Loading ...I have to agree with you. Earlier I posted weeklys showing
the dow breaking down .vs gold ( in only a couple of months
and the last time it took over a year) and nary a peep. I
think everyone is exhausted from the inflation-deflation
debate and watching their PM portfolios tick for tick all week.
Sounds like you have a handle on things.
Gotta go. Dr. Who is on in a few……..
Auric
A very wise person sent me this email and it wasn’t Ferret or any of the NZ -Oz contingent.
“It is my observation that people can not fully understand a scenario that they are not prepared for. Or if they understand it, they cannot accept it, because they are not prepared for it. You are able to accept the deflation side of the debate more than most, simply because you are more prepared than most. GR probably doesn’t have any fruit trees or sheep.”
GR I sure hope that you have a decent amount of physical.
LP.
Made some nickels today closing out recent buys and breaking even on a AUY daytrade. Got in too late and didn’t get a closing surge. I closed out to get into cash with trading funds and will reload nest week. It’s very quiet here today considering the great relative strength in gold. Well,hopefully, the Funds will start coming in and give us a couple of weeks rally in the stocks. If they do,maybe we’ll get the natural progression of money along down the chain of majorproducers-juniors-and finally, the penny stocks.
No! Somehow I missed it when it was posted (maybe
gon’ fishin’). Just had a quick look and I’m definetly
gonna read the hole thing through (and all the links).
Greenspan getting knighted by the Queen of England
though is going to be a hard act to rectify.
Thanks for the heads up.
Auric
have you read Road to Roota…linked under Editorials
best FGC
FGC, too bad Greenie went over to the dark side….
those fast money cnbc hosts must have been cringing in their skin, with a message like that….
A wicked mix of price inflation (mostly caused by massive foreign demand / worldwide population explosion — and a falling dollar/monetary debasement) — soon to be coupled with a serious badass recession which has only just begun. Are anyone’s wages going up as quickly as your costs are? (wage inflation is non-existant these days)…if it hasn’t yet, don’t count on it.
This is Irish on me daughters puter. I have $135.55 cents left on account here. I am going to the bank in the morning and taken out 125 of it. Need I say anything more. I feel like Charlton Heston at the end of the first Planet of the APE’s Movie ..on his knees crying…The bastards did it…they finally did it..pounding sand pounding sand… sound of surf…………….
….nobody will be able to afford it even though the price drops 90% so oil companies will probably be giving it away as demand crashes. Heck, maybe they’ll even pay me to buy some, eh?
a wake up call: http://www.cnbc.com/id/25640227 (see video)
- Then we’ll have a shortage. If we have a shortage, we’ll have a run on the [oil] bank so fast that your eyes will spin. This is basically when everyone tops off their tank. Then we would have the great american disaster because within a week we will run out of food.
Please keep that discount window open!
And DENY, DENY, DENY!
BILL: With all of the questions about the SOVENCY OF FREDDIE MAC AND FANNIE MAE, nobody is asking about the SOLVENCY OF THE FDIC. I asked Bob Chapman of the International Forecaster what would happen with MULTIPLE BANK FAILURES. His answer was–”In simple terms, they have enough money to bail out one Mid-Size Bank which means they either print money or everybody loses everything. Gold and Silver will be King.
Howie Katchen–Marina Del Rey, Ca.
Hi Bill
I have been thinking about the Congress considering extending the powers of the Federal Reserve. Our elected officials are totally clueless. As a reminder of just who it is that the Congress hopes to get the United States capital markets out of our current liquidity crisis the below quote will do nicely.
“Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation. Of course, the U.S. government is not going to print money and distribute it willy-nilly……..”
- Ben S. Bernanke, Federal Reserve Board Governor, November 21, 2002.
It should be noted that this quote was taken on November of 2002, at the exact beginning of the US real estate bubble. Dr. Bernanke was instrumental in providing hundreds of billions of dollars for mortgages targeted at people who prudent bankers of long ago would have known had no ability of servicing this debt. Yet in November of 2002, Dr. Ben did not consider this policy as “printing money and distributing it willy-nilly.” In 2002, Bernanke believed that printing money and distributing it via the mortgage markets, which in the course of business Fannie Mae and Freddie Mac would purchased, making these debts AAA suitable for conservative fiduciaries in insurance companies, pension and money funds world wide, was the thing to do. Bernanke’s “monetary expertise” has left behind it trail of dead and dying financial companies.
After all this, to tame the monetary demons that are now having their way with the international financial markets, the “policy makers” in the US Congress are considering expanding the power of the “monetary policy makers” in the Federal Reserve, led by this same Dr. Bernanke. I fear for my future!
I think the first two monetary demons that need to be taken on are Alan Greenspan and Ben Bernanke. A good public flogging of these two monetary demons would seem a good start in restoring confidence in the capital markets.
But that is not likely going to happen in 2008, but 2010? Go Gold!
Mark
Bill,
Might be an appropriate time to quote Greenspan from his 1966 article “Gold and Economic Freedom”:
QUOTE
Under a gold standard, the amount of credit that an economy can support is determined by the economy’s tangible assets, since every credit instrument is ultimately a claim on some tangible asset. But government bonds are not backed by tangible wealth, only by the government’s promise to pay out of future tax revenues, and cannot easily be absorbed by the financial markets. A large volume of new government bonds can be sold to the public only at progressively higher interest rates. Thus, government deficit spending under a gold standard is severely limited. The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. They have created paper reserves in the form of government bonds which-through a complex series of steps-the banks accept in place of tangible assets and treat as if they were an actual deposit, i.e., as the equivalent of what was formerly a deposit of gold. The holder of a government bond or of a bank deposit created by paper reserves believes that he has a valid claim on a real asset. But the fact is that there are now more claims outstanding than real assets. The law of supply and demand is not to be conned. As the supply of money (of claims) increases relative to the supply of tangible assets in the economy, prices must eventually rise. Thus the earnings saved by the productive members of the society lose value in terms of goods. When the economy’s books are finally balanced, one finds that this loss in value represents the goods purchased by the government for welfare or other purposes with the money proceeds of the government bonds financed by bank credit expansion.
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.
Alan Greenspan 1966
END