Our Different Currency

[Marvin S]

This is the year that there was a change in leadership at both CATO & the Heritage Foundation - John Allison of BB&T to CATO & Senator Jim DeMint to Heritage - by all appearances both excellent choices.

CATO members receive a policy report bi monthly. The latest has a report "Has the Fed been a Failure?", very informative, & about 3 1/2 pages, not easy to condense.

They also talk about domestic surveillance, Sen Ron Wyden (D) from OR is onto this & makes some very good points.

I'm not an economist but did make the little we have the hard way, I cannot see how the fed can create money to buy bonds to keep the government operating. The US is borrowing 40% of everything they are spending. It is not an entitlement issue, it's a spending issue. The folks who are savers are taking it in the shorts, ZIRPing the economy to health just isn't going to happen!

[Franco]

Dback, I really enjoyed your post. Thoughtful and a good impression of your opinions. However let me remind you of RK's Jimmy V's quote. "Don't give up. Don't ever give up."

I am truly lucky. This winter , Franco and I will have the opportunity to have dinner and discuss the Gold Standard. Can't wait. Franco, the devil is in the details and I have quite a few details to ask you about the Gold Standard. So get ready because i intend to test your mind. Looking forward to it.

Looking forward to it, you'll be a changed man politically afterward!

bBack, now you know not only will the SEC make it 7 in a row but, LSU, Georgia, Florida will also win thier bowl games! Maybe even T a&m and S Carolina too.

[dback]

Franco........I'm not sure what this means but it could get real exciting around here soon. Having grown weary of the Federal Reserve refusing German inspectors so much as the opportunity to inspect their gold reserve held here in the US. Germany plans to begin repatriating at least a portion of its 1536 tons of gold on Wed. Sure hope it's not tungsten as some have speculated.......Germany would sure be peeved and the rest of the world would bail on the USD so fast we couldn't even make it to the banks to get a $20.00 bill.

[Franco]

Franco........I'm not sure what this means but it could get real exciting around here soon. Having grown weary of the Federal Reserve refusing German inspectors so much as the opportunity to inspect their gold reserve held here in the US. Germany plans to begin repatriating at least a portion of its 1536 tons of gold on Wed. Sure hope it's not tungsten as some have speculated.......Germany would sure be peeved and the rest of the world would bail on the USD so fast we couldn't even make it to the banks to get a $20.00 bill.

I haven't read this yet anywhere. If you have a site, please post it. We can only operate on funny money just so long, then reality sets in.

I did read today where Bernake told Congress, "Do your job and raise the debt ceiling". Not good when you have the central bank telling Congress what they should be doing!

P S

I just found this from Oct24th. If the Germans were trusting of the Fed, shame on them!

"For decades, the Bundesbank has relied on written confirmation of its gold holdings in London, Paris and New York. According to the report from the German audit court, the last time Bundesbank officials physically inspected the central banks gold holdings was, well, never.
"
more from mineweb.com

When asked by CNBC to comment on the Bundesbank's request, the Fed would not comment on the record about how it will handle the request to inspect the gold. However, CNBC quoted an anonymous source who indicated "they would likely work out a deal with the Germans permitting some sort of inspection."
The U.S. based Gold Anti-Trust Action Committee or GATA has long claimed collusion exists among financial institutions, and that central banks do not actually possess the amount of gold they claim to have.
John Embry, chief investment strategist of Sprott Asset Management, has also long maintained "I firmly believe that if you look at all of the Western central banks, and the gold they allegedly own, I believe a significant portion of that is not in their vaults."
"They can say all they want," he told King World News on Monday, "but in the end, the truth will be revealed by the lack of physical gold in the market as they run out of enough gold to keep the price under control."
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
I fear that this gold has long been distributed to the members of the club, which none of us belong to.

[dback]

http://www.zerohedge.com/news/2013-0...d-new-york-fed

http://www.handelsblatt.com/politik/...n/7629600.html

You'll need to google the translation for the second one.
A Conservative Austrian politician has been screaming about this for over a year now but you've never heard a word in MSM.......very easy to keep public focused on Second Amendment at the moment...........

Here's another that just came up.
http://english.ruvr.ru/2013_01_15/Bu...om-the-NY-Fed/

[Franco]

http://www.zerohedge.com/news/2013-0...d-new-york-fed

http://www.handelsblatt.com/politik/...n/7629600.html

You'll need to google the translation for the second one.
A Conservative Austrian politician has been screaming about this for over a year now but you've never heard a word in MSM.......very easy to keep public focused on Second Amendment at the moment...........

Here's another that just came up.
http://english.ruvr.ru/2013_01_15/Bu...om-the-NY-Fed/

Looks like they are going to take their gold and determine if it is real. Taking a third this year and the rest over a two year period. Gold has real value and Germany has become leary of the financial policies of the USA, UK and France.

From your last link;

Almost certainly both the German press and at least several German lawmakers will demand a verification procedure for the gold bars returned from New York, just to make sure that Germany doesn’t receive gold-plated tungsten instead of gold. It seems that German decision makers no longer trust their American partners.

[Franco]

The situation must be really bad if former Fed Reserve Chair Greenspan is calling for a return to the Gold Standard.
"
It seems pretty clear that if this was ever the case, it is not the case now. Even Mr. Greenspan has called for a re-institution of the gold standard.

"

http://www.againstcronycapitalism.or...-new-york-fed/

[dback]

Well, out there in the dark somewhere is a wall headed our way.....Republicans are at a complete loss as to how to prevent it without losing every vote out there and Democrats have found a vote getting 'cash cow' in 'Keynesian deficit spending' and 'class envy'. Meanwhile conservative voters are scrambling to protect 2nd amendment and liberal voters are happier then pigs in shait that a new 'Free Government Cell Phone' store opened up in their neighborhood. Libs have done well......they've found the winning formula......just remember, we'll all be dancing in the same 'turd tub' when it's over.

http://therealasset.co.uk/german-gol...on-bundesbank/
Pay special attention to #3 & #4

[Franco]

Well, out there in the dark somewhere is a wall headed our way.....Republicans are at a complete loss as to how to prevent it without losing every vote out there and Democrats have found a vote getting 'cash cow' in 'Keynesian deficit spending' and 'class envy'. Meanwhile conservative voters are scrambling to protect 2nd amendment and liberal voters are happier then pigs in shait that a new 'Free Government Cell Phone' store opened up in their neighborhood. Libs have done well......they've found the winning formula......just remember, we'll all be dancing in the same 'turd tub' when it's over.

http://therealasset.co.uk/german-gol...on-bundesbank/
Pay special attention to #3 & #4

We could be forced to embrace Austrian Economics whether we want to or not. It should have been our policy since the beginning of the 20th Century.

Can't say we haven't been warned and many have seen this coming. The only question was, when. We've been playing with phoney money for 40 years and it eventually had to catch up. Lots of blame to go around including the electorate. It will be interesting to see just how high Gold will climb.

When Allen Greenspan says we should return to the Gold Standard, you know it's bad. And, there is a reason China has been hoarding gold. A worldwide financial collapse would mean China would be holding an overwhelming majority of the chips.

Update 1/16 from CNBC

Is gold getting ready to rip?
Reports that Germany intends to repatriate the gold that is being stored at the New York Federal Reserve should be supportive for gold prices. The implication here is that trust in fiat currencies is being eroded by central bank involvement. Japan's recent policy change toward a weaker yen, coupled with the Federal Reserve's ongoing bond purchases, is making gold a more attractive asset.


The gold market's reaction to the news, so far, has been positive — but only mildly so. My belief is that if February gold futures can settle above $1,680, this will be an indication of further upside. My initial upside target will be $1,750.

Frankly, I'm surprised that the move in gold has not been bigger, as this count be the beginning of a monumental shift toward "safe haven" wealth storage. When trust is the central issue, markets tend to have enormous moves.

[dback]

The Chinese are putting downward pressure on gold until they fill their coffers. When they decide to let it go is when my bet is it skyrockets.

Edit:
Here ya go Franco....today Russia steps in with this.
http://www.bloomberg.com/news/2013-0...ope-joins.html

Also.....a report out of the Netherlands says they want to follow the Germans. The report is in Dutch and the translation is horrible so we'll have to wait for a better article. You may get your gold standard sooner rather then later. Question is.....who pays for failure A) Banks B) Elites C) Politicians D) Serfs