Friday, May 18, 2012

Weekend Chillout - Running

With bank runs in Greece and denials of bank runs in Spain, it reminds us that when our Governments tell us not to panic, it is because we really should.

Greek crisis sends Spanish debt soaring

May 18, 2012 by

Gold Tells The Truth

By John Aziz of Azizonomics

One of gold’s greatest powers is that it is a unit of account which cannot be fudged nearly as easily as the fiat all-you-can-print buffet.

Feel like your wages are buying less in real terms?

They are:

Feel like your dollar is buying less, even though the financial press claims that the dollar is strong?

It is buying less — but so are the other fiat currencies:

Feel like the housing bubble hit you hard?

It hit you harder in gold-denominated terms:

Feel like you have less disposable income?

You do:

Feel like U.S. treasuries are really falling in value, even though the popular press keep telling investors that treasuries are priced at all-time highs?

John Maynard Keynes, Charlie Munger and Warren Buffett all said or implied that gold was a barbarous relic. But what’s the barbarous relic? The precious metal that shows prices without a veneer of manipulation, or the paper currency that smudges the true state of supply and demand through money printing, thus misleading markets and society? Charlie Munger says gold is not for civilised people, but in reality gold may be the most civilised currency of all — because it allows civilised people to purchase insurance against the risk of civilisation failing.

A central bank can claim to have demonetised gold. It can claim gold is a barbarous relic (even while keeping thousands of tonnes on its books), or just an “instrument to hedge tail risk” (although Jamie Dimon surely disagrees — J.P. Morgan prefers to “hedge tail risk” by making huge speculatory prop bets on credit derivatives).

But gold is still gold. It’s still that same shining yellow metal that investors have for thousands of years held up as a unit of account and store of value, and a medium of exchange.

Central bankers can’t just abolish history. On the other hand, history may very well abolish the central bankers and their fiat currencies.

Jim Rickards and Rick Santelli discuss JP Morgan losses

Gold and Silver traders wise up

Charts from
It seems even Paper Gold and Silver traders can come to their senses occasionally and realise a good price point when they see one. Physical Gold and Silver buyers of course being more aware of the fundamentals than your typical day trader have been buying in volume all week. 

ABC Bullion has had one of it busiest weeks in the last few months as physical buyers have been loading up whilst the US$ Gold and Silver price have declined and before the Aussie$ falls even further against the US$.

Keiser Report: Debt-a-holic Zombies

May 17, 2012 by RussiaToday

In this episode, Max Keiser and co-host, Stacy Herbert, discuss the Devil's Breath of too much debt and JP Morgan's black and blue dementia. In the second half of the show Max talks to Mike Maloney about gold, silver and Hollywood accounting.

Follow Max Keiser on Twitter:

Capital Account with Banking Analyst Chris Whalen

May 17, 2012 by CapitalAccount