Yale Ph.D., And Former Fed Member Tells Obama To Pull A “Gordon Brown” And Sell All Of America’s Gold

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homeDARPAcontributorsnewsforumszh-tshirtstoredonaterssmanifesto Is Residential Real Estate Recovering? Posted by: Econophile Post date: 10/12/2010 – 13:41 There are still huge headwinds facing the residential real estate market. Shadow Inventory is not getting better, and now we have the robo-signing scandal which will only further delay recovery. Since all real estate is “local”, some markets are clearly starting to find a floor. But a “recovery” whereby prices stabilize is a couple years away. Testy Tuesday – Trichet Talks Tough at High Noon Posted by: ilene Post date: 10/12/2010 – 13:22 If only our own Fed were somehow held accountable to the people of this country – even symbolically… The Robo-Signing Mess Is Just the Tip of the Iceberg, Mortgage Putbacks Will Be the Harbinger of the Collapse of Big Banks that Will Dwarf 2008! Posted by: Reggie Middleton Post date: 10/12/2010 – 06:02 The media is staring at the wrong target. Each major media outlet is copying what is popular or what the next outlet broke as a story versus where the true economic risks actually lie. Here’s what’s truly at stake – the United States is now at risk of losing its hegemony as the financial capital of the world! Navigation PollsDonate To Zero HedgeRecent posts Shopping cart View your shopping cart. User login Username: * Password: * Create new accountRequest new password Zero Hedge Reads Angry BearBearish NewsBoom Bust BlogChina Financial MarketsChris Martenson’s BlogContrary InvestorCoyote BlogCredit WritedownsDaily CapitalistDaneric’s Elliott WavesDealBookDealbreakerDr. Housing BubbleFalkenblogFibozachiFund My Mutal FundGains Pains & CapitalGlobal Economic AnalysisGonzalo LiraImplode-ExplodeInfectious GreedInvesting ContrarianJesse’s Café Américain Market FollyMax KeiserMinyanvilleMises InstituteNaked CapitalismOf Two MindsPension PulseShanky’s TechBlogThe Daily CruxThe Mad Hedge Fund TraderThe Market TickerThe Technical TakeThe Underground InvestorWall St. Cheat SheetWashington’s BlogWealth.netWhen Genius Prevailed Home Yale Ph.D., And Former Fed Member Tells Obama To Pull A “Gordon Brown” And Sell All Of America’s Gold Tyler Durden's picture Submitted by Tyler Durden on 10/12/2010 09:37 -0500

Barack ObamaBudget DeficitCentral BanksDylan GriceGreat DepressionGross Domestic ProductInternational Monetary FundNational DebtObama AdministrationPrecious Metals

Edwin Truman, a senior fellow in the Peterson Institute, who is of course a former Fed member, and of course a Yale Ph.D., writes in the FT, suggesting the brilliant idea that it is high time for the US to sell its gold. In other words do precisely what Gordon Brown did a few thousand percent ago, and now has to defend against allegations he did so merely to protect the LBMA cartel which was on the verge of being margin called into oblivion. And even if one ignores the fact for a minute that there has not “really” been an audit of the US gold holdings in who knows how long, who is to say that Goldman, of all people, may not be right and gold will be at $1,700 in a year? Or Dylan Grice for that matter, and it will be about 10 times higher. One thing is certain: converting real hard asset value into paper to patch up 2.25% of government debt as a % of GDP is easily the dumbest idea we have ever heard. Especially, since as we disclosed yesterday, the Fed will have to force Congress to increase its deficit, and thus debt funding needs, simply so that there are enough Treasuries for the Fed to monetize. We hope Mr. Truman is in the contention for next year’s economic and peace Nobel prizes, because with articles such as this he has certainly proven he belongs to that unique category of brilliant economists that only Princeton, Yale and Harvard can produce.

From the article:

Gold is back in the news. Its price is soaring  in what some analysts say is a reflection of a weak economy and a lack of confidence in government policies. Naturally, investors are looking at a new sure thing in the expectation that prices will continue upward. My advice to the US government, however, is that this may be the best time – to sell. Doing so would help President Barack Obama and Congress reduce indebtedness, at little cost.

It is an article of faith in bullion markets that the US will be the last country to dispose of its gold stock. For 30 years it has had a no-net-sales policy for reasons ranging from resistance by US gold-producing interests to concerns about the international monetary system. That assumption may remain plausible. Yet the administration has an obligation to re-examine its policy.

And now for kicker #1: gold is up due to “fraud and misinformation” – oddly there is no mention of the fraud accompanying the Keynesian ponzinomics that the world is fighting tooth and nail to preserve:

The market price of gold has risen for more than a decade  propelled by low interest rates, the hype of the bullion dealers (holding large inventories) and no doubt the normal amount of fraud and misinformation accompanying asset price bubbles. The Financial Times has reported that the precious metals industry expects the price to increase by a further 11 per cent over the next year.

So here is Truman’s modest proposal: take the gold, convert it to linen, and use it to patch up just over 2% of US debt. Brilliant

Meanwhile, the US Treasury holds 621.5m fine troy ounces of gold. The government has been sitting on that gold since the Great Depression, receiving no return. At the current market price of $1,300 per ounce, the US gold stock is worth $340bn. The Treasury secretary, with the approval of the president, has the power to sell (and buy) gold on terms that the secretary considers most beneficial to the public interest. Revenues from sales must be used to reduce the national debt.

If the US were to sell its entire gold stock at the current market price, it would reduce the gross government debt by 2¼ per cent of gross domestic product. Based on the average interest cost from 2005 to 2008, this reduction in debt would trim the budget deficit by $15bn annually. Thus, the Obama administration would be doing something about the US fiscal debt and deficit without reducing near-term support for the ailing economy.

Kicker #2: Truman had graduated from economist to financier, recognizing the importance of buying (or confiscating as the case may be) low and selling high:

This proposal has several other benefits. First, the US would be obeying the maxim to buy low and sell high. Second, it would be performing a socially useful function. Demand for gold exceeds normal production, driving up the price. To the extent that the gold craze is being fed by concern (rational or irrational) about government policies, public welfare would be enhanced by giving citizens something tangible to hang around their necks or place in safe deposit boxes. Third, if the price is a bubble, as seems likely, the sooner it is burst the better for the average investor.

Lest Truman be accused of being a biased idiot, he himself provides some counter arguments to his Darwin award worthy suggestio:

Some people point to possible costs. Aside from political pressures from those who want to protect the value of their holdings, above or below ground, two principal arguments are made against US gold sales. The first is that such sales would disrupt the market. But the US government can be cautious in its sales, avoiding disruption of gold sales programmes of other countries, as it has in the past. There is little risk. In recent years, sales under the Central Bank Gold Agreement have dwindled, and some other central banks are buying gold. (The US is not a party to the agreement.) Also the International Monetyary Fund has completed more than three-quarters of its own planned sales of 403.3 metric tons.

Another counter argument is that the US should hold on to its stock in anticipation of the return to a monetary system based on gold by itself or with other nations. Returning to the gold standard would reinstate a system that has not existed for a century, however. It is not going to happen. The gold standard was associated with unstable prices, wages, output and employment. The current official discussions of the reform of the international monetary system do not include any advocates of a return to gold, and the IMF articles of agreement prohibit doing so. The sooner thoughts of a return to the gold standard are laid to rest, the better. A related argument for retention of the US gold stock is as a “rainy day” precaution. But after the recent economic and financial crisis and with the prospect of further misery for several more years, how much more rain must pour before the US acts?

So now you know – the gold standard “is not going to happen.” What else is there to say – arguing with such brilliant logic which sees the benefits in 100 years of dollar devaluation, coupled with the greatest credit bubble ever, which has led the world to the precipice of all out currency, trade and soon, actual, war and assumes that the barbarous relic is actually worse than this is, well, pretty much pointless.

 

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by SheepDog-One
on Tue, 10/12/2010 – 09:40
#643066

I’d inspect that ‘gold’ VERY carefully coming out of Ft Knox if I were the buyer of it! Bunch of tungsten filled gold leaf is what I highly suspect resides in those vaults, if anything at all.

Login or register to post comments by Sucks_to_be_Smart
on Tue, 10/12/2010 – 09:51
#643102

Gold looks pretty crappy compared to this guy’s 100 floor Ivory tower.  Jesus, can these Econ Ph.Ds stop massively embarassing the entire profession?  You would think by now, they would shut up, stop writing things, and fall in line behind Jan, who actually knows what he is talking about. 

Great job Edwin!

Login or register to post comments by G-R-U-N-T
on Tue, 10/12/2010 – 10:24
#643221

To think that some actually believe that sophisticates like Truman whom come from the most prestigious universities are exempt from being as dumb as a sack of rocks.

Login or register to post comments by SteveNYC
on Tue, 10/12/2010 – 10:45
#643286

Yes, hock the one true and tried “currency”, real “money”, for 3 months worth of Ben’s QE bucks?

Truman = tool.

Login or register to post comments by dlmaniac
on Tue, 10/12/2010 – 11:43
#643460

Poor Truman didn’t know all there is left in Fort Knox is tungsten. How do you sell when you don’t have it.

Wait… that’s what’s going on @ CRIMEX everyday. Never mind.

Login or register to post comments by SWRichmond
on Tue, 10/12/2010 – 10:55
#643309

Asset stripping is what the banksters do best.

Login or register to post comments by 99er
on Tue, 10/12/2010 – 10:40
#643274

Ph.D.s “that unique category of brilliant economists that only Princeton, Yale and Harvard can produce.”

Don’t forget Chicago…home to brilliant Nobel Peace Prize winners too!

Login or register to post comments by Turd Ferguson
on Tue, 10/12/2010 – 10:02
#643139

“Turd Ferguson, a Senior Fellow at the Arrogant-Wiseass Institute, thinks that Edwin Truman is a complete and total douchebag”.

Login or register to post comments by Shameful
on Tue, 10/12/2010 – 11:07
#643342

lol thank you.  If I ever get involved in giving money to a school then I will demand it go towards setting up the Arrogant-Wiseass Chair of Economics.

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 10:36
#643259

so the gold that was taken by gunpoint from our grandparents should not be returned to those who hold $US, but rather sold for more $US. 

…wait, you’re saying, …what are you saying?

Login or register to post comments by ebworthen
on Tue, 10/12/2010 – 11:11
#643357

Exactly.

If they need more gold they can simply pull an FDR and confiscate privately held gold all over again.

Why do you think they passed that $600 transaction form for the IRS?

A’yup!

Buy any gold or silver coins at $599 or below in batches folks!

Login or register to post comments by Shameful
on Tue, 10/12/2010 – 11:26
#643403

Won’t go to the average American.  They will have a hard time confiscating gold that gets sold to Russia and China.  Americans are not the big players in this market.  Besides I seriously doubt that A. America has not sold/leased a lot of gold already. B. Assuming they had some left it’s not super likely they sell it all as it would give an asset for our creditors to buy that they really want without smashing the price up.  I can assure you China would love to see America sell it’s remaining gold.

Login or register to post comments by Bob
on Tue, 10/12/2010 – 09:40
#643067

God, what an ignorant tool.

Login or register to post comments by Popo
on Tue, 10/12/2010 – 10:04
#643144

Not only ignorant, but illogical too:  

Without knowing how much gold the US actually has, it is illogical to predict what effect the sale might have.

For all he knows, selling “all” the U.S. gold might yield enough fresh capital to pay the electrical bill at the White House for 1 month.

 

 

Login or register to post comments by goldfish1
on Tue, 10/12/2010 – 10:58
#643310

*nm

 

 

Login or register to post comments by lsbumblebee
on Tue, 10/12/2010 – 09:41
#643069

I think Edwin Truman is just bucking to become Prime Minister of the United States.

Login or register to post comments by Bananamerican
on Tue, 10/12/2010 – 10:14
#643193

“I think Edwin Truman is just bucking to become Prime Minister of the United States.”

…worked for Brown…onward and upward and all that

Login or register to post comments by Mongo
on Tue, 10/12/2010 – 09:41
#643071

Ehum… what gold?

Login or register to post comments by rapacious rache…
on Tue, 10/12/2010 – 09:44
#643077

exactly!

BWAHAHAHAHAHAHAHAHA!!!

Lemme see, now where did I put that gold. Oh! here’s a receipt and some official looking documents…

Here, I sell you my paper, bitchez!

Login or register to post comments by His Dudeness
on Tue, 10/12/2010 – 09:44
#643072

Tyler,

Don’t forget the University of Puerto Rico! They have an economics elective class second to none!

Course prereq: Flying out 2nd story windows 101.

Login or register to post comments by GoinFawr
on Tue, 10/12/2010 – 11:45
#643468

On the “flying out of 2nd windows” meme: the guy in this vid has it all figured out, almost.

 

“i believe I may have overreached myself… whatever.”

Regards

Login or register to post comments by SheepDog-One
on Tue, 10/12/2010 – 09:42
#643073

$340 billion worth of gold, hell thats only a few weeks worth of Bernanke POMO money laundering/monetization activity.

Login or register to post comments by Gordon Freeman
on Tue, 10/12/2010 – 09:44
#643082

Yes!!  PLEASE sell us the gold, bitches…

Login or register to post comments by Internet Tough Guy
on Tue, 10/12/2010 – 09:57
#643124

Exactly! That is the only way any American will ever benefit from the gold. Otherwise they will never see a gram of it.

Of course, if they did sell the gold, we wouldn’t see a gram of it either. They would trade it to China for iPads.

Login or register to post comments by RichardENixon
on Tue, 10/12/2010 – 10:34
#643252

They could sell it to us for $1350 and then confiscate it back. That kind of plan would actually make some economic sense.

Login or register to post comments by sschu
on Tue, 10/12/2010 – 09:46
#643086

This tells you how stupid/foolish they think Bam has become / is.  And they just might be correct …. 🙂

Someone once said, and I paraphrase … some ideas are so absurd that only an intellectual could come up with them …

sschu

 

Login or register to post comments by schaefdogschaef
on Tue, 10/12/2010 – 09:47
#643088

They can’t sell the gold in Fort Knox as it will be seen that the US doesn’t have those approx. 275 mln ounces anymore….A Ph.d. is nowadays def. NOT a signboard, eh?! What a joke….

Login or register to post comments by buzzsaw99
on Tue, 10/12/2010 – 09:47
#643091

sell it to me bitchez!

Login or register to post comments by wiskeyrunner
on Tue, 10/12/2010 – 09:48
#643092

Stock not allowed to fall. There is ZERO risk buying stock from the long side, ZERO NADDA NONE!

Login or register to post comments by wiskeyrunner
on Tue, 10/12/2010 – 09:49
#643094

Oh look the 100 point fall in the Dow was just a dream, now only down 28.39.

Login or register to post comments by Bankster T Cubed
on Tue, 10/12/2010 – 09:50
#643095

Thank you, ZH

you are currently mankind’s only defense against these fuckers

Login or register to post comments by snowball777
on Tue, 10/12/2010 – 09:50
#643098

Skull and Crossbones educated idiot states that America can kill itself faster by aiming for major arteries.

I’d love to buy the dip this asinine suggestion would cause.

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 10:41
#643277

+1

Login or register to post comments by Sancho Ponzi
on Tue, 10/12/2010 – 09:50
#643099

This is yet another sign that certain folks (JPM, anyone?) are getting desperate

Login or register to post comments by Rodent Freikorps
on Tue, 10/12/2010 – 09:51
#643103

Ph.d = Piled higher and deeper.

 

Login or register to post comments by nontaxpayer
on Tue, 10/12/2010 – 09:51
#643104

LOL unbelievable, what a tosser, too.

Login or register to post comments by DosZap
on Tue, 10/12/2010 – 09:51
#643105

The SUPPOSED US Gold holdings are in four locations.

Knox

West Point

Fed Bank of NY

And one more,I cannot recall.

Login or register to post comments by rapacious rache…
on Tue, 10/12/2010 – 09:56
#643121

I got yer fourth place right here!

Login or register to post comments by Rusty Shorts
on Tue, 10/12/2010 – 09:58
#643127

Saudi Arabia?

Login or register to post comments by yabyum
on Tue, 10/12/2010 – 11:27
#643410

Fortress Chumbawumba?

Login or register to post comments by Jake Green
on Tue, 10/12/2010 – 10:06
#643154

Lloyd’s basement?

Login or register to post comments by Maos Dog
on Tue, 10/12/2010 – 10:10
#643177

The mint locations hold the balance

Login or register to post comments by ATG
on Tue, 10/12/2010 – 10:21
#643209

Denver Mint, where the Shadow Government resides.

A lot of that gold is coin melt worth less.

What’s more interesting is this:

In terms of Gold Reserves and %Forex Reserves backing,

US second to EC, and Portugal and Greece actually have more gold as a % of Fx than US, third.

Hey, if CA can sell the Reagan and other State Buildings to Houston and Antarctica, why can’t Bomba sell the family silver and gold?

http://www.usmint.gov/about_the_mint/mint_facilities/?action=DV_facilities

http://en.wikipedia.org/wiki/Gold_reserve#Officially_reported_gold_holdings

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 10:48
#643290

great info, ATG.  thanks.

Login or register to post comments by swamp
on Tue, 10/12/2010 – 10:29
#643232

 

according to Bernake, the Fed Reserve Bank in NY is in a “foreign country” but he did not name the country. Absurd, but true, on the record in one of Grayson’s youtube gruelings wherein he laughs at Bernake over the coincidence comment. So that supposed gold in not in the U.S.

Login or register to post comments by Shameful
on Tue, 10/12/2010 – 10:30
#643237

I thought the name was Ponzitopia the capital of Fraudania. If memory serves teh Fed is also holding about half of Germany’s gold.  Gold they are not going to get back.

Login or register to post comments by Lux Fiat
on Tue, 10/12/2010 – 09:51
#643106

Wow, COMEX and the LMBA must be in pretty bad shape to get this thing floated.

I would recommend, before anyone decide’s to sell any of the people’s gold, that they address the structural fiscal problems at the federal level. 

 Instead, this proposal reads like someone advising a sprendthrift who has just run through all of their regular savings and then some, to go raid their nest egg, instead of changing their ways.

The stupidity of this is amazing on so many levels.

Login or register to post comments by Internet Tough Guy
on Tue, 10/12/2010 – 10:05
#643141

The peoples gold? Try to get your share; they won’t let you. It’s not ours and you will never get any of it.

And if you think you are free, try walking into a deli and urinating on the cheese.

Login or register to post comments by gmrpeabody
on Tue, 10/12/2010 – 10:35
#643255

Are you implying that the deli owner might be charged after he pulls the trigger?

Login or register to post comments by Lux Fiat
on Tue, 10/12/2010 – 10:45
#643285

Ha!  The “urinator” might wind up looking like swiss cheese.

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 10:50
#643296

if i unrinate on a family deli counter it is society’s fault, not mine. 

Login or register to post comments by Lux Fiat
on Tue, 10/12/2010 – 10:53
#643302

I don’t expect to ever get any of it, assuming that there much left. 

Your idea of freedom and mine don’t quite map up.  Since when did damaging someone else’s property constitute freedom?  I guess you are free to do it, and free to bear the consequences of your actions.  Sadly, a concept missing in much of our society these days.

Login or register to post comments by RobotTrader
on Tue, 10/12/2010 – 09:52
#643107

The Dow hasn’t sold off substantially because gold remains firm.

The XAU is holding up nicely for now:

If gold goes to $1,650, then the Dow is most certainly going to 12,000 by the end of the year.

Login or register to post comments by Turd Ferguson
on Tue, 10/12/2010 – 10:00
#643132

You know I rarely agree with you, Robo, but I sense you are correct here.

Buy everything. Gold. Silver. Equities. Oil. Corn. Soyas. Pork Bellies. Cattle. Cheerios. Raviolios. Anything you can get your hands on. The world is soon to be awash in dollars. In fact, it already is. All dollar-dominated assets are going much higher.

Login or register to post comments by gmrpeabody
on Tue, 10/12/2010 – 10:38
#643267

+100

Login or register to post comments by Thunder Dome
on Tue, 10/12/2010 – 11:35
#643434

Don’t forget the whiskey!

Login or register to post comments by Mr Lennon Hendrix
on Tue, 10/12/2010 – 13:34
#643789

Turd, how “priced in” are we at the moment?  Will QE’s second coming blow the top off or what?

Login or register to post comments by Turd Ferguson
on Tue, 10/12/2010 – 14:19
#643960

Hard to say, Jimi.

If you have access, pull up an 8-hour chart on gold that goes back to the end of the correction in July. On that chart, you’ll see a slow, methodical price rise. In TA terms, its called a “Swiss Stair” and it reflects a steady, fundamental accumulation. So, though QE2 may make headlines and cause short-term volatility, I suspect gold will continue its long-term bull market with a steady grind higher.

Login or register to post comments by Hephasteus
on Tue, 10/12/2010 – 14:31
#644018

I hope you and everybody else figure it out soon. We’re smack dap in the middle of a game of economic chicken. There is a cliff there is a gas pedal there are brakes. Our mysterious buyers may or may not be out to break the comex and strangle hold or they may be the ones pushing the gas. Gold is the savings account, equities is the checking account when checking=savings anyone not on the brakes goes over the cliff.

Login or register to post comments by Hephasteus
on Tue, 10/12/2010 – 13:23
#643734

Until dow and gold reach parity there is no reset. And no way forward. If dow goes to 12,000 gold will hit 13,000 on overshoot, maybe 14,000. It’s all debasement mechanics.

Login or register to post comments by Edmon Plume
on Tue, 10/12/2010 – 09:52
#643110

What a brilliant way to audit the USA’s gold holdings.

Login or register to post comments by Dagny Taggart
on Tue, 10/12/2010 – 10:13
#643188

That WAS funny. You connect the “sale” of gold to “verification” of value or its existence. The way the SEC audited NANEX charts to see what the HFT transactions really were? Or the way Congress got to the bottom of all that Fannie/Freddie nonsense. And all the securitization behind the CDO products. Bernanke has probably got holographic bars, like the Faberge Egg in Ocean’s Twelve?

ROFL! Audit. got credit default swaps?

 

Login or register to post comments by ILikeBoats
on Tue, 10/12/2010 – 09:53
#643112

The gold standard was associated with unstable prices, wages, output and employment.

Actually the gold standard was so stable (and thus unable to be manipulated by central bank fraudsters) that gold coins were made that had the exchange rates in different currencies, stamped right on the coin!

Old dictionaries, presumably meant to be kept for years, had exchange rates published in tables in the back of the book.

See http://www.coinlink.com/News/us-coins/unusual-items-1874-dana-bickford-t…

Deflation to central bankers is like garlic and silver crosses to vampires… doesn’t seem to harm regular people however.

Login or register to post comments by Jesse
on Tue, 10/12/2010 – 09:57
#643122

 

The dirty little secret is that a few of the TBTF banks have already sold most of it, and are now seeking to be bailed out at the expense of the American people.

Rickards suggestion of revaluing the gold and holding it to strengthen the currency, albeit at a devalued level, is much more to the point.

The banks are shameless. 

Login or register to post comments by fl3tch3r
on Tue, 10/12/2010 – 09:57
#643125

Expect JPM and HSBC to start pumping this insanity.

Login or register to post comments by Captain Willard
on Tue, 10/12/2010 – 09:58
#643128

“The government has been sitting on that gold since the Great Depression, receiving no return.”

Unreal. We are supposed to believe that holding this gold did not allow us 65 years of post-WWII seignorage benefits? After all, these benefits probably only totalled into the trillions over 65 years!!

I’ve spent a lifetime around Economics professors, so nothing should surprise me by now.

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 10:53
#643305

“no return”

on what?  it has crushed fiat money.  isn’t that a ‘return’?

Login or register to post comments by Hephasteus
on Tue, 10/12/2010 – 13:25
#643521

Fiat money can only generate a return in a bad money for good scam. Then gold get’s all “I’ll be back” on it’s ass.

Login or register to post comments by Jesse
on Tue, 10/12/2010 – 09:58
#643129

@RobotTrader

“The Dow hasn’t sold off substantially because gold remains firm.”

ROFLMAO

Login or register to post comments by SheepDog-One
on Tue, 10/12/2010 – 10:06
#643156

Robo, a master at filling in the blanks with whatever suits him. ‘DOW hasnt sold off because of gold’. Idiot statement of the day by far.

Login or register to post comments by Internet Tough Guy
on Tue, 10/12/2010 – 10:10
#643175

I have to go with Harry Wangers ‘AAPL is the economy and will save us’ meme.

Login or register to post comments by Sancho Ponzi
on Tue, 10/12/2010 – 10:11
#643179

Jesse:

Congratulations on your site’s 10 million hit milestone. I greatly appreciate your insight.

You are ‘Da Man’

 

Login or register to post comments by gmrpeabody
on Tue, 10/12/2010 – 10:42
#643280

+10,000,000

Login or register to post comments by Bill Lumbergh
on Tue, 10/12/2010 – 10:27
#643228

Robo just likes to throw crap around and hopefully some of it sticks…notice how he will never respond to a critique…a sign of a man with no ability to substantiate his claims.

Login or register to post comments by Atomizer
on Tue, 10/12/2010 – 10:01
#643136

Mr. Truman,

Let’s audit the US gold reserve holdings first. Then we can place a true value prior to selling.

 

Login or register to post comments by belogical
on Tue, 10/12/2010 – 10:01
#643138

PhD from Yale must mean Punk head dip shit

Cause only a complete asshole could think of such a thing.

Come to think of it being completely devote of any reality is a prerequisite of admission at those ivy league school. At least when it comes common sense

Login or register to post comments by Rodent Freikorps
on Tue, 10/12/2010 – 10:05
#643153

Elvis Presley – Poison Ivy League

 

Login or register to post comments by Shameful
on Tue, 10/12/2010 – 10:02
#643143

DO IT!  I’m 110% behind this man’s plan!  If they still have gold it will be a great buying opportunity, same as Brown’s Bottom.  I’m certain the Chinese would love to buy it all off us, and could come up with the Fun Bux to do so.  Can see the headline now “USA to dispose of Gold Holdings to Chinese:  America unloads barbarous relic on the Yellow Menace”.  And after the smoke clears gold bugs will know there is no more bullets left in the gun.  Or more likely they will sell paper gold and the gold will be held in the US Govs possession, naturally trying to take physical possession will be regarded as an act of terrorism trying to destabilize the gov.

I would also second checking each bar that comes out, would be a real knee slapper if they sold tungsten bars into the open market 🙂

Login or register to post comments by tmosley
on Tue, 10/12/2010 – 10:03
#643145

Wow, that’s like returning to the gold standard, but without the fiscal prudence that it imposes on the government.  When a government on a gold standard spends wildly, they deplete the treasury quickly, which is exactly what this bozo is advocating.

Fine by me.  I don’t like this stupid country anyways.  Sell me the gold, and I’ll be happy to watch it go down the toilet.  Sure, I might be miffed that the gold I already own has gone down in value, but that should be more than made up for by the future value of the gold I buy, which would cement my position as an oligarch in the soon to be third world USA.

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 11:00
#643324

+1

disappointing, isn’t it?

Login or register to post comments by bada boom
on Tue, 10/12/2010 – 10:04
#643147

Why sell your gold, when fools are still accepting paper?

Login or register to post comments by buzzsaw99
on Tue, 10/12/2010 – 11:44
#643466

exactly

Login or register to post comments by jmac2013
on Tue, 10/12/2010 – 10:04
#643148

No surprise here.  “They” would like to transfer all the public assets of the world over from public balance sheets to private ones, thereby further solidfying their class power.

 

Login or register to post comments by Clark_Griswold …
on Tue, 10/12/2010 – 10:04
#643149

What a total wanker.

Yes by all means, lets sell that shiney stuff that is taking up all this storage room.

Think of how many (monoploy) T bills and dollars we can park here from the printing press.

And since Russia, China, India, Saudi Arabia, etc are so stupid for increasing their holdings, lets just totally remove any semblance of assets from this country to somewhere else once and for all!

 

Login or register to post comments by Charley
on Tue, 10/12/2010 – 10:06
#643155

Dumb idea … Now we know what a PhD from Yale is worth. The dollar is worthless. Mr. Truman wants Obama to accumulate something the US alone can manufacture in return for the yellow metal? The logic of the situation dictates the opposite tack: print worthless dollars by the trillions and buy gold with both hands.

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 11:07
#643344

“Yale Ph.D., And Former Fed Member”

 

this has got to be a conspiracy against the American people.  how could anyone describe it otherwise?

…these are seriously bizarre days we find ourselves in. 

Login or register to post comments by Cathartes Aura
on Tue, 10/12/2010 – 13:21
#643720

only if we cling to the mythical storyline we were sold all our lives. . .

if we simply call what we see, and add all new information that supports the Truth of what is actually happening, it actually falls easily into place, doesn’t it. . .

Login or register to post comments by Old School
on Tue, 10/12/2010 – 10:06
#643159

Is the gold being refered to, the same gold that’s on the Fed’s balance sheet? If it is, the Fed may have something to say about selling it.

Login or register to post comments by Bill Lumbergh
on Tue, 10/12/2010 – 10:07
#643161

This could be one big ploy to state they are selling their 8,000 tons (or whatever number they use to give the impression of something substantial) to jam the price down…remember the days of the IMF selling a hundred tons…imagine the headlines and CNBC coverage of a few thousand tons.

Login or register to post comments by Shameful
on Tue, 10/12/2010 – 10:25
#643225

The problem is everyone in the world would hear the open laughter an high 5s coming from Beijing.  With America’s “enemies” buying you bet they would snap up every oz America was willing to put up.  Imagine what would happen if China just ate the whole amount and came asking around for seconds.  Whole demeanor of the gold market would change.

Login or register to post comments by Clark_Griswold …
on Tue, 10/12/2010 – 10:38
#643268

sure lets exchange our shit T bills for the shiny shit…. hey Ben you can be the number one holder of this worthless crap paper… more power to you tough guy (idiots)

 

I can see the headline, China swaps T bills for Fort Knox.  No need to move it, since they already own just about everything else around here

Login or register to post comments by M4570D0N
on Tue, 10/12/2010 – 11:27
#643412

We sell our supply of gold, and a huge portion of any remaining hard assets underlying our currency, to China in exchange for printing money to pay down our debt…. to China. Brilliant!

Login or register to post comments by Shameful
on Tue, 10/12/2010 – 11:36
#643440

I might be a better plan to sell the gold and then buy Guinness with it vs treasury paper.  It’s something of value and will help pacify J6P.  Sure the ECB and Ireland would be a fan to.  Guinness for Strength!

Login or register to post comments by tmosley
on Tue, 10/12/2010 – 10:29
#643234

China drools at the thought.

A way to offload a substantial amount of their treasury holdings for undilutable currency without directly affecting market prices.

Login or register to post comments by Charley
on Tue, 10/12/2010 – 10:50
#643294

This idea is so blatantly and self-evidently stupid, I almost hesitate to condemn it. Could we be overlooking something?

Login or register to post comments by Stepney
on Tue, 10/12/2010 – 10:07
#643162

Just wait until Gordon Brown becomes the head of the IMF.

I am disgusted that the insane, pant pissing, snot goblin is not in gaol pending his execution for treason

Login or register to post comments by wiskeyrunner
on Tue, 10/12/2010 – 10:08
#643168

Sell gold and buy stocks.

Login or register to post comments by Reductio ad Absurdum
on Tue, 10/12/2010 – 10:09
#643169

As usual, The Onion is way ahead of the PhD’s:

http://www.theonion.com/video/us-to-trade-gold-reserves-for-cash-through…

Login or register to post comments by tortola trader
on Tue, 10/12/2010 – 10:09
#643170

I have a degree from Yale and I have to say I am absolutely appalled by the idiocy of people like Truman or Krugman….There needs to be a mechanism when someone like this has their credentials recalled for the exercise and display of blatant stupidity whereby they are either stripped of their Yale degree to prevent further embarrassment or maybe shipped to the proverbial glue factory where they can no longer do further harm. I honestly don’t know who is more stupid….these clowns who parade unfettered as “experts” or the sheeple that continue to give these morons any public airtime or positions of influence when by now they should have been so thoroughly discredited that they are hardly worthy of a job loading beer at the back of a truck…..and my apologies to the honest folk who derive a living from handling beer.

Login or register to post comments by gmrpeabody
on Tue, 10/12/2010 – 10:57
#643315

“I have a degree from Yale…. “

That’s where I stopped reading…..  😉

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 11:14
#643363

…its no big deal, this asshole is only dictating our lives. 

we’ll probably only lose 60 million lives in the next World War that is caused by central money planning.  they’ll still be plenty of livestock for the next game of RISK.  good times!

Login or register to post comments by traderjoe
on Tue, 10/12/2010 – 10:13
#643173

Who owns the US gold? Is it the Fed or the Treasury? Obviously huge difference. 

As mentioned above, any gold sales would represent an exceptional opportunity for the PTB to load up, just before the fiat collapse. 

All the other CB’s would love the opportunity to buy the gold. In the currency wars, they can sell their currency, buy dollars, and then buy gold from the Treasury/Fed, which would then (according to the dipshit plan) use the money to ‘pay down’ the debt. For an opposing CB, that would be a home run…

Login or register to post comments by quasimodo
on Tue, 10/12/2010 – 10:11
#643180

“has been sitting on that gold since the Great Depression, receiving no return. “

 

Is this guy as big of a fucktard as I think he is? WOW, lol so hard my co-worker just gave me a very nasty look.

Login or register to post comments by espirit
on Tue, 10/12/2010 – 10:23
#643216

Must be One Gigantic Egg! lol

Login or register to post comments by RobotTrader
on Tue, 10/12/2010 – 10:11
#643181

Gold is a risk asset.

Just like the S & P 500, Aussie Dollar, Oil, etc.

The Perma-Gloomers hoping for a huge launch in gold and a crash in stocks and the economy are cheering for their own demise.

Because if the economy crashes, gold will crash with it.

Just look at the XAU in 2008.

Why would next time be any different?

Login or register to post comments by traderjoe
on Tue, 10/12/2010 – 10:16
#643200

Yes it might be different. Yes, gold might go down in a great liquidation. 

But gold is not a risk asset. It’s an alternative currency with some minor industrial uses. Whether it becomes a currency that is used in the future, obviously remains to be seen. 

Login or register to post comments by Bill Lumbergh
on Tue, 10/12/2010 – 10:20
#643204

Obviously you are not a student of financial history.  A brief review of the the 1930s will show that while the Dow did collapse the gold miners did stupendously well despite corrections along the way.  Please tell us again how you have the privilege of posting charts on the website?

Login or register to post comments by Internet Tough Guy
on Tue, 10/12/2010 – 10:24
#643214

Gold is just like stocks huh? The old everything is everything ploy. If you are going to troll, try to be clever and entertaining.

Login or register to post comments by tmosley
on Tue, 10/12/2010 – 10:33
#643247

Your “Double D’s” are as dumb as dogshit.

I don’t know if you noticed, but gold recovered to a much greater extent than stocks.  Now, gold tends to go up more than the dollar in a flight to safety, and in a major panic, is likely to skyrocket as people run for cover as fiat currencies start hitting like Deep Impact (ten years too early, that movie).

Login or register to post comments by Internet Tough Guy
on Tue, 10/12/2010 – 10:50
#643293

He doesn’t brag about selling his yellow rocks any more. Now he needs gold to crash to validate his genius. Heh.

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 11:17
#643371

thats pretty obvious.  i’m just wondering why he doesn’t short gold and put his money where his mouth is. 

Login or register to post comments by DarkMath
on Tue, 10/12/2010 – 10:59
#643292

If the economy crashes or hyperinflates Gold will explode higher. The one downside for Gold is government nationalization as was done by Roosevelt in 1933. But is that really all the bad?

Gold holders received a %75 premium for their Gold. If the same thing were to happen today the Fed would have to revalue Gold far higher. Why? Because revaluing Gold would allow the Fed to elliminate the National Debt.

Gold holders would receive a %615 premium if the Fed revalues Gold to $8000/oz. Not a bad investment.

Of course Gold could go down if interest rates rise but that’s not going to happen as our National Debt is currently floated with an Adjustable Rate Mortgage. Not going to happen.

Robot is time to flush out your head gear:

http://www.gata.org/files/QBAMCO_Who_is_John_Galt.pdf

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 11:18
#643375

but that’s not going to happen as our National Debt is currently floated with an Adjustable Rate Mortgage.

great analogy.

 

Login or register to post comments by Mr Lennon Hendrix
on Tue, 10/12/2010 – 13:19
#643704

And what about the equity crash in the spring of ’09 that saw gold’s price continue to move higher?

Login or register to post comments by the rookie cynic
on Tue, 10/12/2010 – 10:12
#643183

“The gold standard was associated with unstable prices, wages, output and employment.”

Yeah, like fiat ponzi FRN’s have like totally stablilized prices, wages, output and employment. Go to hell Edwin.

Login or register to post comments by Segestan
on Tue, 10/12/2010 – 10:12
#643184

This is a good example of what went wrong.. a public employee thinks he has the Right to decide.

Login or register to post comments by The Butchers Dog
on Tue, 10/12/2010 – 10:13
#643189

Nice,.. A “Brown Bottom”  – That’s just Perfect

If they won’t buy our Treasuries then why not offer what we’ve got?…

So, what is an Oz. of tungsten selling for these days?

 

Login or register to post comments by snowball777
on Tue, 10/12/2010 – 10:16
#643197

Okay, this PhD can’t do math…621.5m * $1300 == $808B, not $340B.

And at $8k/oz, about $5T.

Login or register to post comments by Sabremesh
on Tue, 10/12/2010 – 13:09
#643665

Well spotted. However this seems to be a typo – his figures (621.5) were jumbled. The calculations are based on the correct figure of 261.5 million ounces (equivalent to 8133 tonnes). 

Login or register to post comments by Silverhog
on Tue, 10/12/2010 – 10:16
#643198

Geraldo Rivera, opening of Fort Knox. I would watch that.   

Login or register to post comments by Cathartes Aura
on Tue, 10/12/2010 – 13:39
#643817

*cough* Capricorn One *cough*

Login or register to post comments by espirit
on Tue, 10/12/2010 – 10:20
#643206

If the gold was to be sold, the ponzinomics would cease to occur and the US frn’s become worthless. In comparison to commodities, reducing the value of gold only inflates the next most precious item, whether it be foodstuffs, oil, or iCrap.

Dumb and dumber from our finest intellectual institutions. 

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 11:20
#643386

reducing the value of gold only inflates the next most precious item.

 

great point.

Login or register to post comments by swamp
on Tue, 10/12/2010 – 10:23
#643212

America doesn’t have any gold.

Login or register to post comments by Non Passaran
on Tue, 10/12/2010 – 10:25
#643220

Brilliant! Bring it on! Let’s see what that does to the dollar.

Next they should sell Alaska back to Russia (see http://en.wikipedia.org/wiki/Alaska_Purchase). @ $3,000 per acre Alaska could fetch (according to my possibly wrong calculation) close to $1 trillion – that should be enough to partially fund next lunatic fiscal move of the US government.

Buy low (@ $0.023/acre for a total of $7.2M in gold), sell high!

After all, “after the recent economic and financial crisis and with the prospect of further misery for several more years, how much more rain must pour before the US acts?”

Login or register to post comments by Robert Paulson
on Tue, 10/12/2010 – 10:25
#643223

What remarkable propaganda in the ongoing war to determine the medium of exchange/savings!  Paper or Rock?  From the paper corner, just roll-out a Yale Ph.D to propose a government initiative to sell gold that can serve to reiterate that paper is more important.  This reinforces a popular ideological notion in the American populace: selling gold can get you out of “real” paper debt trouble.

I don’t believe that a Yale Economist looks past the Austrian argument as if it did not exist… I think that the Keynesian path pays better when “paper” = TPTB.  Just ignore that the Austrian path even exists in any statement/declaration, and you can continue to extend and pretend as if that were not a part of the solution set.

How isn’t this line of thinking more evidence of a last-ditch “all-in” effort to preserve the valuation, debt, and resulting power structure of the fiat currency models?

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 11:23
#643396

like i said, this has got to be part of a conspiracy.  this is absolute lunacy to a level that is downright suspicious in every way.

Login or register to post comments by Robert Paulson
on Tue, 10/12/2010 – 11:47
#643474

It’s not suspicious, it’s obvious.

It’s not conspiracy, it’s fact.

Login or register to post comments by Cui Bono
on Tue, 10/12/2010 – 10:25
#643226

Traderjoe- an important issue that seems unresolved- about a year ago it went around that the Fed and T both claim 262million ozt….. Anyone know the one true answer???
CB

Login or register to post comments by Stevm30
on Tue, 10/12/2010 – 10:26
#643227

My favorite:

“The gold standard was associated with unstable prices, wages, output and employment.”

Perhaps the most ignorant statement I’ve ever heard.

Login or register to post comments by New Revolution
on Tue, 10/12/2010 – 10:27
#643229

Mr. Truman states that a gold standard does not maintain stability in price and value?   This is typical of Ivy League re-writes of history and madness.    He’s an idiot on the scale which can only be accomplished within the vacuum of Harvard, Yale, Princeton et al.   The history of adherence to a gold standard in America has been the hallmark of some of the Nations,… nay the worlds, most productive and stable economic times.   There are hiccups to be sure, but they are usually based upon either a major influx of gold and silver production or supply which, when these situations do occur, can be remedied if the natural associations of banks which spring up in a truely ‘free banking’ environment, are allowed to prosper.   That was the original intent of the Federal Reserve Act of 1913 as sold to America,… tho we all know it was a monetary take-over of America whose intent was to enslave and contain ‘FREEDOM’, which is the last thing that ‘monied interests’ want and exactly that which turned Amercia into a Nation.

And now we must fight that ‘Revolution’ all over again.  

“Viva la New American Revolution” 

See you at the ballot box! 

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 11:26
#643408

this is some sick, sick stuff coming out of this Yale Phd and former Fed Member.

….we’ll call it a velvet revolution for now. 

Login or register to post comments by TooBearish
on Tue, 10/12/2010 – 10:30
#643238

So the US treasury Gold, that has been hypothecated and relent at least 5X over would now be for sale in the open market?

HAHHAHAHHAHAHAHAHAH

Login or register to post comments by Hondo
on Tue, 10/12/2010 – 10:34
#643251

This guy is a clown who has a PhD in stupidity.  When has he ever been correct??  What is his track record??………a fool trying to steal you money.

Login or register to post comments by JonNadler
on Tue, 10/12/2010 – 10:36
#643261

Brilliant, scare the gold cocaroaches with the sale of eight thousand tonnes of gold that are not even there!

Run and sell it now before it goes to 200!!!!

Login or register to post comments by tmosley
on Tue, 10/12/2010 – 11:27
#643411

Christ, you wanna talk about backing up the truck?  I’ll build a damn train track from Ft. Knox to my front door for gold at $200.

Login or register to post comments by Dagny Taggart
on Tue, 10/12/2010 – 10:40
#643273

Even if there is not any gold in the vaults at (forget Ft. Knox) the NYFed or GLD, SGOL, IAU etc… Ask yourself if the real value of paper gold is going to be exposed while China and Soros own such huge chunks of it. I suspect that the Fed/Treasury/Pres would do nothing to potentially expose the 8,000 tonnes ruse.

Login or register to post comments by hpprinter000
on Tue, 10/12/2010 – 10:41
#643276

I think the fed is going to try and make gold into a bubble by selling all there fake gold to central banks, then once the gold price is in a “bubble” get the central banks to sell it back to the fed. creating massive sell volumes that will bring the price down as people take profit from thinking gold is in a  bubble.

 

 

Login or register to post comments by Lost Pleiad
on Tue, 10/12/2010 – 10:43
#643282

who paid him to say that is more important question!

Login or register to post comments by JonNadler
on Tue, 10/12/2010 – 10:51
#643300

take a guess, I get paid by the same entity ha ha ha HA HA HA

Login or register to post comments by What_Me_Worry
on Tue, 10/12/2010 – 10:56
#643314

Where do you think they get their “grant” money every year?

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 11:29
#643416

this grant money is responsible for more theories on “why big government policy is good for America” than anything else.  criminal.

Login or register to post comments by the grateful un…
on Tue, 10/12/2010 – 10:55
#643313

Primarily these sales would be to one country, China. China is open to the idea as their nascent economy has little in the way of essential reserves, including oil. (they would much rather have that probably) The US has one of, if not the largest gold reserve, which is what keeps our dollar going, wait? what did I say, Bernanke wants to destroy the dollar, the gold reserve is holding the dollar up? SELL IT ALL BEN, TRASH THE BUCK, then the US compete with China on a level playing field, including Big Socialist Brother looking after us with Google Earth. Makes sense

Login or register to post comments by Clayton Bigsby
on Tue, 10/12/2010 – 10:59
#643319

I’ve got an idea – why doesn’t he self-immolate, while fucking bernanke in the ass and sucking paul krugman’s left nut, all while being torn apart by wild boars and shit on by a giant flock of seagulls

Login or register to post comments by Clayton Bigsby
on Tue, 10/12/2010 – 11:04
#643337

that is, of course, unless they would like to sell it to me at current spot rates – in that case, I am all the fuck in – I’m rich, beyotch!

Login or register to post comments by alexwest
on Tue, 10/12/2010 – 11:05
#643338

look at his fuck face,,, lobotomy is right for him

http://www.google.com/images?client=opera&rls=en&q=Edwin%20Truman%2C%20a…

at least it will ease his pain having empty thing on his shoulders

banging  aimlessly…

 

alx

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 11:30
#643424

this man is a traitor.

Login or register to post comments by contrabandista13
on Tue, 10/12/2010 – 11:13
#643360

Alrighty then………….. What gold is he talking about…????? We sold it all of it between 07/02/99 and 01/20/01 we can’t resell it….. Check out the chart…. Oh….! and guess who sold it…..? Guess who the MORON was….

http://futuresource.quote.com/quotes/chart.action?symbol=GC&compareTo=DX…

Lovely, just lovely….

Best regards,

Econolicious

Login or register to post comments by tamboo
on Tue, 10/12/2010 – 11:18
#643374

short on gordon brown, long on golden brown.

 

 

Login or register to post comments by callistenes
on Tue, 10/12/2010 – 11:19
#643378

Most of the gold there is not “ready for delivery” much of it is smelted 90% from the 1933 confiscation so it can’t be readily sold without assay and possible reprocessing.

Login or register to post comments by bronzie
on Tue, 10/12/2010 – 12:06
#643542

Most of the gold there is not “ready for delivery” …

assuming there is any gold in the vaults anyway

google “deep storage gold” and “GATA” – the US changed the way it accounts for its gold holdings in recent years – could this be because the actual mined gold is all gone and has been replaced with gold that is still in the ground?

Login or register to post comments by bugs_
on Tue, 10/12/2010 – 11:25
#643400

A fraudulent conveyance act prior to BK.

Login or register to post comments by Xibalba
on Tue, 10/12/2010 – 11:30
#643422

US To Trade Gold Reserves For Cash Through Cash4Gold.com

 

Login or register to post comments by blunderdog
on Tue, 10/12/2010 – 11:31
#643425

I’m sure hoping the goobermint dumps its gold.  And all the gold speculators panic and dump theirs too.

That’d be sweet.

Login or register to post comments by buzzsaw99
on Tue, 10/12/2010 – 11:49
#643481

after that we can trade manhattan for some shiny beads.

Login or register to post comments by bronzie
on Tue, 10/12/2010 – 12:04
#643531

What a maroon!!!

Bugs Bunny

I’m sure Edwin’s momma loves him but what a f*cking idiot, PhD or not

Login or register to post comments by Gimp
on Tue, 10/12/2010 – 12:10
#643550

This windbag is another product of the nanny/elitist state who has never put a hard day of manual labor in in his life. Probably looses it when his NYT shows-up late in the morning…why are we listening to these people who have been sooooooo wrooong…

BTW – We sold our gold years ago..just saying

 

Login or register to post comments by Quinvarius
on Tue, 10/12/2010 – 12:16
#643569

Sounds like mr PHD day trader is behind the eightball on his gold short.  LOL.  If the US sold the rest of its gold, the dollar would go straight into the toilet vs gold.

Login or register to post comments by trav7777
on Tue, 10/12/2010 – 12:18
#643575

Stupidest. Economist. Ever.

Bretton Woods, you fucking idiot?

What fuckin rock did this moron crawl out from under? 

Login or register to post comments by Quinvarius
on Tue, 10/12/2010 – 12:20
#643577

He is suggesting that we do something that provides zero benefit to anyone or anything and removes any possible collateral we could produce vs our debt.  We need to do the exact opposite of this guy is saying and push gold up as high as we can to counter our national debt.  This guy is just a moron.

Gold will just go up faster in the end if the US has none.

Login or register to post comments by Sabremesh
on Tue, 10/12/2010 – 13:12
#643676

This is no more than an attempt to create a panic and drive down the price of gold (ie just a variant on the perennial “IMF to sell 400 tonnes of gold” story). It could work in the short term, but sooner or later someone will call their bluff.

Login or register to post comments by Jim B
on Tue, 10/12/2010 – 13:20
#643712

Agree!

Monetary policy is propelling gold.  The mindless printing will end very badly!

Login or register to post comments by Rob Jones
on Tue, 10/12/2010 – 13:21
#643713

This would be a dream come true! I personally feel that gold should be in the hands of the people, not the government. If this happened, I would buy as much gold as possible. But unfortunately, I think that the chances of this suggestion being accepted are virtually zero.

Login or register to post comments by apberusdisvet
on Tue, 10/12/2010 – 13:21
#643718

Hmmm Hmmm Hmmm:

Sell gold we don’t have.

 

Issue mortgages with no proper title chain.

 

Bailout out companies that produce vehicles that the average American can’t afford.

 

Protect corporate fascism at the expense of the taxpayer.

 

Use a Teleprompter that is programmed to only tell lies.

 

We certainly live in interesting times.

Login or register to post comments by web bot
on Tue, 10/12/2010 – 13:28
#643758

This guy’s a #uckin ijit. No other word to describe it. He belongs in the same Nobel camp as Krugman.

Selling gold ignores historical reality.

Login or register to post comments by Mr Lennon Hendrix
on Tue, 10/12/2010 – 13:37
#643777

Gold is having awesome price action and this “economist” wants to sell?  Gold is also America’s only real and risk free asset, and the world knows this.  If the gold was sold, it would have America waving a white flag.  What a pansy this guy is, talking about stuff that he either a) knows little about b) hates with a passion.  I say this because it is very possible that he understands that the market dynamics revolve around real assets (ie gold/ silver, oil, water, food).  Since he is from Yale, I will guess he is of the Scull and Bones Crew. This old way of running money is as done as pop music.  When the FIAT propaganda tide comes out, and it is shown that the currentseas left a bunch of dudes necked, the paradigm of “monie” will be altered so abruptly, the shock will leave people bewildered and victimized.  Even though gold is only a representation of leisure time, and is not actually that itself (so without skill, can one ever be comfortable without comfort?), it’s importance lies in the representation itself.  For those out there who on one meal a day wish to meditate at the top of a mountain, so be it.  But until the banksters majikaly change themselves into monks, I won’t believe it in the best interest of the people to sell this asset.

Man up Truman, we are taking this to the bank, and the bank it only accepts gold and silver!

Login or register to post comments by Trundle
on Tue, 10/12/2010 – 13:40
#643818

If you agree to sell all of your gold- and you sell to any number of fraudulent associates- then noone will notice that you had no gold to sell in the first place!

Ron Paul audit of Fort Knox-  problem solved!

And you didn’t even have to blow a building to do it. 

Login or register to post comments by CosmicCharley
on Tue, 10/12/2010 – 13:46
#643849

Sure am glad I didn’t go to Yale!

Login or register to post comments by pangalliondotcom
on Tue, 10/12/2010 – 13:50
#643864

This is obviously a way to get round what would prove to be a very embarrassing audit. If the cupboard is bare, and openly professed to be so, before Ron Paul gets his accountants into Fort Knox then that would spare the banking cartel a great deal of embarrassment/jail time.

Login or register to post comments by Stuck on Zero
on Tue, 10/12/2010 – 14:00
#643901

I have a more modest approach.  Sell Manhattan and everything and everyone in it to the highest bidder.  That way we get rid of a huge liability and gain big bucks. 

Login or register to post comments by Island_Dweller
on Tue, 10/12/2010 – 14:09
#643932

If gold is in a bubble, how does the largest holder in the world unload at market prices?

Login or register to post comments by chopper read
on Tue, 10/12/2010 – 14:24
#643990

Bernanke, is that you?

Login or register to post comments by Inflate Or Die
on Tue, 10/12/2010 – 14:33
#644032

This is not meant to lower the deficit, but to sppress the price of gold.  It isn’t going to work because you have countries like China and Russia ready to buy right away.  Sell all of our gold and the result will be an emperor with no clothes.  Gold is stability.  It is in our language.  For example the term “good as gold” relates to stability and soundness.  It is amusing that these Fed Heads accuse gold of what they do.  The Federal Reserve is responsible for unstable prices, wages, output and employment.  I can still buy a gallon of gas with one pre-1964 silver quarter.  I can still buy a nice suit with a 1913 20 dollar gold piece.  Granted I have to convert it to FRN’s, but the only thing that has changed is the value of the FRN’s.  If that is not stability I don’t know what is.

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