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Strategies & Market Trends : The Residential Real Estate Post-Crash Index-Moderated -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (83819)	1/15/2013 5:17:41 PM
From: Tommaso	1 Recommendation Respond to of 119360

Thanks; someone else posted that, too, just in the last hour or two. I have read James Rickard's "Currency Wars" twice (parts of it 3-4 times). Because everything leading up to his predictions of possible outcomes is so accurate and intelligent (not overstated at all), I take his reflections seriously. He suggested that the United States might seize all gold held inside the country that belong to other central banks. The news that Germany is repatriating much of its gold might possibly reflect a caution on that country's party that such a thing could happen. This could be the start of a "gold run" if other countries decide to repatriate theirs. If that happens, we will find out if there is anything to the conspiracy theories that the gold is not really there. Should that be the case, there could be a macro version of the specie-demand runs on banks that periodically wiped out small banks in earlier times. (When I was in college, the college chapel was still unfinished because many years earlier the money saved for it had been lost in a bank failure--in 1907, I think it was.) With Bernanke at the Fed and people like Krugman in good repute, it seems unlikely that the government will act to try to prevent gold leaving the United States. If Germany successfully moves its gold back to Frankfurt (or Berlin), we might see a move for Germany to dump the euro. Against a strong mark, the dollar could be severely trashed. Meanwhile, under a government with nationalistic inclinations, we see Japan doing the opposite, in what looks to be a currency war aimed at China. I realize that speculating, even intellectually, on exchange fluctuations is the most dangerous financial game of all. But everything looks good for gold, to me. Maybe too good. Maybe good enough to land some of us in jail as we try to cross from Montana into Canada on some back road with our car sagging in the rear with gold bullion. Note to FBI: Just Kidding!