Prospectiv A-z shared Foreign Affairs's photo.

October 30, 2014

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miopie versus clarviziune greenspaniana

Foreign Affairs

Why is China stockpiling gold bullion? Alan Greenspan explains:

http://ow.ly/DA6X7

(Photo: Reuters)

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  Prospectiv A-z .
  
  TimeHasCome •
  
  I find Mr Greenspan's remarks both interesting and troubling . The partial sentence " "nations endowed with effective taxing power... " can basically pay their debts back to the banks by simply lowering the standard of living of people to serfdom. I look upon Europe as a tinderbox ready to go . This will end in another world war.
  
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  alan goldspan TimeHasCome • 
  
  Not as big a danger because debts in excess of economic performance can always be bailed out "without the pain of work" QE-style, potentially devaluing the currency: and then, via market forces the ECB's and Euro-zone's substantial physical gold reserves (marked to market quarterly) happily get re-valued upwards (in theory, so far for all their posturing they didn't engage in actual QE), leaving the official balance sheets looking still quite healthy. Something that interestingly the Fed/Treasury concoction cannot emulate easily for historic reasons (Nixon etc.) Private Euro-zone citizens learn soon enough to "hedge" via a fair portion of their savings in physical bullion as means and perceptions allow, Euro-zone gold VAT policy explicitly encourages and anticipates this.
  
  Tomorrow, fiat is for spending/borrowing/earning/investing/short-term savings and physical gold is for long-term / intergenerational saving / purchasing-power preservation and fx cross hedging 
  
  The whole USD-as-global-reserve scheme necessitated ever-growing sovereign debts the world over, as one nation's debts and nominal future promises were another's "reserve assets" and real future dreams ad infinitum. Quite the genius scheme, even though it was 80% historical accident! As gold will make its "monetary comeback" and USD slowly but surely returns to its proper role as "one national fiat currency among many" (to be judged by what it buys in real terms in its country of origin), sovereign debt excesses should recede and indeed taxation may one fine day be the primary state funding source, rather than primarily acting as credibility/collateral for excessive debts..
  
  Also for Euro-zone countries in debt troubles, I posit they're still going through a painful education, learning what Euro currency means. Pre-Euro, those troubled countries devalued and over-borrowed time and again for decades.. enter the Euro, they (and their creditor funds) think for the first decade that they can now pull a "USD ca. 80s and 90s" lifestyle by over-borrowing in a stable respected world currency. Turns out, there's no QE / USD repeat in Euro land, and only sound fiscal/economic/labor policy can help them in the long run, not the currency and not the central bank.
  
  Related to this, google this quote from the late 90s: "Basically, this is the direction the Euro group is taking us. This concept was born with little regard for the economic health of Europe. In the future, any countries money or economy can totally fail and the world currency operation will continue. What is being built is a new currency system, built on a world market price for gold."

  October 30, 2014 at 4:25pm · Like
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  Adrian H. Todea "What is being built is a new currency system, built on a world market price for gold."

  
  
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  Prospectiv A-z .
  https://www.scribd.com/fullscreen/241831262...
  http://youtu.be/6zwxpRPb_M0
  
  Marin Katusa is one of the leading experts on--and most successful portfolio managers in--the energy and resource exploration sectors. 
  
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  Starting out as a mathematics professor, Katusa left academics to apply his models to portfolio management. His funds are among the top-performing in the resource sector over the last five years in Canada. He's a regular contributor to the Business News Network (BNN), and has been interviewed by global media outlets such as CNBC, RT, CBC, Bloomberg, and Forbes.
  
  Katusa first became interested in the energy sector through investing. He began in mining, shifted to Uranium, and began to see the unconventional energy sector as a much bigger story. 
  
  Since 2007, Katusa has been serving as the chief energy investment strategist for Casey Research. He is one of the most active financiers for early-stage, junior resource companies in Canada, and was the lead financier in the first two financings for Cuadrilla Resources, now one of the largest and most successful unconventional natural-gas plays in the UK. He also structured the financing and the sale of Turkana and the world-class 10BB oil block in Kenya to Africa Oil, a Lundin-held company with a market capitalization of over C$2 billion. Katusa is a founding director of Copper Mountain, Canada's third-largest copper mine.
  
  Over the years, Katusa has been involved in raising over C$1 billion in capital for early-stage and producing resource companies.
  
  Katusa speaks fluent Serbian and Croatian, and is conversant in Russian. A graduate of the University of British Columbia, he lives in Vancouver.

  
  
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  Prospectiv A-z .
  In the absence of the gold standard, there is no way to protect
  savings from confiscation through inflation. There is no safe
  store of value. If there were, the government would have to make
  its holding illegal, as was done in the case of gold. If everyone
  decided, for example, to convert all his bank deposits to silver
  or copper or any other good, and thereafter declined to accept
  checks as payment for goods, bank deposits would lose their
  purchasing power and government-created bank credit would
  be worthless as a claim on goods. The financial policy of the
  welfare state requires that there be no way for the owners of
  wealth to protect themselves. […] This is the shabby secret of the
  welfare statists’ tirades against gold. Deficit spending is simply a
  scheme for the confiscation of wealth. Gold stands in the way of
  this insidious process. It stands as a protector of property rights.
  If one grasps this, one has no difficulty in understanding the
  statists’ antagonism toward the gold standard.
  – Alan Greenspan, former Chairman of the Federal
  Reserve (1966)

  
  
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  Mihaila Augustiniu .. In actual world economy paradigm, What if that paradigm will change? What if in near future the currency will be in Watt or Jouls ? Or eventualy in Gbytes?