• Steve H. Hanke
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    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Italy Or USA - Where Would You Put Your Money?

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Fri, 11/11/2011 - 14:15 | 1870398 DarkAgeAhead
DarkAgeAhead's picture

c).  This bank's report is no different than your $2 wh@re on the corner.  Invest with me and I love you long time!

Fri, 11/11/2011 - 14:28 | 1870444 slewie the pi-rat
slewie the pi-rat's picture

<==== c) none of the above

<==== d) what money?

Fri, 11/11/2011 - 14:34 | 1870473 espirit
espirit's picture

Correcto slewie - what money?

On this coast, mine fell out of the boat in the Atlantic.

Fri, 11/11/2011 - 14:47 | 1870518 Pladizow
Pladizow's picture

Country of origin is irrelevent when making my gold purchases!

Fri, 11/11/2011 - 15:09 | 1870567 sqz
sqz's picture

At least with all that debt, the US is able to generate more than 1% GDP per year (excluding financial).

In addition, if the value of fiat currency is the ability to collect tax revenue, then with it's table-topping 4x military spending compared to the next country down, I'm betting the US can convincingly coax a lot more tax out of its poor subjects!

Being a European, I know where I'd put my money and its not in the land of olive oil, fruity wine, fast cars and hot brunette women (unfortunately)!

Fri, 11/11/2011 - 15:36 | 1870664 Lord Koos
Lord Koos's picture

If push comes to shove, Italy has a lot of gold, probably more than the USA as a percentage of GDP & population.

Fri, 11/11/2011 - 16:34 | 1870806 Hugh_Jorgan
Hugh_Jorgan's picture

Those charts would look significantly more alike if the US were being held to the same standards as Italy. Without the Bernank and the World's reserve currency, the economic sins of our ruling class become much more serious in the eyes of the world.

Jus' sayin'...

Fri, 11/11/2011 - 18:26 | 1871111 trav7777
trav7777's picture

yeah, the 75% of world debt denominated in dollars is an infection that must be fed with exponentially increasing demand.

Fri, 11/11/2011 - 16:43 | 1870846 Desert Irish
Desert Irish's picture

Small problem...their total gold holdings are worth $60 odd billion their debt is $1.9 trillion. Work the percentages and their gold holdings wouldn't even qualify them for a housing loan (post-subprime). Italy came out of WWII shattered - no way in hell is any European technocrat getting even close to their gold hoard. Now the flip side if gold hits $10,000 ounce we'll be on our knees begging them for economic aid.

Fri, 11/11/2011 - 15:34 | 1870657 Gief Gold Plox
Gief Gold Plox's picture

I'd choose "c" if only selling shiny bars wasn't so depressing. Oh, wait.... nevermind.  *buys more gold*

Fri, 11/11/2011 - 14:30 | 1870452 spiral_eyes
Fri, 11/11/2011 - 14:36 | 1870480 goldfish1
goldfish1's picture

c.) physical bitchez

Fri, 11/11/2011 - 16:28 | 1870801 Long-John-Silver
Long-John-Silver's picture

physical bitchez

 

This is the only correct answer. Italy and the USA are headed for the same outcome.

Load up on Beans, Bullets, and Bullion.

Fri, 11/11/2011 - 14:16 | 1870402 FaithEqualsZero
FaithEqualsZero's picture

Gov Paper = aaannnd its gone..poof

Fri, 11/11/2011 - 14:45 | 1870495 Gene Parmesan
Gene Parmesan's picture

The disparity between the yields reflects the sentiments of where each country is going to stand once everything shakes out. The kneejerk view is that Italy is doomed and the US is (relatively) untouchable. Time will tell, but "fundamentals" have nothing to do with it at this point.

Fri, 11/11/2011 - 14:17 | 1870403 MarkTwainsMustache
MarkTwainsMustache's picture

The report smacks of desperation...Italy is on the gold standard (i.e. they can't print more euros themselves) That is the major reason why rates are staying behaved in the U.S. whilst getting destroyed in Italy

Fri, 11/11/2011 - 14:18 | 1870406 drink or die
drink or die's picture

USA will always be AAA in my book, despite what any credit agency rates it at.

Fri, 11/11/2011 - 14:28 | 1870445 JenkinsLane
JenkinsLane's picture

Good luck with that

Fri, 11/11/2011 - 14:29 | 1870449 Raymond Reason
Raymond Reason's picture

Sean, you're a great American.

Fri, 11/11/2011 - 14:35 | 1870477 drink or die
drink or die's picture

It's a paraphrase of Obama's speech after the downgrade, but Hannity says equally stupid buillshit in the same vein.

Fri, 11/11/2011 - 14:38 | 1870484 Raymond Reason
Raymond Reason's picture

Haha.  Knew i heard that somewhere.

Fri, 11/11/2011 - 14:47 | 1870520 LoneStarHog
LoneStarHog's picture

Put down your glass of booze (avatar) and go buy some municipal bonds, too.

Fri, 11/11/2011 - 16:15 | 1870770 jpalm
jpalm's picture

Nothing valuable to add, just wanted to say it's nice to see a fellow Oath Keeper on the boards

Fri, 11/11/2011 - 15:14 | 1870614 tmosley
Fri, 11/11/2011 - 15:21 | 1870631 Logans_Run
Logans_Run's picture

Why? You got gold tucked away somewhere in the USA?

Fri, 11/11/2011 - 14:19 | 1870409 billhilly
billhilly's picture

Money?  What money?  You mean PAPER? HAHAHAHA.

Sorry, no paper here, physical only.  IT INVESTS ITSELF !!!!!

Fri, 11/11/2011 - 14:31 | 1870456 Raymond Reason
Raymond Reason's picture

Hick.

Fri, 11/11/2011 - 14:19 | 1870410 BlueStreet
BlueStreet's picture

Based on market action today I'd put money in both because everything appears to be fixed.  Even putting on the stupid hat to trade this market is not enough, you need a full body stupid suit.

 

 

 

 

 

 

Fri, 11/11/2011 - 14:29 | 1870448 LawsofPhysics
LawsofPhysics's picture

+100 for the "full body stupid suit" comment.

Fri, 11/11/2011 - 14:29 | 1870450 fuu
fuu's picture

And a schmart helmet.

Fri, 11/11/2011 - 14:19 | 1870411 junkyardjack
junkyardjack's picture

Italy's interest rate won't be enough to cover the 50% haircut, America Fuck Yea

Fri, 11/11/2011 - 14:19 | 1870412 GeneMarchbanks
GeneMarchbanks's picture

Red line = Peripheral Empire

Grey line = Core Empire

Questions?

Fri, 11/11/2011 - 14:49 | 1870526 JPG101
JPG101's picture

I guess go with the one with the more aircraft carriers makes sense?

If the grey line dumps the red line will another line (Euro or Chinese) come in and save the red line?

I like the aircraft carrier line better medium term but the red line might do very well short term if rescued by another creditor or printer. Then again the red line has just to much risk in it for me.

Fri, 11/11/2011 - 14:20 | 1870416 citrine
citrine's picture

Speaking of Italy. FT just published breaking news:

Italy to ban naked short-selling on whole regulated stock market from midnight December 1.

 

Fri, 11/11/2011 - 14:21 | 1870418 oddjob
oddjob's picture

I'd rather burn my money, thanks.

Fri, 11/11/2011 - 14:21 | 1870420 jomama
jomama's picture

neither.

Fri, 11/11/2011 - 14:23 | 1870424 Bam_Man
Bam_Man's picture

Obviously the shorting opportunity of a lifetime is shaping up in 10- and 30-year US Treasuries.

Timing the entry will be anything but easy though and ruin those who jump the gun.

 

Fri, 11/11/2011 - 14:25 | 1870431 Deadpool
Deadpool's picture

I'm sure a lot of broke ass Japanese investors said the same thing 20 yaers ago. "The market can stay irrational longer than you can stay solvent". "the right idea a year too early is the wrong idea", "In the long run we're all dead".

Fri, 11/11/2011 - 14:33 | 1870467 Raymond Reason
Raymond Reason's picture

"Give a man a fish, feed him for a day.  Teach a man to fish, and he'll stay drunk all day in a boat."

Fri, 11/11/2011 - 16:45 | 1870852 Desert Irish
Desert Irish's picture

+ 1,000 your obviously married also

Fri, 11/11/2011 - 14:25 | 1870432 docmac324
docmac324's picture

What money?  You mean savings?  PMs at my house only.

Fri, 11/11/2011 - 14:37 | 1870483 espirit
espirit's picture

...and your IP address is___________?

Fri, 11/11/2011 - 14:26 | 1870433 Segestan
Segestan's picture

What these clown socialist forget it's not a CB that should be looked at but rather which nation is looking forward by securing manufacturing and profitable business. Typical socialist crap.

Fri, 11/11/2011 - 14:26 | 1870435 lolmao500
lolmao500's picture

Nowhere. Gold bitchez!

Fri, 11/11/2011 - 14:26 | 1870437 midgetrannyporn
midgetrannyporn's picture

The usa has a technology called a printing press which assures that I will get my nominal clownbux back. Italy does not.

Fri, 11/11/2011 - 14:27 | 1870441 ZeroPoint
ZeroPoint's picture

Can I get gold & silver instead?

Fri, 11/11/2011 - 14:28 | 1870443 fuu
fuu's picture

d) Gold & Silver bitchez!

Fri, 11/11/2011 - 14:28 | 1870447 Michael Victory
Fri, 11/11/2011 - 14:30 | 1870454 Stuck on Zero
Stuck on Zero's picture

It's a good thing Bank of America changed its name from "Bank of Italy."

Fri, 11/11/2011 - 14:31 | 1870457 alien-IQ
alien-IQ's picture

That question is the economic equivalent of Sofie's Choice.

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