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Faber: Own Gold – “Don’t Store It In The U.S., The Fed Will Take It Away From You One Day”

Tyler Durden's picture


From GoldCore Gold Buillion

Faber: Own Gold – “Don’t Store It In The U.S., The Fed Will Take It Away From You One Day”

Today’s AM fix was USD 1,767.25, EUR 1,349.36 and GBP 1,089.42 per ounce.
Friday’s AM fix was USD 1,772.50, EUR 1,359.70 and GBP 1,093.53 per ounce.

Silver is trading at $34.52/oz, €26.44/oz and £21.36/oz. Platinum is trading at $1,699.00/oz, palladium at $685.50/oz and rhodium at $1,050/oz.

Gold rose $5.30 or 0.3% in New York and closed at $1,771.60. Silver climbed to $34.91 then dropped before bouncing back higher, and finished with a loss of 0.06%. Gold was up 2.02% for the week and silver another 3% for the week.
Currency Table – (Bloomberg)

Gold is slightly weaker today but hovering near a 7 month high, as the US Fed’s announcement of QE3 has led to some investors diversifying into bullion as a hedge against inflation risk.

The yellow metal rose as high as $1,777.51 on Friday, a high not seen since February 2012 when it hit this year’s peak.  Last September 2011, it reached a nominal high of nearly $1,920/oz.

QE3 will allow the Fed to print dollars to buy $40 billion worth of bonds every single month for the foreseeable future. Dollars, euros and pounds are being made to grow on trees – the precious metals do not.

November marks the festival season of Diwali in India, the Hindu festival of lights and demand has picked up as both jewellers and investors scaled up purchases before prices rise any further.

Marc Faber, one of the few analysts, to have predicted the current crisis correctly and to have protected his clients in the process, remains very bullish on gold.

In another excellent Bloomberg interview, Faber said that “the trend for gold prices will be steady but the trend for the dollar and other currencies will be down. So in other words gold in dollar terms will trend higher.”

Gold in Dollars, Euros, Pounds, Norwegian Krone – 1 Year

“How high it will go, you will have to call Mr Bernanke and at the Fed there are other people who actually make Mr Bernanke look like a hawk and so they are going to print money.”

Faber is on record as to the importance of owning physical gold and he again warned about the importance of owning gold but not storing it in the U.S.

Gold in Dollars, Euros, Pounds, Norwegian Krone – 5 Year

“You ought to own some gold but don’t store it in the U.S., the Fed will take it away from you one day,” Faber astutely noted.

He said that Bernanke is a money printer and this could lead to massive inflation and the Dow Jones at 20,000, 50,000 or 10 million.

Faber cheerily predicted that the “the Federal Reserve’s monetary policy will destroy the world” and “eventually we will have a systemic crisis and everything will collapse.” 

Faber’s long term historical financial and economic perspective remains astute.

The full interview is a must see and can be seen in our commentary section today.

(Bloomberg) -- Fed’s QE3 Signals Gold Rise to $2,000 by March: Chart of the Day

Gold may surge to a record $2,000 an ounce in the next six months as the Federal Reserve’s third attempt at economic stimulus stokes concern that inflation will accelerate, according to TD Securities Inc.

The CHART OF THE DAY shows that gold prices have moved almost in tandem with inflation expectations, which jumped to the highest in 16 months after the Fed announced a third round of bond buying. Investors may increase purchases of the precious metal to protect against rising consumer prices, said Bart Melek, the Toronto-based head of commodity strategy at TD Securities.

Gold soared 70 percent from the end of December 2008 to June 2011 as the Fed kept borrowing costs at a record low and bought $2.3 trillion of bonds in two rounds of so-called quantitative easing. 

On Sept. 13, the central bank said it will expand holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month and keep the benchmark interest rate near zero “at least through mid-2015.”

“We are running the risk of inflation because of this highly accommodative monetary policy,” said Melek, the third- most accurate price forecaster for precious metals tracked by Bloomberg during the eight quarters through June 30. “The concern is that even as velocity in the banking system picks up, the Fed may not drain away liquidity fast enough.”

On Sept. 14, inflation expectations as measured by the break-even rate for five-year Treasury Inflation Protected Securities reached the highest since May 4, 2011. Gold futures climbed 1.9 percent last week to $1,772.70 on the Comex in New York. The precious metal surged to an all-time high of $1,923.70 on Sept. 6, 2011.

(Bloomberg) -- Credit Suisse Raises Gold Forecast to $1,850 an Ounce

Credit Suisse Group AG raised its gold forecast to $1,850 an ounce, according to a report from Nannette Hechler-Fayd’herbe, head of global financial markets research.

(Bloomberg) -- Gold Traders Increase Bets on Price Rise, CFTC Data Shows
Hedge-fund managers and other large speculators increased their net-long position in New York gold futures in the week ended Sept. 11, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 182,016 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 11,552 contracts, or 7 percent, from a week earlier. 

Gold futures rose this week, gaining 1.9 percent to $1,772.70 a troy ounce at today's close. 

Miners, producers, jewelers and other commercial users were net-short 237,091 contracts, an increase of 17,705 contracts, or 8 percent, from the previous week. 

Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators' positions because such transactions can reflect an expectation of a change in prices.

(Bloomberg) -- Silver Traders Trim Bets on Price Rise, CFTC Data Shows

Hedge-fund managers and other large speculators decreased their net-long position in New York silver futures in the week ended Sept. 11, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 31,482 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions fell by 948 contracts, or 3 percent, from a week earlier. 

Silver futures rose this week, gaining 2.9 percent to $34.66 a troy ounce at today's close. 

Miners, producers, jewelers and other commercial users were net-short 47,272 contracts, an increase of 2,352 contracts, or 5 percent, from the previous week.

Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators' positions because such transactions can reflect an expectation of a change in prices.

(Bloomberg) --  BNP Paribas Says Fed’s Low Rates to 2015 Delays Gold’s Peak
Gold’s peak will be delayed because of the Federal Reserve’s decision to keep interest rates low for longer, BNP Paribas SA said.

BNP Paribas kept its annual gold and palladium price forecasts, Anne-Laure Tremblay of the bank said in an e-mailed report today.


Gold hovers near highest in almost seven months after Fed - Reuters

Bullish Wagers at 16-Month High as Citi Sees Gains - Bloomberg

Amplats to resume S.Africa operations on Tuesday - Reuters

Gold, silver rise in electronic trading – Market Watch

Video: Gold's Global Outlook: The Drivers of Its Rally - Bloomberg

Video: Don't Store Gold In U.S. - Fed Will Take It From You - Bloomberg

When will these bankers learn: Stock markets have nothing to do with the real economy – The Daily Mail

BofA Sees Fed Assets Surpassing $5 Trillion By End Of 2014... Leading To $3350 Gold And $190 Crude -  Zero Hedge


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Mon, 09/17/2012 - 08:06 | 2802622 GetZeeGold
GetZeeGold's picture



Top of the world ma!

Mon, 09/17/2012 - 09:12 | 2802818 Ruffcut
Ruffcut's picture

I only have silver and lead.

I also have some lead delivery systems.

Mon, 09/17/2012 - 09:17 | 2802828 BaBaBouy
BaBaBouy's picture

Keep It Safe.


GOLD To $50K ...

Mon, 09/17/2012 - 10:24 | 2803207 Overfed
Overfed's picture

Keep it secret. Keep it safe.

Mon, 09/17/2012 - 13:10 | 2803943 monoloco
monoloco's picture

Bank of Tupperware.

Mon, 09/17/2012 - 09:30 | 2802871 Watauga
Watauga's picture

We are talking about a government that already has decided to reach into all accounts, worldwide, of every American.  We should not pretend that this government won't pass a law that states, simply, that all physical gold held in any form and in any location, worldwide, by an American citizen, SHALL be turned over to the government.  Any American who does not turn over that gold will be guilty of violating the law, which likely will lead to imprisonment and seizure of all assets, at least until such time as the gold is turned over.  The government likely has, or can conjure up, fairly accurate records detailing all gold purchases done with anything but cash or in barter.  So, most gold purchases are known, or would become known, to the government.  Borders and sovereignty will have pose little constraint in the coming years.

Mon, 09/17/2012 - 09:36 | 2802893 Tinky
Tinky's picture

The problem with these arguments relating to possible gold confiscation is that that vast majority of wealth held in the form of gold is owned by the very same people who run and essentially own the Government. So, how likely is it that politicians are going to bite the very same hands that feed them?

Mon, 09/17/2012 - 11:43 | 2803624 donsluck
donsluck's picture

You imply that the upper crust is subject to the same laws as the rest of us. Silly.

Mon, 09/17/2012 - 09:52 | 2802993 Quinvarius
Quinvarius's picture

LOL.  It is so friggin hilarious when the gold shorts try to scare people with some confiscation baloney.  You do realize that they did not "confiscate" gold in the 30's, right?  It would have collapsed the system.  The government paid for it.

And they will take your AAPL stock along with all the other productive assets and company stocks long before they worry about gold.  That is what they have already been doing. 

Mon, 09/17/2012 - 10:26 | 2803221 JohnKozac
JohnKozac's picture

Aren't homicides against the law? Yet we have at least one murder a night in my town.

The law is only good when the people want to obey them.

Mon, 09/17/2012 - 10:50 | 2803337 tsx500
tsx500's picture

how about boating mishaps .... are those known to government ?

Tue, 09/18/2012 - 02:08 | 2806162 Tompooz
Tompooz's picture

No need. For boating accidents the burden of proof will be reversed.

Mon, 09/17/2012 - 08:09 | 2802630 GubbermintWorker
GubbermintWorker's picture

Well now, if I had the resources that Mr. Faber does that would be easy but, I don't. I'll keep my gold safe in the bank of mother earth and just say FUCK YOU to the FED!

Mon, 09/17/2012 - 08:35 | 2802708 Long-John-Silver
Long-John-Silver's picture

I keep mine in the lake my boat sank in after that horrible boating accident.

Mon, 09/17/2012 - 08:37 | 2802713 GetZeeGold
GetZeeGold's picture



....a moment of silence please.


Mon, 09/17/2012 - 10:26 | 2803220 Captain Benny
Captain Benny's picture

I operate a metal salvage business that will help you recover that sunken pirate booty without charge.   Please provide me with the lake name and approximate location and I'll add you to our que of jobs.   As you know, you meade drinking Zerohedgers have had lots of accidents lately and my team of goons^h^h^h^h^hdivers have been extremely busy.

Mon, 09/17/2012 - 10:48 | 2803318 otto skorzeny
otto skorzeny's picture

careful-the spanish govt is now claiming to be the owner of EVERY PIECE of gold and silver found on the ocean floor EVERYWHERE.

Mon, 09/17/2012 - 08:10 | 2802632 negative rates
negative rates's picture

Just bury the gold in the ground like the dog you are.

Mon, 09/17/2012 - 08:13 | 2802642 GetZeeGold
GetZeeGold's picture



Hey....I'm a Hun....not a dog.


Now I'm pissed....please give me the directions to your embassy.


Mon, 09/17/2012 - 08:19 | 2802667 HungrySeagull
HungrySeagull's picture


Another half breed Hun here. Damn did you step in it with that dog comment!

Mon, 09/17/2012 - 08:26 | 2802686 Yardfarmer
Yardfarmer's picture

they want your gold, they want your silver, they want your house, 401K, IRA, pensions. they want it all! hopefully all they'll get is your lead. haha.

Mon, 09/17/2012 - 23:50 | 2806033 Clashfan
Clashfan's picture

You should hear Jim Marrs talking to these kids on the radio.

The contrast is amazing. Marrs gets on a rant about "bloated bureaucrats."

Mon, 09/17/2012 - 08:21 | 2802673 spankfish
spankfish's picture

That remark young man will bring the men driving the black suv's to your front door.

Mon, 09/17/2012 - 09:54 | 2803006 negative rates
negative rates's picture

That would be bedrock, zerohedge. First go to flintville, make a right at Barneytown, go 3 miles, look to the right, and you are there. I'll be here for ya.

Mon, 09/17/2012 - 08:31 | 2802697 Vooter
Vooter's picture

We're all dogs now, bitch...

Mon, 09/17/2012 - 08:40 | 2802720 GetZeeGold
GetZeeGold's picture



If you had said would have stuck the landing.


Not bad for a first try though.


Mon, 09/17/2012 - 09:43 | 2802921 Red Heeler
Red Heeler's picture

"Just bury the gold in the ground like the dog you are."


Mon, 09/17/2012 - 08:10 | 2802633 Zer0head
Zer0head's picture

I saw that interview and I am pleased that Faber gets the air time, but Bloomberg is getting bad. Apart from the to be expected pro-obama bias, just this morning anchor Scarlett Foo comments on OWS with this statement:


"We do know that the protests are currently peaceful but the police (on orders from our boss) are restraining some protesters with (she says quietly) zipties,  and in other news. "

Mon, 09/17/2012 - 08:12 | 2802638 HD
HD's picture

I don't understand how everyone equates money printing with endless equity gains. Japan has been printing for 20 years - shouldn't their stocks be soaring to ever higher highs?

Mon, 09/17/2012 - 08:14 | 2802650 buzzsaw99
buzzsaw99's picture


Mon, 09/17/2012 - 08:15 | 2802652 Winston Churchill
Winston Churchill's picture

They did soar for about 18 months if I remember correctly.

Then declined fast.

Mon, 09/17/2012 - 09:56 | 2803023 Manthong
Manthong's picture

Same thing in Weimar until the value of owning a tiny fraction of a few companies decoupled from the price of bread.

Mon, 09/17/2012 - 08:30 | 2802695 Sheeple Shepard
Sheeple Shepard's picture

Wh..wh..What? You mean Weimar Germany isn't the centre of the financial world?

Mon, 09/17/2012 - 08:43 | 2802727 UGrev
UGrev's picture

Zimbabwe isn't either.. nor is Argentina.. 

Mon, 09/17/2012 - 13:11 | 2803945 Sheeple Shepard
Sheeple Shepard's picture

Mmmm, makes no sense to me. More is better right?

Mon, 09/17/2012 - 13:44 | 2804088 UGrev
UGrev's picture

sure.. if you want to believe that.. 

Mon, 09/17/2012 - 09:03 | 2802782 spanish inquisition
spanish inquisition's picture

Gold in yen for the last 30 years

Edit: Just about at lift off again, just need to distract the people and market... but how?

Mon, 09/17/2012 - 09:14 | 2802825 HD
HD's picture

Now that's a good chart.

Mon, 09/17/2012 - 10:24 | 2803209 spanish inquisition
spanish inquisition's picture

Interesting overlay

Government and private debt as a % GDP. In the beginning it works just like the neo keyenseans predict in the 80's more Gov't debt more Private debt more GDP. Gov't tries pulling some debt or slowing increase around 1988, GDP increases and private debt stalls. Private deleveraging starts and as govt starts printing. Apparently, there is a limit to the amount of debt a people are willing to service as a % of GDP. So inflation creates a fake wealth effect that gets them buying again?  Since 02? Japanese GDP growth is due to devaluation fake wealth effect generation.


Mon, 09/17/2012 - 09:14 | 2802826 Calculated_Risk
Calculated_Risk's picture

I believe the premise is 'where else you going to go'. If the whole world is flooded with $, "they" are going to take the "safe" bet in "cheap" equities.

Did you forget your msnbc brainwashing already?!

Mon, 09/17/2012 - 08:12 | 2802640 giggler123
giggler123's picture

Bloomberg reports, Ben Bernanke seen in field with spade

Mon, 09/17/2012 - 08:34 | 2802704 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

It is about time the fucker does actual, real, productive work.

Mon, 09/17/2012 - 09:37 | 2802897 Vince Clortho
Vince Clortho's picture

Haaaa!  Don't hold your breath.  Those hands touch only ink and paper.

Mon, 09/17/2012 - 09:39 | 2802907 otto skorzeny
otto skorzeny's picture

oooooo-dat's racissss.

Mon, 09/17/2012 - 08:14 | 2802644 DougM
DougM's picture

If you store it outside the US then a foreign government is more likely to take it away from you.

Mon, 09/17/2012 - 08:37 | 2802715 andrewp111
andrewp111's picture

Or a foreign banker. The Swiss Bankers stole enormous amounts of gold from dead Jews during WW II.

I keep my metals at home. At least I know where they are. People with paper gold in Switzerland will end up with just that - paper.

Mon, 09/17/2012 - 09:40 | 2802914 Tinky
Tinky's picture

Nonsense. First, you are conflating too issues (and of course physical is crucial). The Swiss economy would be devastated if their private corporations did anything remotely like confiscate foreign PM holdings. The only reasonable concern is that the US government would pressure Swiss banks to hand over PMs. Those stored outside of the banking system will be much more difficult to get at.

Mon, 09/17/2012 - 09:43 | 2802927 otto skorzeny
otto skorzeny's picture

That's a lie perpetrated by the Jews to extort $ from the world and the swiss in particular. There have been thousands of conflicts across the world over time and if you had to cough up $ for something your ancestors did at some point in history everybody in the world would owe somebody else.

Mon, 09/17/2012 - 08:14 | 2802646 Spitzer
Spitzer's picture

we need to speed up this process.


Faber has been saying the same thing for 5 years. Hes right but lets get on with it. somebody do something...

Mon, 09/17/2012 - 09:46 | 2802945 otto skorzeny
otto skorzeny's picture

it'll be quick but painful when it does-a matter of hours.

Mon, 09/17/2012 - 10:37 | 2803264 Chump
Chump's picture

Nah man, 3 days.  That's how long civilization lasts thanks to MBA JIT efficiency brilliance.  Remember Maslow's hierarchy of needs?  After 3 days of supply chain interruption every single unprepared person is right at the bottom: physiological.  You can continue the thought process on your own because I'm off to pick some lonesome tunes on the 5-string.

Mon, 09/17/2012 - 08:16 | 2802653 TheObsoleteMan
TheObsoleteMan's picture

Socialist governments STEAL. FDR did it, and the Kenyan pretender will too {or, just insert any other socialist name}. And all of the people who laughed at the metal holders, and kept their now worthless paper investments will demand it. They will report you to the feds:"So and so has gold Mr.IRS agent, they tried to get me to buy it a few years ago, and they told me they had physical possession of X many ounces of gold". Just remember, when they come for your gold and silver, give them your lead and brass first! Today we have an outlaw government, so why shouldn't we expect them to act like outlaws?

Mon, 09/17/2012 - 08:27 | 2802688 CH1
CH1's picture


Hide it better?

Mon, 09/17/2012 - 08:56 | 2802765 Chump
Chump's picture

Exactly.  They may demand it but you still have to "give" it to them.  I suggest offering them other metals instead.

Oh and the whole confiscation thing is nonsense.  This isn't the 30's; only extremist nutjob domestic terrorist librarians have PMs, remember?  This shit is going to be way bigger than the various ounces that a single-digit percentage of Americans might have.

Mon, 09/17/2012 - 09:41 | 2802919 Tinky
Tinky's picture

Correct. Those who hold large amounts of gold essentially run the government.

Mon, 09/17/2012 - 09:49 | 2802957 JimBowie1958
JimBowie1958's picture

You said it.

My grandfather's generation trusted the government inately, and had confidence that FDR was doing the confiscation in order to get the country out of the depression.

That was before Watergate, Ruby Ridge, Patriot Act, and the election of our first American socialist (fabian maybe, but still a socialist).

If the government tries to confiscate gold and silver from the most heavily armed civilian population in the world, well, it wont go as smoothly as they seem to think it will.

They should have bought more ammo if they do this.

Mon, 09/17/2012 - 08:32 | 2802699 AmCockerSpaniel
AmCockerSpaniel's picture

Say and do nothing. Now about FDR; Would you rather have FDR or Obama?

Mon, 09/17/2012 - 08:45 | 2802732 UGrev
UGrev's picture

FDR, because he's 6 feet under and can't do any more damage. 

Mon, 09/17/2012 - 08:55 | 2802760 LawsofPhysics
LawsofPhysics's picture

FDR didn't recover shit.  In fact, I still have what my Grandfather left me.  We will simply move to the two-market model.  One market for the Fed and one for everyone else.  Talk to people who have survived the changes in Russia over the last 25 years.  The black market economy in the U.S. is just getting warmed up.  Hedge accordingly.

Mon, 09/17/2012 - 09:44 | 2802934 goldfish1
goldfish1's picture





Mon, 09/17/2012 - 12:34 | 2803828 Bam_Man
Bam_Man's picture

You left out "pussy".

Mon, 09/17/2012 - 18:45 | 2805310 kekekekekekeke
kekekekekekeke's picture


Mon, 09/17/2012 - 09:49 | 2802962 otto skorzeny
otto skorzeny's picture

you're right-FDR goaded the Germans into war with the US just like we are doing with Iran now. Hitler's big mistake was entering into a pact with the Japs-that sealed his fate.

Mon, 09/17/2012 - 10:50 | 2803341 TheObsoleteMan
TheObsoleteMan's picture

No, Hitler's fate was sealed when he didn't finish off Britian when he had the chance. He let three entire British armies {and scores of French too} escape at Dunkirk, almost 350,000 soldiers. it was the two front war that put an end to him, that and constantly interferring in the way the war was fought. Good thing though, had he not, WW2 would have gone on another couple of years.

Mon, 09/17/2012 - 11:57 | 2803671 donsluck
donsluck's picture

Hitler's "mistake" was insanity. It was only made worse by his personal doctors' administration of vitamins and amphetamines, both discovered by German scientists and considered wonder drugs.

Mon, 09/17/2012 - 13:31 | 2803839 Bam_Man
Bam_Man's picture

Hitler's "mistake" was screwing an infected prostitute during WWI and contracting syphilis. By around 1938, it was late stage and by 1943 terminal phase - complete with dementia and tremens.

Mon, 09/17/2012 - 12:46 | 2803866 JimBowie1958
JimBowie1958's picture

Hitler made many mistakes, and the top three IMO:

1. Failed to finish the Brits as you stated TOM.

2. United the Soviet Union by sending death squads that rounded up and shot Jews and others in the tens of thousands. Most in occupied Soviet territories and republics saw the Germans as liberators until the Nazis showed their true nature and then the citizenry united and began engaging in partisan warfare instead.

3. Declared war on the US when most of America wanted to focus on the Japanese and leave the German-Brit war to themselves. hitler brought us into the war at least several years early, if we would have entered the war at all.

Mon, 09/17/2012 - 14:28 | 2804271 TheObsoleteMan
TheObsoleteMan's picture

I'm not going to tell you my name, but know that it isn't Tom. Yes, Hitler sent in SD units right behind his spearhead units to wreck mayhem on the civilian populations in the USSR. Had he not done so, the entire Ukraine would have become an ally. Hell, the Germans still managed to get over 500,000 Ukrainians to fight with them, and after the war all survivors were tortured to death by Stalin's NKVD. The USA had declared war on Germany in 1940 with Lend-Lease to Britain, so Hitler's declaration in 1941 was only a formality.

Tue, 09/18/2012 - 08:35 | 2806511 JimBowie1958
JimBowie1958's picture

TOM = TheObsoleteMan

I dont think the Ukrainian units offset the partisan campaign that tied down lots of units behind the front lines that could have better served elsewhere. And I wonder how many Ukrainians would have served if Hitler had not sent the death squads.

As to America being at war with Germany commensing with Lend Lease; LL is perhaps legally an act of war itself, but it pales compared to what our bombers did. Had Hitler not declared war he would have gotten more LL still, but not likely to have seen so much strategic bombing and no Normandy or loss of Italy which sot him dearly. It is IMO likely the crucial difference that prevented him from holding on to the Balkans and his supply route to the chrome mines in Turkey in 1944. After that the German engine production collapsed as Chrome is vital to the operation of pistons in an internal combustion engine, AIUI.

Mon, 09/17/2012 - 09:39 | 2802911 Vince Clortho
Vince Clortho's picture

Governments Steal.

fixed it.

Our job as citizens is to catch them.

Mon, 09/17/2012 - 10:45 | 2803304 TheObsoleteMan
TheObsoleteMan's picture

Nothing needed fixed. We have a socialist government.

Mon, 09/17/2012 - 23:54 | 2806044 Clashfan
Clashfan's picture

In the link I gave above, Marrs gives an example of socialism. He tells a story of a professor and a class. In the class, the discussion about socialism comes up, and students say it sounds good.

So the professor says, okay, we will do socialism with your grades. Instead of each student earning an individual grade, I will average them, and each student will receive the average grade on each test.

Guess what everyone's grade was by the end of the semester?

Mon, 09/17/2012 - 08:16 | 2802656 falak pema
falak pema's picture

TD : You have already posted this thread here : Marc Faber: "Fed Will Destroy The World" | ZeroHedge

and it said : Unemployment goes among low paying jobs, not high paying jobs. So, you ought to own some gold, but don’t store it in the U.S. because the Fed will take it away from you one day.”

Just saying; even tho its worth repeating! 

Mon, 09/17/2012 - 08:27 | 2802689 SilverIsKing
SilverIsKing's picture

Is there a point to your post?

Mon, 09/17/2012 - 08:45 | 2802735 UGrev
UGrev's picture

yes... repetition is good for helping one remember. 

Mon, 09/17/2012 - 09:49 | 2802965 SilverIsKing
SilverIsKing's picture

I agree but that's not why he posted that.

Mon, 09/17/2012 - 09:12 | 2802820 LULZBank
LULZBank's picture

Sounds a bit like your posts no.. sometimes? ;)

Mon, 09/17/2012 - 08:16 | 2802660 johnQpublic
johnQpublic's picture

canoes bitchez!

Mon, 09/17/2012 - 08:17 | 2802662 Hannibal
Hannibal's picture

"Don't store your gold in the US, the Fed will take a way some day"...Faber: funny weird kind of old chap but sooo right.

Dig a hole, map it, gps it!

Mon, 09/17/2012 - 08:19 | 2802668 GubbermintWorker
GubbermintWorker's picture

That's the nice thing about gold, so easy to bury :-)


Mon, 09/17/2012 - 08:25 | 2802680 new game
new game's picture

gub watching - nowhere to hide bitcheez

Mon, 09/17/2012 - 08:25 | 2802682 thomasincincy
thomasincincy's picture

next to a tree with unique features. size, type, bark etc...

Mon, 09/17/2012 - 08:29 | 2802692 CH1
CH1's picture

Where it won't be found with a metal detector.

Mon, 09/17/2012 - 08:51 | 2802749 johnQpublic
johnQpublic's picture



bury the gold at 3 feet deep, with your decoy metal buried directly above it at 6 inches and again at one foot

thats what i'd do if it hadnt been for that terrible canoeing accident

Mon, 09/17/2012 - 09:09 | 2802807 overbet
overbet's picture

Hope that tree doesnt get cut down.

Mon, 09/17/2012 - 08:47 | 2802740 UGrev
UGrev's picture

Except when the goons show up with ground penetrating radar.. 

Mon, 09/17/2012 - 10:58 | 2803388 tsx500
tsx500's picture

hell, let 'em show up .....  doesn't mean they'll be leaving

Mon, 09/17/2012 - 11:44 | 2803458 boiltherich
boiltherich's picture

Or when you die unexpectedly and you were the only one that knew where you planted it, they are still finding such hoards from the 30's. The problem is that you can't trust anybody, not even a spouse with your secret, either they betray you or they get taken instead. And if a criminal suspects you have a buried trove of PM's squirrled away somewhere you make a target of your loved ones, real bad guys know that taking a wife or daughter and torturing the location out of them is easier than getting it out of you, and if they don't know you will trade the location for the loved one.

We can come up with such scenarios all day about how your PM's can be confiscated, and you can't actually use gold as a store of wealth if you cannot spend it, if you spend it then word gets around that you have a store of wealth in gold.

I say if things are so bad that you think the only solution is to buy and bury PM's then you long ago should have gotten together and demanded by whatever means it took to get real change so that we can all live in a society where this conversation would be absurdly unnecessary. Failing to have done that means it is as much your fault we are in this situation as any Jewish international bankster or a guy named Rothschild.

I know any negativity regarding PM's is instantly red arrowed without debate, but a survivalist prepper lifestyle is not only no fun, it advertises your stores of wealth/food/medicines/anything else you stockpile. Maybe the reason you have not gotten together to demand the changes required to not need such preparations is that by yourself you are too small to do any good, but if you combined forces and yes resources, you could change the system.

Of course in a civil society you can't change squat without becoming responsible for all the problems that come with that, here you don't like how I am handling the nation? You have a go at it, we will see if you can do any better. Guess what, it took centuries and billions of lives to get into this mess and we will not get out of it overnight with a few simplistic nostrums about PM's and lower taxes on the rich. Deal with it.

Mon, 09/17/2012 - 08:56 | 2802752 YHC-FTSE
YHC-FTSE's picture

"Hiding the gold". 


That's been widely recommended on ZH over the years with some really good advice, but if like me, you have bought gold at reputable businesses, they would have a record of your purchases (It's part of the anti-money laundering op). Getting rid of the paper trail that leads the gold to you is key to keeping it when/if executive order 6102 is enacted. The first time, in 1933, it wasn't all that successful because records and federal resources were spotty at best. But now, you can bet your arse that it will be much more efficient. I doubt the authorities will buy the, "It all sank in a tragic boating accident" excuse. It's no wonder archaeologists are still finding large hoards of treasure from ancient times during periods of unrest - owners of conspicuous wealth have a habit of disappearing in any age.

Buy in small amounts, cash transactions without invoice. But if you are thinking of converting the majority of your assets to PM, then think of keeping it safe abroad under an overseas shell company administered by reputable law firms in places like Singapore, Switzerland, and Lichtenstein. They will be in "banks", but the assets will be under local company names. 

Anyway, I'm more concerned about food and security these days - PMs are way down the list of priorities now.

Mon, 09/17/2012 - 09:23 | 2802854 flattrader
flattrader's picture

>>>Buy in small amounts, cash transactions without invoice.<<<

yES.  And if you're really buying gold for the collapse...a real collapse...U.S. gold eagles won't cut it.

If the value of gold does skyrocket, how the hell is anybody going to make change for your purchases?  And are you gonna accept their worthless fiat paper?

Got me some decent quality gold jewelry in 14k and 22k varieties that is easily recognized as gold by even the most idiotic dolt...Think "Man Who Fell to Earth."

That's who you may be doing busiuenss with in a situation like this...idiotic dolts.

Bought cheap. Paid cash.  No coin shop transactions.

Did the same with silver.

Mon, 09/17/2012 - 09:10 | 2802808 mess nonster
mess nonster's picture

Arrrr...I've got me map! I've found the scurvy dogs t' do me diggin' fer me! Arrr... all's I needs now is me gold!!!

Mon, 09/17/2012 - 08:17 | 2802664 caimen garou
caimen garou's picture

I don't think off shore accounts are safe, look at the swiss bank accounts that the internal ream us all srevice is going after! I know where mine is,if i can only remember what lake i was on when........

Mon, 09/17/2012 - 08:30 | 2802694 CH1
CH1's picture

Offshore is tricky stuff. If you're going to do it, hire a trustworthy consultant.

Mon, 09/17/2012 - 08:49 | 2802744 BlueCollaredOne
BlueCollaredOne's picture

Nah, just read Simon Black.  


Mon, 09/17/2012 - 08:30 | 2802696 samcontrol
samcontrol's picture

My banks just told me , THe US passes new world pact on offshore banks early next year....
No one talks about it but that COULD be the BLACK SWAN
They also mentioned GOLD was being bought for the FIRST TIME by average "offshore". investors...
NO CANOES but lots and lots of PSLV ,, PHYS ...

Mon, 09/17/2012 - 21:59 | 2805845 i-dog
i-dog's picture


"lots and lots of PSLV ,, PHYS"

LOL ... I wonder which juicy gold and silver hoards will be the first to be confiscated one quiet bank holiday weekend (eg. Columbus Day has interesting connotations)!

Mon, 09/17/2012 - 08:17 | 2802665 HungrySeagull
HungrySeagull's picture

Gold is nice, but Silver is better.

Mon, 09/17/2012 - 08:20 | 2802671 GubbermintWorker
GubbermintWorker's picture

And having both is better yet!

Mon, 09/17/2012 - 09:24 | 2802855 Reven
Reven's picture

I don't see the Chinese central bank buying silver, nor any other Government stockpiling.  Silver is still a commodity as far as I'm concerned.  As JP Morgan once said, gold is money, and nothing else.

Mon, 09/17/2012 - 08:20 | 2802666 Yardfarmer
Yardfarmer's picture

(Bloomberg) --  BNP Paribas Says Fed’s Low Rates to 2015 Delays Gold’s Peak
Gold’s peak will be delayed because of the Federal Reserve’s decision to keep interest rates low for longer, BNP Paribas SA said.


And there you have it, in a nutshell. the Bernanke's lid on the pressure cooker. haha.

Mon, 09/17/2012 - 09:27 | 2802860 Reven
Reven's picture

In other news, a year from now the Fed will announce low rates to 2016.

Mon, 09/17/2012 - 08:22 | 2802674 new game
new game's picture

if it is illegal, i am thinking the value soars.

oh, is anybody playing by the laws? here sir, have my gold-huh!

when that happens i think we have greater problems than

pm hiding > we will be hiding ourselves from the redcoats...

Tue, 09/18/2012 - 15:29 | 2808210 mkkby
mkkby's picture

Being scared of confiscation is stupid and for pussies. How has the 25-year war on drugs gone -- got all that have they?

The more something unlawful is wanted, the more it's black market profit rises. I'd say gold will be in high demand after a currency collapse.

Of course... they have the guns and can lock you up indefinitely for contempt of court until you hand it over, lake or no lake. But by the time that happens, paper assets will be long worthless and people will be worrying more about finding food.

Would you rather NOT have gold and definitely lose everything, or have gold and a fighting chance?

Mon, 09/17/2012 - 08:24 | 2802678 LawsofPhysics
LawsofPhysics's picture

Talking the book Faber? The Fed is dead, they are not talking away shit.  Too many lakes to search.

Faber exposing himself as another paper-pusher full of fear, nothing more.

Mon, 09/17/2012 - 08:28 | 2802691 buzzsaw99
buzzsaw99's picture

dr. doom fear mongering? shocking! if he had told me that my koch bros tp rolls would be getting smaller at least that would have been something useful. someday doom will strike and then he will be right and only those with hidden gold will survive. [/sarc]

Mon, 09/17/2012 - 08:25 | 2802683 digalert
digalert's picture

Storing gold outside the US will do you no good if you are in the US.

Mon, 09/17/2012 - 08:32 | 2802701 CH1
CH1's picture

Sure it does. Things always change, and your assets will remain safe outside the war zone until you're ready to pick them up again.

Mon, 09/17/2012 - 08:39 | 2802718 UGrev
UGrev's picture

...and if ALL of your gold is outside the US and you need it during the war while you're INSIDE the US.. then you're fucked. Of course, picking it up is predicated on surviving long enough to do so. 

Mon, 09/17/2012 - 09:30 | 2802873 Reven
Reven's picture

Agreed, if you don't have it in your physical possession, you don't own it.  When people finally realize this truth, that's when the price will really go ballistic.

Mon, 09/17/2012 - 09:11 | 2802813 mess nonster
mess nonster's picture

Buried treasure... a real benefit to those with metal detectors in the future.

Mon, 09/17/2012 - 11:21 | 2803530 Anasteus
Anasteus's picture

But only to those knowing where to search.

Mon, 09/17/2012 - 08:26 | 2802685 ptoemmes
ptoemmes's picture

I don't think the FED has the mandate to PHYSICALLY TAKE anyone's gold - yet - the FED Security force with JHP ammunition aside...and there ain't enough of them anyway.

Mon, 09/17/2012 - 08:34 | 2802705 CH1
CH1's picture

Mandate? Seriously? As if laws matter to the law-makers?

If they decide to care about such mundane things, they'll just whip up some new ones.

Mon, 09/17/2012 - 09:13 | 2802821 mess nonster
mess nonster's picture

Precisely. What was that from the Dem Convention! Oh yes.. "Passed, by a two thirds majority!"

Mon, 09/17/2012 - 08:40 | 2802719 andrewp111
andrewp111's picture

That is what cops and Federal Troops are for.

Mon, 09/17/2012 - 08:28 | 2802690 max2205
max2205's picture

So I guess it's time to buy and hold TNA

Mon, 09/17/2012 - 08:34 | 2802706 Peter Pan
Peter Pan's picture

There is something intensely insane going on for a world that is supposedly so technologically and scientifically advanced. I suspect that the mongrel in man is resurfacing and that it is making society dysfunctional. We are about to encounter on a global scale a level of anarchy which will make us wonder how we let things get out of hand. I sense my friends feeling more and more uncertain by the day even though on the surface they still display a strange bravado. They still cling to the vestiges of what they enjoyed for over a decade but there is no music playing just echoes from the past.

I fear for my children and grandchildren and recognise that they will not have it as good as we did for the last 50 years. I pray that at least one enlightened man in each nation will be given the podium but I know this is but an illusory hope.

Perhaps the instinct for survival that we all possess will be expressed with a sense of community and peace rather than violence and anger.

Perhaps tomorrow will be a better day but my instincts tell me otherwise.

Mon, 09/17/2012 - 08:46 | 2802738 ejmoosa
ejmoosa's picture

"There is something intensely insane going on"

It's called central planning. 

And we do not need one enlightened man to centrally plan for us.

We need hundreds of millions enlightened men to say "Hell No."



Mon, 09/17/2012 - 09:43 | 2802764 GetZeeGold
GetZeeGold's picture



Dude...there's a full pitcher of Koolaid sitting next to the iPad....have all you want.


Mon, 09/17/2012 - 08:59 | 2802774 Peter Pan
Peter Pan's picture

I agree Ejmoosa, but someone has to light that spark across the planet. People seem to be either too numb or in denial.

Mon, 09/17/2012 - 09:22 | 2802849 Sweet Chicken
Sweet Chicken's picture

Don't worry Bloomberg is one our side. His large beverage ban was a brilliant idea sold to the Marxists as one of control but he knows damn well the fat fucks of this great fucked up nation will never allow this to take hold!!!

Supersized revolution bitchez!



Tue, 09/18/2012 - 15:42 | 2808262 mkkby
mkkby's picture

A fat fuck can still buy more than one drink if he wants to defeat the ban. It doesn't take much of an intellect to realize that. How is it that Bloomy isn't being laughed out of the state?

Mon, 09/17/2012 - 11:41 | 2803618 StanleyTheManly
StanleyTheManly's picture

"We need hundreds of millions enlightened men to say "Hell No."


No...we need hundreds of millions of enlightened PEOPLE to say "hell no".

Mon, 09/17/2012 - 09:48 | 2802955 Snidley Whipsnae
Snidley Whipsnae's picture

Peter Pan... Nothing has changed.

The pie has been shrinking so the battle over the smaller pieces of pie are heating up.

Human nature has never changed.

When the pie was larger a middle class was created... as the pie gets smaller... well, you get it, right?

Mon, 09/17/2012 - 11:38 | 2803605 boiltherich
boiltherich's picture

"I pray that at least one enlightened man in each nation will be given the podium but I know this is but an illusory hope."


I think I see a big part of the problem, praying is bullshit, it does not work, it is like picking up a telephone and wishing into the mouthpiece without dialing a number. There is NOBODY on the other end. If you want change YOU have to get up and make it happen.

But, you did remind me of something that has been on my mind.

Anybody with common sense can see that what they (TPTB, everywhere, Japan, US, EU, China, everywhere in government and economics/finance) have done has not worked and they just keep doubling down on the failures. And they will continue to buy ever less time by doubling down again and again, it is like watching a clock run down to zero. We all feel it no matter where we stand on certain values or issues. And they have said sincerely that they will NOT fail. That does not mean that their policies and actions will work, only that they will never be seen to have FAILED, there will always be something more they can do to fix things. As in there is always more they can double down on, if QE xyz and bailouts and monetization does not work they will give war a try, and keep doubling down on that till the planet is a smoking lifeless shell. Like a bad witch doctor they will keep trying to "save" you but if they can't they will bury their mistakes, either way you will not be standing there in the end accusing them of failure.

I am getting the distinct impression lately that the population has given up on stopping this, a few protests, a few occupy type movements, sure, but the vast majority is just resigned now to let's get it over with already and start over. Problem is there will be no restart button to reboot after the wars, no level of preparation will get any of us through what is coming, it will be an extinction event. Life might go on and rekindle from the remaining microbes, and small animals, but as with the last great extinction 64 million years ago nothing larger than a house cat survived it.

Tue, 09/18/2012 - 15:45 | 2808266 mkkby
mkkby's picture

"Perhaps the instinct for survival that we all possess will be expressed with a sense of community and peace rather than violence and anger."

LOL, his screen name is PETER PAN for gods sake! That should tell you it's sarc.

Mon, 09/17/2012 - 08:35 | 2802707 Mudja
Mudja's picture


Mon, 09/17/2012 - 09:31 | 2802879 Reven
Reven's picture

Krugman and his friends outside would like to have a few words with you.

Mon, 09/17/2012 - 08:36 | 2802709 ejmoosa
ejmoosa's picture

Molon Labe

Mon, 09/17/2012 - 09:51 | 2802990 ZeroHour
ZeroHour's picture

Unfortunately, they did and will probably do it again.


But right there with ya, Leonidus

Mon, 09/17/2012 - 08:37 | 2802710 moonstears
moonstears's picture

Well, Mr Bernanke said it best, it's just a tradition, nothing to see here, You can have it. I am long FB, buying the endless DIP, baby!

Mon, 09/17/2012 - 08:41 | 2802723 Nacho Libre III
Nacho Libre III's picture

Yeah, im not so sure that for the average person, who may or may not have a 401k much less a retail trading account, that owning physical is much of an option. Then he wants to talk about getting the stuff safely offshore? The average person actually has time to do the due diligence (and even then it still comes down to luck) to figure out where to stash their metal? How does one repatriate said pm? In the event that gold miraculously arrives back home in time for the shtf, how much will the round trip cost?Does such advice come free with the e trade account or simple ira? What utterly senseless drivel for anyone who is not already very wealthy. Surely there is something more pertinent to take up the pages of zh.

Mon, 09/17/2012 - 08:48 | 2802741 The Ram
The Ram's picture

Faber is full of Caca.  The FED has no way to search every houshold in America.  The logistics of mobilizing millions of soldiers to start kicking down doors to extract precious metals is enormous.  At a minimum, they would need the cooperation of all local police, Sheriiff, and state National Guard to pull this off.  There are not enough Black Water type boys to carry this out.  Good luck getting local cops to kick down doors of citizens and shoot it out for a few ounces/pounds of gold.  As a former Marine Officer, I have an appreciation for the scale effort is takes to mobilize large forces to do urban/suburban warfare.  Not going to happen so store your gold/silver carefully and be willing to protect it.  You will be fine.

Mon, 09/17/2012 - 09:18 | 2802840 mess nonster
mess nonster's picture

All they have to do is target your credit card receipts. Did you buy your gold on the black market, with cash? No? then it's traceable. To you.

DHS: Mr. Ram, where is your gold?

Ram: I lost it in a very unfortunate boating accident.

DHS: Do you know what this is?

Mr. Ram: A very large pair of pliers?

DHS: You are very observant. Do you know what I'm going to use them for?

Mr Ram: (A slow look of terrible realization crosses his face)

DHS: That's right. I'm going to remove things from your body. Teeth. Fingernails. Fingers. That sort of thing. Maybe your memories of where you put your gold are getting clearer, no?

Mon, 09/17/2012 - 10:49 | 2803327 Overfed
Overfed's picture

Don't buy any damn thing with a credit or debit card. A credit card is for when your water heater or deep freeze go tits up and need to be replaced before payday.

Tue, 09/18/2012 - 15:50 | 2808280 mkkby
mkkby's picture

No, it will go like this:

Judge: I direct you to tell us where your gold is.

Ram: I lost it boating, your honor.

Judge: I find you in contempt of court. Bailiff, lock this man up until he agrees to answer.

Mon, 09/17/2012 - 09:25 | 2802857 hapless
hapless's picture

"Good luck getting local cops to kick down doors of citizens and shoot it out for a few ounces/pounds of gold."

One word:  DEEE   EEEE   AYYY!!!

Mon, 09/17/2012 - 09:28 | 2802867 YHC-FTSE
YHC-FTSE's picture

Maybe you're right. But from my pov, the recent evidence of homeowners in arrears who were evicted by law enforcement tells a different story. Very few, if any, were willing to shoot it out with the local police. 

Besides, it won't be the police you need to worry about, but your own neighbours and friends. Obedience to peer pressure is a very powerful tool used by the authorities, especially when it is deemed "a patriotic duty of every citizen to help the nation back on its feet", and "to root out the selfish vermin who are trying to destroy the Great American Economy by hoarding shiny relics", and shit like that. It took me 5 seconds to think up the appropriate patriotic claptrap for the mentally challenged - the government will be much more sophisticated. 

Mon, 09/17/2012 - 11:57 | 2803668 boiltherich
boiltherich's picture

Anybody that doubts the power of peer pressure need look no further than their local tattoo parlors, tatts were taboo outside of the Navy and the carnies that came to town 20 years ago, now I am pretty sure I am the only living person not to have defaced his skin with at least one.  Ironic too since Tatts only gained popularity as a way to cover needle tracks for meth addicts, but peer pressure made them mandatory. 

Mon, 09/17/2012 - 09:47 | 2802870 “Rebellion to t...
“Rebellion to tyranny is obedience to God.”-ThomasJefferson's picture

I believe Mr. Faber is merely stating that anyone who has physical gold and tries to redeem it for something (such as fiat US currency), in the USA at some point in the future, will possibly have his precious metal holdings taxed at 99% or possibly confiscated. It's happened before...

Regardless, I don't think those with 5 gold eagles or 2 SA krugerands need to go crazy with worry.  I believe Mr. Faber is addressing those with substantial gold holdings of several bars and/or hundreds of coins.

Bottom line: Anything of value attempted to be redeemed in the future will be confiscated by some political hack/crony capitalist/bankster overlord, with a smile on his face.  And we the people elected these thieves.

Mon, 09/17/2012 - 09:33 | 2802881 Reven
Reven's picture

I think people are misreading his statement.  He's not saying you can't store your own gold in a safe place.  But if you entrust a bank or other institution to hold onto your gold, those will be the first places that get raided to fund the ponzi.

Mon, 09/17/2012 - 12:05 | 2803700 boiltherich
boiltherich's picture

If the situation gets bad enough that they take the step of raiding bank safety deposit boxes for gold and silver they will have no problem with simply making it a crime not to sell your PM's to the government at a deep discount the way they did in the 30's.  You might think you secured your PM's somehow, but you have nothing at all if you cannot ever spend it, money is not money if it is illegal to use, you might as well have 20 pounds of heroin buried in your backyard.  Sure there is a covert market for that shit but you get caught you are doing some hard time, maybe in 50 years they will allow ownership again like last time. 

Mon, 09/17/2012 - 12:41 | 2803848 Reven
Reven's picture

There's a few problems with that scenario.  This is not the 1930's.  In the 1930's, deflation was the risk.  Today, hyperinflation is a real risk.  If the Government blows up the currency and is forced back on a gold standard, they will need to re-establish trust in the new money system.  Making it illegal to own or sell gold will not help them in this endeavor.  They will need to encourage people to deposit their gold into new gold savings accounts to enable the banking system to function.  They can achieve this by making gold bank deposits tax free for a period of time.  Taxing the hell out of it will achieve nothing.

Furthermore, in a hyperinflation, it's safe to assume that the general chaos in society will be extreme.  The Government will be busy trying to keep the mob under control and fed.  Policing gold transactions will be precarious at best.  The small amount of gold held by the public is really of no concern to the Government.  However, the gold in bank safety deposit boxes and other storage vehicles may automatically be shifted into a gold bank account that issues only gold-backed paper currency.

And lastly, before the gold run is over, many of the elites and politicians will own substantial gold (some already do no doubt).  They're not going to just give up what little wealth they have left after the hyperinflation.

Mon, 09/17/2012 - 15:40 | 2804625 boiltherich
boiltherich's picture

Hyperinflation is not any more the risk today than it was in 1929, in order for hyperinflation to be the current risk all that printing the fed is doing would have to hit Main Street and that is not happening. Some commodities will skyrocket to the point they can legitimately be called hyper inflated, but every dime spent on those comes out of money needed for other purposes. A few commodities like oil going through the roof will simply crash the rest of the economy and employment/incomes. You can have hyperinflation at the pump or in the grocery but only simultaneously to find hyper deflation and depression in the rest of the economy. In order for hyperinflation to be a general threat those dollars have to be in the hands of actual consumers that will use them to chase to few goods with too many bucks. So, there may be hyperinflation in the Hamptons, in the art galleries or the paneled waiting salons of Christie's and Sotheby's, in Lamborghini showrooms and the admissions offices of tony restricted private schools and golf clubs, but the moneyed class will NEVER stand for their wealth being devalued away by the Fed unless they get more out of it than they stand to lose from inflation. They demand and will get deflation in which their HARD EARNED dollars are worth more next week than they were last, that is why they have waited so long to buy up the millions of vacant homes in the shadow real estate inventory, why pay 200k for a house now when they can pick up a whole portfolio of rentals later for the same amount?

I see vast inflation as bad as it was in the 70's and have been saying so often here, but only in the necessities like food, and energy. In reality the aggregate income, both household and individual have dropped, household wealth which is mostly home equity has dropped radically. That is not inflation hyper or otherwise, it is deflation and depression. It is not spread evenly of course, not yet, but rising prices in a few necessities can and will crush demand and prices for the rest of the economy. That is WHY QE has not worked and that is WHY it is not going to.

Mon, 09/17/2012 - 21:55 | 2805841 Reven
Reven's picture

Not true, the velocity of money alone can drive hyperinflation.  All it takes is a loss of confidence in the long run fiscal outlook.  The spike in velocity will look like there's actually a shortage of money, so the Fed will keep pumping.  But they'll just be adding fuel to a raging fire that will eventually bury the currency.

Tue, 09/18/2012 - 15:38 | 2808246 boiltherich
boiltherich's picture

The increase in velocity needed to trigger hyperinflation is theoretical just as our being able to travel to the stars is theoretical, both remain outside the realm of realistic.  You simply could not reach the escape velocity for such inflation on velocity alone, you would need vast new credit/monetization.  And that would have to be available to Main Street consumers and not just the "investor class" as it is with the most recent unlimited QE's. 

Mon, 09/17/2012 - 09:51 | 2802992 Vince Clortho
Vince Clortho's picture

".. they would need the cooperation of all local police, Sheriiff, and state National Guard to pull this off.  "

Hilary Clinton will lol if she reads this.  

Imagine UN "Security Forces" from a variety of other countries doing the door to door searches with the full backing of the Federal Government in coordination Homeland Security.

They will also be wanting your firearms.

Remember that people with pm and firearms will be labeled terrorists.  The final icing on the cake is that there will be widespread support from brainwashed citizen zombies who do not own gold or firearms.

Welcome to HilObama's future AmeriKa. 

Mon, 09/17/2012 - 09:57 | 2803024 Snidley Whipsnae
Snidley Whipsnae's picture

The Ram...

The French did confiscate by kicking down doors and waaay before PMs were tracked by computers...

"In 1720 was Law named finance minister (as a Protestant he had to first become a Catholic). The shares of Compagnie des Indes were still rising in January, reaching a temporary peak of 18.000 livres. Law worried about the too high price. To reduce it, he sold 30.000 shares for 1000 livres in cash and 10.000 in 6 months. The speculators started to sell. The smarter ones have already left France, buying up precious metals and gems. Others also sought liquidity, buying especially land titles. To support the rapidly falling price, Law opened a company office to buy shares at 9000 livres. The bank also bought them, and the notes in circulation have risen by 600 million. But the notes have also lost trust, and many were exchanged for gold and silver coins. To protect the bank's metal reserves was the hoarding of cash forbidden. The price of a mark of gold was raised to 900 livres and 60 livres for silver, their export was forbidden from February 1st. The Compagnie was also allowed to make house searches for precious metals and to confiscate them. The carrying of pearls, diamonds and gems was forbidden, punished by a steep fine and confiscation. Silverware was forbidden or limited in weight."

Mon, 09/17/2012 - 08:48 | 2802742 Bay of Pigs
Bay of Pigs's picture

So where are you going to store it? Singapore? Panama? Switzerland? Mexico? Come on man, going across borders and using foreign banks?  And what happens if you can't travel freely?

There isnt anywhere thats compelete safe outside your direct possession. End of story.

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