Author: gork

Thank You Jamie Dimon for Illegally Smashing the Gold Price Again   [Copy link] 中文

Rank: 6Rank: 6

Post time 2013-8-28 22:31:29 |Display all floors
B.S. Bernanke Presses the Panic Button

When you dump bonds, you soak up paper: Holdings of US Treasuries held at the Fed on behalf of official foreign institutions dropped a record $32.4bn to $2.93tn, eclipsing the prior mark of $24bn in August 2007. It was the third week of outflows in the past four. Private investors are also dumping fixed income. Bond funds tracked by EPFR Global, a data provider, saw total redemptions of $23.3bn in the week to June 26. US funds were the worst hit, with withdrawals totaling $10.6bn, but emerging market debt funds also saw record redemptions of $5.6bn."
- Mispricing risk

This (artificial) rise in the dollar has caused problems for some nations: The Indian rupee is off 13% in the same period. Brazil, which two years ago was grumbling about global "currency wars" and the difficulties presented by an appreciating real, is now confronting the opposite problem: the real has fallen 16% against the dollar in three months.
- How will Federal Reserve's exit from a grand monetary experiment play out?

. . . . leading to the IMF asking for co-ordination: International Monetary Fund Managing Director Christine Lagarde urged policy makers to work more closely together as they plan eventual exits from unconventional monetary policies, endorsing swap arrangements between central banks as an instrument to weather instability.
- Lagarde Calls for More Global Coordination as QE Exits Loom

Or rather, as they pretend to consider the possibility of planning a meeting to discuss an exit.

However, it's not clear whether she wants the likes of Brazil and India to stop dumping dollars or for China and Japan et al. to stop dumping US treasuries.

Other herding measures include: New Governor Haruhiko Kuroda committed the BOJ to open-ended asset buying and said the monetary base would nearly double to 270 trillion yen ($2.9 trillion) by the end of 2014,
- Inflation surrealism

Meanwhile, violating the BoE's single mandate for inflation targetting: Under this system, the MPC will not consider raising interest rates until the unemployment rate falls below 7%, which he predicted would take about three years and the creation of 750,000 jobs.
- Mark Carney says forward guidance should boost economy, state-run BBC

The US FED's dual-mandate for unemployment and stable prices is similar to the eurozone's Growth & Stability pact. "Stability", or "stable prices", is discarded and "growth" or "unemployment" are excuses to inflate the money supply. That it's nothing more than jaw-boning suggests the BoE's options are limited. After all, Sterling is in no bettter shape than the dollar: The Monetary Policy Committee voted 8-1 with Martin Weale dissenting, according to the minutes of its Aug. 1 meeting. While supporting guidance, Weale disagreed with a clause on concern it may undermine the BOE’s inflation-fighting credibility.
- Carney Fails to Unite BOE on Guidance as Weale Dissents

The UK treasury, however, seems to have no problems with kicking the can down the road and hyperinflating their way out of debt: Taking the first four months of the financial year together, the underlying picture was of a £36.8bn shortfall, up from £35.2bn over the same period in 2012-13.

That was an increase of 4.7% – a larger rise than the independent Office for Budget Responsibility (OBR) is expecting for the fiscal year as a whole

- UK government borrowing rises unexpectedly in July

The US is in the same situation and has found "imaginitive" ways to deal with the out of control debt: Instead, even as the Treasury was running up the $98-billion deficit it reported in the July Monthly Treasury Statement, every one of the 22 Daily Treasury Statements published for July said the Treasury had closed out the previous business day with exactly $16,699,396,000,000 in debt.
- Cooked Books: The Technical Bankruptcy of the Government Is Kicked Out Another Six Weeks

This double-dealing from the bottom of the deck would explain how the US has managed to reduce the annual deficit from $1.1trn last year to this years projected $759bn, with B.S. Bernanke not appearing to have the chutzpah to call it a "fiscal cliff" again.

The Cyprus bail-in was pre-announced before they changed their minds and limited it only to sums over 100,000, suggesting yet more herding: Cypriots will therefore change their preferences from money in the bank in favour of goods.
- Cyprus triggers preference for goods

This leaves the elephant in the room, the US dollar and B.S. Bernanke must be soiling his pants . . . . . . . again because instead of forward guidance, as such, you get the confusion of taper-on/taper-off, which is probably the soon to exit B.S. Bernanke in full headless chicken mode.

Of course, the reason the markets are all rising is due to Syria and NOT the dire state of the US economy. However, the spate of attacks on oil rich nations is another way of creating price-inflation when your money-printing options are limited. After labour, energy costs are the highest cost in most companies and such price-inflation is pervasive: EIA recently released estimates of unplanned outages reaching two-year record highs of almost 3 mb/d, a level unseen since at least 2011. Sanctions on Iran and the recent labor and payment problems in Libya have lifted OPEC disruptions to almost 2 mb/d, adding to 0.8 mb/d in unplanned outages in non-OPEC countries.  While Libyan output is trickling through, and improvements could be expected in Iraq with the startup of new fields (and maintenance on the export terminal pushed back from September); the return of supplies is likely to be staggered with a high possibility of a relapse in Libya, Nigeria, Iraq and South Sudan.
- Barclays Warns About The Oil Price "Spillover Effects" From Syria
Compounding is the magic ingredient.

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-8-30 16:03:41 |Display all floors
Taper Talk is Cheap
- hyperinflation now baked into the cake

So, to bolster the B.S. that B.S. Bernanke will taper, the US Treasury is SIMPLY LYING about the deficit. $98bn was borrowed in July, yet the deficit statistic remains exactly where it was and just under the debt ceiling; the US ganster government is operating illegally.

Even if B.S. Bernanke genuinely tapered, he would only have to untaper anyway and Zero Hedge claims QE Infini-3 and QE4-ever has already been running ahead of the $85bn they're supposed to be printing out of thin-air.

Jim Rogers points out that things will "end badly" if B.S. Bernanke stops monetising the debt and also if he continues with it. The F.T. reports that it's full steam ahead for hyperinflation: Fast forward to last night when we read, in that very bastion of very serious opinions, the Financial Times, the following sentence: "The world is doomed to an endless cycle of bubble, financial crisis and currency collapse." By the way, the last phrase can be written in a simpler way: hyperinflation.
- Financial Times: "World Is Doomed To An Endless Cycle Of Bubble, Financial Crisis And Currency Collapse"

So not the US (and UK) but the "World" even though Andrew Evans-Pilchard repeatedly points to the lack of money supply growth in the eurozone as a bad thing and where Germany now has a 0.1% annual deficit, three years ahead of schedule and with Spain, Italy and France also legislating for a 0.3% target.

The zionist Daily Telegraphic Nonsense, shills for the banksters, also says hyperinflation is inevitable: The more straightforward risk of inflation comes from the likelihood of a large further acceleration in broad money growth as the large boost QE has created in what economists call the “monetary base” (the narrower form of money that is just notes and coin and money banks hold at the Bank of England) eventually becomes multiplied up into much larger amounts of broad money as the economy recovers and the banking sector becomes less distressed.
- The Bank of England will lose control of inflation and 1980s mass unemployment will return

. . . but still tries to give a bum-steer: Anticipating that inflation, investors and companies will exit from cash and financial assets into real assets in a distinct spike in business investment.

That "large boost", according to the BoE itself, is a 40% increase every year in the monetary base and Japan has announced it will inflate at this rate until the end of 2014. The UK gangster government has even admitted its latest deficit is increasing during the so-called austerity. Clearly these two poodle states are trying to prevent a hyperinflationary run on the US dollar by offering their own currencies as a distraction.

During the Weimar hyperinflation, shares initially DID perform well, but the disruption of unstable prices eventually collapsed most firms. Only gold protected the sheeple.

B.S. Bernanke appears to have accepted the fact that he's screwed up BIG-TIME and cornered himself into either a hyperinflation or a SEVERE depression. Like the episode of the Simpsons, where Montgomery Burns had every disease known to man but where they were in balance, B.S. Bernanke hoped to inflate the debt away by first creating a debt-deflation which would then allow a high rate of inflation to be pursued. Now he seems to have realised he's left himself with no way out. Having served at the FED throughout the run-up to this farce under Greenspan, he now wants out of the kitchen. No reason is given, other than the claim that he has stayed longer than he wanted to.
Compounding is the magic ingredient.

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-8-30 22:33:04 |Display all floors
It's a waiting game

The herding action in the precious metals market is obvious.

First the CME repeatedly raised margin requirements on silver but those long silver persisted, posting more margin. Then, the CME did it four times in one week and they finally got the message and closed their long positions. Then the CME moved to gold and, of course, everyone got the message much more quickly. Then Jamie Dimon raided the accounts at MF Global. Then one fund manager appeared on the Schwing-Schwing Show, set her hair on fire and ran around the room screaming, "Get out of the futures market!". Then Jamie Dimon raided the accounts at PFG Best and they've been hammering the price of precious metals ever since.

However, this merely created the opportunity to buy and in March China imported a whopping 300 tonnes of gold.

Dimon panicked and told his clients not to dump gold but to short it. In April the banksters dumped paper gold in an operation which (like their illegal invasions of nations) could only have been illegal, either by collusion or by violating position limits.

Clearly, these gangsters want you out of gold and as Paul Craig Roberts says, this can only be because gold will protect you from the coming confiscation, most probably by hyperinflation. The  question is can you stay in gold long enough to make the big killing. Jim Rogers expects one more smashdown. But clearly, gold is the only safe place to be, especially as the US dollar is no longer dominant in international trade. International trade uses the dollar in less than a quarter of transactions, so even counting the eurozone as a single bloc (and hence discounting eurozone trade), it's still not dominant and China trades with Australia, Japan and soon New Zealand without the US dollar as well as having barter agreements with Venezuela, Russia, Iran and others.

As Pimco says, there are bubbles everywhere. So with the QE hyperinflationary debt monetisation 200% guaranteed to continue, the cash will have to flow to gold which is just about the only undervalued asset, even more so if any of those bubble markets crash as happened to sharesin 1976. This is why oil producing nations (on the margin) are being attacked, in order to try and feed the cash into general prices. Other precious metals, fine wines and artworks will also be bid up. There is no alternative, just as there was no alternative in 1976 when gold went from $100 to $850 by 1980. Only this time, there's zero possibility of the 21% overnight rate that Volcker introduced in 1979.

However, these are gangsters who have thieved, lied and genocided their way through their entire history. As Marc Faber says, they may still take you outside, shake you down and break both your legs by confiscating gold.

So your choices are guaranteed confiscation via hyperinflation or possible confiscation with the outlawing of gold by these banksters. The third option is you get rich from holding a few ounces of gold.
Compounding is the magic ingredient.

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-9-1 16:59:52 |Display all floors
This post was edited by gork at 2013-9-1 18:31

Something's Gotta Give
- disaster guaranteed

According to Lawrence Kotlikoff, the US needs $222trn, in the bank and earning almost 5% interest to pay all its liabilities for the next century, and that was a few years ago.  Instead of massive savings, the US has the exact opposite, the worst debts in all of history. As if these two factors weren't enough, it ran a record deficit of $459bn in 2008 before making the big leap to over $1trn for subsequent years. Strangely there was no claim that this jump in borrowing was a "fiscal cliff" from B.S. Bernanke despite it being much larger than the so-called sequester which is bogus anyhow. The taper is also bogus as the US will continue to borrow big-time and this debt must continue to be monetised until hyperinflation ensues (1,000% guaranteed and baked into the cake) or hyper-austerity must be imposed (think one bowl of gruel per day, no electricity, no car and living under a bridge for all Amerikans). The UK is in a similar, if not worse, position. This is a totally disastrous situation created over many decades where the banksters, goons & thugs simply lined their own pockets leaving the day of reckoning for their successors to deal with. That day of reckoning is coming due as, like Bernie Madoff's Ponzi scam, this one's, quite clearly, about to blow.

The bank-run on Northern Rock was daft. Deposits are guaranteed because they can always print more paper. It looks like a trial run, just as Japan was a trial-run for the US and UK's QE/ZIRP hyperinflation.

March saw a big influx of gold to China which cannot, by law, be re-exported. So Jamie Dimon called for a big short of gold which was duly (and illegally) delivered in April. But this just fired the starting pistol for the run on the dollar, which is probably why 66bn of US Treasuries were dumped, in order to soak up those dollars leading to a doubling of the 10y yield. Now the price of gold is being maintained at a steady level, but the gold rush continues.

In order to try and avoid the hyperinflation, another Greater Depression is being imposed to restrain a wage-price spiral. But with 70% of its gangster-run economy dependent on consuming, that means less tax to pay off the debt, which is why the likes of the zionist Daily Telegraphic Nonsense calls for the perpetual-motion machine of "growth" by inflationism and despite the debt accumulation being higher than the growth in nominal GDP and this being how the debts were created in the first place.

The options are:

i) hyperinflation,
ii) hyper-austerity depression,
iii) default and revolution,
iv) World War or pandemic to cull the sheeple,
v) God appears and provides all physical needs.

Banksters Bang the Close

Yes, more illegality from the amerikan banksters. Gold (but not silver) dipped at the end of Friday trading (30Aug) which clearly indicates illegal manipulation of the market; something most of us would get arrested for.

That silver was not affected suggests that the repeated raising of margin requirements by the CME on silver in 2011 was merely to send the message to those who were long gold. After investors were herded out of the silver market by repeatedly raising margins and then raising them FOUR TIMES IN ONE WEEK, the corrupt CME then moved onto gold and needed far less thuggery to get the same effect. This suggests silver bug, Max Kiester, is, indeed, trying to misdirect away from gold and towards bitcoin and silver. They claim to be "financial analysts" but all they do is take the rump of the news and instead of analysing it, they analise it. They're thespians, or as Amerikans used to call them, "a pair of bums".


)   (

Max Kiester (bottom right) and Hasty Steerbutt (bottom left) EXPOSED!

The state-run BBC announces a gold-miners strike: The NUM represents about 64% of South Africa's 120,000 gold miners.
- South Africa gold miners call strike

This should cause a spike in the gold price. But it may also be the Great Satan trying to stop the flow of gold. That would be why the price of gold is smashed down even below the cost of production and why ETFS is now offering to swap ETF shares in exchange for gold coins in conjunction with the UK mint (and charging 4.5%). If the gold miners lose money, it's only paper and flooding the World with paper is their policy too. In other words, these gangsters have no intention of paying their debts and instead are doubling down. The default by the LBMA would suggest they don't want physical to flow east. The NY FED stores the gold reserves of other nations FREE OF CHARGE and when Iran overthrew the Shah, they had to take the US embassy hostage to get their gold back. Holding other nations' gold hostage at the NY FED is how the Great Satan enforces the IMF rule that members of this loan-sharking club not back their currency with gold.

They will, of course, fail anyway. Smashing the gold price just means more gold will flow east. Those are just the hard choices they create for themselves when they embark on an entire history of gangsterism. Why don't they raise the gold price? Policy is to impoverish the sheeple and they may have agreed with other nations to limit the collapse of the dollar. Meanwhile, the Wall St. banksters are, apparently, trying to get gold miners to sell forward their gold as a fake "hedge" on falling prices, even though the price is already below production costs for some.
Compounding is the magic ingredient.

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-9-3 21:02:02 |Display all floors
All the Balloons are Fully Inflated

. The chart shows that the house price-to-earnings ratio rose to 5.8 in April 2007 from 4.8 only four years earlier. By October 2012, the ratio had fallen to 4.39 but has risen since then to 4.62.

What goes up must come down again, given that equilibrium of around 3.65 or so looks sustainable in the long run. Bank managers historically don’t grant mortgages of more than four times earnings. This suggests house prices are currently as much as 25 per cent overvalued.

- House prices are booming again but the bust that’s bound to follow will cost us dear

This is the typical B.S., this time from professor of quackonomics, David "Danny" Blanchflower, who makes the claim that his daughter is over 250 years old and was the cause of the US War of Independence: I was in the beautiful city of Charleston, South Carolina where the first shot was fired in the War of Independence over the weekend for the wedding of my second daughter.

As Sir Arthur Conan Doyle wrote, if you eliminate the impossible (that a professor of quackonomics, awarded the power to vote on the UK's Money Printing Committee, can't read and write at an adult level) then whatever remains, however impossible, must be the truth (that his daughter is over 250 years old). Douglas Adams, however, was more cynical and in this instance correct, writing, "If you eliminate the improbable, then whatever remains, however impossible, must be the truth", though Conan-Doyle did point out that, given a ganster-supplied edukashun, a doctor of medicine might be so thick as to be unable to understand the "elementary". Blanchflower even uses the lame "Great Recession" propaganda; freakin' hilarious!

Whenever the UK propaganda rags mention the p/e ratio they never quote the value of the two together, or in this case neither.

However: The average home was valued at £170,514, it said.
- UK house prices rise at brisk pace, says Nationwide

And : Low pay is defined as two-thirds of gross hourly median pay, set at £7.44 an hour in 2012 (£13,620 compared with the median salary of £21,583).
- Why the UK's recovery lacks a feelgood factor

Though a median rather than average salary, there's little difference and it puts the p/e ratio at 7.9 and not Blanchflower's 4.62!!! Is it any wonder that there's been criticism of the UK's Help2Buy policy blowing a bubble? Blanchflower is also probably lying about interest rates rising rather than being kept low for decades to come as is happening in Japan (in its 2nd decade of ZIRP) and which will be used to defraud pensioners of any return on their savings.

But then as PIMCO correctly says, everything is in a bubble at the moment. Bonds are bid up to the lowest interest rates in history and shares offer similar returns thanks to the Reverse Yield Gap. Oil has risen from under $10 a barrel in 1999 to over $100 despite costing typically less than a dollar to pump it out of the ground and exacerbted by all the oil-rich nations the Great Satan is illegally attacking (Syria will be used as an excuse for $500 oil). Soft commodities have been bid up so that beef and dairy farmers have gone bankrupt; all pushing up consumer prices. All commodities are in a glut despite record prices artificially manipulated up: Production will exceed demand by 408,000 metric tons next year, the most since 2001, compared with 167,000 tons in 2013, the average of 15 analyst estimates compiled by Bloomberg shows.
- Copper Rally Reversing as Glut Expands to ’01 High: Commodities

The USDA bought 7,118 short tons of refined beet sugar for $3.6m, or 25.20 cents a pound, from Western Sugar Co-operative in Denver and sold it for $900,000, or 6 cents a pound, at a loss of $2.7m to Front Range Energy, an ethanol producer in Colorado.
- US struggles with sugar surplus

As for cash, the BoJ, Boe and FED are all hyperinflating their monetary bases by 40% per annum. When the commercial banks start lending (and they have to) the money supply will explode. With the deficit reduction by the US Treasury looking like creative accounting, the only reason the FED might taper is because there's nowhere else for the money to go except gold, especially if all those bubbles start to pop; that and/or the risk of a hyperinflationary run on the dollar. By an amazing co-incidence, gold peaked just as the SNB imposed its cap on the Franc in 6Sep11 and whilst the CME repeatedly raised margin requirements and just before Jamie Dimon raided the client accounts at MF Global and PFG Best. Despite nominally being a peg against the euro, the SNB with 1,290 tonnes of gold was buying up dollars and sterling rather than euros.
Compounding is the magic ingredient.

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-9-4 23:00:38 |Display all floors
Is Silver a Red Herring?

But silver faithfully followed gold lower. While gold fell 34.3 per cent from an October high to its low in late June, silver’s plunge was – true to its nickname as “the devil’s metal” – an even more precipitous 48.5 per cent.
. . .
Since the start of the year, ETFs – a popular, and supposedly long-term form of investment – sold 680 tonnes of gold, or a quarter of their holdings.

In contrast, silver ETFs have been net buyers, with holdings rising 6 per cent this year to hit a fresh record high in August.

- Retail investors drive silver rally

Immediately, this stinks of manipulation. Silver falls MORE than gold whilst there's buying rather than selling? As Jan Skoyles of the real-asset company says, the paper CRIMEX market largely drives the price. If there was no dumping of paper-silver, then why did the price fall along with gold? The higher volatility in silver suggests its market is far easier to manipulate and this would explain why the corrupt CME attacked silver first in 2011 when it repeatedly raised margin requirements and then did so four times in one week, whereupon its victims finally got the message, closed their long positions and the CME then moved on to gold.

The big run-up in silver prices during 2011 was when the likes of silver-bug, Max Kiester, were heavily promoting it for his "silver liberation army" who were subsequently liberated of their savings in the smashdown. It was also the Schwing-Schwing Show which featured a hedge fund manager who set her hair alight and ran round the room in circles, screaming, "Get out of the futures market! Get out of the futures market!" after Jamie Dimon raided the MF Global accounts (closing their long positions) and before he did the same to PFG Best. Dimon, more recently, recommended shorting of gold, whereupon it was shorted in a manner which could only be illegal. Recently JP Morgan claimed it would accept gold as collateral. Incidentally, on 6Sep11 when the gold price peaked, Switzerland announced it would peg to the euro in what seems to be misdirection as it bought GBP and USD. GATA pointed out that the swiss franc, as one of the more stable currencies, promising to devalue should have sent the gold price higher rather than lower as there was one less reliable store of value. Having already dumped THOUSANDS of tonnes of gold at the turn of the millenium, rather than the mere 400 tonnes the UK dumped at that time, Switzerland, with 1290 tonnes of gold still, may have been dumping gold rather than swiss francs.

Things to note are that:

the central banks hoard gold as money and not silver,
silver is not expensive enough to store larger sums,
VAT was removed from all gold in 1999 throughout Europe (probably for the new gold standard where gold is tens of thousands of dollars an ounce) but not silver,
India has not imposed restrictions on silver,
the Shyster of Omaha was "caught" buying up silver,
Sprott Asset Management peddles silver based on the historic ratio even though this was set in ancient Egypt based on the periodicity of the Sun and the Moon,
Ted Butler has also converted from being a gold-bug to a silver-bug with little justification, and
the ETFs with an annual charge of only 0.4% are clearly to divert from physical demand; the silver price being clearly unaffected by retail buying of paper-silver where the physical is infinitely re-hypothecated. Is silver an alternative diversion?

Come the revolution, will it be Kiester and Steerbutt who will be the first with their buttocks against the wall with the firing squad being Kiester's own silver liberation army?
Compounding is the magic ingredient.

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-9-5 05:25:07 |Display all floors
This post was edited by gork at 2013-9-5 22:48

The Mother of All Short-Squeezes in Gold?

The demand from Germany for 300 tonnes of gold back from the NY Fed that will take 7 years to deliver doesn't begin to make sense.

If the NY Fed didn't have the gold, then it would be daft to announce it by stating it would take 7 years to arrive as that would cause panic. Soon after it did a sham audit and cheerfully announced that some of the gold was even purer than previously thought so they had more stock. But the amount is so small that China imported that much in just a few weeks in March.

It could be that the gold price manipulators simply can't spare even that small an amount as they need every ounce to dump on the markets "should the price of gold start to rise" as Alan Greenspan said. After all, JP Morgan is desperately restocking what little gold it can find, possibly to control the gold price.

Alternatively, the 300 tonnes could be a "euphemism" for the entire 2,000 tonnes of Germany's gold held hostage by the Great Satan, in which case the NY FED is basically saying it will ship the entire annual mining production of gold from the land of the native American to Germany each year for the next seven years. This is similar to the dump of thousands of tonnes of gold by Switzerland at the turn of the millenium. The propaganda rags focused instead on the much smaller 400 tonnes dumped by the BoE.

An announcement of a demand for 2,000 tonnes would have disrupted the markets. It would explain why they made the announcement of 7 years of shipments as they'd probably be caught shipping gold to Germany year after year for no apparent reason if they shipped 300 tonnes in the first year. It would also explain why Jamie Dimon called for the gold price to be shorted and why the price now sits at a level where half the miners aren't even profitable and where some are being ordered by the banksters they've borrowed from to sell their gold forward as a bogus hedge. It would also explain reports of London shipping large volumes of gold too.

When Venezuela demanded her gold back, she got it. But that's because the amount was manageable. As with Germany's demand, the price of gold fell when, of course, it should have risen, suggesting the anglo/amerikan banksters didn't have the gold and had to illegally rig the price lower to buy cheap and defraud the shareholders of mining companies. That, in turn, would explain why the HUI gold index of mining shares is down a whopping 42.9% so far this year, whilst the S&P500 is up 14.5%. Hugo Chavez despised the dollar and was bartering oil before dying of cancer in what was probably another assassination by the Great Satan. Germany fought two World Wars to resist "jew confetti" and the euro is obviously a third, and so far successful, attempt, with China now trading with Australia, Japan and soon N.Z. in local currencies as well as many bartering agreements too.
What this means is:

1) the NY FED doesn't have Germany's 2,000 tonnes of gold,
2) Fort Knox is empty.

Talk of $2,500 gold to match the 1980 price is based on a flagrantly B.S. cpi measure. The correct valuation is compared to the monetary base which the 1980 $850 price matched based on 8,134 tonnes of gold supposedly held at Fort Knox (recent reports claim there's only 6,400 tonnes there). By the end of the year, the monetary base will be $4.05trn, so a price of $15,487 would be comparable. However, given there's probably no gold whatsoever at Fort Knox, it's anybody's guess.

So contrary to Max Kiester's "Buy silver; crash JP Morgan", buy gold; crash JP Morgan.
Compounding is the magic ingredient.

Use magic tools Report

You can't reply post until you log in Log in | register

Contact us:Tel: (86)010-84883548, Email:
Blog announcement:| We reserve the right, and you authorize us, to use content, including words, photos and videos, which you provide to our blog
platform, for non-profit purposes on China Daily media, comprising newspaper, website, iPad and other social media accounts.