Pet Rock Revisited

Tue, Jul 11, 2017 - 10:57am

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:

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 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?

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:

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.)


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Jul 11, 2017 - 5:46pm

LME AND HKEX are open!!!

Search news for more info. Seem physical longs are going to move over there soon. Only paper short going left in the Comex.

Jul 11, 2017 - 5:09pm

addendum... 'super crypto'

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

Jul 11, 2017 - 4:55pm

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

Jul 11, 2017 - 4:18pm

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.

Jul 11, 2017 - 3:44pm

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

Jul 11, 2017 - 3:28pm

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.

Nick Elway
Jul 11, 2017 - 3:08pm
Angry Chef
Jul 11, 2017 - 2:28pm

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.

Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

Jul 11, 2017 - 1:31pm

The Saker: The Syrian

The Saker: The Syrian Powderkeg

The Saker: The Syrian Powderkeg
Old Howard
Jul 11, 2017 - 1:19pm


Beck is more anti Trump than CNN!

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