Comments on: The Golden Anchor http://gebweb.net/blogpost/2008/12/31/the-golden-anchor/ Striking fear into the hearts of the wicked! Sun, 01 Aug 2010 01:01:37 +0000 http://wordpress.org/?v=2.2 By: geir http://gebweb.net/blogpost/2008/12/31/the-golden-anchor/#comment-239 geir Tue, 27 Jan 2009 13:01:13 +0000 http://gebweb.net/blogpost/2008/12/31/the-golden-anchor/#comment-239 Surely somebody will be willing to sell you a good weapon if you're paying in gold. I'm more worried about governments suddenly deciding that owning gold is illegal. Because they can do that, just like in the 1930s. We did come fairly close to a situation where the stock market / banks were closing last fall. The Russian exchange was closed for four days, the British banking system was on the edge of collapsing (http://www.dailymail.co.uk/news/article-1127278/Revealed-Day-banks-just-hours-collapse.html) and arbitrary new rules in the US banned short selling. The obvious next rule is to just ban selling. No way the stock prices can go down then ;-) So you see, a situation where banks and stock exchanges go under and you are last in line to claim money that is simply not there, is a real concern at this point. The FDIC has $53 billion in capital to insure $4.2 trillion in deposits. You can do the math. Putting money in a bank account at this point is equivalent to lending it to companies already bankrupt (zombies kept alive by creative accounting), only you get lousy interest rates that don't compensate you for the risk. As Saint-Obama is revealed to be helpless in stopping this train-wreck, I expect to see another severe market crash, and I would not be surprised to see the S&P 500 live up to its name this year. Obama is not going to fix anything, as he has shown absolutely no desire or will to crack down on the fraud that has been rampant in the system. In fact, his new secretary of treasury and thus head of the IRS, Tim Geithner, is a tax evader himself! If you live in California, you should also be aware that that state is as bankrupt as the banking system itself, and make sure you're not withholding too much taxes this year, as you are likely to get that reimbursed with IOUs. If you're able to trade that junk for money at any reasonable rate, you should be very happy indeed. Surely somebody will be willing to sell you a good weapon if you’re paying in gold. I’m more worried about governments suddenly deciding that owning gold is illegal. Because they can do that, just like in the 1930s.

We did come fairly close to a situation where the stock market / banks were closing last fall. The Russian exchange was closed for four days, the British banking system was on the edge of collapsing (http://www.dailymail.co.uk/news/article-1127278/Revealed-Day-banks-just-hours-collapse.html) and arbitrary new rules in the US banned short selling. The obvious next rule is to just ban selling. No way the stock prices can go down then ;-)

So you see, a situation where banks and stock exchanges go under and you are last in line to claim money that is simply not there, is a real concern at this point. The FDIC has $53 billion in capital to insure $4.2 trillion in deposits. You can do the math. Putting money in a bank account at this point is equivalent to lending it to companies already bankrupt (zombies kept alive by creative accounting), only you get lousy interest rates that don’t compensate you for the risk.

As Saint-Obama is revealed to be helpless in stopping this train-wreck, I expect to see another severe market crash, and I would not be surprised to see the S&P 500 live up to its name this year. Obama is not going to fix anything, as he has shown absolutely no desire or will to crack down on the fraud that has been rampant in the system. In fact, his new secretary of treasury and thus head of the IRS, Tim Geithner, is a tax evader himself!

If you live in California, you should also be aware that that state is as bankrupt as the banking system itself, and make sure you’re not withholding too much taxes this year, as you are likely to get that reimbursed with IOUs. If you’re able to trade that junk for money at any reasonable rate, you should be very happy indeed.

]]> By: Kristian Eide http://gebweb.net/blogpost/2008/12/31/the-golden-anchor/#comment-238 Kristian Eide Tue, 27 Jan 2009 04:14:06 +0000 http://gebweb.net/blogpost/2008/12/31/the-golden-anchor/#comment-238 You forgot one important detail in your account - some of the money will need to be used for the purchase of a number of AK-47 assault rifles with sufficient ammunition to hold off all those who would like to get their hands on the gold if the world situation ever gets bad enough that the stock exchange closes. You forgot one important detail in your account - some of the money will need to be used for the purchase of a number of AK-47 assault rifles with sufficient ammunition to hold off all those who would like to get their hands on the gold if the world situation ever gets bad enough that the stock exchange closes.

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