GOLD: Gold and Armageddon

Sunday, July 5, 2015

http://www.bloombergview.com/articles/2015-07-01/gold-shrugs-off-armageddon

Gold Shrugs Off Armageddon
13 JUL 1, 2015 9:00 AM EDT
By Barry Ritholtz

*** begin quote ***

This was the week Greece inched closest to chaos, as a bank holiday and a technical default caused markets around the world to erupt in turmoil. They recovered somewhat Tuesday, and futures looked stronger Wednesday morning, but on Monday, the NASDAQ Composite Index lost 2.4 percent, the Standard & Poor’s 500 Index lost 2.09 percent and the Dow Jones Industrial Average fell 1.95 percent. Volatility exploded, as the Chicago Board Options Exchange Volatility Index surged 35 percent, its biggest increase in two years, to 18.85.

*** and ***

Regardless, gold seems to going nowhere fast. Feel free to send me an e-mail explaining how wrong and stupid I am. I have an archive of all the messages warning me that gold would teach me a lesson in humility. “You’ll see” these e-mails smugly assure me, “your comeuppance will be here any day now.” My plan was to respond to each on its fifth-year anniversary with a chart showing the performance of gold versus all other asset classes and the details of how much money has been lost.

*** end quote ***

I’d never call anyone names.

And, I’m a gold bug. But most of my money is in the “casino”.

One has to think, that the Greeks stuffing euros under their mattress to avoid confiscation and the Swiss fund managers wanting to take physical possession of their Swiss francs to avoid negative interest rates, there is some merit in keeping small amounts of bullion coins at home as a hedge.

The “prepper” movement always says: “Store water, beans, bandaids, bullets, and bullion. Two is one; one is none.”

When you see the political corruption of Crony Capitalism, the large proportion of folks permanently on the dole, and the expansion of the welfare / warfare state, you must see that the balloon has to pop eventually.

Eventually, like the Little Red Hen in the children’s story, the makers will stop making and what do the takers take then?

I don’t know when the music will stop, but one best have a chair then.

And, I am POSITIVE that there is manipulation in the markets.

That being said, I’m content to average in to gold if they are selling it at a discount. As long as I take delivery. 

Ya ain’t gonna Corzine me. 

Argh!

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GOLD: Gold enabling secession?

Tuesday, June 16, 2015

https://www.lewrockwell.com/2015/06/tyler-durden/one-step-closer-to-secession-2/

Writing’s On The Wall: Texas Pulls $1 Billion In Gold From NY Fed, Makes It “Non-Confiscatable”
By Tyler Durden
Zero Hedge
June 15, 2015

*** begin quote ***

The lack of faith in central bank trustworthiness is spreading. First Germany, then Holland, and Austria, and now – as we noted was possible previously – Texas has enacted a Bill to repatriate $1 billion of gold from The NY Fed’s vaults to a newly established state gold bullion depository…”People have this image of Texas as big and powerful … so for a lot of people, this is exactly where they would want to go with their gold,” and the Bill includes a section to prevent forced seizure from the Federal Government.

 *** end quote ***

This is interesting to me.

I obviously follow the “secession movement”. There are active groups in many states and parts of states. 

I still think North Dakota is the most prepared because of the State Bank of North Dakota. They can “clear” checks and have the infrastructure in place to be a “central bank” for the State.

This “repatriation” of gold moves Teas into second place.

Many State could go on their own when the American Empire fractures. Just like everyone before them. The USSR being the latest.

Like the Soviet Union, the American Empire is going to go broke from corporate / personal welfare and too many foreign wars. It’s inevitable on their current track.

So what does an individual do?

After all opinions are like anal sphincters, everyone has one. It has be “actionable”.

  • Prepare for a “crash” by being a prepper (i.e., bullets, beans, band aids, bullion).
  • Get in shape. Use the poor man’s gym by just walking. (It’s sad that so many arm chair preppers are coach potatoes.)
  • Practice skills that you’ll need in the future (i.e., make fire; improvise solutions; eat basics).
  • Grow a garden. Real preppers create wild no-till forest gardens.
     

What are you doing? 

It’s going to be a rough time and many of “We, The Sheeple” aka “Clovers” aka “Mundanes” are not going to make it.

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GOLDBUG: The allure of gold in a fiat currency world

Friday, May 15, 2015

http://www.zerohedge.com/news/2015-05-09/russell-napier-explains-whats-store-gold-if-cash-outlawed

Russell Napier Explains What’s In Store For Gold If Cash Is Outlawed
Submitted by Tyler Durden on 05/09/2015 19:45 -0400

*** begin quote ***

However, in such a world, zero-yielding gold would be a high-yielding instrument. If the authorities ever sought to restrict access to banknotes, then gold would suddenly find itself enfranchised as money for the first time in many decades. So, given the scale of these competing forces, it is just too early to say what might happen to the gold price, but the allure of gold will grow the more it becomes clear that central bank fiat has failed and the age of government fiat is dawning.

The time is ever nearer when the price of gold will rise in an era of deflation. In due course, though no time soon, the full force of government fiat will engineer a reflation, albeit one replete with the misallocations of savings and capital so beloved by the bureaucrat. Then the PhD standard, in which the value of money is linked only to the words of the over-educated, will have ended. The gold price will rise even further, ‘And the words that are used for to get the ship confused will not be understood as they’re spoken, for the chains of the sea will have busted in the night’. And that’s ‘The hour when the ship comes in.’

*** end quote ***

Interesting change of the interest rate perception.

“Gold doesn’t earn interest.”

That was the common complaint. It just sits there. And, there is a negative opportunity cost.

Now for gold bugs like me, it’s insurance. 

The Gooferment can’t tax it when I die because it doesn’t exist.

The FED, the banking cartel’s, “man in the Gooferment”, can’t inflate it.

And, no one can track it.

With the FED’s zero interest rate policy — screw you senior citizens living on a pension and some savings —, there doesn’t seem to be quite the argument about not paying interest. Compare zero to, as Ric Edelman puts it, zero point nothing, doesn’t seem so bad now does it?

Also, when you think about Cyprus and their “bail in” solution that turns depositors into creditors of the bank, or worse shareholders with non-tradeable shares — think non-traded REITs, another of Ric Edelman’s “favorites” — gold doesn’t compare badly.

I go back to my two favorite … … examples.

  • In Roman times, two ounces of gold got a custom man’s outfit with cloak and sandals; today, those same two ounces translates to about 3,400 FRB “dollars”. Pretty equivalent.
     
  • And, in my yute, gas at the old Hess station was 30¢ a gallon with trading stamps, a glass, and the attendant pumped it — also cleaned the windshield; today those same three SILVER dimes could be sold for about 6 FRB “dollars”, which would buy more than TWO gallons of “better gas”, but no glass, stamps, or attendant (except in the Pepuls Republik of Nu Jerzee). Pretty equivalent. 

SO WHAT’S DIFFERENT?

The value of the currency!

Argh!

I’ll keep my nonexistent gold, silver, and nickels. Thank you very much.

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GOLD: Russia or China could put a stake in the heart of the USA easily

Monday, February 9, 2015

http://www.lewrockwell.com/2015/02/marcia-christoff-kurapovna/is-russia-planning-a-gold-based-currencye280a8/

Is Russia Planning a Gold-Based Currency?
By Marcia Christoff-Kurapovna
Mises.org
February 7, 2015

*** begin quote ***

Nor is that prospect too far-fetched. As Dutch author Willem Middelkoop has written in his 2014 book The Big Reset: War on Gold and the Financial Endgame,

A system reset is imminent. Even before 2020 the world’s financial system will need to find a different anchor. … In a desperate attempt to maintain this dollar system, the United States waged a secret war on gold since the 1960s. China and Russia have pierced through the American smokescreen around gold and the dollar and are no longer willing to continue lending to the United States. Both countries have been accumulating enormous amounts of gold, positioning themselves for the next phase of the global financial system.

*** end quote ***

One has to be very circumspect about gold and the manipulation there of.

The central banks, most notably the FED, have an incentive to keep the paper merry go round moving.

That being said, for the little people, they have to defend their own wealth.

Folks long the Swiss Franc were rewarded when that peg was removed.

Folks long the US Dollar have a long way to fall if the Russians and Chinese move to a gold standard.

While one can’t tell when the “music for the chairs” stops, it’s going to be rough in the US for the poor and middle class. Inflation will roar back and make the Carter 21% look like child’s play.

The only saving grace is that China is our “partner” in this bubble.

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GOLD: Switzerland portends Chinese action?

Tuesday, January 20, 2015

http://schiffgold.com/commentaries/will-china-pull-switzerland-us-dollar-video/

Will China Pull a “Switzerland” on the US Dollar? (Video)
JANUARY 17, 2015  BY MIKE FINGER   

*** begin quote ***

In his first Schiff Report video of the year, Peter Schiff explains the Swiss news that rattled the foreign exchange markets this week. Peter had predicted that Switzerland would eventually be forced to drop its euro peg, just as he’s been warning that countries like China will be forced to abandon their ties to a weakening US dollar. If investors don’t want to experience even worse losses than Europeans were hit with this week, they need to start preparing for a dollar crisis. Gold has performed very well this year, even while the US dollar and stock market moved higher, which Peter sees as an indicator that a new bull trend has started in precious metals.

*** end quote ***

Poor people in China subsidizes the American dollar.

Argh!

Clearly, this is going to mean more inflation.

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GOLDBUG: Have skills and things of value

Saturday, November 8, 2014

http://www.lewrockwell.com/2014/11/alasdair-macleod/chinas-gold-strategy/

China’s Gold Strategy
By Alasdair Macleod
GoldMoney.com
November 1, 2014

*** begin quote ***

Since 2002, the Chinese state has almost certainly acquired by these means a further 5,000 tonnes or more. Allowing the public to buy gold, as well as satisfying the public’s desire for owning it, also reduces the need for currency intervention to stop the renminbi rising. Therefore the Chinese state has probably accumulated between 20,000 and 30,000 tonnes since 1983, and has no need to acquire any more through market purchases given her own refineries are supplying over 500 tonnes per annum.

*** end quote ***

The “barbarous relic”?

Now if the Chinese are good “Communists”, then why stockpile gold?

Maybe because they take a 1,000 year view!

The Swiss will vote on Gold and their national bank. While the jury is still out until the end of the month, either way, you have to wonder why folks don’t trust paper money.

I sure don’t. I remember the grandparents talking about the Great Depression.

Be nice to have skills and things of value WHEN the SHTF!

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GOLD: Everyone’s dumber than dirt

Tuesday, July 1, 2014

http://www.lewrockwell.com/2014/06/gary-north/germany-asked-for-its-fed-stored-gold/

LewRockwell.com ANTI-STATE•ANTI-WAR•PRO-MARKET
In 2013, Germany Asked for Its Stored Gold. HaHaHaHaHa.
By Gary North
The Tea Party Economist
June 27, 2014

*** begin quote ***

In January 2013, the German central bank asked for half of its gold back. It was being stored by the Federal Reserve Bank of New York on behalf of the German government.

The Federal Reserve said: “Sure. In seven years, maybe.”

This week, the German government said: “We were only kidding. We don’t want our gold. We trust the American government.”

*** and ***

There has never been a full audit of the gold held by the Federal Reserve or at Fort Knox. “Trust us.”

If the voters in Germany go along with this, they will announce for all the world to hear: “We are dumber than dirt.”

*** end quote ***

What happened to “trust, but verify”?

Argh!

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