See also:
– MUST-SEE: The Implications Of A Failed Monetary System (Video)
– Chinese Gold Imports From Hong Kong Rise Nearly 13 Fold – PBOC Likely Buying Dip Again
Video streaming by Ustream
– US Editor Of The Economist: “Paper Dollar” And “Paper Euro” Will “Debase” In A “Big Way” (ZeroHedge, April 17, 2012):
“People Have Lost Faith In the 20th Century Religion Of Government Backed Fiat Money”
Matthew Bishop, the US Editor of The Economist, has been interviewed by the Wall Street Journal TV about gold and why “people have lost faith in the 20th century religion of government backed fiat money.”
He says that he has become an agnostic or an atheist with regard to his belief in government-backed money as he fears that governments are in a position whereby they are going to debase currencies such as the “paper dollar and “paper euro” “in a big way.” Gold becomes one of the “alternative religions” in that environment.
History shows that a deleveraging downturn takes a long time and can take 7 or 8 years. Inflationary pressures are building and will be seen in the second half of the cycle, according to Bishop.
Bishop says he would put some of his money into gold but is prohibited from this due to the investment policies of The Economist.
He advocates owning gold as a “portfolio of money” and diversification and advocates having 5% to 10% of one’s money in gold.
Bishop is reluctant to give price predictions but believes gold will be higher at the end of the year and higher in 5 years.
The Economist magazine has a strong Keynesian bias and has been one of the most anti-gold publications in the world with many simplistic, unbalanced and ill-informed articles.
There have been a few more nuanced and balanced articles pointing out gold’s safe haven qualities primarily by “Buttonwood” however most coverage of gold has been negative.
The publication has suggested on many occasions since 2008 that gold is a bubble. Clients of GoldCore have told us that they were prompted to sell their gold bullion as long ago as 2009 after reading such articles in The Economist.
Indeed, there has often been a suggestion that those who buy gold are irrational “gold bugs” who are anti-technology and anti-progress. Indeed, some who have bought gold have been framed as “doom and gloom” merchants who are hoping for a collapse of the financial and monetary world so that they can profit from their dramatically revalued gold.
The Economist’s US Editor’s conversion and growing belief in gold as money and a superior form of money is an important development and is another step towards gold moving from the fringe to the mainstream.
It is another step towards gold being accepted, respected and trusted as a safe haven asset and safe haven finite currency.
Last week, I read the FED claimed it invested $2.3 trillion in US treasuries between 2008-2020. Since I also just read the FED is carrying 68% of our debt now, I decided to do some digging. I follow the money, the rest of the endless information out there is useless. Nobody is buying our debt any longer, so we are printing money, giving it to banks at zero interest, they step into the markets and buy up treasuries. When you hear there was a retreat to the safety of the dollar, the translation is that the FED is behind some major buys to keep our debt current.
TARP makes up less than 4% of, money given banks by the FED. Since the days of Reagan, they no longer publish the amount of money they print or where it goes. They have been feeding the banks hundreds of trillions since the crash…..all the five major banks who now make up 53% of our GDP were broke, taxpayer money bailed them out to stop the run on the banks. When the crash happened, the 5 major banks were 43% of GDP, now they are bigger, and used as a tool to float the debt.
I managed to get inside of some of the funds at one of the 5 big banks to see what their funds actually hold. They have hundreds of trillions in treasuries, purchased with borrowed money, that they are listing as assets. That was just one bank. The majority of their investments were US treasuries, bank stocks, a few city pension funds and utilities……that is it.
Yesterday, one of the fed spokespeople admitted each bank received at least $16 trillion from the FED…that is all banks around the world, not just here. This is the biggest fraud ever perpetuated in modern history. All the money is borrowed, there is nothing behind it but ink. With true Enron Accounting, they list the debts as assets. The problem isn’t national, it is international.
I disagree with the idea gold will solve the problem. There isn’t enough gold in existance to begin to balance this incredible global shell game. At the rate things are going, safe food and water might be more valuable. As this site has kept on top of the Fukushima disaster, it is clear unpolluted air, food and drink will be a rare and expensive asset.
Thanks for all you do.