just cleared from tray - am enthusiastic about the political scene in switzerland referenced in one of the e-mails below
question: what happens as and when central banks start competing on the basis of printing money while accumulating gold?
From: J
Sent: Sat, July 9, 2011 6:54:17 AM
Subject: Re: Comments - Week of July 4 - bank run in progress
i do not trust gold entirely, else i would be 100% gold
i limit my trust to gold at between 16-25% usually
i hedge my gold trust with belief in platinum, the rich man's gold
i enhance my gold and platinum faiths with belief in silver, the poor man's gold
paper gold, script platinum, fibre silver - they are all for trading, just like sardine cans of sand
mines, etf of mines? they are just confiscation targets for the officialdom
the trading results, in the form of excess savings and surplus capital, must be mineralized and solidified, at least in the cases of gold and platinum
silver? that is for cutlery, egg cups, and such.
iow, i trust the americans shall validate my trust in gold
i have faith in the chinese to underwrite my belief in platinum
and i hope silver makes it as well
for, at the onset of the sorry end-game, even used clothing would make it
re greece, i actually am unsure what all the fuss is all about, for the greece is doing fine, and the greeks shall be ok
i think the greeks are in better shape than the americans
because
- the greeks were smart, they never paid their taxes, and so they still have their money
- the greek govt is inconsequential especially once starved of tithe more completely
- successive greek govt would likely fold whenever push comes to shove
- as and when events get truly dire, the turkish army would likely march in to save the greek electorates from their 'for the people by the people', and this eventuality would keep the greek officialdom more proper than not towards own people
otoh,
- the americans paid their taxes, and those 'otherwise' capital are long gone
- the usa officialdom is consequential. as and when they want to fondle, they do. as and when they want to crush, they do.
- usa officialdom do not fold. it is self perpetuating and never ending. same bunch of folks sporting two names. the situation is just about hopeless given the systemic setup of the fraud, uniting a printing press with the illusion of 'for the people by the people'
- given the non-melted nature of the melting pot fiction, the true danger to america is well within and not external and cannot be stopped by mere heavy patting at the airport
all the ingredients are already in the pot that has been on slow boil by sinister new york fiat money inflation, raw madison avenue spin, rudimentary ivy league training, and cesspool of washington guidance.
so prepared, not exactly ready for crisis just as the babyboomers aim for the golden years stage left.
do not see the math.
greece, as i mentioned, is just fine.
recommendation: getgold, stacksilver, pileplatinum, pocketpalladium
cheers, j
From: A
Sent: Sat, July 9, 2011 4:30:23 AM
Subject: RE: Comments - Week of July 4 - bank run in progress
"If you don't trust gold, do you trust the logic of taking a pine tree, worth $4,000-$5,000, cutting it up, turning it into pulp, putting some ink on it and then calling it one billion dollars?"
Kenneth J Gerbino
I think J may have expressed similar sentiments before…
From: S
Sent: 08 July 2011 20:51
Subject: Re: Comments - Week of July 4 - bank run in progress
The GDX approacheth a moment of truth -- stockcharts.com
Ditto the GDXJ -- stockcharts.com
See also the gold weekly (intraday GLD shown as a proxy) which appears to still be technically pulling back -- stockcharts.com
GLD daily may or may not keep running, very hard to tell from this -- stockcharts.com
This is just a gut feeling on my part, but short term I think we're bumping up against the top end of the trading range here for the metal and the gold stocks
In a nutshell, I don't care for the non-confirmation of the gold equities, although I am acutely aware that one day's action does not a complete market analysis make
Having said that, if prices were to punch through to the upside we are probably going to turn up BIG time
On Fri, Jul 8, 2011 at 12:18 PM, C wrote:
marketwatch.com
July 8, 2011, 4:12 a.m. EDT
Swiss Parliament to discuss gold franc
Right-wing party seeks way back to gold standard
By Agnese Smith
Reuters
ZURICH (MarketWatch) - The Swiss Parliament is expected later this year to discuss the creation of a gold franc - a parallel currency to the official Swiss franc, with the fringe initiative likely triggering a broader debate about the role of the precious metal in the Alpine nation.
The initiative is part of "Healthy Currency," a campaign sponsored by politicians from the right-wing Swiss People's Party (SVP) - the country's biggest - that is seeking to capitalize on popular fears about global financial turmoil and inflation to reverse the government's current policy on gold.
"I can imagine that this will spark some sort of debate about gold and there may be some pressure to accept the parallel currency," said Dr. Gebhard Kirchgaessner, an economics professor at St. Gallen University. "But it won't have any real effect on the economy. It seems incredible to imagine that there are people out there willing to buy millions of these things."
Switzerland , which in 2000 became one of the last countries to decouple its currency from gold, is not the only place to contemplate a change in the precious metal's role amid controversy over government involvement in the economy. In March, Utah became the first state in the U.S. to legalize gold and silver coins as currency, while similar legislation was considered in Montana , Missouri , Colorado , Idaho and Indiana .
"I want Swiss people to have the freedom to choose a completely different currency," said Thomas Jacob, the man behind the gold franc concept. "Today's monetary system is all backed by debt - all backed by nothing - and I want people to realize this."
A good part of the enthusiasm for gold, which provokes strong emotion among many who invest in it, has to do with its price: the yellow metal has more than quadrupled during the last decade and now stands at more than $1,500 per ounce.
In the U.S. , legislation to allow a gold currency is largely symbolic - a protest against what many consider irresponsible spending by central governments to recharge economies. But according to Jacob, the gold franc has a more practical goal: giving small investors the opportunity to safeguard their investments against global uncertainty.
Modest investors face several hurdles to investing in the precious metal, said the 50 year-old Jacob, a former pilot and currently a sales coach at Zurich Financial Services Group. Collecting coins, bullion and gold certificates typically requires professional advice and even the smallest coin costs around 100 francs. One of the new gold francs, on the other hand, with a gold content of 0.1 grams, could be purchased for just 5 francs (at current prices).
While there is evidence that investing in gold is increasingly popular in Switzerland and other countries, the idea of establishing a gold franc is not foremost on the minds most ordinary Swiss, some of whom still find the subject of gold uncomfortable given the country's association with precious metals looted in World War II.
"I got rid of my coins a while ago," said Esther Heusser, a social worker in Jona , Switzerland . "I just didn't want to think about where they came from."
The real problem
Very few have even heard of the initiative. The rising Swiss franc, which has jumped 16 percent in two years against the euro and the dollar thanks to its safe haven status, is a much wider concern.
This "is the real problem and it is clear that neither the [Swiss National Bank] nor the government have anything really meaningful against it," St. Gallen's Kirchgaessner said. "We might have a real crisis in a couple of years."
Indeed, the strong franc has clipped corporate earnings of many exporters and has lead to some painful restructuring. Because of the ongoing global financial crisis, investors here and abroad are seeking a safe haven from economic uncertainty and inflation, which Switzerland 's low debt and firm economic footing provides. High gold reserves have also helped.
Jacob doesn't think the adoption of the gold franc would increase the value of the official currency. "In fact, it would take pressure off," he speculates.
Like the Swiss franc, gold has jumped for many of the same reasons, even though the Swiss National Bank and other central banks decided to dump the metal after two decades of underperformance against other financial instruments.
Strong demand from China has also helped push gold prices to records. Gold enthusiasts - so-called gold bugs - many of whom see stock markets as no better than gambling casinos and central banks as money printing machines - are rejoicing.
"Buying gold has been the best method for shorting the government," wrote Shayne McGuire late last year. McGuire, who has predicted that gold could soar to $10,000 an ounce, manages the $500 million GBO Gold Fund for Teacher Retirement System of Texas .
"I strongly believe that present financial conditions are about to transform the investment strategies of the world's largest investment funds in a way that will cause gold to surge substantially higher," McGuire wrote in an essay on the metal.
Large reserves
Switzerland still holds a large amount of the precious metal. The alpine country of 7.7 million residents holds 1,040 tons worth about $46 billion, almost as much as China , according to World Gold Council figures. It ranks seventh in its league table, with the US at the top.
In terms of gold reserves per person, it stands at just over $6,000, number one by nearly twice the amount of the next largest hoarder, Lebanon (over $3,000) and nearly six times as much as the US ($1,000), according to The Economist newspaper.
But this is not enough according to the "Healthy Currency" movement.
The SVP, which also wants to limit the autonomy of the Swiss National Bank after it posted big losses trying to tamp down the franc, plans to start collecting signatures for a ballot initiative in mid August, according to Jacob. The party is demanding that the central bank stop any further bank sales, repatriate Swiss gold reserves held abroad, and not allow the proportion of its gold to fall below 20% of its total assets. The campaign is also calling for the country's withdrawal from the IMF.
Jacob, who claims to have no affiliation with the SVP other than the currency initiative, admits that the success of his gold franc campaign is linked to the amount of publicity the Healthy Currency initiative manages to muster at the end of the summer. "It would definitely put the parallel currency on the agenda," he said.
And it will be no easy feat. The passage of the legislation will require an amendment to the Swiss constitution and the country is not particularly well known for a reckless pace of change. If rejected, a popular vote - where ordinary Swiss people have their say - is planned, probably in mid 2012, according to Jacob.
If approved, licensed financial institutions can then issue the coins, using their official logo on one side with the other, an easily recognizable Swiss gold franc emblem, Jacob said. The initiative foresees strict regulation by the government to ensure gold content and authenticity.
Even if popularized, the gold coins are unlikely to be in use for commercial reasons as the volatility of gold prices make this unpractical.
Sent from my iPhone
On Jul 8, 2011, at 11:10 PM, B wrote:
Jim Dines, this AM:
<snip>
When asked about London Whistleblower Maguire’s comments about the tremendous amount of silver that will be taken out of the physical silver market to start the Pan Asia Exchange Dines replied, “Where will it (the silver) come from? There are very few independent silver mines in the world, most of it is byproduct from lead and zinc, sometimes gold.
What’s going to happen to the price of silver is it’s going to go up, way up. All you had to do was close your eyes and hold it and shut your panicked membrane to all of the fools who say it’s too high. I tell you now that the price of silver is going far higher than anybody realizes. it’s going far higher than $50, it’s going to test the $100 an ounce level, and beyond that somewhere between $300 and $500 an ounce. Believe the unbelievable or not.”
kingworldnews.com
Sent from my iPad
On Jul 8, 2011, at 7:12 AM, J wrote:
Perturbation in the force.
Am excited.
Feels right.
The force is strong. |
