Possible Run on the Gold Bank, Fed Insolvent, Currency Endgames in US Debt Crisis

[ken]

Re: Possible Run on the Gold Bank, Fed Insolvent, Currency Endgames in US Debt Crisis

Thanks for your input. It would also be great to hear from some senior members too. That is a great interview. It really makes clear what the major gold market moving forces are likely to be.

I still don't understand exactly what raw data would be best to look at, and where to access it, but I'm wondering if the futures markets, and something akin to "options interest" in US treasuries and gold, are the best places to look for technical information, as opposed to fundamental information, such as news articles, etc...:confused:

[thisandthat.nowandth]

Re: Possible Run on the Gold Bank, Fed Insolvent, Currency Endgames in US Debt Crisis

sorry to be a wet blanket, but ...

Having a self-sufficient farm with enough resouces to support and defend oneself in a community of like-minded folks....

Amish Paradise: Tonight we're gonna party like it's 1699

No thanks.

-joaquin-

[Raz]

Re: Possible Run on the Gold Bank, Fed Insolvent, Currency Endgames in US Debt Crisis

http://www.financialsense.com/fsn/team/christian.html

Jeffrey M. Christian
Commodities Research Analyst

FSN News Team Metals Expert

CPM Group was founded in 1986 by Jeffrey M. Christian, who was the head of commodities research at J. Aron & Company, which was acquired by Goldman Sachs & Co. Mr. Christian formed CPM group through a management buy-out of the commodities research group of Goldman, Sachs & Co. ...

Thanks, Global. I had no idea who he was.

But, how did he enter the discussion via Jesse and Jim Rickards? :confused:

[medved]

Re: Possible Run on the Gold Bank, Fed Insolvent, Currency Endgames in US Debt Crisis

There would be a giant black market.

Absolutely.

I hope, US will have significant part of its economy move into the black market, because most of the over-regulated gov't economy just will not work.

Back in the USSR the black market always played significant role in the economy. For many people it was the only (albeit pretty expensive) way to obtain some basic products and services (including medical care).

I am also sure, in the US the black market will function much better than in the USSR.

[charliebrown]

Re: Possible Run on the Gold Bank, Fed Insolvent, Currency Endgames in US Debt Crisis

ok, a good chess player has a contingency plan. I am not a farmer. Suppose you get wind of the comming move on PMs. Where do you go next? Any option should be liquid, hold its value, be practically storable legal, moral etc. I am a suburbanite.

[thisandthat.nowandth]

Re: Possible Run on the Gold Bank, Fed Insolvent, Currency Endgames in US Debt Crisis

Research provided by M. Friedman & A. Schwartz (A Monetary History of the United States, 1867-1960) tells us that Roosevelt's confiscation was in essence a failure; majority of the coinage in circulation was "retained illegally in private hands." Having been tied to the whipping-post for a generation or two, would the American taxpayer be more tolerant, more forthcoming today ?

While I'm loathe to consider that we're actually headed in this direction, I agree that excessive taxation (as if the current 28% capital gains tax isn't excessive) would probably render the birth of a vital black market in precious metals trade. In fact I'm told one already exists, in any number of 3rd rate motel rooms, in any number of cities, in any number of states, on any given weekend. Though I have no way to personally verify that information.

On another note, FOFOA speaks to the inevitable consequences of fractional gold marketeering....

FOFOA: The 21st-century bank run
Daily Dispatches
8:45p ET Thursday, April 15, 2010

Dear Friend of GATA and Gold (and Silver):

After some review of monetary history, the FOFOA (Friend of Friend of Another) blog tonight examines the recent statements made by CPM Group Managing Director Jeff Christian to the March 25 hearing of the U.S. Commodity Futures Trading Commission and to Jim Puplava's Financial Sense Newshour program on April 10, as well as the statements made this week to King World News by Omnis consulting firm Senior Managing Director Jim Rickards.

In their various comments Christian and Rickards both confirmed that the investment bank gold business is actually a fractional-reserve scheme that cannot produce even a large fraction of the gold claims it has sold. But FOFOA argues that Rickards' idea of returning the United States to a gold standard with convertibility and gold highly priced, around $5,500, would be just as likely to destroy the dollar and Wall Street as to save them.

The FOFOA commentary is headlined "The 21st-Century Bank Run" and you can find it here:

http://fofoa.blogspot.com/2010/04/21...-bank-run.html

Link

[ken]

Re: Possible Run on the Gold Bank, Fed Insolvent, Currency Endgames in US Debt Crisis

I imagine a few more years of record bonuses to the management of of government subsidized corporations is going to make the average tax payer feel a lot less happy about paying taxes...Just today, I was walking by Yoshi's in Jack London Square, looking in the window, and wondering if the few people in there weren't government workers. Somehow I felt like I foot their bill on the way back from the post office today, April 15th.... Maybe they get paid out of the parking ticket fund. Of course, you won't hear me complain too much if I get a government job...I'll be writing about how hard I will be working...I really can't complain at this point, in this situation, as I am in effect socializing my mother's loss, much as the banks have been socializing theirs. Unfortunately, the bankers get a bigger subsidy than my totally disabled parent does--the subsidies flow through her, to the doctors, pharmaceutical companies, etc--the whole health care industry, including the doctors, are on welfare...the caregiver pay is pretty paltry compared to banker pay, but I am really quite happy that I have the opportunity to do this for my mother, and not go bankrupt...though time is screaming by...:eek:

As far as the black market trade, I've been hearing that it sometimes overlaps with the tungsten trade...like roving tricksters selling tungsten for gold...I guess you'd have to carry an assay kit with you, or something to measure density???

[ken]

Re: Possible Run on the Gold Bank, Fed Insolvent, Currency Endgames in US Debt Crisis

I wonder if interest rates will topple the next peak in gold. If they do, I would assume that home prices will be capped, if not pummeled further into the ground about the time gold peaks. So maybe, it would be the best time to buy real estate. I wonder how adversely home prices were affected the last time interest rates peaked in 1980.

THAT would be an excellent time to get ARM. It would be ironic if they are phased out by then.

[doom&gloom]

Re: Jeffrey Christian: Gold & Silver should be financial instruments

Except for Goldman's Blankfein -- he sees God in the mirror :rolleyes:.

i've seen his God somewhere...

[globaleconomicollaps]

Re: Possible Run on the Gold Bank, Fed Insolvent, Currency Endgames in US Debt Crisis

Thanks, Global. I had no idea who he was.

But, how did he enter the discussion via Jesse and Jim Rickards? :confused:

I didn't listen to it, but he gave a speech on :
Jeffrey M Christian (Metals) Founder CPM Group Topic: Commodity Futures Trading Commission (CFTC) Testimony
the other day. I gather that Jesse didn't care for it.
-G