Prudent Investor

Bundesbank Agrees to Sell Gold

Sorry for multiple post of my comment.

Bundesbank Agrees to Sell Gold

Just to clarify: Germany's Bundesbank sells a few tons every year to the German mint for production of collectors coins.

Bundesbank Agrees to Sell Gold

Just to clarify: Germany sells a few tons of gold every year to the German mint for collector's coins.

Bundesbank Agrees to Sell Gold

Just to clarify: Germany sells a few tons for collectors coins every year.

Is China Preparing to Buy Gold?

The bankrupt Western world sells its last true asset to be left over with mountains of paper and the Chinese are happy to get rid of their dollar paper assets in return for the ultimate cash since 6,000 years.
Hey great; we have a functioning free market here where the interest of both buyers and sellers are met. As to the wisdom behind the strategies of both parties involved I tend to see the Chinese winning the race of global redistribution by many horse-lengths.
In order not to clog comments, pls read more at prudentinvestor.blogsp...

Better Listen What China Has to Say

Mr. Lewis,
pls be so kind to include yr alleged lies in China's GDP calculation when alluding to such.
To find out what Yuans look like I modestly advise to do a "Go ogle" picture search.
Pls also provide more background why China is run less to the people's benefit, e.g. in a comparison with the economic governance of the USA which tries to nationalize away its problems.
Your kids will certainly be happy to pay up for the bonuses US bankers and the billions given to carmakers with hopelessly outdated products lagging several years behind European car making quality and fuel.
Pls also be a more specific why Europe is a dragon?
And pls check your last allegation which makes absolutely no logical sense.
Maybe you read your comments a second time before hitting the "publish" button and apply a spell-checker too. "Tenents" (???) could not be found in any of the dictionaries I use.
Thank you very much for your contribution.


On Jun 28 01:11 PM James Lewis wrote:

> I think the author does not understand the basic tenents of the balanace
> of payments. Nor does he understand how gdp is calculated in China.
> In China 6.1% GDP growth (which is around 4.5% after the lies have
> been factored out) is indicative of a recession. In terms of China's
> reserves, the reason why the Chinese Government has so much reserves
> because they run China like a business, not like a non-for-profit
> organisation with the PEOPLE'S best interests at heart. I'm sure
> most countries could build up reserves by holding down the living
> standards of a great majority of its people in order to fully exploit
> and profit from its human resources.
>
> Also do we not think China is getting a little head of itself talking
> about the Yuan being a reserve currency and the need for them to
> buy more gold. Most of the worlds population dont even know what
> the yuan looks it.
>
> And China is not a Dragon..it's hungry Tiger.
> Europe is the Dragon.
>
> Tom E, nice thoughts. Seems to me the speculative stock-piling is
> also a short-term trading hedge against the dollar weakening. Some
> days I feel that China is talking the dollar down to make their speculative
> stock-piles rise in value (in USD terms).
>

Expecting Hyper-Inflation: Fed Chooses to Monetize America's Debt

Thank you all very much!!! I am overwhelmed by receiving 50 comments on this post. I have to re-read all your comments and hope to answer your opinions/questions in the future posts to come. Nothing drives me more than such witty responses! Thx again.

A Must See Movie: 'Zeitgeist Addendum' Explains the Fiat Money System

Andypandy,
I will follow up this week with some links that explain this fundamental problem - which you sense very correctly - of a fiat money system.
One book I recommend to everybody interested in the subject is "Secrets of the Temple" by William Greider which is by far the best (of the very few) book about the Federal Reserve. Greider is a Washington Post veteran who has moved to the left of the political sphere since he wrote this master piece that is both informative and brilliantly written.


On May 10 09:42 AM andypandy wrote:

> Ok I was wrong, it's a great video so far - first 20 min actually
> helped me understand me something new... Where does the money come
> from to pay interest to the federal reserve if they are the ones
> who make the money? Ha, have I not asked that question before?

Equity Markets, Forex and Precious Metals

JP Morgan once said, "gold is money; everything else is credit." He did not mention that credit comes with today's rediscovered danger of counter party risk. Only PMs are a value in itself and not the obligation of another entity.

Why Commodities May Be Nearing a Turning Point

Nice reminder that bull markets like to travel with as little baggage as possible.

Dr. Kudlow’s Prescription? Gold Diagnosis Unclear

I agree, Monday's whacking of gold (and silver) in a matter of minutes and ahead of the FOMC meeting smells fishy.
I conclude the Fed will stand pat and gold may take off as Bernanke will prove again that he does not care about rising prices - and I don't mean the official statistics - at all. His future middle name shall be Ben Inflation Bernanke.
As the Eurozone has escalating inflation figures as well, being long gold will be the best defence against the meltdown of fiat currencies.