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Gold, interest rates and Marxism
Very quiet morning.
Keynes advocated "euthanasia of the rentier". The State always over-prints the currency. Socialism always breaks the bank because it spends "resources" on things that don't have any return. Capitalism recognises no value in improving the quality of life or bettering society. There must be a middle ground but, we aren't there yet. The Central Banks are printing up tons of money to pay for everything that the credit markets refuse to finance. The private credit markets only finance things that have a return. The CBs want private capital to stay in the markets to stabilize international trade.
There is always currency inflation and price inflation. Historically, private capital fled to gold when interest rates were too low to compensate for the loss of purchasing power lost to price inflation. This brought interest rates up to pry loose the capital. The State had to get gold out of the picture if it wanted to run the presses in hyperdrive.
The closing of the gold window in 1971 allowed the State to catapult the price of everything else. Here are a dozen graphs that show the huge divergence of prices after the '71 date;
The French Curve and gold; http://www.321gold.com/editorials/rosen/rosen101916.pdf
The West tried very hard to get gold out of the picture. The East did the opposite. Eventually, the West will have to acquiesce to the demands of our trading partners. http://www.24hgold.com/english/news-...n+Greyerz&mk=1
Gold has been the most stable store of value for thousands of years. ALL governments eventually default on their bonds. BUT, GOV is now claiming the opposite.
" Known as Basel III, the banking rules set to come into force by 2018, and starting over coming months, will force large institutions to value each asset they hold at a different rate based on what the Basel Committee sees as its level of risk when measuring the stability of their balance sheets,
Deeply liquid, instantly priced and potentially a 'safe haven' asset is good, of course. Unsurprisingly, and very conveniently for debt-laden governments, sovereign bonds fit the bill precisely. Yet physical gold is ranked with the very worst junk an investor can own, and can be accounted at only 15 cents in the Dollar. "
The "paper gold" dumps are no longer affecting the PM markets to any great degree. A few months ago, the COMEX was on the brink of default for over 50 tons of gold. There was an emergency shipment from Switzerland that matched ounce-for-ounce the shortcoming. It would appear that there isn't much gold left in the U.S.
Our "noble experiment" with Marxism is dependent on unlimited currency expansion. Our trading partners want gold
Very quiet morning.
Keynes advocated "euthanasia of the rentier". The State always over-prints the currency. Socialism always breaks the bank because it spends "resources" on things that don't have any return. Capitalism recognises no value in improving the quality of life or bettering society. There must be a middle ground but, we aren't there yet. The Central Banks are printing up tons of money to pay for everything that the credit markets refuse to finance. The private credit markets only finance things that have a return. The CBs want private capital to stay in the markets to stabilize international trade.
There is always currency inflation and price inflation. Historically, private capital fled to gold when interest rates were too low to compensate for the loss of purchasing power lost to price inflation. This brought interest rates up to pry loose the capital. The State had to get gold out of the picture if it wanted to run the presses in hyperdrive.
The closing of the gold window in 1971 allowed the State to catapult the price of everything else. Here are a dozen graphs that show the huge divergence of prices after the '71 date;
The French Curve and gold; http://www.321gold.com/editorials/rosen/rosen101916.pdf
The West tried very hard to get gold out of the picture. The East did the opposite. Eventually, the West will have to acquiesce to the demands of our trading partners. http://www.24hgold.com/english/news-...n+Greyerz&mk=1
Gold has been the most stable store of value for thousands of years. ALL governments eventually default on their bonds. BUT, GOV is now claiming the opposite.
" Known as Basel III, the banking rules set to come into force by 2018, and starting over coming months, will force large institutions to value each asset they hold at a different rate based on what the Basel Committee sees as its level of risk when measuring the stability of their balance sheets,
Deeply liquid, instantly priced and potentially a 'safe haven' asset is good, of course. Unsurprisingly, and very conveniently for debt-laden governments, sovereign bonds fit the bill precisely. Yet physical gold is ranked with the very worst junk an investor can own, and can be accounted at only 15 cents in the Dollar. "
The "paper gold" dumps are no longer affecting the PM markets to any great degree. A few months ago, the COMEX was on the brink of default for over 50 tons of gold. There was an emergency shipment from Switzerland that matched ounce-for-ounce the shortcoming. It would appear that there isn't much gold left in the U.S.
Our "noble experiment" with Marxism is dependent on unlimited currency expansion. Our trading partners want gold
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