Stevie b.

Thoughts on Apocalyptic Prophesy

"In some very real sense, however, gold is just another ponzi scheme. It is only worth something because other people think it's worth something."

I think this is a rare unworthy comment from the worthiest of authors.

What store of value/medium of exchange is not a so-called Ponzi scheme? Should we buy something no-one knows about and therefore of no value and die waiting in the hope that others somehow get to know about it and Ponzify it? Where is the "economic rationale" in that? Obviously anything of value only has a value because the owner believes he/she is not the only one to think so.

It boils down to faith. As long as people have faith in gold as a better long-term store of value relative to any other Ponzified, even interest-bearing store of value, then they will be able to withstand the illusory "wheels coming off" their wagon if and when that might happen.

Petrostate Tail Risk: Add the U.K. to That List

Russians may have totalitarianism in all but name, but they lack at least one thing that is quintessentially British - a stiff upper lip. Give me London over Moscow any time

Crossing the Rubicon: Monetizing the Long Bond

"Now BoE can print all it wants in order to reinflate the UK bank system, and no one need know just how much new money there is. How can anyone judge dilution when there are no numbers on which to make judgment?"

Methinks you exaggerate a tad. They've just changed the reporting period - there will still be numbers.

The Best Buy Signal in 51 Years

Why can't it simply all mean that stocks will just fall apart while treasuries fall completely apart?