Showing posts with label panic. Show all posts
Showing posts with label panic. Show all posts

Monday, September 14, 2015

STUNNING: What Caused The Bank Of England To Halt Gold Leasing In A Panic?

http://kingworldnews.com/stunning-what-caused-the-bank-of-england-halt-gold-leasing-in-a-panic/
If you look at the chart above, one has to wonder, if gold really is a ‘barbarous relic,’ why did the Bank of England suddenly halt gold leasing as the world plunged into financial chaos?

The bottom line is that when the shit hits the fan, nobody cares about paper and everyone with a brain, including apparently the Bank of England, hoards their gold and refuses to part with it. 

Thursday, November 28, 2013

David Stockman Fears "Panic" When The "Lunatic" Fed "Loses Control"

Well, David Stockman certainly isn't drinking the Kool-Aid.  I agree with him, but timing bursting of asset bubbles is never easy to do.  As exaggerated as asset prices are in equities, they can become stretched to even more irrational levels in a melt up.

Even if nominal values appreciate, if the sovereign fiat currency in question is in a free fall, real wealth is not achieved.  For example, if soaring stock markets are an accurate indicator of prosperity, Zimbabwe would be the wealthiest nation in the world.  Clearly, that is not the case for the former advanced economy of the once-prominent Rhodesia.

Stockman's case for the Fed exporting currency devaluation to other countries is absolutely true, as central bank balance sheets are exploding globally.  Jim Rickards wrote his best-selling Currency Wars on that very premise of a race to the bottom.  Currency wars never end well, but when the entire planet is doing it (which is unprecedented in world history), the outcomes may very well be our worst nightmare economically.

http://www.zerohedge.com/news/2013-11-27/david-stockman-fears-panic-when-lunatic-fed-loses-control