Thursday, February 24, 2011

Empty Threats and Vaults

What is causing gold to go down today?  All of a sudden, on Gadaffi assassin rumors, gold drops.  Oil went down heavy too.  Silver too.  Platinum not as much as $1800 is its support.  The weirdest thing?  The dollar failed to gain.

Equities bottomed off of Dow 12k.  They seem to have found a niche with the weak dollar over the last couple of years while Bernanke dangled his sword over the dollars neck.  How long will the dollar hold at DXY 77?  Depends on how long gold can be held below $1440.

The pace of money has sped up on all the uncertainty.  The volatility is still massive.  If things quite down, expect more of the same steady inflation.  If something momentous happens then anything could follow in finance, even the end of the Keynesian experiment.

We know in the end the bank vaults are empty and the banking system was never functional.   Any discourse from such entities is veiled and shallow.  They have not the necessary collateral or means to sustain what will be the old way of finance coupled with humanities tools.  Technology has changed since gold was monie, and maybe for the better.

Peak oil is here.  Even if we have a lot more the Middle East is about to cease as a viable option to rely on.  America will be forced to use its own, and destroy its habitat and thus erode its future.  Europe will be forced to pay out the nose, as they have little oil left.  China has Russia, but will compete with Europe at the price and margin.

All the while gold stays quiet.  It stays forever, in any amount.  This is what makes it monie, and monie creates finance.  As reliant on monie, monie is reliant on finance.  The better the world is is shaped by both and how both function.


  1. Both for this particular evening - and existentially - goodnight. There is nothing more I have to say, but I hope I find a way to enjoy this blog living "off the grid". This is some of the best writing and content one can find on the internet.


    Notice Keith wasn't singing about FRN's

  2. Great song!

    And Thank you for the kind words, Scooter.