Friday, December 21, 2012
James Turk discusses Indian Gold Ban and the Queen's visit to BoE
Weekend Chillout - Wishing Our Gold was Here
With this weeks' stunning announcement from the Reserve Bank of Australia that 99.9% of Australia's Gold Reserves are kept at the Bank of England (read story here) it makes me wish that the gold was not stored with our former colonial masters and was instead kept here in safe Australia.
In 2013 The Fed Will Conjure Enough Paper Money To Buy 11% Of All Existing Gold
From Zerohedge.com
Original source
When people throw around "trillions" (and in the case of Yen-denominated Japanese debt and/or total outstanding gross derivatives, quadrillions) with the facility that mere billions was being dispensed with as recently as 5 years ago, it is easy to lose sight of the big picture.
So what is the big picture? Well, recall the following quote from Warren Buffet's letter to investors:
"Today the world’s gold stock is about 170,000 metric tons. If all of this gold were melded together, it would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.) At $1,750 per ounce – gold’s price as I write this – its value would be $9.6 trillion....You can fondle the cube, but it will not respond."
Gold is now 7% lower, and even when netting incremental mining production in the interim since this letter was written, one can roughly say that the total value of all gold in the world is ~$9 trillion. In other words, in 2013 the Fed, alone, excluding all the other central banks, which as we pointed out earlier is vary naive, will conjure out of thin air enough 1s and 0s, equivalent to $1 trillion, or enough money to buy 11% of all the gold in existence in the world. Add all the other central banks, all of which are now engaged in "unlimited easing", and this number will likely rise to about 20% of total.
In 3 years of unlimited easing, which at this pace looks quite possible, after all all Chairmen have made it clear there will be no end to the global paper printing until 2015, enough electronic money will have been created to buy more than half of all god in existence.
In 5 years? All of it.
So, once again, which is the scarcer commodity?
Original source
When people throw around "trillions" (and in the case of Yen-denominated Japanese debt and/or total outstanding gross derivatives, quadrillions) with the facility that mere billions was being dispensed with as recently as 5 years ago, it is easy to lose sight of the big picture.
So what is the big picture? Well, recall the following quote from Warren Buffet's letter to investors:
"Today the world’s gold stock is about 170,000 metric tons. If all of this gold were melded together, it would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.) At $1,750 per ounce – gold’s price as I write this – its value would be $9.6 trillion....You can fondle the cube, but it will not respond."
Gold is now 7% lower, and even when netting incremental mining production in the interim since this letter was written, one can roughly say that the total value of all gold in the world is ~$9 trillion. In other words, in 2013 the Fed, alone, excluding all the other central banks, which as we pointed out earlier is vary naive, will conjure out of thin air enough 1s and 0s, equivalent to $1 trillion, or enough money to buy 11% of all the gold in existence in the world. Add all the other central banks, all of which are now engaged in "unlimited easing", and this number will likely rise to about 20% of total.
In 3 years of unlimited easing, which at this pace looks quite possible, after all all Chairmen have made it clear there will be no end to the global paper printing until 2015, enough electronic money will have been created to buy more than half of all god in existence.
In 5 years? All of it.
So, once again, which is the scarcer commodity?
Assange's Christmas address from Ecuador embassy in London
From RussiaToday
The man on the frontline of the information battle, Wikileaks editor Julian Assange, has given a Christmas address. He has delivered his speech from the balcony of the Ecuadorian embassy in London, where he's been ensconsed for six months, after being granted political asylum - READ MORE http://on.rt.com/ptfxo7
The man on the frontline of the information battle, Wikileaks editor Julian Assange, has given a Christmas address. He has delivered his speech from the balcony of the Ecuadorian embassy in London, where he's been ensconsed for six months, after being granted political asylum - READ MORE http://on.rt.com/ptfxo7
Gold and Silver Pre-Christmas Sale Doubles Down
Aren't the markets wonderful, here is me I have left my Christmas shopping to the last minute and as a reward for my procrastination the markets put on a door buster sale just for me. Happy Happy Joy Joy.
In New York trade overnight gold was sold down $20 and silver an massive $1.20 (I am old enough to remember when a 10c move in silver was huge) in a continuous rout from the start to end of the session.
No doubt the fecal cliff will be blamed, no manipulation here boys, nothing to see here, move on and keep trading.
In New York trade overnight gold was sold down $20 and silver an massive $1.20 (I am old enough to remember when a 10c move in silver was huge) in a continuous rout from the start to end of the session.
No doubt the fecal cliff will be blamed, no manipulation here boys, nothing to see here, move on and keep trading.
 |
| Charts from goldprice.org |
Kaiser Report - Battle of Wall Street
From RussiaToday
In this episode, Max Keiser and Stacy Herbert look at the shootout at the OK Bond Corral as sovereigns battle Wall Street -- which in turn battles state pension funds -- for the same piece of infinitely re-hypothecated garbage collateral. In the second half, Max Keiser talks to hedge fund manager and 'Planet Ponzi' author Mitch Feierstein about the bond market, central bank-induced deflation and the London property market.
In this episode, Max Keiser and Stacy Herbert look at the shootout at the OK Bond Corral as sovereigns battle Wall Street -- which in turn battles state pension funds -- for the same piece of infinitely re-hypothecated garbage collateral. In the second half, Max Keiser talks to hedge fund manager and 'Planet Ponzi' author Mitch Feierstein about the bond market, central bank-induced deflation and the London property market.
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