Pet Rock Revisited

It was almost precisely two years ago that the WSJ published their infamous "gold is a pet rock" article. Just as that article and a few others marked the conclusion of the bear market, could a new article published ten days ago in the Washington Post be ringing the same bell?

Here's a link to the original article...though the WSJ now has it behind its paywall: https://blogs.wsj.com/moneybeat/2015/07/17/lets-be-honest-about-gold-its-a-pet-rock/

And of course, here's the wonderful cartoon that accompanied the piece:

Astute observers will also recall the "pet rock" article was published on Friday, July 17. Two days later, on Sunday July 19, CDG was raided and smashed for almost $60 in a "flash crash" similar to what we've seen lately in both metals. Here's what we wrote at the time. Does this sound familiar given what we've seen over the past two weeks? https://www.tfmetalsreport.com/blog/7036/gold-raid-july-19

And so now here we are again today. Someone named James Ledbetter has written a book called "One Nation Under Gold", a title which, at first glance, seems to hold some promise. Instead, Mr. Ledbetter runs off to a Keynesian wonderland where gold is a shackle from which mankind must be freed. The reviewer of the book, Simon Johnson (the former chief economist of the IMF!), goes on to wax philosophic about the dangers of "the gold lobby" (did you know there was one?) and he fears that "quasi-goldbugs have a more complete grip on power than at any time since 1932". Seriously. I'm not making this up. You can read it for yourself here: https://www.washingtonpost.com/opinions/the-long--and-dangerous--american-path-paved-in-gold/2017/06/29/3e8ef04a-5055-11e7-be25-3a519335381c_story.html?utm_term=.e8dee77169d5

The only true logic and knowledge in the article is found in the comments section where both our friend John Butler and GoldMoney CEO Roy Sebag chime in with some reasoned and informative additions. Be sure to scroll to the bottom in order to read these insightful comments.

Of course, whether or not the price of gold is at another low remains to be seen. Perhaps this latest laughable attempt at fiat currency justification is nothing more than that...paper propaganda. However, as you can see on the chart below, the timing of the article and the most recent flash crashes is certainly an interesting coincidence. (Another interesting coincidence is the current Commitment of Traders structure. More on that later this week.)

TF

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31 Comments

Dirt_Reynolds's picture

Gold

Want none of it... all Ag baby.

Just painted a floor in the basement, gonna read this while it dries.

#keepstacking #networking

Turd Ferguson's picture

And I though this was interesting today

MODERATOR
ArtL's picture

One of these days, something will change!

The bankers are trying to keep the system going and pretend the dollar is strong by suppressing the price of Ag and Au. Is it possible to have a transition away from the USD to something new without completely crashing the system and causing an economic disaster?

goldcom's picture

No Potion for the Pain

My sentiments toward the Cartel these past weeks

tyberious's picture

50 Million Oz Dumped - Silver

50 Million Oz Dumped - Silver Market is Rigged! | Rob Kirby

silver10sguy's picture

Manipulation and Propaganda

The nonsense that is put out into the public forum is criminal but the fiat masters rule.  We may eventually yet see "helicopter money."  

imodelalot2's picture

Kids Games

This whole paper vs. physical reminds me of rock, paper, scissors as a kid.

Paper beats rock - Current situation with physical being covered by unlimited paper.

Scissors beat paper - Once the COMEX contracts are cut up.

Rock beats scissors - Once physical takes control of the ability for contracts to be torn up and cash settled.

They tried to warn us all along!

ArtL's picture

Someone stepped on USDJPY?

Did the Fed chair say something?

canary's picture

OI (final)

Gold Future +4,372   (total 479,667)

Silver Future +6   (total 207,952)

Specs likely shorting (cartel covering)....Somebody (your Retirement Fund perhaps included) is lining up for an execution. And the Friday's COT report will show.

fluxplus's picture

PPT in action now

Drop in SPY and USD/JPY caused PPT to act.

AGXIIK's picture

Gold as a pet rock

Wall Street Journal as pet schlock

yukon123's picture

Atlanta GDP down to 2.6%

Dive, dive

Turd Ferguson's picture

fwiw

MODERATOR

This story is getting a lot of run today and it's current,y being blamed for the drop in the S&P and USDJPY an hour ago: http://www.zerohedge.com/news/2017-07-11/donald-trump-jr-releases-email-chain-about-russian-lawyer-meeting

I just ran out for a quick errand and was flipping through the radio dial while driving. I found Glenn Beck discussing this story and he suggested that DJT Jr could very well end up in deep shit over this as it "approaches treason". I have no idea if that's true of course as I'm not up to speed yet on the specifics. Thus, this is just a simple heads up.

Turd Ferguson's picture

Mr Donut now down 40% from

MODERATOR

Mr Donut now down 40% from his first, ridiculous guess of +4.3%.

The first "official" guess from the BEA isn't due until July 28.

silver10sguy's picture

Gold, Silver, and Miners In the Green

What a nice surprise!  Looking forward to the COT report on Friday.  Also, Andy M. what's up?

Turd Ferguson's picture

Regardless of why

MODERATOR

This is a fun and helpful chart today in USDJPY. And another failure at the levels discussed in yesterday's podcast!

Mickey's picture

Its treason if going against the Clintons

if he did anything wrong he listened to someone from a foreign country.

He did not take info from here that would compromise the US  and give it to someone in a foreign country.

If he did that, then he should be in deep doo doo.

If he received info that could be damaging to the clintons, then that should have  been discussed with someone from within the Govt, but a year ago, who could he trust? Loretta Lynch? Comey? Obama? The Clintons?

We have democrats spending shit loads of time digging up dirt on the  trumps, and having face time on TV.  The republican waste time tripping over each other. They should be giving up recess and rolling up sleeves , both parties, to solve all the crisis we have.

Need our government be reminded that we are, broke, bankrupt, insolvent, at the Federal State, County and Local government levels and in many cases with no cash also have huge unpayable unfunded liabilities,

which by the way is why we are in PM.

It should be all hands on deck to work on the pressing problems but the other issues are more fun and easier  for them to work on.

We should be taking solstace on their not being able to fix problems: it will help metals. Screw up everything else but what the hell.

JQuest's picture

Rob Kirby - Jul 11, 2017

imfd's picture

DJT

What if someone asks "what was the dirt"?, the Democrats would lose control of the narrative if young Trump comes out and says that apparently  Clinton sold Uranium to the Russians and took donations from them to the Clinton foundation. It would be bnice to think that enough rope is being left out for the Clintons to hang themselves.

canary's picture

LOL....

Chuck Butler: " We will have Fed Chair, Janet Yellen give a testimony to Congress tomorrow regarding the Fed's thoughts on the economy and so forth... This is where the sunshine, lollipops and rainbows will be evident, folks... ".

Old Howard's picture

@fwiw

Beck is more anti Trump than CNN!

tyberious's picture

The Saker: The Syrian

The Saker: The Syrian Powderkeg

Angry Chef's picture

The Syrian Powderkeg

Tyberious. Thanks for posting that. He and Chris Martenson did a great job in outlining what is going on in Syria, the MENA, and the actual history of the region. His warning towards the end of the interview is chilling. The Neo-Cons, Israel, and Saudi Arabia run America. The Pentagon, CIA, Neo-Cons, and White House do not HAVE A SINGLE COHESIVE FOREIGN POLICY IN THE MENA. Folks, if the Neo-Con crazies get control of the White House. You can kiss your asses good-bye. I have said this before and I will repeat. The enemy is inside the gate. Ignore Syria, Ukraine, and North Korea. Get rid of Washington and those issues will be resolved. And as much as I hate to say it. It is the USD as the reserve currency that is the cause of this mayhem. Without it Israel, Saudi Arabia, and all the swamp creatures go into hiding. 

Nick Elway's picture

Congrats Turd, Pet Rock, Revisited on Zerohedge

Jihk2431's picture

Well, the propaganda hands are out again - blame those

that told you to act responsibly when your irresponsible behavior reaches an apex and begins the hard journey downward.  These idiots either 1) have no idea what Russia, China, Turkey, Iran, etc. are up to, or 2) they are intentionally obfuscating the facts to give the American public someone to blame when the shit hits the fan.  I don't think it's going to work as the internet has let the cat out of the bag, but it doesn't mean they won't try to do it.  There is an inflection point coming where the Keynesian wizards are going to try to maintain power in the U.S., but it is not going to work.  The real masters have plenty of gold in Switzerland and will cut a deal with the Chinese and Russians to carve up the world more evenly.  We will be the last remaining 1% of the middle class that survives, but we will rebuild and the country will be better for the struggles that are coming.

surfeitndearth's picture

A much better review... by James Grant

James Grant reviews James Ledbetter's 'One Nation Under Gold' for the WSJ

Goodbye, Yellow Brick Road

Submitted by cpowell on Sun, 2017-06-18 02:37. Section: Daily Dispatches

http://www.gata.org/node/17449

Jihk2431's picture

Jim Grant should run the U.S. Treasury

This man has a greater grasp of monetary history and the eventual pitfalls of centralized banking than anyone else I've ever read.  I appreciate him sticking his neck out for years, only to be mocked by many.

OOOBuck's picture

Angry - US dollar reserve currency (root of evil)

may be on its way out.  Enter the super-crypto and no "nation specific" reserve currency at all.  Really, no dollar at all, no Euro at all, no Remnimbi at all , no Ruble etc, etc..  No single country to fill in for the US dollar.  And for all those trillions of debt payable in US dollars.... just pocket change (sorry China).  The question is.... which crypto will step up to the plate and where exactly does gold fit into the equation?  My bet.... the crypto hasn't been invented yet and I don't think TPTB will like gold bullion anymore than they do now. Maybe a SDR crypto.   As for the bullion backed crypto... we'll wait and see.  It is after all, just another kind of paper gold.  

In the meantime, there's a bucket full of cryptos out there of which a few just may still be around in a few years (if any);  most will die on the vine.

ps.  I still think the Fed invented Bitcoin as a test model for the 'super-crypto'.  ooo

OOOBuck's picture

addendum... 'super crypto'

"one ring to find them all and in the darkness bind them"

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