is that French for Ass Hat?
Sir, it is no such thing. I believe in fact it is Dutch for ass hat.
Thank you for the clarification Dr Banzai...
Perfect, just perfect. Love this site.
Want a safe investment? Buy what bankers don't sell.
Central bankers do not want to be bound by gold. They have total control of the money system. Total control with no checks and balances is never good. Gold is discovered at about 2.5% increase over current supply- about equal to population growth. If gold were once again pegged to the dollar or other instrument of exchange Central Bankers would be forced to treat capital as precious and not create complex structured financial vehicles that essentially line the financial industry's pockets and screw us. They do not take their responsibility seriously or there would never be sub prime anything. The financial industry is addicted to money- their pay beyond what any one individual is worth. They are the enemy- they are psychopaths- they will never be satisfied and cannot even see that they are killing the very system they profitted from. It won't end until the ability of Central Banks to create money from thin air is bound to something. They are spoiled children who need limits- they are not adult enough to know when enough is enough.
Could you please expand "Central bankers" to neo Bolsheviks? That would increase the veracity of your statement.
Those cocksuckers at C should quit buying watches, cufflinks, and other such jewelry made from gold and put their $ where their mouths are by insisting all their shit is made from tungsten.
Give out some tungsten watches and matching pen sets at your Holiday party as bonuses, and see how that goes over you fucking clowns.
Yeah, and get Tommy (Joe Pesci) from Goodfellas to "hand the pens out" to them.
Thanks for the little shot of gold porn. Time to clean up
The biggest bubble of all is the 100 yr bubble blown in the collective ass of the American people.
Little to nothing is as we were told, taught or led to believe.......
"no man or nation has ever doubted its value. And they never will".
So they said about stone axes, too.
It's all relative. A stone ax may indeed be the most valuable thing to own under certain circumstances. The same can be said for guns, butter, fiat, bitcoins or virgin daughters.
The reason I own gold and silver is because of its proven track record in segueing between economic systems. Since I smell the end of the current system, I look for something that has a pretty good chance of being convertible into whatever is being used as currency in the coming system.
Good interview
http://video.cnbc.com/gallery/?video=3000335209&play=1
SHITTYBANK - the Shitty never sleeps
Equity holders were wiped out. Being under that umbrella must have sucked.
Dumbass click bait. Typical of the new and improved ZH. Waste of my time. Assholes.
If that supposition was even remotely true...... how is it ALL nations in the 21st century are NOT using gold currency....waiting
Many nations (including the USA) have already accepted the offer, over the objections of the bankers.
http://www.frank-webb.com/karen-hudes---updates.html
https://s3.amazonaws.com/khudes/ltokyoembassiesoutoftokyo.pdf
All that Penn Central stock my grandparents bought must be worth a fortune by now.... me.... I prefer more 'modern' companies like Xerox and Kodak
What's citigroup?
Buiter is just another self-sucking shill
Willem Buiter is a total tool. A real sellout.
He did work for the Bank of England so no surprise then!
Know any good penny stocks Mr. Willem Buiter??
Checking up on Buiter. Interesting to see when power feminist Mees had an affair with him. City credit card definitely wins from feminist principles.
This is my favourite bubble-chart:
http://en.wikipedia.org/wiki/Population_growth#mediaviewer/File:Populati...
Brought to you primarily by *mechanized* farming, production, and food distribution... for now.
The sun is in a 4 billion year bubble. It's got only a couple more billion to go.
The soap bubble that came out of my dish detergent bottle blew up in 1 second.
The term bubble is a total sham, since it can be defined within any length of time.
If you factor in dividends, C actually outperformed Gold since 1986.
Gold (but not only him) will worth nothing when:
We will have machine that than create energy out of nothing.
We will have machine that can transmute any matter into gold.
We will have the posibility to create matter out of nothing.
In short, it's not for tomorrow.