SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Stockman Scott's Political Debate Porch
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: mt_mike who wrote (4269)8/9/2002 3:32:40 PM
From: Jim Willie CB  Read Replies (1) of 89467
 
a fascinating "rebuttal" by GATA Howe to Barton Biggs

goldensextant.com

I would post it in full, but some great graphs
e.g. gold vs JPM shares
- gold price versus Dow index
- gold price versus Fed gold change in holdings
- gold price versus Treasury yield (Gibson's Paradox)

I just love the name "Gibson's Paradox" given to the phenomenon that gold price rises as longbond yields drop
the name was given by Lord Keynes
KEYNES DIDNT UNDERSTAND THAT EXCESSIVE PURCHASE OF PRINTED BONDS WITHIN AN UNBACKED CURRENCY SYSTEM PUTS THE MONETARY SYSTEM AND BOND MARKET IN A CORNER, AS RATES REACH A BOTTOM, FROM WHICH GOLD NOT ONLY RESPONDS BUT FLOURISHES

in recent years that excess in purchase of TBonds has been by none other than the Federal Reserve and Gold Cartel
they sold gold and bought bonds
the result was decline in gold, rise in dollar, with lower interest rates
IT IS CALLED THE GOLD CARRY TRADE, which may have ended last year

Biggs in late July jumped on the gold bandwagon, just in time to enjoy the correction
was he a tool?
was he a fool?
who knows? who cares?
I deeply desire the establishment to put 5-10% into gold holdings in a broad trend of diversification
even without the benefit of understanding gold <G>
/ jim
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News