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A Whole Lot Of Uncivilized People Out There...

Tyler Durden's picture


Charlie Munger: "gold is a great thing to sew onto your garments if you're a Jewish family in Vienna in 1939 but civilized people don't buy gold"

...and yet:

David Einhorn: "I will keep a substantial long exposure to gold -- which serves as a Jelly Donut antidote for my portfolio. While I'd love for our leaders to adopt sensible policies that would reduce the tail risks so that I could sell our gold, one nice thing about gold is that it doesn't even have quarterly conference calls

Kyle Bass: "Buying Gold Is Just Buying A Put Against The Idiocy Of The Political Cycle. It's That Simple!"

and Howard Buffett: "I warn you that politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it. Also those elements here and abroad who are getting rich from the continued American inflation will oppose a return to sound money. There is no more important challenge facing us than the restoration of your freedom to secure gold in exchange for the fruits of your labors."

The uncivilized people have spoken, and the winner is...

Source: WGC

And just as importantly, the people have realized that buying ETF-based stock certificate representations of a hard asset held in custody by Cede & Co., which may one day simply vaporitse, may not be the most prudent way of insuring against terminal stupidiy.

h/t WallStreetMane


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Sat, 05/05/2012 - 13:53 | 2399527 Hulk
Hulk's picture

Capitalism without bankruptcy is like christianity without hell...

Sat, 05/05/2012 - 13:52 | 2399531 Revert_Back_to_...
Revert_Back_to_1792_Act's picture

Everybody has played Monopoly.

If you use paper money and paper deeds, one guy will end up with all the stuff and charge rent to everyone who goes around the board until they are broke..


Sat, 05/05/2012 - 17:50 | 2399938 deepthoughtless
deepthoughtless's picture

Monopoly teaches another important lesson. At that point, it's "game over".

Sat, 05/05/2012 - 13:53 | 2399535 thatonekid13
thatonekid13's picture

How much money would Buffett and Munger have lost without a government backstop? A metric shit ton???? One can be a gifted marketer and political-establishment sychophant like the august Warren Buffett and be assured of taxpayer funded money thrown in your general direction if the market throws a hissy fit. Or one can buy gold.

Sat, 05/05/2012 - 13:57 | 2399547 pcrs
pcrs's picture

But who needs gold if civilized people in Berkshire buy a railroad company, then lobby government to ban a pipeline and then cash in on 4 years fully booked oil transportation for your just bought railway company.

Check, no need for gold for thoses guys. Just political connections.

Sat, 05/05/2012 - 14:02 | 2399557 hornster
hornster's picture

"gold ETF" is an oxymoron.

Sat, 05/05/2012 - 14:06 | 2399561 veyron
veyron's picture

Can you also put a "total" line to show that the total demand is also ramping?  It's clear that total demand in 2011 exceeds 2001 but having the total would show that the demand has been increasing year over year 

Sat, 05/05/2012 - 14:16 | 2399583 SILVERGEDDON

Paper sucks, you Wall Street fucks! I'll see you vampires in the sun, with my loaded silver gun. Yer goin' down in flames, from Lower Manhattan to the Thames. Your paper is I know not where, I'd rather shit my underwear! For, be there bull, or be there bear, silver is the suit I wear! (With gratitude, and apologies to Dr. Seuss.)

The only paper I own is the stuff I wipe my ass with. Market paper is worthless, because I cannot do a good job of wiping my ass with it. Gold was worth $28.00 an ounce when I was a kid. Silver was worth whatever was printed on the coin you spent. Any one think those days are coming back? All of the lying bum fucking aristocracy of the Age Of Paper Power can burn in their paper suits soonest. I won't even bother pissing on them to put out the flames. I collect gold, silver, lead, copper, real dry powder, food, tools, diesel fuel, and other useful commodities. There is a community of folks all doing the same, so skill sets and extra eyes and hands can guard each others sixes. It is time to pull a Jim Morrison,  and "break on through to the other side, break on through to the other side, YEAH ! "

Thank guys like Charlie Munger and their BIG BUSINESS CORPORATE PSYCHO - OLOGY for lobbying for the opportunity to run the baseball bat up the collective asses of the "American People" every politician talks about. Politicians are wannabe businessmen - but with no talent, and no capital, and no work ethic. They are what they are. Might's well get pissed at the raccoon that raids your trash cans. He is just doing what evolution gave him a job to do. Corporate World Co is your friend - NOT ! They run the show - every one else is cannon fodder at best, or a problem to be eradicated immediately at worst. The new religion of the millennia. Be careful, or you will be branded as a witch and burned at the stake.

Actually, if you read or comment on this website, you are already doomed, 'cause the fluoride in your water, drugs and pesticides in your food, and poison in the air have not yet eliminated free will, or cognitive thinking, the ANTICHRIST of corporate religion. You, my friend, are totally fucking radioactive to the Charlie Mungers of the world. 

Sat, 05/05/2012 - 14:21 | 2399590 Rastamon
Rastamon's picture

hey! i never thought of sewing my gold into my clothes!


thanks Charles

Sat, 05/05/2012 - 14:49 | 2399607 Max Fischer
Max Fischer's picture



Brioni, Charvet, and Stefano Ricci make ties with threads of gold.


Sat, 05/05/2012 - 15:10 | 2399675 Piranhanoia
Piranhanoia's picture

For poodles. 

Sat, 05/05/2012 - 14:24 | 2399595 spekulatn
spekulatn's picture

C. Mung is a miserable old fool. 

Sat, 05/05/2012 - 14:25 | 2399599 augustusgloop
augustusgloop's picture

wow- munger's comment is about as anti-semetic as it gets. gold hoarding jews sewing golden talers into their clothing. 


Sun, 05/06/2012 - 10:22 | 2400605 augmister
augmister's picture

He wishes he was Jewish.   Charlie always trashes what he wants, like gold!

Sat, 05/05/2012 - 14:28 | 2399603 Max Fischer
Max Fischer's picture



Sat, 05/05/2012 - 14:30 | 2399610 Bay of Pigs
Bay of Pigs's picture

Munger should be shit canned for that comment.


Sat, 05/05/2012 - 14:52 | 2399647 Mary Wilbur
Mary Wilbur's picture

I think it has already happened. Buffet fired him over some Lubrizol stock he bought for himself before he purchased the stock for Berkshire.

Sat, 05/05/2012 - 15:00 | 2399657 Mary Wilbur
Mary Wilbur's picture

On the other hand, my memory may have failed me. I'm not really certain if it was Munger or not.

Sat, 05/05/2012 - 19:43 | 2400093 prole
prole's picture

No Worries Mate! Technically I think Mungerberg is Buffet's eternal Renfield, the guy they canned for dicey personal trades, was the heir-apparent.

Max Fischer Global would you please be so kind sir as to wrap one of your golden ties around your neck and see if it is robust enough to support your entire 90 lbs of body weight?

Sat, 05/05/2012 - 14:43 | 2399631 Libertarian777
Libertarian777's picture

actually Charlie Munger's being totally rational in one sense.

Question: should you invest in gold?

Answer: no. you should invest all your money in Berkshire Hathaway and we will take care of it for you


That being said he is apt to having a black swan hit him upside the head. I'm sure the Jews in 1933 in Germany were thinking the depression is ending we can go on with our lives, nothing bad will happen. Who needs gold.

By 1939 when they want their gold to move their wealth out the country its too late.

So Charlie Munger is saying, buy life insurance AFTER you're dead. Not before, because everyone he talks to nowadays is alive, so that's empircal evidence that no one ever dies.

Sat, 05/05/2012 - 15:29 | 2399704 devo
devo's picture

By 1939 when they want their gold to move their wealth out the country its too late.

The Jews had a lot of gold in 1939. The Nazis stole it and used it to fund their lifestyle.

Sat, 05/05/2012 - 18:53 | 2400040 malek
malek's picture

About a third of the Jews had already left Germany by 1939.

Now make a guess which ones those were, by assets owned.

Sat, 05/05/2012 - 21:14 | 2400189 grid-b-gone
grid-b-gone's picture

In a Dr. Bronner's (hippie soap fame) documentary, he tells of leaving family behind in Germany who thought everything would blow over. Some months later he received a postcard in the U.S. with the simple statement "You were right." 

At his age and station, Munger has little downside to not holding gold. He'll never miss a mortgage payment and he'll never be without health care. Any major Fed currency devaluation or exchange decision will quickly move from Ben to Obama, to Warren, to Charlie, timetable included. For the rest of us, now is the time to prepare. 

If things ever really fall apart, the first official word will include reassurance that there is no need for individuals to take action and everything will blow over.

Sat, 05/05/2012 - 14:47 | 2399635 mick_richfield
mick_richfield's picture

I am civilized because I believe that all transactions should be voluntary on both sides.  My morality, politics and economics derive from what I observe of human nature: that human beings own themselves and the fruits of their labor. 

The purveyors of fiat currency are -- I don't want to say 'barbarians'.  That word always constitutes a parochial cultural judgement, as far as I can tell.

I think the word I'm looking for is 'beasts'.

People who violate human nature, committing the largest and most terrible crimes in history -- they renounce their own humanity by violating the humanity of others.

Charlie Munger is a dimwitted pimp for the beasts that rule the world with lies, force, and false money.

Sat, 05/05/2012 - 14:48 | 2399637 pissing_excellence
pissing_excellence's picture

Jared: What’s a specialty in propulsion, exactly?

Peter: My thesis was a study in the way that friction ratios effect steering outcomes in aeronautical use under reduced gravity loads.

Jared: So, you are a rocket scientist? Peter: I was. Jared: Interesting... How did you end up here?

Peter: Well it’s all just numbers really, you’re just changing what you’re adding up. And if I may speak freely... the money here is, considerably more attractive.

With a name like munger, almost like Igor, I mean really...... its like.. Hey Warren can I have your half eaten french fries you left behind pleaseeeeee, master?????

Cellar door, bitchez..............



Sat, 05/05/2012 - 14:49 | 2399643 ebworthen
ebworthen's picture

Great chart.

At the very least, my physical gold and sliver in my posession cannot be CORZINED.

Sat, 05/05/2012 - 15:02 | 2399660 LULZBank
LULZBank's picture

Confucius said: Man with wobbly eyes has no vision.

Sat, 05/05/2012 - 15:08 | 2399668 grid-b-gone
grid-b-gone's picture

I consider myself pretty civil and civilized, even though I laughed through most of Borat.

"Be prepared" is more than just a Boy Scout motto. It's a sensible way to live life. We as a nation, have wasted so many resources that could have been employed to avoid printing (counterfeiting) our currency.

I continue to prepare. If anyone has used this time of Fed/Treasury printing for anything besides preparation, good luck during round two. There is a reason parables and stories like "house upon a rock", "tortoise and hare", "The Good Earth", and "Peter Rabbit" repeat themselves in literature. Basic human nature does not change.

Consider that Bernanke may know very well that he won't stop printing - ever. His bosses may remember all the cheap farms they picked up nearly four score and seven years ago and desire to repeat, now that the rinse of 2008 is done.

I own my house and vehicles. I have some uncivilized assets. I follow Munger's desire to have repeatable cash flow coming from a commercial operation. I'm not much of a tailor, but I own a post hole digger and remote property. I'm not quite paranoid enough to stock MREs, but I do know where edibles grow for free and roaming hordes would walk past in search of food.   

Sat, 05/05/2012 - 22:57 | 2400284 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

"I'm not quite paranoid enough to stock MREs,"

Please reconsider- If your NOT paranoid your not paying attention!

Sat, 05/05/2012 - 15:08 | 2399670 FranSix
FranSix's picture

That's the way life is. You cobble together riches and then you get the 'money-honey' to hang off your every narrow-minded utterance.

Unless, of course, the money is no good, and reality sets in finally.

Sat, 05/05/2012 - 15:11 | 2399674 debtor of last ...
debtor of last resort's picture


Sat, 05/05/2012 - 15:39 | 2399719 WmMcK
WmMcK's picture

FREE IPAD2 with the purchase of 500 Vienna Philharmonic coins. (While supplies last) - LOL.

Sat, 05/05/2012 - 16:16 | 2399777 debtor of last ...
debtor of last resort's picture

Is there any silver in an iPad that can be recovered?

Say that again: LOL

Sat, 05/05/2012 - 16:15 | 2399774 Grimbert
Grimbert's picture

I love that shopping cart in Dutch is winkelwagen.

Sat, 05/05/2012 - 15:13 | 2399677 CryingBear
CryingBear's picture


Global demand for gold reached 4,067.1 tonnes last year, the highest tonnage since 1997, due in large part to a nearly 5 percent rise in investment demand, which hit a record 1,640.7 tonnes, the World Gold Council, an industry group, said in its quarterly Gold Demand Trends report..

GOLD REACHED 4421.4 TONNES ON the supply side, gold mine output reached a new annual record of 2,809.5 tonnes last year, marking a 4 percent rise on 2010, while recycling fell 2 percent on the year to 1,611.9 tonnes.

Sat, 05/05/2012 - 15:19 | 2399693 Bay of Pigs
Bay of Pigs's picture


The World Gold Council? LOL. Nice try...

Sat, 05/05/2012 - 17:11 | 2399870 akak
akak's picture

Next he'll be using Jon Nadler as an "authoritative source" and "impartial analyst of the gold scene".

Sat, 05/05/2012 - 20:58 | 2400180 TheFourthStooge-ing
TheFourthStooge-ing's picture

Jon Nadrer, Canadian citizenism citizen and spewer of Mung.


Sat, 05/05/2012 - 17:27 | 2399900 CryingBear
CryingBear's picture



Sat, 05/05/2012 - 17:52 | 2399940 akak
akak's picture

Oh, you actually have balls?

But are they rubber balls?

Sat, 05/05/2012 - 18:49 | 2400034 Bay of Pigs
Bay of Pigs's picture

Quit yelling you dumbass.

My point is that the WGC has not been a reliable source for anything concerning gold over the years.

Does that work better for you?

Sat, 05/05/2012 - 19:14 | 2400062 akak
akak's picture

I've always wondered, what possesses these morons to keep hitting the "Caps Lock" key every time they post a comment?  Do they think that veracity or intellectual rigor is proportional to the size or boldness of the font in which one posts?  I mean, really, what is the thinking here?

Sat, 05/05/2012 - 19:38 | 2400085 CryingBear
CryingBear's picture


Sat, 05/05/2012 - 22:34 | 2400254 jomama
jomama's picture

caps lock is cruise control for cool.

Sat, 05/05/2012 - 21:01 | 2400182 TheFourthStooge-ing
TheFourthStooge-ing's picture

akak asked:

I've always wondered, what possesses these morons to keep hitting the "Caps Lock" key every time they post a comment?

They think it compensates for being hung like a light switch.


Sat, 05/05/2012 - 20:02 | 2400115 CryingBear
CryingBear's picture


Sat, 05/05/2012 - 21:21 | 2400196 Bay of Pigs
Bay of Pigs's picture

Nope. The ETF's a sham dude. Wake the fuck up already. There are multiple claims on each ounce of gold in the world. Some say maybe even 100:1 (Jeff Christian let that cat out of the bag).

You are apparently clueless as to what is going on in this world with regard to physical gold and silver.

Sat, 05/05/2012 - 15:13 | 2399678 imaginalis
imaginalis's picture

Charlie is an old minger

Sat, 05/05/2012 - 15:13 | 2399681 orangegeek
orangegeek's picture

If the price of gold goes up, you've made a profit.

If the price of gold goes down, you've incurred a loss.


The gold euphoria has transformed into something other than making a profit.  When did the markets ever become something other than making a profit??


Elliott wave spot gold remains bearish.

Sat, 05/05/2012 - 15:26 | 2399700 Bay of Pigs
Bay of Pigs's picture

And Bob Prechter says gold to $300, right? Most Elliott Wave theory has been terrible on gold the last 12 years.

And gold "euphoria"? Yeah, 1-2% of people have any gold at all.  

Sat, 05/05/2012 - 15:35 | 2399713 WmMcK
WmMcK's picture

Why not $257 again? Then they can drop a zero from the FRN's.

Sat, 05/05/2012 - 16:01 | 2399751 FranSix
FranSix's picture

Gold eWave analysis based first on a time progression:

Sat, 05/05/2012 - 19:40 | 2400089 CryingBear
CryingBear's picture


Sat, 05/05/2012 - 21:58 | 2400224 Bay of Pigs
Bay of Pigs's picture

You dont even know the basics on gold. Why throw stones at this guy?

Sat, 05/05/2012 - 15:29 | 2399705 WAMO556
WAMO556's picture

You got it all wrong buddy!!! Gold is not measured against fiat money. Fiat money is measured against GOLD. Get with the program buster, it is not like your paper money will actually be around in a hundred years... you know this right? But that barbarous relic that the REALLY SMART PEOPLE know all about know that paper money is exploding, imploding, whatever you pick. But gold, what does it do??? Gold maintains a store of VALUE. You should know this!!!

Sat, 05/05/2012 - 16:11 | 2399767 slackrabbit
slackrabbit's picture


I would love the day when my gold is $10,000

Likewise I love the day my cash is actually worth something.

In either case, everyone else debt is seriously not worth s**t OR their debt is in deep s**t.

Either way the only person with gold wins - besides once a crash happens, the government will print anyway - it wont make any difference - but then at least they can say 'we tried'.


Sat, 05/05/2012 - 15:37 | 2399714 akak
akak's picture


If the price of gold goes up, you've made a profit.

If the price of gold goes down, you've incurred a loss.

Another clueless idiot who apparently does not understand the fundamental difference between price and value.

Carry on.

Sat, 05/05/2012 - 18:55 | 2400042 LudwigVon
LudwigVon's picture

Gold is not an investment. Gold is money.

There is no euphoria, vast majorities own banknotes and still believe that they are money. 


JP Morgan: Gold is money, everything else is credit.


Fed Note holders are invested in.... cue assets (order of estimated value):

-Confidence; the confidence that the FRN will remain a store of wealth over presumed time period

-Derivatives (Contracts with other un-indentifiable, and therefore un-auditable institutions)

-Physical Real Estate in Washington D.C., Manhattan, N.Y.

-Unknown Un-auditable quantity of gold custodied in NY and at Ft. Knox

-Swaps with insolvent Ponzi scheme runners such as the ECB private bankers

-Mortgages (of varying quality)



Sun, 05/06/2012 - 02:33 | 2400404 Milton Waddams
Milton Waddams's picture


The tide needs to run out on public workers.  Some accountability would be a wonderful thing. 

Sat, 05/05/2012 - 15:27 | 2399701 Dr. Gonzo
Dr. Gonzo's picture

Last year a got a 22k removable gold tooth made. It's friggin hillarious and I love it. I pop in in once and a while to mess with people. I highly reccomend getting one for the fun but Charlie Munger reccomends getting one for the next Holocaust

Sat, 05/05/2012 - 15:57 | 2399744 hmmmstrange
hmmmstrange's picture

Charlie Munger sews stock certificates in his cloths.

Sat, 05/05/2012 - 16:13 | 2399769 ovigia
ovigia's picture

#Anonymous to Launch #TYLER, #WikiLeaks on Steroids - Softpedia #freedomtools #p2p

Sat, 05/05/2012 - 16:27 | 2399790 dark pools of soros
dark pools of soros's picture

Singer Bitchez!

Sat, 05/05/2012 - 16:29 | 2399795 Pairadimes
Pairadimes's picture

Charlie, after  the SHTF, if you will muck out the barn every day, tend the vegetable garden and feed the chickens, I will provide you with one meal a day and a cot in the Tack room. But you are going to have to work.

Sat, 05/05/2012 - 16:38 | 2399810 bill1102inf
bill1102inf's picture

P, its bitchez like you That when the SHTF I am going to hunt down and slaughter on a wholesale kind of level.  Just given your punk azz a heads up. 


Ill probably even EAT your corpse.

Sat, 05/05/2012 - 16:51 | 2399830 Pairadimes
Pairadimes's picture

Oooohhhhh. Ha Ha Ha. Why wait, you humorless little troll?

Sat, 05/05/2012 - 21:03 | 2400184 TheFourthStooge-ing
TheFourthStooge-ing's picture


Oooohhhhh. Ha Ha Ha. Why wait, you humorless little troll?

He's afraid he'll be grounded, without internet privileges.


Sat, 05/05/2012 - 16:35 | 2399804 bill1102inf
bill1102inf's picture

People have already stopped buying gold as anything other than an inflation hedge / 'investment' / its better than 'cash' (supposedly) , NONE of which it is going to live up to.


We already had our inflation.  Now we are in deflationary collapse being held up only by FED GOVs ability to inflate GDP. Gasoline will be back to $2.00 a gallon once 'Recession' is FINALLY RE-ANNOUNCED on public psy-ops chanels. Fed will be forced to hike rates, forcing mortgage % higher in an even weaker market, driving prices LOWER. Poor people and middle class folk do not buy 'gold' to wear, its only real use is in electronics and they are doing fine with their hordes and recycling at the moment, (which will only have less demand) as the planet enters a depression in all 1st/2nd world countries.  

What we need is a new country with a new currency so that every young American or any other citizen with a brain can move there and reap the benefits the boomers have.  You didn't need to be smart, if you bought anything in the 60's/70's,  EVEN CARS are still worth what they sold for NEW!!!!!!!!!!!

In case you have not figured it out. Your $35,000 Honda will not even be around in 40 years, it will have been recycled into something else.  Your 2007 priced house at $750,000 will continue to depreciate like the non asset that it is, as boomers die, and the young can not afford a damn thing while saddled with debt from school loans thanks you big gov, enourmous payments on health insurance thanks to big gov and big pharma etc etc etc.


Sat, 05/05/2012 - 16:41 | 2399815 I am Jobe
I am Jobe's picture

future Gen investment- Prostitution. I hear Columbia is doing great at this and the competition might get stiff as College  Girls in the USSA start getting fat from eating at MCD.


Sat, 05/05/2012 - 17:29 | 2399905 riphowardkatz
riphowardkatz's picture

Hang on tight to the those dollars. Anyone with 100k is going to be rich rich. Get real.

When has thei ever happened in the history of the world? 

Sat, 05/05/2012 - 18:57 | 2400044 malek
malek's picture

Yep, we are in deflationary collapse because the FED and other CBs do/will realize their errors and stop printing.   /sarc

Sat, 05/05/2012 - 22:23 | 2400245 jomama
jomama's picture


We already had our inflation. 

you heard it here, folks! bill1102inf called it!  no moar inflation!  not even at the end of ZIRP!  plan accordingly!  rofl.

Sat, 05/05/2012 - 16:35 | 2399805 outamyeffinway
outamyeffinway's picture


Sat, 05/05/2012 - 17:01 | 2399846 besnook
besnook's picture

munger is right. wampum is better.


gold-the real vix.

Sun, 05/06/2012 - 09:50 | 2400566 GetZeeGold
GetZeeGold's picture



gold-the real vix.


No vix or tips.....payment is only accepted in gold. 

Sat, 05/05/2012 - 17:10 | 2399864 blindman
blindman's picture

Thirteenth Amendment to the United States Constitution
Section 1. Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.
Section 2. Congress shall have power to enforce this article by appropriate legislation.[2
Slavery by Another Name
corporate industrial complexes, ongoing.
notice the word "their" in the amendment, referring to the states.

Sat, 05/05/2012 - 23:06 | 2400263 earleflorida
earleflorida's picture

Regarding corporations [dated]; the 14th & 15th [and today, perhaps the 16th amendment?] amendment:

"During the 1880's, a flock of major rairoad cases arrived for decision by a high court packed with railroad attorneys. The 1886 case of Santa Clara Co. v. Southern Pacific R.R. was a landmark in corporate expansion of corporate power. The court ratified the argument former senator Roscoe Conkling had made while representing a railroad in another case: that the word "person" in the Fourteenth Amendment had been chosen twenty years before by its congressional framers, including Conkling himself, to extend the due process clause to "legal persons" --- that is, to corporations. There was little evidence to back up Conkling's claim, but neither did anyone contradict him --- most of his colleagues on the framing committee were dead. As a result, corporations now gained the "privileges and immunities" of American citizens." ___ end Quote -- "Packing The Court" by James MacGregor Burns c.2009 __ chapter VI - 'A Court for the Gilded Age'

Please note, that this interpretation of the constitution is applicable today. Cheney's Energy policy? ___ America's Nat'l Security regarding Energy [Self-Sufficiency/ Reliance?] Independence, ie. Exxon Mobil, BP plc., Halliburton, and the Keystone Pipeline Project, etc. etc., - needless to say the Natural Gas fracking that will escalate full throttle in coming years, decades, and perhaps until america finally finds an alternate 'Green Energy Policy[S]'.

Ps. Our country has always gotten itself into 'Darwinian Laissez`faire situations,... but has always bounced right back - landing solidly on a grounded footing than before [american's do learn from mistakes, which by the way builds character]. Once again, our 'Can-Do' optimism and uniqueness as a free society will win-out again! :-))


Ps3. Sadly physical gold & silver have gotten the bad ea[ir]r of 'TPTB' [?], and the Big SPERM Whale Oligacrhipedia,... so imo, tread carefully.

Lastly, I'd like to mention the Dred Scott Case ___   

Sun, 05/06/2012 - 08:10 | 2400498 blindman
blindman's picture

Saturday, May 5, 2012
1958 Insights Of Robert Welch. This Will Amaze You! It All Came True!
i would disagree with some of the terms used in this
video but these two gentlemen did get a whole lot correct
in their vision of the political landscape.
thanks for the links earl. we have a problem in the
language assessing the relative significance of nouns
and verbe-s, a problem with priorities.

Sun, 05/06/2012 - 08:22 | 2400507 blindman
blindman's picture

and this...
Wednesday, May 2, 2012Bill Black: Geithner Channels Greenspan and Airbrushes Fraud out of our Crises
On April 25, 2012, Treasury Secretary Geithner made remarkable statements about the role of elite financial fraud and greed in producing our recurrent, intensifying financial crises. .....
"Similarly, as I will discuss, our combined efforts with the FBI and the Department of Justice to identify, remove, sue, and prosecute elite white-collar criminals remains the most successful program in history in any nation. We would be happy to explain the things that worked best and the things we felt were unsuccessful. The last three administrations have wanted no advice from those who succeeded. None of them has been willing to bear the “Costs of Speaking Truth to Power.” Indeed, they want nothing to do with us because they know that we will tell them the unvarnished truth as we understand the truth. They find the truth beyond inconvenient because it threatens their fraudulent big finance contributors.

The question remains how Geithner decided that accounting control fraud was not material in the Enron era frauds and the S&L debacle. He could have read what experts have termed the definitive book on the S&L debacle." ...

Sun, 05/06/2012 - 15:00 | 2401199 earleflorida
earleflorida's picture

great links :-))


whether geithner is stupid or incredibly malicious in a diabolical nixonian way is irrelevant --that is to say, he is a scripted mouthpiece for 'tptb', period! pyramid schemes or ponzi's schemes are but one in the same? they're built on lies and greed which need constant [propaganda with a altruistic twist] reinforcement of ever increasing funding, or just plausible rhetorical half truths. always, without failure, these temporal schemes collapse upon themselves through none other than a [pre]ordained endogenous/ exogenous dichotomous dogma event,... called reality [its own weight]. an event all within a time-valued timeline called, 'the law of average's', [a weighted mean?] that no entity nor sovereignty has the wherewithal to foresee.


Sun, 05/06/2012 - 16:08 | 2401385 blindman
blindman's picture

you must be a philosopher/writer, well said.
if not, you could give it a shot.

Sat, 05/05/2012 - 17:43 | 2399929 jomama
jomama's picture

methinks some are taking that crusty old fart's words a little too personally...

Sat, 05/05/2012 - 18:33 | 2400018 dalkrin
dalkrin's picture

Is it just me, or are more trolls than ever crawling out of the woodwork?  Now that is a surefire indicator that we are picking up the pace in the slow but steady trend to the future monetary fallout becoming visible beyond this "diamond in the rough" blog.


As for me, this Jew just purchased my first 1 oz. of gold the other day.  Had Munger's ugly mug staring at me when I logged on after returning home.  I am not getting out the sewing kit, but rather locking and loading.  If only more had done the same in Europe.

Sat, 05/05/2012 - 20:08 | 2400123 epwpixieq-1
epwpixieq-1's picture

And I am sure that this passing of the time, the uncivilized/barbarian people will only multiply till ... well they are the new norm. Or otherwise expressed, we have a new, more stable, medium for exchanging goods and services, one that can not be inflated to infinity.

Sat, 05/05/2012 - 20:57 | 2400171 earleflorida
earleflorida's picture

Corporate Soft Money = Legal Tender ___ [ie. depreciates nicely - times haven't changed much, have they, or is it different this time?]

Hard "Gold/ Silver" Backed Currency loved by Wall Street Banks *only vs. Fiat [printed paper currency]  'Greenbacks',... backed by the full faith of the U.S. Gov't, and cherished [doubly-infatuated] by corporations?           *{The Imperial Supreme Court for three decades, approx. 1867 - 1897}

Now someone please explain to me what's changed so dramatically in a mere 150 years.,... ?

thankyou tyler 

Sat, 05/05/2012 - 22:22 | 2400244 geekgrrl
geekgrrl's picture

This is actually an amazing graph. It shows that for every year since '01, coin and bullion sales exceeded EFT investment, and that in the last few years, there has been a strong move towards physical and away from ETFs. I really wonder what is keeping the ETFs afloat these days.

Sat, 05/05/2012 - 22:28 | 2400249 jrpuffnstuff
jrpuffnstuff's picture

Charlie Munger Epitath - "sucking cock and having funn!"  Warren there's only room for two in our circle jerk!  Old cocksucker.

Sat, 05/05/2012 - 22:35 | 2400255 Arnold Ziffel
Arnold Ziffel's picture

"...civilized people don't buy gold"


The Central Banks are loaded with 'uncivilized" people then since they are buying gold hand-over-fist with all their spare cash....

Sat, 05/05/2012 - 22:55 | 2400281 BlackholeDivestment
BlackholeDivestment's picture

Inside Job (2008 Economic Collapse)

Sat, 05/05/2012 - 23:11 | 2400290 Osmium
Osmium's picture

Daily reckoning article on Gold buying, selling, manipulation and Zerohedge.

Sat, 05/05/2012 - 23:25 | 2400301 Joaquin Menendez
Joaquin Menendez's picture

Some thoughts on Gold.  Where do people at ZH fit?  

1. If you speculate or hedge in Gold, i.e. buy low sell high then you assume the fiat currency will survive but there is profit in buying and selling Gold. 

2. If you buy physical Gold to keep then you are making one of the following assumptions:

   a) That the government will not confiscate and fix the price of the Gold as it did in 1933 even though Gold threatens to become the default currency..

   b) That you will keep the gold even though it has been confiscated because you believe that the Government will fall and in the financial chaos you will be able to spend the Gold during the ensuing apocalypse.

   c) That you will be able to sell the Gold just before it is confiscated getting a high price with the Fiat currency but that ultimately you will hold fiat currency.

   d) The government will not confiscate the Gold and but will somehow create a Gold standard that allows the price of Gold to float with demand thus allowing a shift in wealth to those holding Gold Bullion and mining interests.

Is there something that I missed?


Sat, 05/05/2012 - 23:35 | 2400308 walküre
walküre's picture

The gold on my property, in my underground vaults is MINE. They can try and confiscate as much as they want. How are they going to know? Tell you what. When the shit hits the fan, THEY are busy covering their tracks and keeping some semblance of peace and order. They won't have time to come digging up your backyard.

SHHHT!!! Don't tell your neighbours. The stash is only for you and your family. The rest will likely turn on you when the pressure gets turned on them and even your family might not be immune.

Take a lesson from the Soviets.

Sun, 05/06/2012 - 04:31 | 2400430 prole
prole's picture

lol Look at Jack Menendez! Hmm ... Five separate straw-man arguments, what is that Jack the new troll's playbook?

Is there something that I missed?

Yes Jack, there are some reasons that you missed--

e)- Buy and accumulate gold and silver so we can laugh at the paid trolls such as bill666, and yourself, and their paperbug sputterings

f)- Buy and accumulate gold because we can tell Mr Shalom Bernanke and his henchmen are lying, and we wouldn't trust them to safely protect the value of a wooden nickel

g)- Buy and accumulate gold and silver because it is becoming more and more evident that paper money is a joke, fiat currency backed by nothing is some kind of fraud and joke,  and that paper money is in an international free-fall since 101 years, at a minimum.

h)- If obvious liars and frauds like bill666 and his other avatars are rabidly mocking us and scaring us away from some ~prize?~ that alone should be reason to encourage a ~~~ well to explain it, gets like ringing a bell to Pavlov's dog, we react by accumulating more precious metals DING!!

Sun, 05/06/2012 - 05:06 | 2400444 Joaquin Menendez
Joaquin Menendez's picture

Evidently my Email address is not private information here at Zero Hedge.  Zero Hedge has failed to protect my privacy and anonymity. 

Sun, 05/06/2012 - 04:54 | 2400439 Joaquin Menendez
Joaquin Menendez's picture

The government can't take your Gold away from you and they won't, but what they could do is make it impossible for you sell it except only to them at their price, which in 1933 was set at an absurdly low $35.   My guess at what is happening is that their are a lot of traders using Gold as a hedge against margin calls and high risk.  These traders are bamboozling a lot of people into panicked buying of Gold to shore up their hedge whenever there is a need to sell their Gold such as a margin call or when they are going into a risk off mode.  Holding a lot of Gold and Silver feels good and I wish it were true that something meaningful could come from a horde in my safe but I think a lot of people are being had.

Sun, 05/06/2012 - 07:42 | 2400484 Quinvarius
Quinvarius's picture

How far did the value of gold drop after the US government bought its gold coins back from the public?  Oh yeah.  It went up 50% within a few years.  How much of your personal non-coined gold were you allowed to keep?  Oh yeah.  All of it. 

Bring on the government buyback and the gold standard that will follow.  All your hypotheticals are what actually happened.  Enjoy your paper poverty.

Sun, 05/06/2012 - 11:45 | 2400723 Joaquin Menendez
Joaquin Menendez's picture

It went up to $37.50 by 1970 because the Vietnam War had bankrupted the U.S., at least according to the Gold standard.  By 1972 Nixon had abandoned Gold in favor of what we have now and yes, people could own and buy Gold bullon again but 40 years was a long time to wait.

Sat, 05/05/2012 - 23:31 | 2400305 walküre
walküre's picture

So much bashing. It must be good.

Buy (more) gold.

Do not as they say but as they do.

Endgame is approaching, folks. Not much longer! They're bringing out the big guns to keep you stupid and asleep! One morning you wake up and all your precious paper wealth has been cut down to bits and pieces of what you thought you owned the night before.

Gold will keep its value. Of course it will. Always has and always will. The rest is confetti and only mentioned in footnotes of history books.

Sun, 05/06/2012 - 00:38 | 2400349 Dingleberry
Dingleberry's picture

Warren and Chuck need to take a bath together......

Sun, 05/06/2012 - 02:35 | 2400374 earleflorida
earleflorida's picture

"Gresham' Law" ___   [*Gold & Silver]

"America's Greatest Industrial [** ~1865- 1914] Transformation"  [10/3/11] Ps. Authors an economist, so there are a lot of half-truths or as some old guy says, "Whole Lies" ?  

Question #1 : Why did it lead the U.S. into WWI, so shortly [~ 3 years] beginning  1917, and ending Nov./1918 --- Why? There was no threat/ hostility, or even outsdide intervention calling America to Arms --- other than the fucking British! 

Question #2 : Why did we enter WWII ~ 20 years after WWI on Sept. 1,1939? We had no beef with German, China, Russia - in fact we had no beef with Japan either. But, as the timeline of history proves, 'timing-is-everything'? Because we had entered the war prematurely, we, by default turned off Japan's fuel supply line, whom at the time was having a major  [Japan was doing us a favor fighting China? //a plus at keeping the USSR sleep deprived at night] war with China. What next happened, was our 'cold-turkey production halt of american raw steel for weapons, etc.', thus, Japan had no steel or oil [raw materials] to further progress with its war on China. So what happened next? Japan eventually decided to attack the US,by bombing Pearl Harbor in defiance on Dec.8, 1941! Now we were officially in WWII, again thanks to the fucking British!

What gives? Every 20 yrs. like clockwork we have a World War? Ironically the cause leading up to each World War is a great depression. Curiously, now that it's been ~ 65 years since the "Great War's" - what's next? We can't keep having these little half-ass flash battles skirmishes across the globe without one igniting WWIII.

??? All's quiet between Iran and Israel,... too quiet?  

Sun, 05/06/2012 - 08:28 | 2400512 blindman
blindman's picture

We were familiar with George Akerlof’s already famous article on markets for “lemons” and his warning that if frauds gained a competitive advantage they would produce a “Gresham’s” dynamic in which bad ethics drove good ethics out of the marketplace. Note that this does not require the frauds to suborn all or even most appraisers and auditors. A small percentage of appraisers and auditors willing to sign off on inflated asset values is sufficient to permit endemic “accounting control fraud.”

Sun, 05/06/2012 - 12:15 | 2400755 Joaquin Menendez
Joaquin Menendez's picture

I always thought the history of the Phillipines is instructive.

1) Spanish arrive in 1500's destroy the Chinese fleet and subjugate the Sultinates (yes the Phillipinos were Muslims in those days.

2) 1898 the United States fleet sinks the Spanish fleet; then the U.S. double crosses the Phillipino resistance against Spain and subjugates the inhabitants of the island during a bloody war in which, in one week, American Marines murdered 26,000 women, children, and elderly.

3) In December of 1941 the Japanese fleet destroys the U.S. fleet at Pearl Harbor.  The Japanese take over the Phillipines and brutally subjugate the Phillipinos.

4) By 1945 the U.S. destroys the Japanese fleet and takes back the Phillipines

5) In 2012 the Chinese fleet is building up and there is great tension between the Chinese and the U.S. in the South China sea over, you guessed it, the Phillipines.

The stupidity is a cycle.


Sun, 05/06/2012 - 01:58 | 2400380 GottaBKiddn
GottaBKiddn's picture


It seems Munger must have been holding coats for some of his "friends".

Sun, 05/06/2012 - 02:20 | 2400393 putbuyer
putbuyer's picture

So disconnected. Lets say he is driving or someone driving him. Middle of no where car trouble, issues, stranded.

What will he do? life is funny and most who have wealth just skate. Once in a while, they end up at my house. :)

Human BBQ some good lickin!!!

Sun, 05/06/2012 - 03:44 | 2400420 MayerRothschild
MayerRothschild's picture

Sweet inrony... Without gold there would be no 'civilization'.  People would still be using the 'uncivilized' barter system.

Sun, 05/06/2012 - 04:03 | 2400421 MayerRothschild
MayerRothschild's picture

interesting to think that is you made $20/hr in 1913 (you would have been rich but not a milionare) you could buy an oz of gold for every hour you worked...

Today it would take you 2 weeks (at the same wage) to buy just one once of gold.


Or in 1938(when the min wage was created $.25/hour) it would take someone 139.4hours (3.485 weeks) to buy an oz of gold.  Now it would take someone working min wage 220.69 hours (5.6 weeks) to buy an oz of gold.

Sun, 05/06/2012 - 05:51 | 2400459 MayerRothschild
MayerRothschild's picture

To think if you made an oz of gold/hr... In 1913 you would be make $39,353.60/year.  At 2011 prices one would make $3,268,761.60/yr.

Sun, 05/06/2012 - 04:23 | 2400428 Clashfan
Clashfan's picture

This one's a no-brainer. If you're not buying physical, you're making a huge mistake.

Sun, 05/06/2012 - 05:16 | 2400448 evolutionx
evolutionx's picture

Three Realistic Gold targets

Three realistic Gold targets: $6,000 – $7,000 – $10,000:


  • In the 1971 to 1980 gold cycle, gold went from $35 per ounce to $850 or up over 24 times. If we were to see the same increase in this cycle, gold would rise to over $6,000.
  • The gold peak at $850 in 1980 corresponds to over $7,000 today adjusted for real inflation based on the inflation rate as calculated by John William’s Government Shadow Statistics (
  • Gold and gold mining shares were an average of around 25% of world financial asset between 1921 and 1981. Today, gold and mining shares are only 0.9% of world financial assets. If gold and mining shares were to go to 25% of financial assets, gold would go to over $31,000. But even if we assume that world financial asset would go down by 2/3rds from here that would put gold at over $10,000.


Sun, 05/06/2012 - 07:12 | 2400463 Element
Element's picture

Ok, this guy, Mike Smith from ANZ Bank is a pure dumbfuck pretending to be 'intelligent', or is just plain up to no good.


ANZ chief questions need for budget surplus

Updated May 06, 2012 18:38:45

ANZ chief questions need for budget surplus


He's yet another of the MMT "printers-are-us" cheer-leaders, who want the people to forget the very reasons why Australia comparatively breezed through the "Global Financial Crisis", and incredibly, almost totally avoided the Great Recession's economic impacts.

Well those reasons; apart from massively propping-up banks, like ANZ, with a Govt Guarantee on deposits, which this vile little turd from ANZ conveniently forgets about, and the direct stimulus payments, back to tax-payers bank accounts, from public debts created on behalf of those tax-payers, so mass defaults would not occur, and impair the ANZ bank's books ... was because Australia had ZERO public debt and a larg-ish surplus, and an inflationary situation driven by overheating (a credit-bubble driven false 'growth'), and oil, that was being actively combated via painfully high rates and a low-ish AUD at ~92.5 cents of USD, that fell hard to low-60 cent USD range (which greatly accentuated the cost effect of fuel-pump price ... until WTI died-back to $32 USD also ... and Tapis price crashed also). 

Rates then plummeted, lagging the also highly export-stimulative and competitive enhancement fall of the AUd, and there was massive room to stimulate with public money, due the surplus and zero debt, as a very strong economy dipped into just one QTR of negative GDP and exports rapidly re-expanded into the second-half of 2009 ... as house prices again shot-up (only this time the renovation-via-mortgage industry and new-construction were fucked, and remain impaired and weak) ... and I almost forgot! ... the first home buyers subsidies, to prop asset prices near the peak, but as Steve Keen identified, actually pushed this insane housing bubble yet higher ... which mase Mike Smith from ANZ especially happy!

So why would the banksters want a budget surplus and zero public debt? 

Frankly, it would be interesting to hear what John Howard has to say about Mike Smith's 'policy' brain-fart, given Howard proved the debt could be eliminated, taxes cut, surpluses sustained and national savings funds established in a repidly growing economy .. if, and ONLY IF ... you make the Federal Govt budget balance and totally eliminate public debt, while growing productive export trade of real stuff, for real stuff.

The key to avoiding the Great recession was the surplus, no public debts, head-room to drop rates, a commodity dollar that would always plunge in a recession ... and let's not forget ... MASSIVE CHINESE STIMULUS, and continued high demand for industrial mineral, energy and food commodities.

So rather than just drop rates, they could have also cut taxes (we had a fucking surplus! ... and new national savings funds from previous supluses!

But rather, the Labor Party of Rudd and Gillard just increased the 'support' for the tax-payer ... by increasing their taxes!

One way  Govt cuts, and the other Govt grows. So guess which way they went? 

i.e. Mineral Resources Rent Tax;  Carbon Tax;  Increasing GST;  Airline Ticket Levy (that wouldn't go away after fuel prices collapsed); assorted surcharges, higher levels of red-tape and compliance-costs, everywhere, with relentlessly falling national productivity, per head of capita.

Everything the Govt 'does' got more and more expensive (as well as less effective, and more misguided and incompetant).

Company margins shrank.

The result has been inflation as these costs are ALL passed back to the consumer again, as a new hidden wave of corporate 'tax' burden becomes a consumer's burden.

Even as global commodity prices were jacked by the central banks, to globally destructive and literally revolutionary levels.


Any way, the 'solution' of this ANZ CEO arse-clown is to remove these sorts of preconditions that propped and enabled Australia to completely avoid an actual recession, and it's greater level of damage - THAT WOULD HAVE OCCURRED OTHERWISE.

Anyone might conclude these bankster shitheads like Mike Smith from ANZ, want us to fall into the trap of deficits and debt, but that just so happens to create a gigantic wave of graft, corruption and open-slather handouts, and private asset grabs, from the tax-payers, for banksters.



Let's not forget who these fucking traitors are.

They are knowingly sticking the knife in, to generate policies which they absolutely know will sink us when the next global recessionary trade-collapse occurs.



Sun, 05/06/2012 - 07:23 | 2400477 UGrev
UGrev's picture

and the winner is Brass, Boxer Primed.. 

Sun, 05/06/2012 - 10:08 | 2400586 blindman
blindman's picture

historically, civilized people have relied on slavery
in one form or another for their "civilization".
that again is the problem facing the people of the world today.
false "money" systems just transcribe this reality into a
complexity that confuses the larger portion of the slave population,
for a time. but mostly it provides a false narrative that deludes
the likes of munger and the beneficiaries of the slave labor,
allows them to believe they are "civilized" while they are just
masta's with privilege in a chain of masta-slave un-civilization.
the signature is war in far off places that need to be financed
with funny money. imo.

Sun, 05/06/2012 - 10:12 | 2400590 blindman
blindman's picture

a fish rots from the head down.
" A fish rots from the head down
When an organization or state fails, it is the leadership that is the root cause.
This proverb is of ancient origin but precisely which of the ancients..."

Sun, 05/06/2012 - 13:28 | 2400920 honestann
honestann's picture

In gold we trust.

Physical gold, that is.

Do NOT follow this link or you will be banned from the site!