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An Inauspicious Anniversary

96

{Editor's Note: Today is the 105th "anniversary" of the creation of the US Federal Reserve System. Five years ago on the 100th anniversary, we had the honor of interviewing G. Edward Griffin, author of the seminal book "The Creature From Jekyll Island". The information discussed is even more relevant today than it was then, as the supposedly benevolent and altruistic Fed continues to raise the fed funds rate and contract its balance sheet. To that end, the holiday break would be an excellent time to re-listen to this terrific and tremendously-informative podcast.}

One hundred years ago today, The Federal Reserve System of The United States was born. To "celebrate" this unfortunate anniversary, I invited G. Edward Griffin, author of the book "The Creature from Jekyll Island", to spend some time in Turdville. In a webinar format, Mr. Griffin spoke candidly about his dislike of central banking and he took questions directly from listeners.

In this 50-minute conversation, Mr. Griffin addresses many topics near-and-dear to the hearts of Turdites everywhere, including:

  • Why was the Federal Reserve System created and whom do they serve?
  • Why does The Fed create money and will Quantitative Easing ever stop?
  • Can the process of monetary destruction and devaluation be halted and reversed?
  • Are we inevitably headed toward totalitarianism or is there still time to change direction?
  • What role might alternative currencies such as Bitcoin play in the future?

Many other topics are discussed, too, so please make the time to listen to this entire recording. You will not regret doing so.

Finally, at the end of the webinar, Ed and I ask you for a favor. His longtime assistant, Joan, is struggling with some health issues brought about by her exposure to radiation poisoning some years ago. To help with her struggle, please take the time to visit her website. She's an accomplished artist and, by supporting and purchasing her work, we can all help her in her fight against these diseases. If you're an art lover...or perhaps shopping for one this holiday season...please check out Joan's site and consider making a purchase. Use can use this link: https://pennypup.wix.com/joanhunterart

Thanks for listening!

TF

  96 Comments

ivars
Dec 23, 2013 - 4:12am

Seems that gold ETFs are

Seems that gold ETFs are destined to bleed more. Any ideas why silver ETFs are not bleeding?

https://uk.reuters.com/article/2013/08/19/uk-gold-uk-exports-macquarie-idUKBRE97I0PQ20130819

Quote:
The UK exported 240 tonnes of gold to Switzerland in May alone, while its exports over the first half of this year totalled 797 tonnes, Macquarie said in a note.

In contrast, Britain exported just 92 tonnes of bullion to Switzerland in the whole of last year, it said.

"And why is it going to Switzerland? Two explanations make sense. One would be that investors have decided to switch their gold investments from ETFs to allocated deposit accounts, which are often held in Switzerland."

It added: "But a bigger factor, we think, is that the gold bars from ETFs have gone to Switzerland, where most of the world‟s gold refining capacity is, to be remelted into different size bars and coins and then sold on end consumers, predominantly in Asia, specifically China and India."

ivars
Dec 23, 2013 - 4:12am

Seems that gold ETFs are

Seems that gold ETFs are destined to bleed more. Any ideas why silver ETFs are not bleeding?

https://uk.reuters.com/article/2013/08/19/uk-gold-uk-exports-macquarie-idUKBRE97I0PQ20130819

Quote:
The UK exported 240 tonnes of gold to Switzerland in May alone, while its exports over the first half of this year totalled 797 tonnes, Macquarie said in a note.

In contrast, Britain exported just 92 tonnes of bullion to Switzerland in the whole of last year, it said.

"And why is it going to Switzerland? Two explanations make sense. One would be that investors have decided to switch their gold investments from ETFs to allocated deposit accounts, which are often held in Switzerland."

It added: "But a bigger factor, we think, is that the gold bars from ETFs have gone to Switzerland, where most of the world‟s gold refining capacity is, to be remelted into different size bars and coins and then sold on end consumers, predominantly in Asia, specifically China and India."

ivars
Dec 23, 2013 - 5:19am

Info on India's gold

Info on India's gold accumulation and effects of US sponsored levies to reduce demand in India.

Quote: India has, on average, 22,000-32,000 tonnes of accumulated gold. There have been varying estimates of the amount of accumulated gold over the last 100 years. But there is one important statistic –the accumulated gold within the temples of India is sufficient to meet the country’s demand for at least 10 years. One can monetise idle gold deposits held within temples through the Gold Deposit Scheme (GDS). The gold deposit plans would see gold owners in India – the world’s largest consumer of the metal – give their gold to a bank and earn interest in return. They would also enjoy a “guarantee” from the central bank for the gold’s full return at the end of the deposit period.

https://www.lbma.org.uk/assets/Alch_72_India_Asia_and_the_World.pdf

DeaconBenjamin
Dec 23, 2013 - 7:45am

China Rates Approach Crisis Levels Despite Central Bank Measures

By NEIL GOUGH Published: December 23, 2013 HONG KONG — An exceptional bid by China’s central bank to curb soaring interest rates and relieve pressure on the financial system appeared to have come up short on Monday, as Chinese money market rates shrugged off the measure and continued to approach the crisis levels seen in June. The central bank, the People’s Bank of China, said late Friday that it had provided more than 300 billion renminbi, or about $50 billion, in short-term funds to selected banks over a three-day period that week. Rates continued to surge on Monday, however, in China’s money markets — a key source of short-term funding for commercial banks and also for financial institutions engaged in risky, off-balance-sheet shadow lending. One key rate, the seven-day repurchase rate, rose as high as 10 percent on Monday. That was double the rate of a week earlier and the highest level since June, when the People’s Bank of China allowed rates to surge in an effort to curb speculative investment in the country’s sprawling shadow banking sector. China’s banks are scrambling for short-term cash to meet month-, quarter- and year-end regulatory requirements. At the same time, demand for cash is high among Chinese companies seeking to meet year-end payments. These and other factors have combined to push the costs of short-term borrowing in China up drastically, a situation that if left unchecked, could leave some banks struggling to meet their obligations and could have implications for the broader economy. https://www.nytimes.com/2013/12/24/business/international/china-rates-ap...

ag1969
Dec 23, 2013 - 7:59am

J.P. Morgan Sees Golden Opportunities for Huge Gains in 2014

With serious inflation still only a gleam in the eyes of the ardent gold bugs, 2014 looks like a tough year for gold miners. The metals analysts at J.P. Morgan think it is easy to look at the cost of new mines and conclude that current prices are unsustainable. But new mine projects may not be needed for several years if more of investors’ above-ground gold horde is unwound. Here is where the story gets more interesting.

For many on Wall Street the question of future inflation is a when, and not if, proposition. Central backs around the world are printing money at a furious pace, debasing the value of their local currency. So whether it is a question of gold and silver as a hedge, an industrial commodity or simply a straight contrarian stock trade, the J.P. Morgan team thinks now is the time to look hard at the top names. They also think the downturn in prices has created a golden opportunity.

J.P. Morgan has six top names for 2014 for which investors may buy the stocks at rock-bottom prices.


https://247wallst.com/commodities-metals/2013/12/23/j-p-morgan-sees-gold... ____________________________________________________________________________ In a world not run by central planners, the headline would have been: After Several Years of Manipulating the price of Gold and Silver Lower, JPM has cornered the Gold Futures Market, and therefore, will allow the price to rise in 2014.
dgstage
Dec 23, 2013 - 8:44am
dgstage
Dec 23, 2013 - 8:46am

Jim Willie

Turd

When is the holiday Willie

ag1969
Dec 23, 2013 - 8:58am

dg

"What Happens When You Have to Admit the Gold’s Not There-Eric Sprott"

____________________________________________________________________________

Oh, that's an easy one dg, you flip over the game board like a petulant 8 year old and start bombing the snot out of anything and everything. Do you have any other brainteasers for me this morning?

tmosley ivars
Dec 23, 2013 - 9:07am

Ivars: I wonder if they

Ivars:

I wonder if they aren't bleeding because those inventories already belong to China, and are there as part of a joint agreement between China and the Fed to suppress prices of both PMs?

Urban Roman
Dec 23, 2013 - 9:15am

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