Thursday, February 20, 2014

China and the real Golden Rule

This stuff interests me. Note that "Price Discovery" means the process of figuring out what a thing is worth. London and New York print pieces of paper, call them silver or gold, and manipulate the price with these documents. Neither financial center has anywhere near enough metal to cover these pieces of paper.

China only acknowleges ownership of 1,000 metric tons of gold. The real number is almost certainly over 4,000 metric tons.

Eventually, people are going to get a rude reminder about the real Golden Rule.

"The guy with the gold makes the rules."

Wednesday, February 12, 2014

Germany's Bundesbank gives away gold!

Germany's Bundesbank gives away gold!

Shame on me for the hyperbole, but the fact is that the "Buba" (Bundesbank) looks like it is going to give up on trying to get it's gold back from the Federal Reserve of the United States.

This bit from

"However, it appears the Buba has folded from pressure from the Fed after a mere 5 tons of Germany’s gold reserves were delivered in 2013 as the Handelsblatt reports:The Bundesbank no longer feels bound to the concrete repatriation commitment time table they now admit for the first time.

Here's a few things you need to know:

1) To protect Germany's gold supply from a possible Russian invasion, the German nation's gold was moved to France, England, and the United States.

2) Over the years, it has become increasingly difficult for the German government to get its hands on, or verify deposits, or even visit the gold in New York.

3) Germany has demanded the return of a small portion of its gold deposits.  In 2013, the Federal Reserve returned only 5 metric tons.  That is only one pallet's worth and it took them a year. (a metric ton of pure gold is a cube of 15 inches.  5 fifteen-inch cubes can fit on a single pallet.

One would think that Germany would insist on better performance.  In America, there are many stereotypes regarding the german character.  Being bashful is not among them.

So why does the Bundesbank not demand delivery?  Why does the German government not express its displeasure?

One possible explanation: The gold is already gone, sold into the marketplace to prop up the US dollar.

Perhaps the Bundesbank is concerned about precipitating a panic.

Still, if you lend something and then never get it back, that is either a gift or it is theft.

Thursday, February 6, 2014

Leonard Nimoy has COPD

He seems to be coping and he continues to work.

L. L. A. P.

Also, "Rock, Paper, Lizzard, Spock".

Gunny for Miss Congeniality?

Gunny for Miss Congeniality?

Spotted by an eagle-eyed reader on the campus of Irvine Valley College and forewarded to me.  I'm thinking that it's a different Matt Rommel, but you never know.

Gunny for Miss Congeniality?