Weekend Special with Alan Butler and Bob Moriarty
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Never DT. That will not happen in your lifetime. Gold has a place in the financial order of things though and most CB’s recognize that it can be used as a tool to leverage up the existing system and bring both stability and discipline back to the sector but gold’s use will only be as one element in a hybrid that is contemplated some time in the distant future. In the meantime few are taking any chances and so CB accumulations will continue adding reinforcement to bank ratios even if prices are currently held on the books at levels far below actual costs of extraction. This is more a case of “if you can’t beat them, join them” and as I contend the majority of gold will eventually reside in the vaults of the worlds Central Banks which will substantially dampen the speculative element. The gold hoards of the West are a tremendous tool in the arsenal that may be used in the efforts at debt stabilization in coming years but even that is not certain if we see a turnaround in the fortunes of global growth. So you can probably keep your party hat on ice for the foreseeable future. It will probably take another crisis or the obvious inevitability of one to bring on a revaluation. Don’t ever think it is not already being contemplated though.
I can feel the vibe on my streets because I am always out walking, but I will tell you this I believe the real estate market in Toronto has reached it’s zenith and I say that because if you walk through the very pricey areas you will notice a flood of for sale signs that is unprecedented, if the rich people like “The Donald” know anything it is when to sell and when to buy and they can afford that advice. DT
That is not unusual in a market that has seen a lot of speculation, DT. No crash is coming though. Higher end properties are almost always the ones to see the biggest price declines when there are corrective periods but it is not really doom and gloom and the homes in the lower and main price ranges will not likely be impacted too much. Those selling high-end homes now are late to the party where it comes to getting values they might have anticipated when prices were rising so strongly in the past. When you look at lower priced homes across the country though there is a great deal more stability. Vancouver is notable for this and the charts will show that it was only single family homes, primarily located on the West side, that have seen the biggest price growth and are skewing the statistics. It is of course also one of the most expensive neighborhoods outside of West Vancouver and Shaugnessy so no surprise that the biggest price declines will be seen there. In general though prices are stable for other classes of housing and have not moved in sync with the excesses seen in SFH.
By the way, I left a remark for you, Jerry, Andrew and Mathew on Cory’s insights of June 12th. I think you guys are off base with your assessments and conclusions.
refresh my memory…..I have slept since then…..
Anyone hear further on Glenn Beck’s whistleblower?
More Glenn Beck fluff. Maybe he was waiting for a payoff and hush money.
Or more likely he had nuthin….just like last month.
Yeah, I think you are correct.
Thanks Big Al, Doc, and Bill M.
Bill’s comments are correct.
The current manipulated interest rate, is meaningless in ANY formula, because we do not have a FREE market in either GOLD or INTEREST RATES, both are being manipulated, and will continue to be so, until people refuse to accept the US dollar in exchange for any real goods. At that point of world financial collapse, do not expect politicians to passively accept market behavior. At that point, expect out stealing of real assets from confiscation or taxation.
The only safety is NOT to be under the control of the US or those countries over which it has significant persuasion or control.
So why would people stop accepting the US Dollar and thus creating the circumstances for a world financial collapse that NOBODY except the extremists in the gold camp seem to think is appropriate, CFS?
Comments like yours are what will insure a gold standard never comes into being. I am kind of puzzled because the other day Jerry was telling me how savvy you were but this is just the usual crazy talk of gold bugs as far as I can see.
I don’t buy it.
Bird Man, I’ll second Jerry’s opinion that CFS is very savvy. He’s very well educated, well-traveled, and speaks several languages. More to the point, it’s plain to see that he is “smart money.” However, he does not speak sheeple.
Don’t waste your time, Mathew.
I can draw my own conclusions about CFS2000 by reading what he writes and hearing the strong negative bias in his words. It matters not that he is well-travelled or fluent in more than one language either. Those two elements do not make a person reasonable.
Read his words carefully. In short form he writes:
“The current manipulated interest rate.
Is meaningless in ANY formula.
We do not have a FREE market in either GOLD or INTEREST RATES.
Both are being manipulated.
Until people refuse to accept the US dollar in exchange for any real goods.
World financial collapse.
Do not expect politicians to passively accept market behavior.
Expect..stealing of real assets.
Confiscation or taxation.
Only safety is NOT to be under the control of the US.
Over which it has significant persuasion or control”.
Do you agree with those comments? I do not. That language is what is typically reserved for those in the camp of economic extremists who value gold as the panacea and solution to all the worlds troubles. It is an ignorant view that fails to consider the many difficulties that existed under a gold standard and which kept governments in a straight jacket whenever panics arose. What fairness do you think he refers to anyway? One that rewards the small class of investors in precious metals perhaps? Are they more special than the rest of the population and the other 7 billion people on the globe? Perhaps he will explain how those in emerging and poor countries with no gold will survive in a new world of “fair” rates and “fair” gold prices. I think “fair” is a pretty loaded word in this case because it only applies to his personal agenda and portfolio. We are living in a world where it is current policy to hold rates low and there are many good reasons for doing that. Fairness has nothing to do with the equation when it is equity that is sought and assuring economic stability.
At the heart of his remarks though are objections to the political class and those who are charged with leadership in economic affairs. Maybe he can do a better job. Maybe not. I don’t have faith in people who express themselves with that kind of language though.
Thanks anyway, but I will stick with those who sound reasonable.
Of course you’ll draw your own conclusions. That should not need to be stated. And I’ll decide whether or not I am wasting my time, thank you. Understand that I don’t respond to your nonsense for your benefit. I respond because I disagree with it.
It is really quite perverse that someone like you could see himself as the arbiter of reason. CFS was scooping up silver near the bottom while guys like you remain bearish. CFS is critical of the FACT that there is no free market in interest rates and gold, while you believe, against all evidence, that they trade freely. He is critical of a system based on theft and coercion, while you endorse it. The “difficulties” of the gold standard you talk about is pure propaganda. How is it a bad thing to keep the government (mere administrators) in a straight jacket?
You and the 90%+ who agree with you that the current monetary system is fine, are the extremists. The masses never saw the gold bull market coming and never knew it existed as it was happening. They/you don’t understand it and never participated in it, yet you’re all experts in your own minds. As usual, the herd has it ALL WRONG. And criminally so. Ignorance is the root of evil.
In reading your posts, I am reminded of a quote by William Casey (CIA director, 1981-87):
“We’ll know our disinformation program is complete when everything the US public believes is false.”
You are just angry because you bought silver at 40 bucks and are stuck with it now. So sorry man.
I am anything but angry. I was buying silver under $10 and never paid anything near $40. You continue to tell yourself what you have to…
Since,,,,,my name was mentioned…..I will only say, MATTHEW, IS IN THE SAME LEAGUE AS CFS…..these are sharp guys, ,,,,I say this because I have been here for over 7 years, and there has been a lot of great info ….these two gentlemen have shared….I therefore respect their thoughts……..REGARDLESS of the market …………ootb
Ps….I am not trying to gang up on you ,,,,just trying to share past experiences, and the leadership these guys have contributed………
Bird Man is it that you don`t like the words: Manipulated & Conspiracy, yet in the criminal world which we live, conspiracies abound as do joint ventures that seek control over whatever seems fit. Yet people want to discount that there is evidence that support those few in control. This internet is a vast network thats all math based in logic. Yet people are looking for odds of winning & losing, but thats blown out the window, because the house always wins. Logical redundancy sets in in a mind that can`t hold the notion that you can`t win, so I guess what will happen will happen – gold is king, and the Central Bankers will keep stacking up those bars of gold, why ? Because gold is money. Paper are made from wood, that are money trees, so to speak. Try hauling around a lumber yard in your back pocket, a tooth pick or tissue paper do have their applications cleaning your tooth of waste or wiping ones butt. But all our troubles started with the Bank of England, telling every body that if we don`t accept interest payments for paper we produce ourselves, then pay the Banksters for their protection OR we in other ways will with so many wars would be forced upon us by all others that do their bidding, hence everything is manipulated & conspiracies do exist between people & nations………………………
It is named for British economist Alfred Herbert Gibson who noted the correlation in a 1923 article for Banker’s Magazine. The correlation had been noted earlier by Thomas Tooke.
Although Keynes is considered a “great” economist, he is driven much more by his socialist beliefs and his hatred of the Rentier class, that he wished to destroy.
He allowed his beliefs to modify his economics.
“I work for a Government I despise for ends I think criminal.” -John Maynard Keynes
Letter to Duncan Grant (15 December 1917)
Your stated form of Gibson’s paradox is partly in error, because you failed to include the time delay effects which correlate which velocity of money, which is not constant; Gibson’s paradox true only if money velocity is constant, but this may be approximated as true over small time periods.
This the most complete coverage I have seen on Syria.
For a long-term graph of interest rates:
http://www.ritholtz.com/blog/2012/01/222-years-of-long-term-interest-rates/
A different angle on silver:
http://www.fastmarkets.com/bullion-desk-news/gsr2
However, a better look may be obtained of the gold/silver ratio.
Go to stockcharts.com
Type in $gold:$silver
and note that we are just past the peak AND the RSI was just over 70 at the peak, indicating a true peak.
The gold/silver ratio became even more overbought on the weekly chart with the RSI approaching nearly 80 for the week ending June 7. It is still overbought at RSI 73 right now. The last time gold was this overbought in silver terms was 2008 and the G/S ratio was 92 not 65. It sure does look like it has topped – and probably for years. Silver is much more appealing than gold at these levels, in my opinion.
on both the daily and weekly charts
Do you know what I gleam from this latest perspective, it’s simple gold will be the new world currency, end of argument. DT