Tin Foil Hats, Economic Reality and the Total Perspective Vortex

Welcome to the Precious Metals Bug Forums

Welcome to the PMBug forums - a watering hole for folks interested in gold, silver, precious metals, sound money, investing, market and economic news, central bank monetary policies, politics and more.

Why not register an account and join the discussions? When you register an account and log in, you may enjoy additional benefits including no Google ads, market data/charts, access to trade/barter with the community and much more. Registering an account is free - you have nothing to lose!

I like the Sovereign Man a lot, but I think he isn't giving enough thought to the sheer quantity of dollars out in circulation and logged on accounts across the globe. china would have to do nothing but print money and dump it in to circulation to accomplish what has taken us since 1913 to do.

That said, it is correct to presume the immediate damage to the dollar "brand" if other nations drop the dollar and simply trade in yuan instead. That would indeed be disastrous. Perhaps I'm taking too simplistic a view from t eh cheap seats, but that's how I see it [at least until i am corrected].

I would actually appreciate it if someone [DDMB?] knows a better way to explain this.
 
Anything related to the dollar's role as a reserve currency (or trends leading to a future where that is no longer the case) fits in this thread.


Ancona - by itself, this news isn't game changing. It's just another keystone in the foundation China is building.
 
Dec. 1:
More: http://gulfnews.com/business/econom...nce-common-currency-by-end-december-1.1262037

Dec. 4:
More: http://gulfbusiness.com/2013/12/officials-deny-common-gulf-currency-launch/

???
 
I'm quite sure the ruling families are enthralled with how it concentrates power in the hands of a few.
 
...

Yes, PMBug, the concentration of power in Europe implies that the RICH families there are benefiting enormously. Yet, the countries of Greece, Spain and Italy (and I have seen what has happened to Italy over the past 15 years or so) are suffering...

I believe that we see much the same here in the USA. The very rich are getting richer, but the Middle Class is in peril, real peril. Even the "Upper Middle Class", what at least some of us are in is in peril.

***

At this point it is hard for me to see opportunities for "growth". There is industrial overcapacity and debt worldwide. Workforce participation is down here in the US, while Europe has very high unemployment especially among the young (and, more ominously, among young immigrants).

Oil & gas production will be key here, yes, the Bakken and Eagle Ford Shales have boosted US oil production, but how long will that last (I don't know)? If energy starts getting VERY expensive, then that will be "all she wrote"... There appears to be no increased demand for cars or even bearings in the world. No increased demand, yet inflation. Hmm. Maybe the DECREASE in credit explains our plight, maybe the opposite of "stagflation" (our collapsing debt fighting inflating money supply)...

Gold miners have been hit hard by inflation (in input prices), also, lower grades, I do not see those burdens on the miners abating, so I am sticking with the metals. Gold not miners. FOFOA has beaten the drum on that since I first ran into him in 2009. FOFOA has a new piece up, and it is excellent, he nicely summarizes his perspective, very approachable article, but, uh, kind of long (smile,,,,):

fofoa.blogspot.com
 
...

A quick follow-up on Europe.

An Italian lady is in town visiting her daughter's family for the next 5 weeks or so, my wife has become good friends with her (my wife has studied Italian on and off for 15 years, she LOVES languages, especially Italian). "Rosarita" (14th of 14 children!) was over this evening visiting us.

I asked her what is going on in Italy, as I have not read much about Italy, even at Zero Hedge. She said that things really are terrible there (she is at least kind-of wealthy). And getting worse...

And that the Chinese are now moving in and buying properties in Tuscany, vineyards, "trophy properties", etc. And the Italians are not real happy about that...
 
The bail-in will wipe out what remains of Middle Americas wealth. Obama will have what he was wishing for; a population completely and irretrievable dependent upon the state.

Thanks Obama!
 
On a brighter note, unintended consequences can usually be relied upon .....

We might even do better if we do not have to rely on state money
 
If we got rid of all subsidies, corporate as well as private;

Got completely out of every country on earth except our own;

Re-instated tariffs on all imports equal to the difference in price between the imported product and an identical product produced domestically;

Repealed Dodd-Frank and re-instated Glass Steagall;

Eliminated all public unions, federal government unions, municipal worker unions, teacher unions and all defined benefit plans that are forced down the throats of citizen taxpayers and are no longer viable;

And,

Eliminated all divisions and departments of Homeland Security except the coast Guard;

Eliminated the NSA, CIA and EPA

Then and only then, would we be able to return to some semblance of sanity and security, both physical and financial.

When I become Emperor, I will do just that.
 

http://www.theguardian.com/business/2014/jan/10/china-surpasses-us-world-largest-trading-nation
 

http://www.swissinfo.ch/eng/business/Swiss_inch_towards_renminbi_hub_dream.html?cid=37639498
 
Recall this from a short while back:
Now this:
http://www.mineweb.com/mineweb/content/en/mineweb-africa?oid=226026&sn=Detail
 
Relating to the recent reports on the amount of Gold that China imported in 2013:
http://www.ingoldwetrust.ch/open-letter-to-cpm-group

Consider this too...
http://srsroccoreport.com/is-the-u-s-running-out-of-gold-scrap/is-the-u-s-running-out-of-gold-scrap/

So, gold spot gets smashed and people stop selling their gold jewelry to cash4gold (et. al.). Scrap gold "production"/exports tumble.

Physical gold withdrawals from the SGE are indicative of real gold being imported by China and the number of tons for 2013 is close to the total new global production.

When you consider the gold being coined by national mints (USA, Canada, Australia, UK, etc.) and minted into bars by private mints, it would seem likely that global production isn't covering demand right now. Gives credence to the reports that GLD and COMEX gold is going east.

That's got to be putting pressure on the central banks that are trying to give Germany "it's" gold back, if they indeed don't have unencumbered gold to deliver.
 

http://www.theepochtimes.com/n3/514449-james-rickards-china-planning-to-displace-dollar/2/
 
The Ukrainian situation is undoubtedly evoking some saber rattling, but this is a seed no one wants to pour miracle grow on:
More: http://voiceofrussia.com/news/2014_03_04/268000581/

H/t - http://www.jsmineset.com/2014/03/17...-currencies-over-us-sanctions-threat-glazyev/
 
I'm with you Bug, but I have to wonder why they would want to piss of seven of Russia's most powerful ministers by freezing assets.
 
I believe that our idiots believe that pissing off some of the Russian oligarchs might make them think twice about their support for Putin's adventures. Next time. Most of them, however, were warned up front and pulled their assets from places the US could reach in the previous week, just like in Cyprus.
 
Well DC, I'm thinking primarily about our allies, which rely extraordinarily heavily on exports from Gazprom for their people and their respective economies. Germany I believe, gets around a third of their gas or more from pipes crossing Ukraine/Crimea. It would be a shame if Putin turned the nozzles off for a week or two.

That said, exactly who gives a flying fuck if Crimea is allied with Russia rather than subjugate themselves to the EU so they can undergo the usual asset stripping once they join? Oh that's right, the leftists in charge over in Brussels.
 
I'm with you Bug, but I have to wonder why they would want to piss of seven of Russia's most powerful ministers by freezing assets.

They do NOT have a single solitary clue what they are doing. NO ONE in this administration EVER considers the REACTIONS to their ACTIONS. It is as if no one ever taught them that

For EVERY action there is and EQUAL and OPPOSITE reaction.

For proof, just look at BummerCare.

In other words, the LAWS of physics, the LAWS of economics, etc, be damned in their eyes since they think they are gods and are ABOVE any and all laws. What goes around comes around. They will get theirs eventually. In the meantime we all suffer.
 
The biggest problem IMO is that barry keeps making us weaker and more vulnerable by flapping his lips and trying to talk tough. Everyone knows no military action will be taken when they annex Crimea. Now that Putin sees that the "harsh" penalties that he's being hit with are wrist slaps that he's been given enough forewarning to get his wrist out of the way, he won't have any 2nd thoughts about taking over Ukraine. More than likely no military action will be taken then either. Then it will probably come down to Poland again. If he isn't deterred by any real and harsh sanctions for taking the Ukraine, then he probably will be bold enough to invade Poland. Then will the EU and or NATO finally stand up to the bully when by then pretty much the only option will be force? Once again Poland could end up being the straw that breaks the camels back to start a war. Luckily thanks to barry our armed forces are going to be at around the same strength they were back in the 1930's! Those that don't learn from history are doomed to repeat it.
 

More: http://www.zerohedge.com/news/2014-...n-prepares-announce-holy-grail-gas-deal-china
 
I say it's their gas, and as such they can sell it to which ever country they want to. It is now, and never was, our business.
 
They should be able to sell it to whoever they want, but so should we with our oil, that's the only problem I see (not that that's russia's fault) we always have people over here trying to make sure we are playing with at least one arm tied behind our back. That's why we need to keep drilling, digging, refining, and selling, selling, selling.
 
The issue isn't so much whether they have the right to sell it to whoever they wish, it's more how this sale agreement (potentially) affects the petrodollar.
 
OPEC has been doing a lot more for a lot longer to keep that price high, and nobody seems to care. Funny though if the U.S. wants to sell more oil or drill more or god forbid build another refinery and pipelines all hell breaks loose from the environmentalists to people screaming we're racists because we want the arabs or venezuelans to be "poor" from low oil prices. Yeah, it would be awful if some sheik had to give up the solid gold toilet on his lear jet.
 
Follow up to Rickards' comments quoted in post #257:
http://www.ingoldwetrust.ch/interview-jim-rickards-on-the-death-of-money
 
That's hilarious!

The SDR is nothing more than a basket full of unfulfilled promises made by various countries to "donate" or "contribute" money or gold to the IMF.

I guess one imaginary currency is just as valuable as the next, so why not?
 
Rickards didn't pull that out of his ass, by the way. It's been talked about in G8/G20, Davos, etc. for several years now.

I found a link to the following in the blog comments on the page referenced in the last post:
http://philosophyofmetrics.com/2014/03/22/the-world-holds-suicidal-america-hostage/#more-318
 
Interesting.......

I say we hold out, since the other countries involved need us a hell of a lot more than they think. although they do in fact have huge reserves of those treasuries, they are only as good as we say they are.

I would recommend caution by Russia, China or any other nation making such decisions [crashing our economy].
 

I see this as more of the financial WEAKNESS of the U.S. (due to living beyond our means) has created ... blah, blah, blah.

We could torpedo a centralized system by simply and suddenly stopping the printing presses. Yes, it would hurt, and hurt big time, but if we do nothing, the hurt will be even bigger and for a much longer duration. I say it is time to take our medicine, no matter how bad it tastes, rather than wait until others force us to take it and have nothing left when every thing finally settles out.
 

http://www.zerohedge.com/news/2014-04-08/40-central-banks-are-betting-will-be-next-reserve-currency
 

http://www.presstv.ir/detail/2014/04/18/359131/us-dollar-dying-as-kiev-tensions-rise/
 
Yeah, I think that could be a tipping point. Of course, neither our political class nor our media would ever mention it as a root cause issue.
 
Cookies are required to use this site. You must accept them to continue using the site. Learn more…