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Will India Implement The First "Executive Order 6102" Of The 21st Century?

Tyler Durden's picture




 

Something strange has been happening in India in the last year: while the rest of the "developed" world has been doing all in its power to crush its currency in order to promote exports within a globalist mercantilist system suddenly gone haywire, India has had the opposite problem: with its economy slowing down even as rampant inflation persists, its currency has been sliding against all other currencies. But probably more importantly: plunging against gold, as can be seen on the chart enclosed.

It appears that finally after months of "being long of Gold in Indian Rupee terms" having proven to be quite a resilient and profitable strategy, the Indian state has also figured it out. And they are unhappy. Because to them, the key reason for the rupee weakness has nothing to do with the actual economy, and all to do with the Indian population trying to protect against currency debasement coupled with inflation: i.e., purchasing gold. And they will no longer allow it.

From The Business Standard of India

The Reserve Bank of India (RBI) is likely to clamp down on gold coin sales by banks, amid rising bullion imports adding pressure to the current account deficit and weakening the rupee.

 

The Banking Regulation Act does not allow banks to trade in commodities and they play the role of a financial intermediary. This norm was relaxed in the pre-2008 era when the country saw a dollar influx that resulted in a sharp appreciation of the rupee. To sterilise dollar inflows, banks were allowed to sell gold, as they imported the yellow metal. The measure was temporary.

 

Banks were allowed to sell gold by importing it to fight the excess dollar flows. By the same logic, the measure should be reversed now as we are at the opposite end of the spectrum. It was a temporary measure, which unfortunately was made permanent by banks,” a top RBI official said.

 

The rupee has depreciated 30 per cent since August amid the sovereign debt crisis in the euro zone, which made investors flee to safer havens. Weakening macroeconomic fundamentals like the fiscal and the current account deficit have resulted in investors pulling out from the Indian market.

 

In its recent interactions with bankers, the central bank sounded its discomfort over the practice of banks pushing gold coin sales and asked them to go slow. However, banks have not stopped the practice of incentivising their staff to push gold sales, as they earn a margin of Rs 100-150 per gramme of gold sold.

Sadly, India's reaction which does nothing to address the actual source of the economic malaise will backfire, as acts of economic desperation always do. However, the next step will be even sadder, and one known rather well to most American alive between the two world wars: the first instance of Executive Order 6102 in the 21st century. Because again, he who defects first from a regime that pretends to allow fair price discovery of currency substitutes, defects best.

 

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Wed, 06/27/2012 - 15:32 | 2566046 0z
0z's picture

Freeeeeeeedoooooooooommmm!

Wed, 06/27/2012 - 15:34 | 2566051 Pladizow
Pladizow's picture

Uninforcable!

Wed, 06/27/2012 - 15:37 | 2566070 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

You can't buy gold, or else.....or else.....

....OR ELSE!

Wed, 06/27/2012 - 15:39 | 2566076 battle axe
battle axe's picture

Give me your gold. The Indian Gold Finger.....

Wed, 06/27/2012 - 15:59 | 2566154 Popo
Popo's picture

It's one thing to steal someone's wealth by currency debasement.  It's another thing to force someone into a scenario where you confiscate their wealth.

The word is "Opression".  Plain and simple.

Wed, 06/27/2012 - 17:06 | 2566412 Paul Atreides
Paul Atreides's picture

There is no record of anyone ever being arrested or charged under Executive Order 6102. It's just a scam to get gullible peons to hand over their gold, they will never be able to forcefully confiscate it with all the boat, gardening and vietnamese hooker accidents.

Wed, 06/27/2012 - 17:12 | 2566441 Camtender
Camtender's picture

Frederick Barber Campbell would disagree with you. He was indicted and lost 5K gold ounces to the federal gov.

Wed, 06/27/2012 - 17:27 | 2566489 flacon
flacon's picture

For a traditional barbaric relic, that yellow metal sure has governments in a tizzy. I really just can't figure it out. Must be something in the Ganges water that makes people want to buy it. /s

Wed, 06/27/2012 - 18:30 | 2566660 Temporalist
Temporalist's picture

Confiscation is a tradition.

Wed, 06/27/2012 - 19:14 | 2566778 sitenine
sitenine's picture

This is interesting as well: "Breaking News: Regulators to Classify Gold as Zero-Risk Asset"

http://m.financialsense.com/contributors/john-butler/breaking-news-regul...

Something very interesting is happening here.

Got Gold?

Wed, 06/27/2012 - 19:32 | 2566823 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Another 3rd world dump. Whatever.

Thu, 06/28/2012 - 00:01 | 2567348 engineertheeconomy
engineertheeconomy's picture

The truth is that Central Bankers love to buy Gold, but hate it when the general population buys Gold.

 That would be because it makes their paper look like the paper that it really is.

So the Central Bankers in India are playing the violin, do they really want us to feel sorry for them?

Thu, 06/28/2012 - 00:55 | 2567411 merizobeach
merizobeach's picture

As opposed to another 1st world dump?  Whatever, exactly.  How's the vantage from your shithole--does the horizon swarm with brainless Walmart shoppers??

Wed, 06/27/2012 - 19:41 | 2566843 dexter bland
dexter bland's picture

Or perhaps its the commercials promising an affluent Bollywood lifestyle to any p.o.v. who takes out a high LVR loan to buy gold?

 

 

Wed, 06/27/2012 - 21:11 | 2567039 mick_richfield
mick_richfield's picture

 

Must be something in the Ganges water that makes people want to buy it

When I think about what's in the Ganges water, it makes me want silver a lot more than gold.  In the form of a filter.

Thu, 06/28/2012 - 03:31 | 2567519 rsh00
rsh00's picture

That's right...It must be the ganges...or maybe even the heat and humidity that has kept us from becoming 'civilized'. Most western folks (or even westernized Indians) are still confounded by our total fascination and love of gold. India of old was called 'sone ki chidiya' (The Golden Sparrow), and sadly, subject to dozens of invasions by middle east bandits who came just to plunder all that gold.

Wed, 06/27/2012 - 16:11 | 2566210 CommunityStandard
CommunityStandard's picture

Indians LOVE their gold.  The mandate is completely anathema to their culture.  It's like telling us Americans we can't buy large sodas anymore....  oh wait.

Wed, 06/27/2012 - 16:16 | 2566227 idea_hamster
idea_hamster's picture

lulz...

Wed, 06/27/2012 - 19:18 | 2566793 FreedomGuy
FreedomGuy's picture

You will NOT buy gold. You Will buy health insurance. You will NOT buy a Big Gulp. You will buy car insurance. You will NOT buy...80,000 pages more.

It's great to be a free people with free markets, right?

The truth is that 100% of the people are ruled now. No one is free. You may be ruled by a pseudo-democratic process or the venerated and proven good old fashioned dictator...but you are ruled and have no inalieanable rights that cannot be overruled. Do your best.

Wed, 06/27/2012 - 21:12 | 2567041 mick_richfield
mick_richfield's picture

I will NOT obey tyrants.

Wed, 06/27/2012 - 22:14 | 2567141 Skateboarder
Skateboarder's picture

Just by happening to exist, you already do, unfortunately. There are no free men - we're all in this ugly fucking game together man.

Thu, 06/28/2012 - 00:57 | 2567417 merizobeach
merizobeach's picture

Do you pay their taxes?

Wed, 06/27/2012 - 21:53 | 2567114 Bansters-in-my-...
Bansters-in-my- feces's picture

Also kinda like telling Americans they can't buy guns and ammo.

Wed, 06/27/2012 - 15:40 | 2566080 DoChenRollingBearing
DoChenRollingBearing's picture

Molon Labe!

Wed, 06/27/2012 - 15:51 | 2566122 DoChenRollingBearing
DoChenRollingBearing's picture

This is as good a place as any...  I write about the the dangers of complicated THINGS...  Wait until I visit the topic of complicated systems...

http://tinyurl.com/83flkz9

Wed, 06/27/2012 - 16:07 | 2566197 Ancona
Ancona's picture

I lost all of my PM's in a boat accident involving several vietnamese hookers, a bottle of Johnny Walker Black and four watermelons.

Very tragic.

Wed, 06/27/2012 - 16:09 | 2566203 Cognitive Dissonance
Cognitive Dissonance's picture

What were the watermelons for?

Never mind. I don't want to know. :)

Wed, 06/27/2012 - 20:32 | 2566949 rosiescenario
rosiescenario's picture

.......as the Arabs say, small boys for fun, women for children, and mellons for ectasy.....

Wed, 06/27/2012 - 23:51 | 2567329 Harlequin001
Harlequin001's picture

Really, I didn't think the Arabs' spoke English...

Wed, 06/27/2012 - 16:22 | 2566250 Rahm
Rahm's picture

That was a tragic day when our boats collided :(

 

Lost all my pm's and guns.

Wed, 06/27/2012 - 16:58 | 2566386 Coast Watcher
Coast Watcher's picture

Who knew three boats would try to occupy the same space at the same time? At least your hookers made up for the loss of my PMs and ammo. And the watermelons -- O.M.G. that was amazing! I didn't know that was possible.

Wed, 06/27/2012 - 18:10 | 2566612 lasvegaspersona
lasvegaspersona's picture

wait just a minute...

you say FOUR watermellons?

what kind of fools do you take us for?

Wed, 06/27/2012 - 22:32 | 2567181 jerry_theking_lawler
jerry_theking_lawler's picture

wow! never had any PMs on a boat.....but my long dead cousin Jimmy, whom I have a key to his PO box, bought alot of PMs with cash and MOs and had them sent to our shared box. so, technically i don't 'own' any PMs....just storing them for my poor cousin Jimmy.

Wed, 06/27/2012 - 16:10 | 2566206 Goldilocks
Goldilocks's picture

Clarke & Dawe
http://www.youtube.com/user/ClarkeAndDawe

Clarke and Dawe - Top Flight News Story #236b
http://www.youtube.com/watch?v=O-nKJFjYkHg (2:30)

Clarke and Dawe - Articulating an alternative vision for the country
http://www.youtube.com/watch?v=z3wKCzIw5Gs (1:48)

Clarke and Dawe - The European Crisis
http://www.youtube.com/watch?v=OrhJcqgXrlw (2:44)

Wed, 06/27/2012 - 16:24 | 2566257 4horse
4horse's picture

in other words . . .

mumbai

shot-in-the-dark, right . . .

that the first guy killed, karkare, just happed to be india's terrorism chief

http://www.pharosmedia.com/india-books-bookstore/Book_Book_on_Islamic_Terrorism_in_India_Who_Killed_Karkare.htm

 

What most Indians think of as British Raj is in reality the Rothschild Raj. The British empire was the Rothschild empire.

It has been British policy since the Revolt of 1857 to keep Hindus and Muslims divided . . . For this purpose, they created the Indian National Congress (INC) with the help of Allan Octavian Hume, a member of the occultist Rothschild front Theosophical Society. INC was expected to keep India as a British dominian with a nominal democracy formed by a small subset of the population . . .

When INC began to go out of their control, they promoted the Muslim League and the "Untouchables" league led by Ambedkar. They also created Muslim League's anti-thesis, the Hindu Mahasabha. Hindu Mahasabha gave birth to RSS, VHP, and BJP. The Muslim League and Hindu Mahasabha together killed almost a million people in the riots that followed the partition of India - to imply the Indians were incapable of managing their own destiny and needed British rule to live peacefully.

Even after India became independent, it was a Rothschild stooge who became Prime Minister - Jawarharlal Nehru, a freemason. Other contenders were eliminated. Gandhi, even though he was refused to take up office, was killed by an ex-RSS man Godse.

For Jammu and Kashmir, Nehru and Mountbatten enacted a drama, which allowed Pakistan Army to invade and occupy a part of Jammu and Kashmir - at a time when both Indian and Pakistani armies were led by British officers. Instead of driving out Pakistani invaders, Nehru forged a Instrument of Accession that gave Pakistan a leg inside the door of Kashmir. To make matters worse, Nehru being the great "internationalist" that he referred Kashmir to the United Nations where Britain promptly sided with Pakistan. It is because of Nehru's perfidy that prevented India and Pakistan from having friendly relations. He also ensured that Pakistan's Army became sole arbiter of the fate of that country. Jinnah probably got bumped off by the Rotschilds, for his usefulness had run out . . .

Nehru's perfidy was not limited to Pakistan. In China, Rothschilds betrayed their stooge Chiang Kai-Shek and allied with a more nutty variety named Mao Zedong, who lead the Communist party of China . . . into genocide's alltime allhell

http://www.vsubhash.com/article.asp?MV-RFM-IE=on&id=12&info=The_Rothschilds

 

.

 

and, history, in case you missed it . . . honkonged, shanghai'd and long since sino-sassooned
In 1829 . . . the Sassoon family fled to Bombay, India. This was the strategic trade route to interior India and the gateway to the Far East. In a brief time the British government granted Sassoon "monopoly rights" to all manufacture of cotton goods, silk and most important of all ? Opium ? then the most addictive drug in the world!

The Jewish Encyclopedia of 1905, states that Sassoon expanded his opium trade into China and Japan

http://www.israelect.com/reference/WillieMartin/Sassoon_Family.htm

Wed, 06/27/2012 - 19:37 | 2566835 Bringin It
Bringin It's picture

The Boston Tea Party was about throwing East India Company tea into the harbor.  Sam Adams and the boys new the score back then.

Thu, 06/28/2012 - 03:45 | 2567529 rsh00
rsh00's picture

Good conspiracy theory...some elements do make sense. In that case, the current headless state of Indian affairs is most likely conducive to total anarchy in the coming months. I think maybe India will be the fall guy in the coming conflict between US and China. China has not helped matters by keeping an aggressive posture on small tracts of land along the Indo-China border...many times even claiming that the entire state of Arunachal Pradesh is actually Chinese territory. When the conflict starts, many nukes will hit India instead of across the Pacific.

Wed, 06/27/2012 - 15:38 | 2566073 Silver Bug
Silver Bug's picture

Start burying your coins.

 

http://jimrickards.blogspot.ca/

Wed, 06/27/2012 - 17:01 | 2566400 DosZap
DosZap's picture

Hahahahaha, good luck pissing off 1 billion plus Indians, that hold 22,000 tons of it.

That would be a reason for India to become a new country complete with new government if confiscation were tried there,

Wed, 06/27/2012 - 17:34 | 2566517 Two Towers AU AG
Two Towers AU AG's picture

Its impossible to stop sale of gold coins in India. Moreover the private Jewellery shops sell about 90% of the gold sold in retail the banks dont even account for any major share

This order is just a show boat... No Indian will be bothered by this...lest anyone forget Indians hold more money in hand than they deposit in the Bank.. Black Money and Black Market is more prominent across India than anyone can Imagine. 80-90% of transactions of all kind are done in CASH :) :)

Wed, 06/27/2012 - 17:54 | 2566578 Ghordius
Ghordius's picture

+1 black market is King, in India
btw, " To sterilise dollar inflows, banks were allowed to sell gold, as they imported the yellow metal." - sell/import? Eh?

Wed, 06/27/2012 - 19:44 | 2566847 Bringin It
Bringin It's picture

I live outside the Homeland.  I went to buy a new truck.  I had to go across the street with a shopping bag to get the cash and bring it back.  Auto dealers have staff on hand who's specific talent is counting money.  They also have the money counting machines all over the place.  I think in most of mainland Asia it's the same story.  Good luck digitizing that.

Thu, 06/28/2012 - 01:06 | 2567429 merizobeach
merizobeach's picture

There's no doubt that cash is a greater enabler of freedom than digital currency.  Now, if only there was a way to preserve the buying power of the cash..  Oh, right.

Thu, 06/28/2012 - 03:35 | 2567522 Skateboarder
Skateboarder's picture

I can't wait for gold to be valuable like in the spaghetti westerns. We gonna have some saloons and shootins boys.

Wed, 06/27/2012 - 17:23 | 2566476 CrashisOptimistic
CrashisOptimistic's picture

No one is going to confiscate anyone's coins.

There's a far more effective way to do this.

Simply tax gold transactions.  Tax them big.  Trading will come to a halt and so will published prices.

And that will be that.

Wed, 06/27/2012 - 18:19 | 2566622 bdc63
bdc63's picture

if the government will slap windfall profit taxes on crude refiners, you damn well better believe they'll impose it on gold whenever they want to.

They will probably even be "generous" about it, and give you one last shot to sell it to the treasury before the tax goes into place ...

When their system starts to fall apart, they are going to get desperate.

Wed, 06/27/2012 - 19:06 | 2566756 CrashisOptimistic
CrashisOptimistic's picture

Pretty much exactly that.  Gold is meaningless today to "the system". 

If it ever threatened to become meaningful, a steep tax on transactions will erase it as a threat, and frankly such a thing would be inevitable.

You will have no published price to use, and you will never know if your counterparty is a tax official.  That will be that for gold.

Wed, 06/27/2012 - 20:30 | 2566942 TheFourthStooge-ing
TheFourthStooge-ing's picture

I'm just glad that they don't tax weed.

Wed, 06/27/2012 - 21:18 | 2567053 mick_richfield
mick_richfield's picture

Um... they've made it thirty times as expensive as it could possibly be without them.  Prohibition is the mother of all taxes, and it benefits some very bad people.

Thu, 06/28/2012 - 03:48 | 2567532 rsh00
rsh00's picture

Ha ha ha...good luck taxing transactions where the rupee is not involved at all. Gold *will* circulate as money and directly purchase goods and services (including bribery!). Fat chance that the Govt can do anything about it.

Wed, 06/27/2012 - 17:28 | 2566492 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Just remember where you buried them. The guy who buried these apparently forgot to tell anybody the location:

http://www.dailymail.co.uk/sciencetech/article-2164897/Iron-Age-coins-wo...

Wed, 06/27/2012 - 17:36 | 2566523 Son of Loki
Son of Loki's picture

"Hecho in India" T-shirts at Walmart are about to get alot cheaper for us.

Wed, 06/27/2012 - 18:18 | 2566625 lasvegaspersona
lasvegaspersona's picture

Bug

Richards is a smart guy but he is just guessing at future gold policy...like everyone else.

Wed, 06/27/2012 - 16:15 | 2566102 TomGa
TomGa's picture

That's sooooo 1700's. Get past the Enlightenment, will you.  It's a small banker-ruled world, after all.

/sarc off

Wed, 06/27/2012 - 15:46 | 2566103 slaughterer
slaughterer's picture

I've got my gold sewn inside my clothing.  Can't get me.  

Wed, 06/27/2012 - 15:52 | 2566127 kito
kito's picture

apparently you havent been updated on TSA..........

Wed, 06/27/2012 - 19:24 | 2566806 CaptainObvious
CaptainObvious's picture

TSA, heh heh.  The metal detectors are unplugged and you can sneak the gold through the naked body scanner with a pocket in the side seam of your shirt.  The TSA couldn't find gold if it was lit up with neon and shot off sparks.  The only thing the TSA is good at finding is iPads to steal.

Wed, 06/27/2012 - 16:40 | 2566313 stockoptimistic
stockoptimistic's picture

In an economy where gold loans are booming, through financiers you never heard of, something is wrong beneath the surface. I mentioned this a previous ZH India article too. I will love to see some article covering that aspect too - how come a society in love with buying gold is now one of the biggest markets for gold loans itself.

Wed, 06/27/2012 - 19:40 | 2566840 dexter bland
dexter bland's picture

The gold bugs will ignore that fact until its too late. Look out below if the subprime gold liquidations start.

13% of households now have some kind of loan against their gold. That's a lot for a country with an underdevloped banking system. Tens of millions of subsistance farmers now anxiously waiting for the monsoon rains to see if they can meet the next installment.

Blame the government if you wish but any way you look at it demand from the world's biggest gold market is falling off a cliff.

Wed, 06/27/2012 - 21:51 | 2567113 dexter bland
dexter bland's picture

My posts on this site are never popular. That's because they're true.

I am crying all the way to the bank.

 

Thu, 06/28/2012 - 00:45 | 2567399 FinkPloyd
FinkPloyd's picture

You have no clue ...

 

http://timesofindia.indiatimes.com/business/india-business/Rupee-Eurozone-crisis-hit-gold-demand-in-India/articleshow/14430762.cms

Buying from rural areas accounts for about 60 percent of gold imports, and farmers depend on monsoon rains for better yields, production and profits. 

Farmers often invest in gold due to a lack of banking facilities in rural areas.

i.e. farmer park their money in gold and take out loans against it for cash. It is the banking system in rural areas. Also ironically the govt regulated the value of a cash for gold loan to 60% of gold value.When gold becomes a teir 1 capital asset  a lots going to happen.


Wed, 06/27/2012 - 17:51 | 2566573 MarsInScorpio
MarsInScorpio's picture

The Ultimate Thief: the Government.

 

Reading about how the US used the stolen gold to finance its programs during the depression, one cannot help but feel complete revulsion.

 

However, it should be noted that if the blatant theft of one's property - scammed with a too-low compensation - doesn't bring about a revolt - what makes any of you think anything the government does now will result in a revolution?

 

The sheeple, like the poor, shall always be with us.

-30-

Wed, 06/27/2012 - 15:34 | 2566052 BigMike
BigMike's picture

India should simply back the Rupee with gold

Wed, 06/27/2012 - 15:37 | 2566066 Right-on Left-off
Right-on Left-off's picture

Yes!  Defect from the defectable!

Wed, 06/27/2012 - 15:38 | 2566072 LeBalance
LeBalance's picture

that's a joke, right?

fiat uber all youse!

Wed, 06/27/2012 - 15:58 | 2566151 Comay Mierda
Comay Mierda's picture

India should simply back the Rupee with gold

common sense has no place in politics.

Wed, 06/27/2012 - 16:46 | 2566337 138
138's picture

'India should simply back the Rupee with gold'

Just ask Muammar how that went...

http://www.youtube.com/watch?v=PLJu0X14vmg

 

Wed, 06/27/2012 - 17:02 | 2566410 DosZap
DosZap's picture

'India should simply back the Rupee with gold'

Just ask Muammar how that went...

Mummar wasn't NUCLEAR.

Wed, 06/27/2012 - 17:15 | 2566451 ozzzo
ozzzo's picture

I miss Carter. New Clear sounded so much nicer!

Wed, 06/27/2012 - 17:31 | 2566504 Hype Alert
Hype Alert's picture

If you want to be taken seriously, never have Cynthia McKinney or Hank Johnson in your newscast.

Wed, 06/27/2012 - 18:17 | 2566623 Rip van Wrinkle
Rip van Wrinkle's picture

What and find the American Fifth Army on the Pakistan border ready to invade and destroy your country? Just ban it, Much easier and less costly.

Thu, 06/28/2012 - 03:57 | 2567535 rsh00
rsh00's picture

India should simply back the Rupee with gold

Or maybe India should simply back the Rupee with Oil!

Ridiculous! Indian govt has neither gold nor oil. Both have to be imported and both are consumed by its citizens. Of the tiny amount of foreign exchange that RBI has (unjustified stash according to me) only about 4 or 5 % of it is in gold. And even that, most of it is not in RBI's possession...probably still held in custody by IMF (duh!?!)

Wed, 06/27/2012 - 15:34 | 2566053 buzzsaw99
buzzsaw99's picture

terrorist goldbugs. lulz

Wed, 06/27/2012 - 15:35 | 2566056 GOSPLAN HERO
GOSPLAN HERO's picture

Gold, silver, and copper jacketed lead!

Wed, 06/27/2012 - 15:36 | 2566060 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Why would anyone want gold anyway?  Ya can't eat it!

Wed, 06/27/2012 - 15:37 | 2566065 A Lunatic
A Lunatic's picture

Can't eat cows either..................

Wed, 06/27/2012 - 15:40 | 2566079 resurger
resurger's picture

lol

Wed, 06/27/2012 - 15:58 | 2566152 CloseToTheEdge
CloseToTheEdge's picture

fuckinA thats funny as hell

Wed, 06/27/2012 - 15:47 | 2566108 XitSam
XitSam's picture

Especially can't eat a golden cow.

Wed, 06/27/2012 - 15:55 | 2566141 kito
kito's picture

lets see how religious they remain when the shtf and they are out of rice and naan bread...................hamburgers looking good right about then...............

Wed, 06/27/2012 - 16:42 | 2566319 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Jewish conundrum:  "Pork for Free!"

Wed, 06/27/2012 - 22:56 | 2567176 akak
akak's picture

I wonder if the book "Green Eggs and Ham" is banned in Israel?

Wed, 06/27/2012 - 16:01 | 2566166 ddtuttle
ddtuttle's picture

Ah yes, I can't wait for my lunch: a salad of freshly minted $1 dollar bills, topped with a three coin coulee of niclkes dimes and quarters.  

WTF MORON came up with this "You can't eat gold" thing.  You can't eat any form of money. If you could eat it, they would call it FOOD not MONEY. 

Wed, 06/27/2012 - 16:05 | 2566184 King_of_simpletons
King_of_simpletons's picture

You can eat bananas in a banana republic. That's a form of currency there.

Wed, 06/27/2012 - 16:32 | 2566290 Bunga Bunga
Bunga Bunga's picture

Does can eat bananas in a banana republic count as democracy?

Wed, 06/27/2012 - 17:12 | 2566199 fuu
fuu's picture

Roubini

http://www.zerohedge.com/article/roubini-blasts-barbarous-relic-recommends-spam-over-gold

"Much like a
fiat currency, gold’s value is based largely on the irrational beliefs
of investors. In a depression or near depression, one would be better
off stockpiling canned food and other commodities like oil that are
useful for riding out Armageddon. You cannot eat gold or burn gold."

Wed, 06/27/2012 - 16:44 | 2566325 Panafrican Funk...
Panafrican Funktron Robot's picture

I tried to eat my stocks, but then I realized that I couldn't eat a line of computer code telling me I "own shares".  Same thing happened when I tried to eat my bonds.  My house is unfortunately also inedible, as are my cars, television, computer, furnishings, etc., ie., basically anything in my house or stored as random digits in an account somehwere that I could actually sell and thus realize it's cash value, is inedible.  

Wed, 06/27/2012 - 16:58 | 2566392 Firing Pin
Firing Pin's picture

Try bath salts??

Wed, 06/27/2012 - 17:18 | 2566462 mkkby
mkkby's picture

Love eaten that green colored linen... yum, yum.

Wed, 06/27/2012 - 15:36 | 2566062 SemperFord
SemperFord's picture

I wish that chart showed the dollar against gold so we can let this BS stop already!

Wed, 06/27/2012 - 15:41 | 2566071 LawsofPhysics
LawsofPhysics's picture

This is the other string of dominoes starting to fall - confiscation begins...

 

All physical assets of real value are a store of wealth when paper is worhtless.  What will be the next commodity/asset that the governments will try and outlaw in these "free" markets?  Silver? lead? oil? bread? beans? rice? rainwater?  More madness from paper-pushing fucks that think they can suspend gravity.

Wed, 06/27/2012 - 15:41 | 2566085 Cognitive Dissonance
Cognitive Dissonance's picture

No no no no.

I've been assured this will never happen for several reasons, none of which I wish to support.

Wed, 06/27/2012 - 15:41 | 2566086 Beam Me Up Scotty
Beam Me Up Scotty's picture

Confiscation my ass.  If I can't have it, no one will.  There won't be a boating accident.  I'll just dump it in the bottom of the deepest lake I can find.

Wed, 06/27/2012 - 17:06 | 2566424 Diet Coke and F...
Diet Coke and Floozies's picture

Throw it into a volcano, back to the earth with it!

Wed, 06/27/2012 - 18:41 | 2566696 snaphooker
snaphooker's picture

Cryptonomicon by Neil Stephenson. A great read.

Wed, 06/27/2012 - 15:45 | 2566101 AnAnonymous
AnAnonymous's picture

Storing wealth in bread, beans, rice? not for that long. The preservation of them consumes.

Wed, 06/27/2012 - 15:49 | 2566118 TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous stated as fact:

Storing wealth in bread, beans, rice? not for that long. The preservation of them consumes.

The AnAnonymousity of consuming resulting then in blobbing up of Chinese citizenism roadside excretions magnificently.

Wed, 06/27/2012 - 16:06 | 2566188 akak
akak's picture

 

Storing wealth in bread, beans, rice? not for that long. The preservation of them consumes.

Finding logic or sense in the gibberings of AnusAnonymous?  The selfdenialization and insanitation of him consumes the brain cells of the non-Chinese Citizenism citizen.

Wed, 06/27/2012 - 15:51 | 2566125 Random_Robert
Random_Robert's picture

"This is the other string of dominoes starting to fall - confiscation begins"

 

well of course...  you see, the world would be fair if everybody had the same credit rating, and the same checking account balance, and the same number of Gold ounces burried under the tree in the backyard...

 

And it's government's job to make sure this happens... /sarc

Wed, 06/27/2012 - 16:08 | 2566193 WillyGroper
WillyGroper's picture

Catching ur rainwater in NM is already forbidden.

Wed, 06/27/2012 - 16:16 | 2566225 LawsofPhysics
LawsofPhysics's picture

Use to live in Durango and had a place in Taos. Two words; NOT ENFORCED.

Thu, 06/28/2012 - 00:56 | 2567414 GlobalCtzn
GlobalCtzn's picture

Yet............................

Wed, 06/27/2012 - 18:51 | 2566728 geekgrrl
geekgrrl's picture

Nice. You've been on a tear lately, LOP. Great comment.

You said it recently, and I completely agree: possession is 9/10ths of the law, and here I'm talking physical possession, not bits in a computer who knows where.

Wed, 06/27/2012 - 15:40 | 2566077 Oldballplayer
Oldballplayer's picture

Barbarians I tell ya, barbarians.

 

Wed, 06/27/2012 - 15:40 | 2566082 sojourner_man
Wed, 06/27/2012 - 15:52 | 2566133 LostAtSea
LostAtSea's picture

That's a perculiar statement in the FDIC rules, paragraph 6:

"It is the opinion of the Secretary of the Treasury that Public Law 93-373 did not repeal or alter the so-called Gold Clause Resolution of 1933 (31 U.S.C. 463)."

And, they can change the rules anytime they wish.

Wed, 06/27/2012 - 16:26 | 2566266 GeezerGeek
GeezerGeek's picture

It appears to me that far too much Delerium has been consumed by most of the contributers here.

The reference to the Gold Clause Resolution in the above link includes this: "The Resolution prohibits any contractual provision which purports to give the obligee the option of requiring payment of the obligation in money or a specified amount of gold." This has nothing to do with owning gold.

More generally, the article only talked about banks not being able to sell gold coins in India. Are there coin shops there that sell bullion coins?

I advise everyone to calm down and take a deep breath or two. You can panic when you hear the 2 AM knock on your door, and by then it won't matter anyway.

 

Wed, 06/27/2012 - 16:42 | 2566322 ParkAveFlasher
ParkAveFlasher's picture

totally agree with geezergeek.  "wooo the sky is falling" lol. 

Back in a sec, someone's at the door.

Wed, 06/27/2012 - 15:40 | 2566083 zorba THE GREEK
zorba THE GREEK's picture

When $ starts leaving the U.S. stock and treasury markets in sizable amounts and heading for the proven

safety of PMs, PMs will become taboo or taxed heavily. That's why one must buy some lead also.

Wed, 06/27/2012 - 15:57 | 2566150 Cognitive Dissonance
Cognitive Dissonance's picture

"That's why one must buy some lead also."

To turn floaters into sinkers? Because I prefer cement overshoes. More effective and much much cheaper.

Just sayin'

Wed, 06/27/2012 - 16:21 | 2566246 Tortfeasor
Tortfeasor's picture

Have you priced cement lately?

Of course, I always keep a sack of QuickCrete in my go-bag. For emergencies.

Wed, 06/27/2012 - 16:28 | 2566274 pods
pods's picture

Or the Gulf way.  A nice, big crab pot.  

pods

Wed, 06/27/2012 - 15:41 | 2566087 reluctant_genius
reluctant_genius's picture

India...dont care for India..they as a people do not care either..no1 is interested..they only go by the prapoganda...they dnt have minds of their own...they need someone to tell them to choose whatever...they dnt believe in all this..they are a growing/booming story and shining..all they are interested is in saying this...all is well...

Wed, 06/27/2012 - 15:48 | 2566111 General Decline
General Decline's picture

Speaking of "only going by the propoganda" - Have you been to the United Stated Lately?

Wed, 06/27/2012 - 15:41 | 2566088 Its_the_economy...
Its_the_economy_stupid's picture

Those people truly understand the currency debasement theft. Soon we shall too.

Wed, 06/27/2012 - 15:42 | 2566092 SubjectivObject
SubjectivObject's picture

Their black market and literally porous border will save them.  Gold will continue to flow to India.

Wed, 06/27/2012 - 21:05 | 2567024 Signs of the end
Signs of the end's picture

India has a long history of gold and silver smuggling because of high duties imposed on imported PMs. There has been a Bollywood movie with this theme. So all this does is offer some enterprsing Bombay dons an opportunity to expand their business smuggling gold from Dubai.

http://apocalypse2010.blogspot.ca/

 

Wed, 06/27/2012 - 15:43 | 2566096 Freegold
Freegold's picture

Importing gold is recorded as a decifit in India. How stupid is that?

Wed, 06/27/2012 - 16:19 | 2566134 King_of_simpletons
King_of_simpletons's picture

If exports are less than imports then there is a deficit, no ?

Wed, 06/27/2012 - 17:02 | 2566408 Winston of Oceania
Winston of Oceania's picture

Yes but he said decifit, may have already started happy hour...

Wed, 06/27/2012 - 15:43 | 2566097 pods
pods's picture

A monopoly on legal force, for your benefit.

pods

Wed, 06/27/2012 - 15:46 | 2566106 AnAnonymous
AnAnonymous's picture

A monopoly on humanity, for human beings'benefit.

An American.

Wed, 06/27/2012 - 15:50 | 2566121 General Decline
General Decline's picture

What the fuck are you even talking about?

Wed, 06/27/2012 - 15:57 | 2566149 Dr. Engali
Dr. Engali's picture

He has no idea. Too much Tsingtao.

Wed, 06/27/2012 - 19:29 | 2566817 CaptainObvious
CaptainObvious's picture

I'd translate for ya but I left my Gibberish to English dictionary at the office.

Wed, 06/27/2012 - 15:52 | 2566128 pods
pods's picture

Is it that time already?

Good morning Confucius.

Get it right, it is US Citizenism, not A'mercan.

pods

 

Wed, 06/27/2012 - 15:57 | 2566148 TheFourthStooge-ing
TheFourthStooge-ing's picture

Confucius say, "US citizenism is nothing more than Chinese citizenism looking in mirror."

Wed, 06/27/2012 - 16:15 | 2566221 earleflorida
earleflorida's picture

now that's original

lmao :-))

Wed, 06/27/2012 - 16:54 | 2566253 akak
akak's picture

Confucious also say:

"Chinese Citizenism is nothing more than roadside Chinese Citizen squatting over mirror and looking down."

Wed, 06/27/2012 - 16:20 | 2566244 fuu
fuu's picture

Like a jaded, faded, faded, jaded, jaded mandarin.

Wed, 06/27/2012 - 16:12 | 2566109 tony wilson
tony wilson's picture

charlie munger mongoloid Vice-Chairman of Berkshire Hathaway civilized people don’t buy gold”.

  Warren Buffett has dismissed gold as a valueless asset saying that it has no inherent value. Buffett said that gold investors were pinning their hopes on future demand.

He warned that gold was a self-inflating bubble, created by investors desperate for a viable alternative to property and shares.

 

"The assault on gold today is an integral part of a planned move into a new economic order under the dominance of a single country. It was Nazi Germany in the 1940?s; it is the United States in the 1970?s. In brief, the war on gold that we observe today, and discuss below, is dollar imperialism, designed to maintain the U.S. dollar as the only world currency without competitors. The purpose is the formation of a world totalitarian state under Wall Street dominance." (The War on Gold, Antony C. Sutton, 1976, p. 63)

Wed, 06/27/2012 - 16:51 | 2566357 Matt
Matt's picture

Wait till he figures out that nothing has inherent value, his head'll explode.

I mean, dollars also have no inherent value besides the value people believe they have, right?

By extension, a factory or railroad has no inherent value since all it produces in the end is money, which has no inherent value.

Wed, 06/27/2012 - 15:48 | 2566114 zilverreiger
zilverreiger's picture

This is a clear buy signal to everybody! LONG GOLD

Wed, 06/27/2012 - 15:52 | 2566124 Piranhanoia
Piranhanoia's picture

Let me see if I have this straight.  India as a government wants to stop their citizens buying the only thing that will have any value after their (everyone's) currency collapse.   This would mean India could have a functioning economy very shortly after their banking sector's demise.   The government is against both the people's well being and national functionality or even prosperity.  Is the government run by squid?

Wed, 06/27/2012 - 15:56 | 2566146 LostAtSea
LostAtSea's picture

no one has ever accused politicians of being genuis.

Wed, 06/27/2012 - 16:30 | 2566280 SWCroaker
SWCroaker's picture

Just schizophrenic.  Long term recommendation embracing culture that buys gold gets the Indian gov some good Karma; turns out it doesn't actually mitigate the consequences of money printing.  Agenda for next month is dealing with the horsefly on nose; namely fiat currency swirling and in need of immediate help.

Wed, 06/27/2012 - 17:35 | 2566520 CrashisOptimistic
CrashisOptimistic's picture

You mean farmland?

Wed, 06/27/2012 - 19:59 | 2566875 Bringin It
Bringin It's picture

Bankers own politicians all over the world.

Wed, 06/27/2012 - 15:56 | 2566139 CloseToTheEdge
CloseToTheEdge's picture

.

Wed, 06/27/2012 - 15:56 | 2566143 SumSUN
SumSUN's picture

How long until they halt sales of platinum, palladium and silver?

Wed, 06/27/2012 - 16:54 | 2566371 Jack Sheet
Jack Sheet's picture

Until Indian brides wear catalytic converter parts as jewellery.

Wed, 06/27/2012 - 15:56 | 2566144 X86BSD
X86BSD's picture

Good luck with that! They just tried to levy a tax on it a month or so ago, now they are considering this? My wife is Indian, from Noida, and my understanding is its a tradition there for families to buy gold its part of their society. I imagine most of them don't even know why they buy gold but the point is they do. And the people have not realized what it's doing to the ponzi fraud. Law of unintended consequences! :) Good for them! Those people deserve a break and preserving their "wealth" with all their gold buying should be encouraged.

 

Wed, 06/27/2012 - 16:02 | 2566161 strannick
strannick's picture

The state is trying to educate the poor ignorant farmers away from owning dead inedible Jewish Vienniese assets like gold in favor of dynamic financial instruments held in banks and whose integrity is ensured by bankers. That graph seems to show the poor ignorant farmers should be doing the educating.

Wed, 06/27/2012 - 20:02 | 2566883 Bringin It
Bringin It's picture

Bankers own politicians all over the world.

 

Wed, 06/27/2012 - 16:03 | 2566177 Chupacabra-322
Chupacabra-322's picture

Hmmm, how about all those gifts of gold during the marriage season.  A lot of newly weds are going to have to settle for a good old toaster.  Made in China of course. 

Wed, 06/27/2012 - 16:05 | 2566185 monopoly
monopoly's picture

Ridiculous. Will not change a thing. 

Wed, 06/27/2012 - 16:42 | 2566317 Winston Churchill
Winston Churchill's picture

I can just hear those Dhows being fired up in the UAE right now.

Gold smuggling has been big business between the UAE and Mumbai

for centuries.It hasn't been needed for the last twenty years.

Who says Governments cannot create 'real' jobs ?

 

 

Wed, 06/27/2012 - 17:02 | 2566402 ParkAveFlasher
ParkAveFlasher's picture

On that note, the average western "observer" flipping through the finely fragranced glossy pages of Business Week has absolutely no concept of the accumulated wisdom of these older civilizations.  Turkish housewives school most would-be economist ass clowns in defining real wealth in concept and in practice.

A commenter mentions banana republics, how their currency is bananas, and I ssay TRUE, and I've seen it, and as a wise plantation owner (I know many quite personally) you fend off your mortality by letting poor people rob your trees of produce on the fringes of your property.  This is a gesture of nobility and a very practical one at that. 

Americans be warned on the nature of wealth, versus the nature of money.

Wed, 06/27/2012 - 18:49 | 2566186 CitizenPete
CitizenPete's picture

The collective empowers the State to make the rules. So the State, which was originally intended to serve and protect the rights of the people, indeed becomes the collector and enslaver on behalf of the collective and job one is continuity of itself at all costs.

When you get a Tax Bill from the State, it is due on receipt, it lawful, punishible by fines; and eventually liens, arrest and imprisonment or physical violence.   The state protects itself and it's existance with fear and force and demands payment at the end of a gun.  If you you want to appeal, there is a process to be executed at your cost, time, and frustration.  Come beg the state to not tax you for something you didn't owe to begin with.  If you don't beg and plead with us then you will pay more and more or we will come and take you to a cell.  We are the State and your collectivist neighbors salute us and our military, so obey us, live in fear of what we can do, and keep your mouth shut. Go to your local milirary statue or shrink and thank God those men died for the State so you can be raped for more and more tax. 

Better to be deaf, dumb and blind to the Inflation Tax, then to argue with it.  Gold (and other commodities) is/are a slap in face of state.  Gold and other physical assets that are horded, consumed, exhanged via loans, and are not taxed are an enemy to the state's pilfering and fleecing of the sheep. So slap the State in the face with a fist full of spinach and buy silver, gold, fuel and food.  

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