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US Editor Of The Economist: “Paper Dollar” And “Paper Euro” Will “Debase” In A “Big Way”

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From GoldCore

US Editor of The Economist: “Paper Dollar” and “Paper Euro” Will “Debase” in a “Big Way”

Gold’s London AM fix this morning was USD 1,652.00, EUR 1,255.51, and GBP 1,035.54 per ounce. Friday's AM fix was USD 1,648.25, EUR 1,266.03 and GBP 1,040.69 per ounce.

Silver is trading at $31.72/oz, €24.15/oz and £19.88/oz. Platinum is trading at $1,568.68/oz, palladium at $650.20/oz and rhodium at $1,350/oz.


Cross Currency Table – (Bloomberg)

In volatile trade in New York yesterday, gold rose sharply prior to falling and ended $4.40 lower or 0.27% and closed at $1,651.70/oz. Gold initially took a dip in Asia and then recovered losses by the time European trading opened and has ticked higher.  

Gold’s safe haven appeal is gradually rekindling as concerns deepen about Spain and the other periphery eurozone economies and a realisation that the eurozone debt crisis is far from over.

With the situation in Europe and globally set to deteriorate, the lacklustre demand of recent weeks, particularly in western markets may change to renewed robust physical demand.

There are signs of this already with inflows into gold-backed exchange traded products the most in five weeks last week, and silver holdings in the iShares Silver Trust, the biggest ETF backed by silver, rose 45.3 metric tons yesterday alone to 9,636.69 tons.


Gold 1 Year Chart – (Bloomberg)

This demand should support bullion prices at these levels and there is support at $1,600/oz. There is extremely strong support above the $1,500/oz level after prices consolidated between $1,500/oz and $1,800/oz since last September.

Spain T-Bill yields jumped at auction, meaning short-term debt costs surged higher despite strong demand.  Spain is to use the used and abused cliché “too big to bail” and the scale of the problem is so huge that most realistic observers warn that we remain in the early stages of this crisis.

The US Fed policy meeting next week may clarify the Fed’s ostensible position regarding further QE.

The weaker than expected March unemployment report is leading to further Wall Street demands for more stimulus plans. Wall Street and its institutions’ addiction to debt is leading to the continuing debasement of the dollar. Further QE is almost inevitable which will support gold.

US housing starts for March are released at 12.30 GMT which may lead to speculative price movements. 

"People Have Lost Faith In the 20th Century Religion Of Government Backed Fiat Money"

Matthew Bishop, the US Editor of The Economist, has been interviewed by the Wall Street Journal TV about gold and why “people have lost faith in the 20th century religion of government backed fiat money."

He says that he has become an agnostic or an atheist with regard to his belief in government-backed money as he fears that governments are in a position whereby they are going to debase currencies such as the “paper dollar and “paper euro” “in a big way.” Gold becomes one of the “alternative religions” in that environment.

History shows that a deleveraging downturn takes a long time and can take 7 or 8 years. Inflationary pressures are building and will be seen in the second half of the cycle, according to Bishop. 

Bishop says he would put some of his money into gold but is prohibited from this due to the investment policies of The Economist. 

He advocates owning gold as a “portfolio of money” and diversification and advocates having 5% to 10% of one’s money in gold.

Bishop is reluctant to give price predictions but believes gold will be higher at the end of the year and higher in 5 years.

The Economist magazine has a strong Keynesian bias and has been one of the most anti-gold publications in the world with many simplistic, unbalanced and ill-informed articles.

There have been a few more nuanced and balanced articles pointing out gold’s safe haven qualities primarily by “Buttonwood” however most coverage of gold has been negative.

The publication has suggested on many occasions since 2008 that gold is a bubble. Clients of GoldCore have told us that they were prompted to sell their gold bullion as long ago as 2009 after reading such articles in The Economist. 

Indeed, there has often been a suggestion that those who buy gold are irrational “gold bugs” who are anti-technology and anti-progress. Indeed, some who have bought gold have been framed as “doom and gloom” merchants who are hoping for a collapse of the financial and monetary world so that they can profit from their dramatically revalued gold.

The Economist’s US Editor’s conversion and growing belief in gold as money and a superior form of money is an important development and is another step towards gold moving from the fringe to the mainstream.

It is another step towards gold being accepted, respected and trusted as a safe haven asset and safe haven finite currency.  

For breaking news and commentary on financial markets and gold, follow us on Twitter.

OTHER NEWS
(Bloomberg) -- iShares Silver Holdings Jumped 45.3 Metric Tons Yesterday 
Silver holdings in the iShares Silver Trust, the biggest exchange-traded fund backed by silver, rose 45.3 metric tons yesterday to 9,636.69 tons, according to figures on the company’s website. 

(Bloomberg) -- ETF Securities Says Gold ETP Inflows Were Most in Five Weeks
ETF Securities Ltd. said inflows into its gold-backed exchange traded products was the most in five weeks last week. 

(Bloomberg) -- Shanghai Futures Exchange Announces Silver Contract Draft Plan
The Shanghai Futures Exchange announced a draft plan for a silver contract, setting daily trading limits at 5 percent and margins at 7 percent, according to an e-mailed statement from the bourse.

Trading lot size was set at 15 kilograms, according to the statement. The draft plan was published to solicit public feedback, according to the statement, without saying when the contract would start trading.

(Bloomberg) -- Cash Gold, Futures in Shanghai Rebound from Yesterday’s Drop
Gold for December delivery on the Shanghai Futures Exchange opened 0.6 percent higher at 337.64 yuan a gram, rebounding from a 2 percent decline yesterday. Cash bullion of 99.99 percent purity on the Shanghai Gold Exchange climbed 0.8 percent to 338 yuan a gram at 9:01 a.m. Singapore time, after dropping 1.6 percent yesterday.

(Bloomberg) -- India's RBI Toughens Rules for Credit to Gold-Loan Non-Banks
India's central bank increased regulatory rules for bank credit to finance companies that take gold as collateral.

Banks have been asked to reduce their regulatory ``exposure ceiling'' in a single non-bank finance company having gold loans to the extent of 50 percent or more of its financial assets to 7.5 percent from 10 percent, Reserve Bank of India said in a statement in Mumbai today.

The limit will be 12.5 percent if the additional lending is on account of ``fund on-lent'' by the finance company to build ports, power plants and roads, according to the statement.

(Bloomberg) -- Peru’s Gold Export Revenue Jumps 46% to $963 Million in February 
Peru’s gold-export revenue jumped 46 percent in February as prices and shipments rose from a year earlier, the central bank said. Gold sales of 551,700 ounces rose to $963 million from $659 million a year ago, the bank said today in a statement posted on its website. Copper sales of 112,100 metric tons fell 5.7 percent to $909 million in February as prices declined, the bank said. Total metal exports rose 8 percent to $2.29 billion, it said.

NEWS
Gold edges down with euro; Spain in focus - Reuters

Gold futures slip in electronic trading - MarketWatch

Gold Sales Drop in March on Signs of Stability, Perth Mint Says - Bloomberg

Savers rush for gold as eurozone debt fears drive up price – This is Money

COMMENTARY

The Implications Of A Failed Monetary System – Zero Hedge

Doug Casey on the US Constitution - GoldSeek

“Too big to fail” banks even bigger now – Hot Air

Golden Eye of Hurricane – Financial Sense

 

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Tue, 04/17/2012 - 08:15 | 2350895 spiral_eyes
spiral_eyes's picture

Why is the establishment so slow and dimwitted? Why are they only now realising stuff we realised literally 3-4 years ago?

Tue, 04/17/2012 - 08:19 | 2350902 AnAnonymous
AnAnonymous's picture

Catering to an audience: this US citizen magazine appears liberal, diverse by publishing a pseudo analysis on gold.

US citizen media usually do not inform. They give the current flavour of propaganda as expected by their supporting group (the group is all in US citizenism) and cater to an audience by reporting opinions they know the audience displays.

Tue, 04/17/2012 - 08:22 | 2350908 GMadScientist
GMadScientist's picture

That'd be British citizenism, numbnuts.

Tue, 04/17/2012 - 08:24 | 2350920 AnAnonymous
AnAnonymous's picture

British citizenism? How?

US citizenism is 'americanism'

Tue, 04/17/2012 - 11:56 | 2351718 AldousHuxley
AldousHuxley's picture

what's wrong with dollar debasement?

 

it is just exposing the truth out to people that the wealth last 3 decades were fake.

 

Americans tend to use their brains more when they feel the pain.

 

would you even be on zero hedge to learn about Fed if dollar was still strong?

Tue, 04/17/2012 - 08:28 | 2350933 Big Corked Boots
Big Corked Boots's picture

Right. Because Chinese "citizen" media is soooo much more informative.

Of course, Chinese flavoured propaganda is pretty popular. Personally I like Hunan flavour, with Szechuan flavour a close second.

Tue, 04/17/2012 - 08:35 | 2350958 AnAnonymous
AnAnonymous's picture

You know, the Chinese do what they do. Cant recall them to have attached specific properties to humanity like human rights and the rest, hijacking humanity in the doing.
Even though they ended slavery when entering in Tibet, goofy move when looked at from US citizen perspective, they have been also much less vocal when it comes to the properties a free press should feature.

Assessing China by US citizen standards is introducing an alien reference, assessing US citizen societies by US citizen standards.

Now, US citizen have made a special out of this: apply their standards to any outside society while being much more conservative when it comes to apply them to themselves.

Tue, 04/17/2012 - 09:54 | 2351189 bahaar
bahaar's picture

"Even though they ended slavery when entering in Tibet"

How?  By replacing enslaved Tibetians by free Han Chinese?

Tue, 04/17/2012 - 08:42 | 2350981 EscapeKey
EscapeKey's picture

Yes, because American propaganda is entirely acceptable, providing it's less bad than China's.

Tue, 04/17/2012 - 11:59 | 2351735 AldousHuxley
AldousHuxley's picture

in China, you know shit's a propaganda because it is so obvious in the way they dish out misinformation

in America, they brainwash you without you realizing it because they omit the truth.

 

 

Tue, 04/17/2012 - 13:47 | 2352101 smiler03
smiler03's picture

They brainwash you by omitting the truth? Good grief man, can't you see that you yourself have been brainwashed? Believe it or not the US media is known to dish out misinformation. If you can't see or understand that then you might as well be incarcerated on a sheep farm.

Tue, 04/17/2012 - 08:21 | 2350904 GetZeeGold
GetZeeGold's picture

 

 

Naw.....we can totally fix this.

 

Tue, 04/17/2012 - 10:13 | 2351260 Sweet Chicken
Sweet Chicken's picture

LOL

+1 for simplistic sarcasm!

Tue, 04/17/2012 - 08:18 | 2350898 AnAnonymous
AnAnonymous's picture

Gold bought by fiat money, it has to be said.

Gold is no currency in the current context.

5 or 10pc in gold, the usual recommendation.

The loss of confidence happens through multiple failures in performing an action. For money, it means that people losses confidence when they can no longer buy things.

Fiat money keeps buying things and a lot of things, including gold.

Gold bugs/hoarders are a fiat money miracle. Not a gold currency miracle.

Tue, 04/17/2012 - 08:31 | 2350944 tarsubil
tarsubil's picture

That is what I've been trying to say but I've never been able to articulate it.

Tue, 04/17/2012 - 09:09 | 2351048 Coldsun
Coldsun's picture

But it's a lot easier for me to beat you to death with a bar of gold than it is with a wad of cash. Just saying.

Tue, 04/17/2012 - 12:34 | 2351846 BooMushroom
BooMushroom's picture

$20 worth of nickels in a sock would do it without much trouble. Hell, you could take out Chuck Norris with $50 in pennies at the end of a six foot rope. If you could hit him, which you can't.

Tue, 04/17/2012 - 09:16 | 2351070 schoolsout
schoolsout's picture

Gold is slowly replacing the promise of the Gov't in a fiat-based currency...that's all. 

Tue, 04/17/2012 - 09:43 | 2351154 Nukular Freedum
Nukular Freedum's picture

Our fiat system has its origins in a prior gold standard which, in a sense, residually lies embedded in it. What people fail to understand, not merely on this site but more generally, is that any rational gold standard must ultimately result in a fiat system not dissimilar to the one we enjoy today. The only question therefore should be, would it not be better operated via the private sector?  I have written extensively on this issue in my blog. Here are some pertinent posts on the subject;

http://pearlsforswine.wordpress.com/2012/04/17/why-austrian-economics-ma...

http://pearlsforswine.wordpress.com/2012/04/17/additional-perils-of-the-...

http://pearlsforswine.wordpress.com/2012/04/17/is-the-business-cycle-rea...

Tue, 04/17/2012 - 09:19 | 2351079 trembo slice
trembo slice's picture

Well, of course it is bought by fiat.  There are legal tender laws that force everyone in this nation to use the FRN.  If you think the majority of people would use fiat-money if there was actual choice... you're out of your mind.

Tue, 04/17/2012 - 12:50 | 2351909 BooMushroom
BooMushroom's picture

Hell, if it weren't for sales taxes and 401(k) matches and tax breaks, and CTR's for large transactions, there'd probably be plenty of people that would convert their savings into silver and gold. As it is, you have to have the nominal price increase by (hmm, 7.25% sales tax, 50% 401(k) match, 20% marginal income tax break...) um, a lot. Unless the stock market crashes like it did in '08. Or after the .com bubble. Or 1929. Or '37 or '74 or '80 or '82 or '87 or '89 or '92 or '97...

Maybe silver and gold are a deal at any price compared to the stock market...

Tue, 04/17/2012 - 13:02 | 2351954 malek
malek's picture

 Fiat money keeps buying things and a lot of things, including gold.

Never heard of "past performance is no guarantee of future results?"

Tue, 04/17/2012 - 08:17 | 2350899 writingsonthewall
writingsonthewall's picture

They're 'anti-gold' because they only look at Gold as an investment (with the intention of converting it back to FIAT in the future)

...in which case it's a bubble.

 

Anyone buying Gold with the intention of 'converting it back to FIAT' in the future has got it all very, very wrong.

 

Gold is your safety net - what you will need to use to trade your way onto a boat as other stores of value will be (by then) worthless or too cumbersome to use (like your house)

 

Still the gold doomers crow about "it's a bubble" - to which I reply "yes it is - but what is it a bubble in?"

 

It's only a bubble in FIAT - compare Gold to pretty much any commodity and you will see Gold is not in a bubble at all!

Tue, 04/17/2012 - 08:23 | 2350911 AnAnonymous
AnAnonymous's picture

Owning the boat would serve the purpose better.

And currently, nothing beats fiat when it comes to buy boats (including the gold boat)

Quite funny US citizen gold hoarders disregard so much the very cause of their golden accomplishments.

Tue, 04/17/2012 - 08:40 | 2350966 GetZeeGold
GetZeeGold's picture

 

 

I'm a fiat fan here buddy......lets print more!

 

I've got a barn out back...we could fill it to the rafters. All it takes is some paper and ink and that stuff is really cheap.

 

Tue, 04/17/2012 - 08:45 | 2350993 AnAnonymous
AnAnonymous's picture

Producing the conditions of the monopoly printing is not cheap though.

 

Prepare to see the Special Weapons And Tactics units storm your little money printing farm.

Tue, 04/17/2012 - 08:51 | 2351004 GetZeeGold
GetZeeGold's picture

 

 

You didn't hear? They all got sent home......something about $47 fiat dollars and some hookers.

 

Tue, 04/17/2012 - 08:52 | 2351013 AnAnonymous
AnAnonymous's picture

I heard about Obama's protection service. Not about SWAT teams.

Tue, 04/17/2012 - 08:57 | 2351025 GetZeeGold
GetZeeGold's picture

 

 

The Secret Service also does what again?

 

Tue, 04/17/2012 - 08:39 | 2350967 Stoploss
Stoploss's picture

1 24K gold ring, with or without a stone.

1 boat ride.

Tue, 04/17/2012 - 08:48 | 2350984 writingsonthewall
writingsonthewall's picture

Owning the boat would serve the purpose better.

WRONG - storage, security and portability are the problems there. You keep your boat on the West Coast - but they shut down the west coast - you gold can get you a ride on a new boat - off the East coast.

These are the BASIC principles of currency - portability, recognised stored value and exchangeabillity. FIAT currently fulfils 3 of the four - but it's losing a grip on the recognised value - which is why people are demanding more for it for their goods (inflation)

Also, unless you plan to 'live on the boat' - then it's unlikely it's going to be there when you need it. It will be 'occupied' or simply stolen.

And currently, nothing beats fiat when it comes to buy boats

You're showing a reliance on the status quo being maintained.

Quite funny US citizen gold hoarders disregard so much the very cause of their golden accomplishments.

Now you're just talking nonsense because you don't understand FIAT money collapse (or you refuse to believe the historical evidence)

 

I'll see you on the pier - when you're competing with the paper millionaires for a boat to escape on and I walk right to the front of the queue with something of value admired by all.

You will just be in the crowd of paper - indistinguishable from the rest.

 

Tue, 04/17/2012 - 08:51 | 2351006 AnAnonymous
AnAnonymous's picture

Gold currencies have collapsed. You confuse the material (here gold) with the currency.

Currencies collapse.

If they can shut the West Coast, why could they not shut the East Coast?

I like that argument. So you are off to a boat moored in a non closed coast, skipper wants more gold than you have, or wants to have sex instead of gold.

Bartering is bartering. Bartering is not a currency based system.

Tue, 04/17/2012 - 10:50 | 2351392 writingsonthewall
writingsonthewall's picture

Gold currencies have collapsed. You confuse the material (here gold) with the currency.

Name one please.

You are confusing gold backed currencies which become FIAT currencies and then collapse.

If they can shut the West Coast, why could they not shut the East Coast?

Maybe an attack from Japan? How about a nuclear catastrophe which afects the pacific - I dunno, maybe something after an unexpected earthquake?

I like that argument. So you are off to a boat moored in a non closed coast, skipper wants more gold than you have, or wants to have sex instead of gold.

No - you are now looking at the possibilities for YOU - I will not need to offer sex for a ride on the boat as I have something of value - my anus will remain intact.

Bartering is bartering. Bartering is not a currency based system.

True - but what is the relevance to this question

Tue, 04/17/2012 - 08:24 | 2350913 fonzannoon
fonzannoon's picture

Boat to where?

Tue, 04/17/2012 - 13:55 | 2352122 smiler03
smiler03's picture

A slow boat to China?

Tue, 04/17/2012 - 08:30 | 2350940 EscapeKey
EscapeKey's picture

Gold is deemed to be in "a bubble" by the very same individuals who didn't see the bubble in dot-com, didn't see the housing bubble, don't see a bubble in government bonds, and think that historic levels of debt is not an issue.

Tue, 04/17/2012 - 10:25 | 2351306 trembo slice
trembo slice's picture

seriously... I pity the fools who listens to those jokers.

Tue, 04/17/2012 - 08:34 | 2350957 Stoploss
Stoploss's picture

Well done grasshopper.

Tue, 04/17/2012 - 08:20 | 2350900 Caviar Emptor
Caviar Emptor's picture

Right on schedule:

 


U.S. President Barack Obama will announce a plan on Tuesday to increase oversight and "crack down" on oil market manipulation, the White House said.

 Obama will make a statement in the White House Rose Garden about the issue at 11:10 a.m. EDT (1510 GMT).

http://www.cnbc.com/id/47071519/

Actually, a tad late

Tue, 04/17/2012 - 08:27 | 2350928 Quinvarius
Quinvarius's picture

I wonder how he will evade capture when he is accused of releasing oil from the SPR to manipulate oil markets?

Tue, 04/17/2012 - 08:30 | 2350945 EscapeKey
EscapeKey's picture

Which roughly translates into "only my donat^H^H^H^H^H friends working with Government Sachs and JPM are allowed to make money trading commodities. Everyone else is a profiteer".

Tue, 04/17/2012 - 08:19 | 2350903 jplotinus
jplotinus's picture

The Economist? In 2008, they did not see the financial collapse coming and did not provide much insight into the causes of it. For economic info, I'll take ZH any day. The Economist? Not so much.

Tue, 04/17/2012 - 08:27 | 2350926 GMadScientist
Tue, 04/17/2012 - 13:08 | 2351982 malek
malek's picture

Yeah, once or twice a year Krugman also pens a completely reasonable piece in the NYT.

Tue, 04/17/2012 - 09:40 | 2351137 francis_sawyer
francis_sawyer's picture

The Economist is a Rothschild's rag... (If they're saying this now, it means that they're sowing the seeds for the paper endgame ~ or, in other terms, that they're pretty close to deciding that they've looted everything that's not nailed down)...

~~~

He says that he has become an agnostic or an atheist with regard to his belief in government-backed money as he fears that governments are in a position whereby they are going to debase currencies such as the “paper dollar and “paper euro” “in a big way.” Gold becomes one of the “alternative religions” in that environment...

Translation: Make "the government" the bad guy (even though it was the banks game all along)

History shows that a deleveraging downturn takes a long time and can take 7 or 8 years. Inflationary pressures are building and will be seen in the second half of the cycle, according to Bishop.

Translation: It won't take that long with "1"'s & "0"'s (Moore's Law meets the Kurzweil Singularity)... They give you the LONGER time frame so you'll drag your heels &/or procrastinate like a nice carbon based Hindu cow... In the end they'll say... "MOOOOO-coodanode"?

Bishop says he would put some of his money into gold but is prohibited from this due to the investment policies of The Economist.

Translation: Yeah, & last week Blythe Masters was saying that JPM only 'hedges' silver bullion stocks in NY, London, Hong Kong vaults at ther request of its clients

He advocates owning gold as a “portfolio of money” and diversification and advocates having 5% to 10% of one’s money in gold.

Translation: The only real MONEY is gold... A 'portfolio' is a bunch of pieces of paper that have no value.

Bishop is reluctant to give price predictions but believes gold will be higher at the end of the year and higher in 5 years.

Translation: & I believe there is a 50% chance that the market will be up or down today

The Economist magazine has a strong Keynesian bias and has been one of the most anti-gold publications in the world with many simplistic, unbalanced and ill-informed articles.

Translation: The Economist is a Rothschild's rag... They're out to rob you blind & steal your gold...

There have been a few more nuanced and balanced articles pointing out gold’s safe haven qualities primarily by “Buttonwood” however most coverage of gold has been negative.

Translation: The Economist is a Rothschild's rag... They're out to rob you blind & steal your gold (part 2)

The publication has suggested on many occasions since 2008 that gold is a bubble. Clients of GoldCore have told us that they were prompted to sell their gold bullion as long ago as 2009 after reading such articles in The Economist.

Translation: The Economist is a Rothschild's rag... They're out to rob you blind & steal your gold... (en espanol)

Indeed, there has often been a suggestion that those who buy gold are irrational “gold bugs” who are anti-technology and anti-progress. Indeed, some who have bought gold have been framed as “doom and gloom” merchants who are hoping for a collapse of the financial and monetary world so that they can profit from their dramatically revalued gold.

Translation: The Economist is a Rothschild's rag... They're out to rob you blind & steal your gold... (they own MOST media, including Reuters & Associated Press)... EWverything they say is propaganda which serves their agenda of trying to steal your gold...

The Economist’s US Editor’s conversion and growing belief in gold as money and a superior form of money is an important development and is another step towards gold moving from the fringe to the mainstream.

Translation: The Economist is a Rothschild's rag... They're out to rob you blind & steal your gold... As soon as they feel like they have stolen most of the gold under the present system, they'll create a NEW system and go about stealing your gold that way...

 

 

Tue, 04/17/2012 - 10:38 | 2351346 Acet
Acet's picture

Actually I've had a subscription with The Economist for almost 10 years now and am about to let it expire.

I get a copy of the magazine each week and now have quite a pile of unopenned copies dating back many months.

To put it simply, they're still hammering the drum of "the Free Market will solve everything" and are consistently the first to jump on the "greenshots" bandwagon and the last to leave when it turns out those greenshots where just yet another economic dead cat bounce induced by massive CB money printing.

These guys are ideologists, are deep in bed with the boom-times economic mainstream, have zero skepticism or mental flexibility and have not adapted to the times, still offering "more of the same we had before" as the solution for our problems.

Tue, 04/17/2012 - 08:24 | 2350914 Lucius Corneliu...
Lucius Cornelius Sulla's picture

Bullish dollar.

Tue, 04/17/2012 - 08:24 | 2350916 lolmao500
lolmao500's picture

Well...

That the LME is considering replacing The British Pound with the Yuan is indeed a moment in time that marks a shift, and one that we indeed may consider a signpost along the road of Losing It.

Tue, 04/17/2012 - 08:25 | 2350918 Quinvarius
Quinvarius's picture

>>>Bishop says he would put some of his money into gold but is prohibited from this due to the investment policies of The Economist. <<<

That is what I like to see in a venue professional economic discourse--Complete inflexibility.  It is so confidence inspiring.

 

Tue, 04/17/2012 - 12:56 | 2351935 BooMushroom
BooMushroom's picture

.

Bishop says he would put some of his money into gold but is prohibited from this due to the investment policies of The Economist. 

Yeah, this is the real news here. Would the Economist tell their employees they cannot buy AAPL? Or Netflix? How weird is that?

Tue, 04/17/2012 - 13:04 | 2351963 malek
malek's picture

Reminds me of my broker who told me I have to state my investment strategy as "Speculation" to be able to buy gold miner shares <roll eyes>

Tue, 04/17/2012 - 08:24 | 2350921 eddiebe
eddiebe's picture

What the fuck, this guy gets paid for saying things like that?

Tue, 04/17/2012 - 08:27 | 2350927 Robslob
Robslob's picture

It is called "The Economist" for fucks sake...all you need to read is the name of the publication!

Tue, 04/17/2012 - 08:28 | 2350932 walcott
walcott's picture

 

Multiple Flower Dandelion Mutant - Mutated Plants

 

http://www.youtube.com/watch?v=VEm54s9CZjI

perhaps soon one physical oz. of gold oz will magically mutate into 6 or 8 oz's of gold.

Tue, 04/17/2012 - 08:27 | 2350934 Monedas
Monedas's picture

The Bernankes, the Madoffs and the Ponzis know their bubbles are going to burst !  Don't expect them to fess up !   Is Castro going to write in his memoirs that he was a failure ?   Monedas   2012   Comedy Jihad Humour Implosion

Tue, 04/17/2012 - 08:32 | 2350952 johnnymustardseed
johnnymustardseed's picture

Indeed, there has often been a suggestion that those who buy gold are irrational “gold bugs” who are anti-technology and anti-progress. Indeed, some who have bought gold have been framed as “doom and gloom” merchants who are hoping for a collapse of the financial and monetary world so that they can profit from their dramatically revalued gold.

As one of those irrational gold bugs, I wish more than anything that the "Doom and Gloom" would go away. I did not buy precious metals to PROFIT! I buy them to protect my future from the failure of Fiat. Nothing would make me happier than to see the deficit shrink and for our country to head in a positive direction and my precious metals be worth what I paid for them in 1982. 

Tue, 04/17/2012 - 10:47 | 2351376 Acet
Acet's picture

Same here.

I went into Gold last year (even before I joined ZH) when I found that my savings (in Pounds) were being eaten away by the money-printing-induced inflation of the Pound while there were no options at all to invest them in such a way as to get a return at least equal to the inflation, with no end in sight for the Bank of England policies of shafting savers to help bankers (and at the time I was working in investment banking, so you could say I was a banker back then).

As many have said here, it's not about Return on Investment, it's about Return of Investment.

Still, I find myself going to mainstream media forums and making posts that push against QE and for the kind of sane measures that actually have a chance solve the UK's economic problems, even though, from an investment point of view, the current policies of the BoE are great for having my wealth increase relative to those whose savings are still kept in the local fiat.

Tue, 04/17/2012 - 08:35 | 2350953 tradewithdave
tradewithdave's picture

Who cares if they debase.  All we need is a global equivalent of the Sacajawea "golden" SDR.  Maybe one with Christine Lagarde holding up a Louis Vuitton bag.  Link it with bitcoin and the Soros seignoirage and we're ready to shop. 

 

http://tradewithdave.com/?p=9935

 

 

Tue, 04/17/2012 - 08:37 | 2350961 Sean7k
Sean7k's picture

Humans are amusing. On all the most important areas of life, we continue to depend on "experts". Whether, it be economical, political, medical, construction or even love/marriage, people can't wait to embrace the latest "expert". The newest theory, the most elegant paradigm, we wait with baited breath to be told what to do.

This is not to say there isn't a place for experts and their advice, but to leave all our important decisions to others whose interests are selfish first and foremost is the height of irresponsibility. Rather than become more informed on important subjects, we spend our valuable time on the gossip of the elites.

The Economist is a Elite rag that provides enough quality analysis to garner your trust. The important issues are the propaganda it abuses your trust over.

Tue, 04/17/2012 - 08:43 | 2350985 AnAnonymous
AnAnonymous's picture

Experts are the result of division of labour.
Experts have to be respected because in a divided labour market, every segment hosts experts. Acknowledging the expertise of others is a starting point as being acknowledged as an expert in one's field.

US citizen economics 101.

Experts might also force their ways on others.

Since 1776,July, 4th, US citizens have been declared themselves expert on humanity, freedom, truth and justice.

See how they have used their expertise to explain to backward societies how a society should be properly run.

Tue, 04/17/2012 - 09:15 | 2351061 Incubus
Incubus's picture

Americans are experts on hedonism and thievery. 

With enough power, you can call "stealing" anything you want--particularly "spreading freedom & democracy."

 

Have you seen our fucking democracy?  A bunch of fucking wrinkly disgusting dressed-up whore pigs that gallivant around DC with their corporate "Johns"? 

Tue, 04/17/2012 - 08:52 | 2351007 LawsofPhysics
LawsofPhysics's picture

These currencies  will debase?  More paperpushers who stink of fear, where has this guy been?  LOL!!!  

Tue, 04/17/2012 - 09:41 | 2351145 Chupacabra-322
Chupacabra-322's picture

It huge Pozi Scheme of magmic proportions which use you as collateral.  The entire system is geared up to act upon legal fiction entities such as corporations and trusts. Along with that, virtually everyone here in the US and for that matter around the planet has a registered birth. The birth registration process creates a trust entity known as the “person” over which govt. is trustee and the actual man, woman, or child it is associated with is the beneficiary or contributing beneficiary. The trust entity has a name similar to yours but in ALL UPPERCASE. It is to this trust that such things as driver’s licenses, socialist slavestate numbers, marriage licenses, etc. all attach.

Tue, 04/17/2012 - 09:53 | 2351182 Shizzmoney
Shizzmoney's picture

The thing is, it's government backed fiat....but created and controlled by a PRIVATE corporation......

No wonder people lose faith in it.  Read the FOMC papers.  It makes you want to puke.

Tue, 04/17/2012 - 10:41 | 2351351 Chupacabra-322
Chupacabra-322's picture

Here's a list of The Elilte which own it and plan to enslave you. 

Federal Reserve Banking System

Now that we know the Federal Reserve is a privately owned, for-profit corporation, a natural question would be: who OWNS this company? Peter Kershaw provides the answer in “Economic Solutions” where he lists the ten primary shareholders in the Federal Reserve banking system.

1) The Rothschild Family – London

2) The Rothschild Family – Berlin

3) The Lazard Brothers – Paris

4) Israel Seiff – Italy

5) Kuhn-Loeb Company – Germany

6) The Warburgs – Amsterdam

7) The Warburgs – Hamburg

8 ) Lehman Brothers – New York

9) Goldman & Sachs – New York

10) The Rockefeller Family – New York

http://www.nesaranews.blogspot.com/2...ng-system.html

Tue, 04/17/2012 - 11:30 | 2351589 gnomon
gnomon's picture

You convert some of your gold back into fiat only after a decade or more of turmoil and mayhem have stripped humanity down, humbled it, and the old lessons are learned anew. (In other words, we get back to what it was like before the Ponzi/Welfare mentality had captured society from top to bottom).  

Fiat, backed by Gold or not, is only as good as the people behind it. If the people are thoroughly corrupt, the fiat is thoroughly corrupt.  If the people issuing the fiat are still trying to adhere to standards, then the fiat is something you can trust for a little while.

Fiat today is a hot potato, something to be passed on to the greater fool at an opportune time.  Each owner of fiat will have to decide when it gets too hot to hold.

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