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Whither Gold
The prophetic words of Antal Fekete in his now infamous 'essay' on Gold are as relevant now (perhaps more so) as they were when he first wrote them 15 years ago - especially as the Euro-zone migrates from lossening fiat-money to quasi-money (greek pharma bonds for instance). While summarizing this must-read discussion of mainstream economic orthodoxy's mis-teachings is impractical, his initial introduction sets the stage for what is to come: "The year 1971 was a milestone in the history of money and credit. Previously, in the world's most developed countries, money (and hence credit) was tied to a positive value: the value of a well-defined quantity of a good of well-defined quality. In 1971 this tie was cut. Ever since, money has been tied not to positive but to negative values -- the value of debt instruments." After a brief, clarifying history of money, Fekete goes on to discuss the misnomers of currency depreciation, gold as wealth, the failings of kicking the can, quantitative easing, and finally in the misunderstanding of interest rates themselves - seeing them as nothing more than merely bribe-money, trying to persuade reluctant holders of irredeemable promises to hang on a while longer. Paradoxically, gold's importance is growing while its dispersal from official hoards and the mines continues apace. Dispersed gold represents latent power, far greater in scope than its nominal market value, as sound credit can be built only upon a gold base.
Log Scale chart of the price of Gold.
On Currency Depreciation:
Mainstream economic orthodoxy teaches that a depreciating currency is a boon to the country, and a valid tool in the hands of the government to increase competitiveness and thus to reduce or to eliminate the current account deficit. A debased currency makes the country an attractive place for foreigners in which to buy and an unattractive place in which to sell. Exports are boosted, imports curtailed; thus the deficit is narrowed.
Terms of Trade for Seven of the world's largest trade regions
This is one of the most pernicious doctrines ever concocted -- as demonstrated both by theory and practice. Deliberate currency depreciation puts the country at a clear disadvantage, causing its terms of trade to deteriorate. As all items for export have imported components, no one can maintain for long low export prices in the face of ever rising cost of imports.
On Gold as 'wealth':
It is important for us to realize that every word of the doctrine on the sterility of gold is an outright lie. Not only can the owner of gold earn a return in gold on his holdings even under the regime of irredeemable currency, but gold is the only form of tangible wealth that can be lent out at interest and that is in constant demand as such.
3 Month Gold Forward Offered Rate (Lending Gold On Swap Against the USD)
There is a lively gold loan market in the world: gold is put out in loans and is borrowed at interest on a regular basis. It is used in financing great capital projects as well as trade -- in the same way (although not on the same scale) as it always did under the gold standard.
On 'kicking the can':
The term `redistributive society', as it is used by both its protagonists and antagonists, refers to the redistribution of wealth and income -- after they have been produced. More ominously, a movement to redistribute future losses is afoot. If successful, losses will be perpetuated and passed on to society. The scheme will allow the indolent, the inefficient, the inept, and the consistent loss-maker to continue in business indefinitely at the expense of the industrious, the efficient, and the profit-conscious.
On Quantitative Easing & Monetization:
The central bank goes into the open market and buys government bonds. As a result bond prices go up or, what is the same, interest rates go down. But the flipside of this is that now there is even more irredeemable currency in circulation. This cannot help but make the pace of currency depreciation increase.
The rational basis upon which bond values rest was overthrown when gold-redeemability of the currency was abolished. The fanatic denial of this fact is central to mainstream economic orthodoxy.
On Interest rates:
Under the regime of irredeemable currency, interest is merely bribe-money, trying to persuade reluctant holders of irredeemable promises to hang on a while longer.
A low and stable interest-rate structure, in particular, cannot be achieved without making credit gold-bonded. This elementary truth is now in the public domain, even though our universities have been somewhat tardy in accepting it.
And on the future of Gold:
Paradoxically, gold's importance is growing while its dispersal from official hoards and the mines continues apace. Dispersed gold represents latent power, far greater in scope than its nominal market value, as sound credit can be built only upon a gold base. When the dispersal of gold reaches a certain threshold (nobody knows where exactly this threshold is), a metamorphosis of money will take place. Gold will reclaim its throne as constitutional monarch in the monetary and credit system of the world.
Charts: Bloomberg
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A once great singer who pissed away her beauty and talent for a cocaine addiction. It's a shock she died young and it reminds us of our own mortality, but let's keep this in perspective people.
She willingly ingested enough toxic shit to kill a fucking country.
And is going to be an inspiration to young children everywhere once .gov finally throws the white flag up in the drug war.
"See, son, do too much drugs and you'll wind up like that Whitney Houston. Or drooling in the corner like Uncle Freddy...."
That'll never happen...too much money to be made by .gov trafficking drugs. Have to fund all those off budget black ops.
Hell, she can be an inspiration to all them drug addled kiddies regardless of whether the shit's legal or not. That's what my blind Uncle Ernie told me when he had his hand on my lap.
it reminds us that poisonous addictions can kill young artists ...and young countries
If the world could snort debt, it would do it by the kilo
...Piker!
At least she went out on a high
That was her perogative.
"Why don't they just let me live"... Oh no wait, that didn't work out so well...
I suggest those regurgitating tabloid headlines do a bit of research on monarch programing. Funny that commenters here think they are wise enough to see through the fog of the fiat world but lap up the lies elsewhere.
http://pseudoccultmedia.blogspot.com
http://mindcontrolblackassassins.wordpress.com
On edit: Those links are for adults only i.e. you'd better have a sturdy grip on reality before you proceed.
geoorge fuckhead soros says golds got no value...
Hail fuckhead full of grace.
Last I heard, he's long a pissload of GLD.
geoorge fuckhead soros says golds got no value...
When you've got one foot in the grave like he and fellow geezer plutocrat Buffett, nothing seems to have much value - except perhaps being able to take a dip in the fountain of youth.
... or getting his kn0b polished by Becky Quick.
.
A man of few words. I did the green arrow thingy for you.
We have to wonder if the alphabet soup agency [FBI, DHS, JRIC] are scratching their balls /or are now aware of their surroundings after two days of ZH fight club facts. Time will tell!!
Sweet dreams.
Might just be me, but Kelly looks sexually frustrated. It won't take long before she gets fleeced by her master. :)
http://www.dhs.gov/xabout/laws/gc_1214597989952.shtm
"Dispersed gold represents latent power, far greater in scope than its nominal market value, as sound credit can be built only upon a gold base."
This is such a misconception I dont know where to start.
Gold is not 'power' at all but just another monetary marker that historically has worked to exchange for real capital - like shells or beads or whatever. Energy, land, equipment, knowledge. skills, THOSE things are latent power
Not saying gold wont go sky high, cuz humans are morons, just saying it has nothign to do with 'power'. Sure it has a tiny bit more natural resource tether than paper money, but not much.
Dig a little bit deeper. Can you set (or more accurately impose market discipline upon) interest rates for the entire global economy with land or machinery or knowledge?
It's latent power....over the rate of return. Which is pretty damn real.
I guess he'd rather exchange shells, or bits of paper or whatever else other than gold.
he's an ignorant fukhead, jim
after 10 posts over 6 weeks, he's just gonna tell theNuttyProfessorTM where to get off, i guess!
the power, is concentrated economic freedom, get some, while you can.
"This is such a misconception I dont know where to start. "
Why is it they always start anyway... Even after they admit they have no idea?
Historically speaking, there's plenty of evidence to support the notion that gold is power. Philosophically and theoretically speaking, though, it's hard to argue with you... it really is just a yellow metal, but a yellow metal that wars have been fought over, controlled economies, and granted power to its owners. There's no philosophical reason to explain why it is so, but nonetheless, it is so...
The article saysthat gold has the highest salability and hoardability, making gold the easiest to use as currency in both space and time with minimized transactional and storage loss. That is why possessing it is power.
Hey... where did the edit button go...?
Speaking of fuckheads..... I meant warren buffoon ,in last comment not soros. I get all the assholes mixed up.
As a good ZeroHedge regular, you should know that the term 'fuckhead' has been replaced by 'fuckshite' when referring to banker scum...
Don't let that happen again :-)
Is "gobshite" still permissible when used in the correct context?
Whither gold, wither paper.
Wither Whitney.
What's with your hard-on with Ms. Houston? You're worse than Trav and his Aunt Jamima fantasies.
Warren Buffet said this week that gold is boring and he does not recommend owning it.
Warren is boring and you can have my share. Take his foreskin, I'm not using it.
Warren is a dying, unprincipled leftover of a corrupt and unsustainable perversion of a financial, monetary and economic system. His blinkered, statist views are rooted in a rotten past, and he can go to Hell where his beloved paper Ponzinomics will soon reside as well.
Fuck you, Warren Buffet.
not only that, he has trains!
free&clear for all i know! L0L!!!
the shithead!
It won't be long before ol' Warren is ridiculed and held in contempt by the many. The Time magazine cover marks the peak in his popularity; it will be downhill from here. As the markets crash he'll be viewed as a shill and a conman.
One of my least favorite people. When he comes on CNBC to get his dick sucked I want to smash the TV. Folksy Billionair my ass. I bet he counts his money evey day.
Why do you think they call Whitney's hits GOLD records?
Value: Always had it, always will.
give jim a double on tyler's tab!
Priced in gold, the paper money psychosis bubble is the biggest bubble in human history. It is quite funny to see people try to defend the idea that a piece of paper currency being printed off at will has some value beyond its redeemability for gold.
As evil as the FED is, they do have to act somewhat prudent to protect their member banks. Therefore FRN's are not printed off at will and are backed by things tangable like MBS's and UST's. They also have the biggest guns in the world enforcing their use.
On the other hand, if you're a home owner, the title to your house is just a piece of paper and is not redeemable for gold nor does it produce an income yet like most, you've probably put all of your saving's into it.
Warren is betting on the economy and always has. He is corporate America and he needs the economy to thrive to make more money. Gold in many respects is the one thing that smells problems with the economy. If gold is up then there are probably problems. Warrens wants those problems to go away.
I have said on several occasions that the only one thing can stop the run up in gold and that is for the US economy to begin growing. If that happens, then gold will start dropping. I think Warren knows this and believes strongly that the economy will start growing again soon. And if he is right, then yes gold is in a bubble and it will pop loudly.
However, as of today, I think we can all agree that all signs point for continued non-growth in the US economy. Unless a miracle of somekind happens, I don't see how the US economy can start growing again. Perhaps Warren knows something I don't and foresees renewed growth, but I will be shocked if we get it.
I'm feel confident that it is going to get worse before it gets better. I've been waiting for the second leg down in this economic downturn that began in 2008. We certainly have not had a recovery, and the rest of the world is sputtering. For these reasons, I expect gold to continue its upward tregectory.
I think that Warren knows if gold continues to roar, we are all screwed. But he can't say that because it just makes people afraid and makes them run to gold. The only way to get people to ignore gold and continue to use their credit cards is to make everyone feel good (and afraid of the gold bubble). In many respects, he is a cheerleader for the economy. As our most CEOs.
I find it interesting that nearly everyone who talks negatively about gold is someone who's client/customer base is investing the opposite of gold, such stocks and bonds. They don't like gold for one reason: it's bad for their paycheck.
Newager
I take almost unimaginable pleasure that the twaddle brained fuckshite sheeple twats that supplicate at the altar of Buffet will take the high hard one right in the pooper.
My only hope is that Warren sticks around long enough to see it all burn down and fall around him.
Great comment and greenie for you.
I totally concur with it, but would like to get a consensus on what we should consider 'sheeple' to be.
It seems as though per your words we should see the sheeple as the b-school crowd, those who lap up what they are told in school like a dog laps up scraps at the table.
However, often here on ZH the 'sheeple' are considered to be those who watch tv, the Dancing with the Stars fans and Keeping up the Kardashians watchers.
Full disclosure: I heart Kim K and the Kardashians show. And I fuking hate buffet.
The Kardashians take my mind off of the end of the great Keynesian experiment. Maybe all of this shit is going down before this Sunday's episode, but I hope not! LOL
Anyhow, back to my point: you made a great one but consider your disdain for the 'sheeple'. I think a lot of it is unwarranted. Most people aren't bad or dumb.
I'm not sure there's an endgame to all of this, other than you should live the Golden Rule and live what you love.
A sheeple is easly distracted has a very short memery and beleves what ever the MSM says.
Example when the system was coming apart in 2008 the headlines "Waren Buffet invests in banks".
While the MSM spins how the orical of Omahaw always makes money. LOL He didn't even use his own money, that money came from the Fed. it was a stelth bailout in Warrens name, what a tool!
Ah, but even the sheeple know that all we have to do is restore Glass Steagall and that will fix everything. Now who feels silly?
I think they can boost confidence enough over the next 12 months that gold will take a big dip. Of course, you already know what to do ...
So why was gold rising when the economy was doing okay up to 2008?
Paper money is in a bubble that is popping. It is amazing to me to see the amount of denial from people who think there going to be some big fiat paper money renaissance. How can you not see it?
And to address your point on economic recovery, there can be no recovery without sound money. You can clearly see that stealing everyones savings over 40 years has had a horrible effect on the economy. Without the ability to save up for retirement or to start business there is nothing but social drain and debt in the future. Whoever came up with the idea that stealing everyone's money through inflation was a some kind of stimulus was a fucking moron. You would think that a real investigation of the now mini depression in the 30's before this greatest depression would have made that obvious.
Best comment I've read in awhile.
Great interview of the infamous Tyler Durden!
http://www.chrismartenson.com/blog/straight-talk-tyler-durden-can-us-avoid-free-falling-bankruptcy/49554
DaddyO
I like Fekete & have learnt a lot from him but these two statements, not far apart, are contradictory & confusing. I suspect a typo that for some reason was never corrected.
The thing about money, is that it is the one thing you cannot have enough of, hence its constant marginal utility, as Xenophon said;
The first quote should be;
Rather it is proportional to its quality & only gold possesses the quality where no one is forced to cry "enough"!
good point, until someone points to another point...but good catch in outfield!
I would suggest in the first statement, he is talking about all forms of money- whereby quantity does affect marginal utility. However, gold has a near constant marginal utility since additional units are just as valuable as those already possessed.
The fragment, "as the Euro-zone migrates from lossening fiat-money to quasi-money," is a looser quote - idot.
Every word spoken by Mr. Fekete is true, but it won’t matter. Do you really think the elites are going to let it all go without a fight to the bitterest of ends? Do you really think they will allow gold to find its true level? To ruin their game plan, their life’s works?
Dream on.
Remember, those who understand gold’s true role in the world, its relationship to sound money, a sound economy, peace & prosperity (and yet more subtle levels we may know of in the future) are a tiny, tiny almost insignificant number. Compared to the masses.
When the axe falls, when draconian laws are introduced that will be many times more severe than those of Roosevelt, it’s the masses the propaganda machine will be aiming at. The masses, many of whom are barely literate, most of whom are unthinking, easily swayed, easily convinced that ‘gold bugs’ are the evil-doers responsible for their poverty, their problems. Damn them to Hell!
How much sympathy do you think you’ll get from the 46 million Americans on food stamps? Or those struggling on the minimum wage?
All America’s technological excellence as well as the various agencies will be brought into play to ferret out those breaking the new gold laws. And as they’re hauled at gun-point and in chains into courts, the people will spit on them and cheer as severe prison sentences are handed down. Right will be wrong, black white and Orwell will laugh & laugh & laugh in his grave.
Of course, many – but not so many as you might think - will have left no trace of their dealings and will simply go to ground. ‘Over my dead body’ and all that. You may have a long wait. Just as markets can remain irrational longer than most can stay solvent, the elite will wait. And wait. How long did Roosevelt’s laws last - early 70’s?
But, I hear the gold bug’s last statement of defiance, ‘ I’ll never give it up. It’ll go to the kids. They’ll benefit’.
Make that the grandkids. Lucky little sods. Hope they keep a ‘photo of grandpops as their screen saver. You’ll have earned at least that…..
LOL!
R U a fan of irony?
Junk buddy,
Tell me you didn't chuckle when you read this:
When the axe falls, when draconian laws are introduced that will be many times more severe than those of Roosevelt, it’s the masses the propaganda machine will be aiming at. The masses, many of whom are barely literate, most of whom are unthinking, easily swayed, easily convinced that ‘gold bugs’ are the evil-doers responsible for their poverty, their problems. Damn them to Hell!
always a hoot to find an educated adult to whom Truth does not matter in the least, b/c of what "they" can and will D0, isn't it, V_V_gar?
there is always quite a bit of "magical thought" projected on "the godlikePowerzTB" but the more tyler jacks up the "dramatic aspects" of the narrative, the more thumb-suckerz emerge from the online quantum soupNazis
maybe TPTB can't D0 anything too much more willfully than the average shitforbrained moronic asswipe?
maybe things just "happen" to daddyWarbux sometimes, too?
maybe a blackSwan shits upon the powerful, the meek, and the fullyRetarded alike?
in the new "papaJoe" snitch-based economic order, these people will get goldStazi's for reporting you to the 'HOA' for washing your car when it wasn't raining!
I realize I am late to the party but aren't we getting a little carried away by 'THEY'? When the SHTF, 'they' will be just as powerless as the sheeple. Think Katrina...only it will be everywhere. I mean a disaster is a disaster whether man made or one created by nature (aka HAARP). The search for food will begin in earnest and 'regulating gold' will be the last think of everyone's mind.
if you we able to understand what people are syaing here, it might help
try again tomorrow? not w/ me, ok?
There are several options open to move bullion out of the U.S. at this time. Moving 1,000 ounces of gold in one move, would be too risky in my opinion. First, my FBI relative has updated me that the U.S. has no directive to stop the exit of gold or silver as part of the $10,000 in cash allowed by each person to leave the U.S. with. That means that bullion coins and bars are investments as stated by Bernanke and not money.
1. Anyone can board an international flight with gold coins or silver bars without stating it is part of your $10,000. dollar limit. I would not take more than 30 ounces of gold per person per flight. Simply have them in clear plastic tubes that you place in the tray to be scanned with your other pocket items. The viewing inspector may ask to see them up close and that is it. They will be given back to you to carry aboard. I have done this personally. It is important to check the laws of the nation you are flying to to make sure 30 ounces are allowed in at a time per person.
2. The easiest way to move a lot of bullion out of the U.S. is by cruise liner. All American departure ports have non-U.S. custom private security that inspects all items brought aboard. Carrying 100 ounces in tubes in your pockets is easy. You might be asked why you have it. A simple reply is that you plan to trade it for other rare coins with another passinger. Silver bars, the same way. Now, at any stop during the cruise, you can simply carry off all of it in a dive bag and there are no inspections of any excersion bags leaving the ship or entering another country for a cruise line day stop. You can either pre-arrange to leave your bullion with a trusting person or simply leave the cruise and fly home after storing it. If you leave the ship, all you have to do is call the line and tell them you missed the departure. They will pack and send your items left onboard to your home address. I have carried 50 ounces of gold in my pockets and four one hundred ounce silver bars in a strong divers bag off a cruise liner stopping at Roatan for the day without any custom inspection. Using this method, neither the U.S. or the country you stopped at will ever know about your bullion. In fact at all four stops at four different countries that my seven day cruise stopped at, none of them inspected any carry off bags of day trip visitors from the ship. It was very easy to do.
3. If you can afford it, you can charter a private plane to take you to a nearby country that has lax inspections. Many Island nations have tiny airports with one inspector on duty.
4. You can drive to Canada with bullion hidden in your vehicle and easily clear both sides of customs by stating you are on vacation and then either store your bullion in Canadian vaults prearranged or take a flight from Canada carrying your bullion with you to another country.
5. You can charter a sailboat or power boat one way to travel from Miami to Nassau or Paradise Island for a day trip and either store your bullion there or take a flight to another country.
6. You can drive to Mexico with hidden bullion and then take a flight to another country. Although still possible, this method has the most risk. I have heard of the U.S. custom agents finding bullion and not allowing it through and of Mexican criminals stealing it on their side. I do not know how true this is.
7. If you own a lot of bullion, you can sell all of it, wire the money to your country of choice and reinvest in bullion there if possible. This option will leave a paper trail from your bank wire transfer but, if you are willing to pay up to rebuy bullion, it still works and you will own bullion out of the U.S..
8. If you are extremely well connected and favors are owed to you, anyone with diplomatic immunity can carry all the gold and silver you own almost anywhere in the world without any custom inspections. I am sure the super rich have diplomats transfer wealth for them whenever they want it transferred.
9. If you have a very close relationship with any church official, dressed in clergy clothes, they can carry out even 200 ounces of gold in a small case stating it is church property that they are transferring to another church branch. Churches are exempt and no U.S. customs agent will stop a religious official with gold or silver in hand leaving the U.S. at this time. Upon entry, most nations will not tax or place limits on wealth being brought to a church in their country either.
There are two other ways I know of but, I will not mention them here or anywhere.
All of the above are still possible. Some are not possible for everyone and others depend on who you know and trust. There is no professional shipping service that I would trust with shipping my bullion abroad.
Now, storing it safely is a totally different challenge. I have family members living abroad with excellent home safes. In my case, I simply carried my bullion off a plane and off a ship to them for secure storage. Most third world countries do not have safe deposit boxes or trusting private vaults to use. You will have to either have real person contacts or research which countries have reputable vaults that do not share info with the U.S. government. For most Americans, Private secure Canadian vaults are the easiest to use. You may not be able to relocate all of your bullion to the country of your choice but storing it in more than one country has advantages. The important thing is 100% access and no paper trail to the U.S..
I offer no advice on which method is the best. It all depends on the amount you want to move and how much you are willing to spend to protect it and on your network of personal connections. I will share that smaller amounts carried out by two or more family members each, attract the least attention.
Eventually, the U.S. will not allow bullion to exit the country. How much time is left to move it out is unknown. The old saying applies, it is better to be a year early than a day late.
1.)Yes, I am 100% bullion.
2.)Clearing houses are not safe.
3.)Small investors will lose everything.
There are large clearing houses in deep trouble right now and they will implode soon. Even Fidelity, which owns National Financial Services, which is the clearing house that PennTrade uses, is no longer safe. The Fifth District of N.Y. courts that handles wall street cases will continue to only protect the big bankers. MF Global's stolen investor money will never be returned.
MF Global was the tip of the iceberg and the entire system doesn't give a dam about investor losses. All clearing houses already have their legal plans ready to raid investor accounts as soon as they decide to declair bankruptcy. The result will be that the wall street elite will ride off into the sunset with billions each that they stole from investors knowing that the N.Y banks will protect them.
What small investor in their right mind, would continue to allow this corrupt system to control your hard earned wealth that now thanks to the MF Global case, has 100% risk ?
Bullion has zero risk !
When enough people realize this, the run on all available bullion will occur lightning fast and the prices will soar to shocking heights. When available bullion is dried up at any price, people will turn to the equities but, beware, the equities could then be the final trap to steal your wealth. I truely believe that all the experts who promote the shares over bullion will get burned to zero.
A fascinating read! Bravo.
"There are two other ways I know of but, I will not mention them here or anywhere."
One of them is butting it.
hey, 6!
just another cutNpastie from "davidPee-aire"
at least he didn't spam his "really cool website" this time,
wonder why not? hmmm....?
C'mon Slewie DP is fearless (an ex NFL wide receiver) and fight clubbing / mixing it up with JP Morgue et.al. even before ZH was on the scene...
I tried going to Canada with what little I have.
I was in a fishing boat, in October, headed north, and the winds of November came early.
Alas, I escaped with my life, but the 17 lost souls still aboard the Edmund Fitzgerald have a little more wealth with which to travel to the other side....
http://www.youtube.com/watch?v=6U219P_zs7w
Better than Rusty Chevrolet, no?
http://www.youtube.com/watch?v=50IgzksUqpQ
He who complains has already lost.
I'd say more but I got to get to Shopko to pick up the layaway.
So, currently the law is that you can transport unlimited quantities of gold out of the USA, but that large quantities would draw the attention of customs so it is inadvisable? I'm not sure why, if it is legal, that you'd have to explain to a customs agent why you're bringing it with you? Legally, a customs agent asks, you say it belongs to you, and you're bringing it, and that should be all that is necessary if it's legal. If customs makes a big deal out of it, you say in a polite, innocent tone, excuse me, but it's legal to travel with gold bullion, so I don't understand the problem, sir?
LOL the TSA is gonna rob it from you.
The only way to get it out of the country is by ROAD or BOAT...
My quibble with your post here David is that there isn't any restriction on leaving the U.S. with any amount of money and/or gold or any other negotiable instrument. What the gov't requires you to do is DECLARE any/all monetary instruments in excess of $10,000 when leaving or entering the U.S. I would offer that you should declare your gold bullion as well and have a receipt for the purchase of such with you when traveling. Some people have said to total the face value ($50/eagle) and others say declare the actual value. I don't have an opinion on which is advisable. This idea that the gov't restricts how much money you can leave the country with is incorrect and one that I notice the gov't is not too eager to clarify.
A $100k diamond ring works well too. It's the most transportable method I can imagine. I also grew up seeing middle eastern women boarding planes cloaked in gold. It was visible for all to see but no one ever considered them smugglers.
fuck warren's lying ass...GOLD IS MONEY
Gold, gold everywhere.
Gold in your teeth, in cancer cures, in space, in processors.
Immutable, pure, glittery, a conductor.
Dense, un-oxidizable, shiny and fair.
Malleable, ductile, acid resistant.
Reflects infrared radiation and heat.
Tasteless, senseless, dense; like our politicians who are mortal while gold is immortal.
So which is the barbarous relic?
What do you think's going to be the last ditch effort here? I think US Treasury is going to mint some expensive coins myself. Might even completely ignore debt, retaining their old approach. They won't prop up these paper liablities, they'll just spend them on whatever they like, retaining their old approach. They'll be called dollars, the fiat will be dilute, but at least they won't have to burrow anymore. Green light for the fed to CTRL+P 200T, pay off wall street, and have a gentalmens battle of coin vs paper.
Hahaha.... yeah, make a few $1 trillion dollar coins with Obama's face on it, and use them to balance the budget every year. Why not just make 200 $1T coins and deposit them at the Fed? Problem solved!
Let the fearmongering begin :
http://www.telegraph.co.uk/finance/financialcrisis/9077224/Greece-a-brea...
Greece 'a breath away from ground zero', PM warns
“This agreement will decide the country’s future,” he said. “We are just a breath away from ground zero.”
"A disorderly default would set the country on a disastrous adventure," he said. "It would create conditions of uncontrolled economic chaos and social explosion."
"The country would be drawn into a vortex of recession, instability, unemployment and protracted misery and this would sooner or later lead the country out of the euro."
Central Banks seem to like the Barbaric metal...alot:
Central Banks in Scramble to Buy Gold: WSJhttp://blogs.wsj.com/marketbeat/2011/11/17/central-banks-in-scramble-to-...
******************* Central Banks Add to Gold Holding: WSJhttp://online.wsj.com/article/SB1000142405297020422620457659894080351842...
Loved this read and Xenophon's creed on metallic breed. From man who organised the greatest retreat in History this is novel indeed.
We visited Persepolis and Inca's land as latter day plunderers, then realised that Nixon's scam led into stone wall Jackson territory of irredeemable money. We are there and all that glitters still fascinates, especially as the marginal decline of greenback's utility is now abyssal to all, like Niagara Falls; foggy bottom wailing its cavernous call; Thelma and Louise at Grand Canyon singing Whitney Houston's swan song : One moment in time...Goodbye golden voiced siren.
Open your parachutes, golden and all, as the landing will be hard, and it will be global!
The best I can tell after reading Fekete and his protege Jaitly, it would appear that we may have moved away from a single gold fix to a dual gold fix with the HKMex and the Renminbi kilobar, however we have succeeded in maintaining a single Big Mac Index courtesy of the Rothschild Economist Magazine.
http://tradewithdave.com/?p=9110
FOFOA chimes in too: http://tradewithdave.com/?p=9276
I used to wonder how business would be transacted under a gold standard if there is insufficient physical gold and silver available in circulation for billions of people and companies to use every day.
Dr. Fekete's "Real Bills Doctrine" may provide the only answer and is arguably is his most important work.
http://www.professorfekete.com/articles.asp
Historically, gold and silver have always been marginalized because you cannot expand the monetary supply sufficiently to take advantage of the inflation of the money supply.
Originally, paper money tied to the value of gold and silver was just a step towards what has become the dominant paradigm for all banking transactions. Specie redemption was too big a problem.
The only way for gold and/or silver to become money would require the complete overthrow of the banking system and government as we now know it. The system of central banks will allow nothing less.
This is a millweight around the neck of both metals. Surprisingly, it may also be the salvation of those that choose to hold it as a hedge against currency debasement. Gold and silver will always be valued as a doomsday store of value- thus, you will always have a way to protect yourself from the loss of value suffered by your currency.
Central banks want to "ignore" gold. They want to eliminate it from the conversation. Confiscating gold and silver would do the exact opposite. It would be the signal to all people that something is up.
At the beginning of the Weimar hyperinflation episode, bankers advised their clients to buy gold. Then they advised equities when the gold was gone. Then they asked their clients why they didn't listen.
Present day bankers no longer forward this type of advice, we are left with those that have studied history and monetary policy to issue the warnings. Unfortunately, they are painted as kooks and fools.
The sad truth is this: the small subset of the population that will take the time to learn and do due diligence is incredibly small. We cannot save the herd, but we can be the ones left as breeding stock.
hey, S_7k!
++ as per usual
"This is a millweight around the neck of both metals"
altho analysis tend to support this idea, don't forget, also, that the banking "system" is off in fialtLa-La-Land and can not make it back, at least at the present time, due to 'creditBubble' fallacy where [money = debt]
slowly, people are beginning to realize that if we take out the bankster lies and propagananda about PMs as money [which isn't hard, since we have the US Constitution, too] and begin to understand how much of OUR wealth has been stolen by these lie-based frauds, things don't look so hopeless
now, of course, people are being "prepared" for these fuktards who have done this to come up with a NEW plan to keep it up! they're gonna have a NEW housing program and a NEW superCommittee and a NEW security "system" for the "homeland" and a NEW "currency system" and a NEW CHF peg are a NEW short-sale banand a NEW this and a NEW that
it's either gonna be metals or paper, isn't it?
actually, my fellowZ, it already is, and metals have already won
the debt-wizards will eat their own shit after others decide it ain't as 'tasty' as advertiZed...
Hey Slewie,
In good form. as always.
I imagine it would take another CB to change the equation (China, Russia and/or more). When you own both ends and the middle of the bond rate, it requires someone to say no more. Probably lead to a very ugly trade war. Unfortunately, realization is not always translated into action, but we shall see. Let me just say, I'm not depending on the average citizen.
This is a millweight around the neck of both metals.
Silver stockpiles have headed for the X-axis for 40 years as industrial uses have steadily expanded--mostly uses that make recycling uneconomic. Whatever fiat "princing" games are played in the interim, the time will come when nothing but physical silver delivery will do. There a powerful dynamic at play here that is independent of the pure monetary dynamic of gold. Lumping the two together, especially looking forward where the physical silver supply/demand dynamics break through, is a mistake.
All this talk of gold is getting me thinking. How will you pay for those ripe tomatos and ears of corn, or a dozen eggs? Better have some <64 dimes to seal the deal.
Cannot grow corn, but can do Tomatos and eggs all summer. I dont recall buying a single tomato now for several years.
Just walk outside and pick it.
it is complex problem the idea of wealth, in the end it is the means of production. food, energy, metals and other nat reasources and technology of same. what is simple is complex for a reason we all know too well - thank you ZH.
criminal captured gov and central banks..if we knew what they will do we might know where to put our wealth.
the big gov socialists want the good people of gov (think janet at DHS) to own the means of production and the wealth of nations. free men want the rule of law and private ownership- that's why gold holds a unique place it maintains the hope of retaining some wealth from the government goons and criminals such as soros and buffet and mega banks and corps (thank you jeff at GE).
nations fall when the people fear the gov's are corrupt and humans try to avoid the fall out by the hope of gold as a way and means to avoid the fall of economies..
long winded but I am speaking to those to those new viewers of ZH.
Monetarist Antal Fekete has many brilliant insights into our current condition and the failure of our money. He´s been all over it. And you´ll never see him on CNBC either.
The U.S. empire going off the gold standard =
1.) Perpetual War... to constantly subdue other nations who don't want an irredeemable currency and also making sure by force that there are friendly puppets installed in our oil producing vassal states.
2.) A population in debt servitude for life and Police State...The sheep get slaughter either by inflation and or bubble mania from a casino type money. When they are properly fleeced of all their money their leaders want them to keep paying tribute but this time with their God Given rights. Once they have no rights they they can be placed in slavery and or prison, and or just killed. Who cares?
3.) Crony Corruption...the people connected to the fascist system are the only ones who have a chance become wealthy and privileged.
4.) Lies...In the form of controlling the narrative of the media on gold and the intrinsically worthless dollar and inserting propaganda when needed.
5.) Pollution...Society becomes "throw away" in their depression since they don't have ownership and property rights are in question which leads to negative feedback loop.
In summary gold has been the most important story of the last 40 years and nobody knows it... They don't want you to. The people of the world will continue to be hopelessly lost until they figure this out.
since the latter part of the 19th century (mcKinley election) gold has been heavily propagandized against by the banksters
rather than take responsibility for their banking greed and bubbletry, why not just make up some bullshit story & blame fuking PMs (esp gold)? how the hell would any of these fuking RUBES ever know the difference?
and... they did!
so, of course, the banksters went and got themselves appointed to FIX it!
exactly the same prop-wash song&dance as in 2012
PMs have restrictive limitations (altho even benzelbub isn't blaming PMs for the "housing and mortgage" death, basically) doncha know?
pure fiat debt can never be eradicated or cancelled. it can only be 'covered' by moDebt and then it goes to a zombie, who gets paid for holding it, even tho it is worthless, b/c it isn't marked to market, while the "public" is required to continue paying on worthless shitsky or the fuking banksters won't give them any moDebt= Money, as in, say, greece, portugal, ireland, italy, spain, the US GB, the EU, and so on
the only way i can see to stay out of debt slavery, penury thru ARRANGED counterparty failure, or inflationary decimation is to
"The year 1971 was a milestone in the history of money and credit. Previously, in the world's most developed countries, money (and hence credit) was tied to a positive value: the value of a well-defined quantity of a good of well-defined quality. In 1971 this tie was cut. Ever since, money has been tied not to positive but to negative values -- the value of debt instruments."
The Real History:
1) We banksters will confiscate your gold and give you a note for it.
2) You cannot redeem your notes right now, we need the gold.
3) Gold? That's our gold, not yours. Take more of this paper.
4) Gold? We don't have any of that barbarous relic. You're a crazy Ron Paul fanatic.
the gift of fiat, oh how thy pray
your ignition keeps motion, a perceptual gift,... this bartering evolution on a darwinian scale, isolated from natures natural prey
a fickle bird of prey, one might say, with thy flight up, up, and away,... unto the thin air in which thy alchemist play
tis not an arcane illusion to show some restraint, but the thrust of might that steadies your sway, from the maelstrom west the robbers lay waste, so from one friend to another, one must take part in this paper chase on ones' own magic carpet with heart heavy from start
debt oil my eastern friend is but a papers credit away, on yonder in the canyons of western conclaves,... howls of thunder ride the winds message in ominous, yet subtle persuasive ways, best be befriended to your westerly manor, for life will be wretched if one were to stray
it's a fair gift to thee for your precious resource that can't grow trees, or feather your bed's,... but only the seeds to plant them on high - an olive tree leaf for ones oasis treat
for as you've perceived as time to rationalize,... that fiat is manna from the oligarchies money machine, commissioned to enrich the alchemist creditor to their wealth beyond means, by ways of soaring predators of prey, guise'd in the dress,... talon's displayed, as such, the western altruistic way
tis gold you want, you say
for the creditor now the your debtor has changed,... nothing to say, but a farewell to all,for your generous stay, whilst the alchemist have time for yet another encore charade
there's gold in the vaults, it's just a tool box yet to be made, unearthing the layer where the alchemist secrets lay waste, but never be damned
money from thin air was quite a gig, but the might of the west must start its retreat,... learning how to wear what seems to be a golden fig, is as close to being naked an emperor be,... but being of the west the blindness sense runs deep, the sheeple shorn as lemming to the sea
next time yer mom makes you take her to church, don't drink so much when you get home, earle!
L0L!!! +1+
Should have a link to "Why Our Currency Will Fail" article by Martenson the other day:
http://www.zerohedge.com/news/guest-post-why-our-currency-will-fail
All you need to know http://www.xtranormal.com/watch/13002284/the-fed-says-the-fix-is-in
"Gold will reclaim its throne as constitutional monarch in the monetary and credit system of the world"
We haven´t had a free physical market for gold in 100 years. TPTB have had a long run with their funny money but it´s falling apart. Forget the rubbish that an ounce of gold will always buy a new suit and a pair of shoes and nothing more. You have to see all the wealth that oil brought forward to understand it´s real value when the game is over this time. Yes, it´s different this time.
Gold, go get you some while it´s still on sale
The paper reads like any of the drivel idiots like Barton Biggs or Laszlo Byrini are spouting. Same type of absolutely non-sensical forecasts "S&P will rally sharply because I say so" vs. "Gold will reclaim it's throne because that's what's gonna happen'.
Completely worthless non-sense. There's zero worthwhile tidbits of information in neither Fekete, Byrini, Prechter, Faber and Biggs. All the same worthless crap.
David Rosenberg on the other hand brings on numbers and analysis. Not just worthless opinion.
Seared foie gras --- ooh, that is heaven!
Reading how a bimetal approach provides for more governmental manipulations ... will we see the next step in monetary evolution a bi-metal standard?
you are nothing but a fuking troll
never have been anything else
and never will be
why don't you just go away and stop pretending to be dumber than a bag of propagandized, sleeping, fullRetard hammers?
FUK YOU! YOU ASSWIPE TROLL!!!