Gold Not ‘Antifragile’ Enough for ‘Black Swan’ Author | Michael Santoli - Yahoo! Finance

Gold Not ‘Antifragile’ Enough for ‘Black Swan’ Author | Michael Santoli - Yahoo! Finance

Taleb makes the case that the safest stores of value are not gold, which has doubled in value in a few years. No, he looks at silver, cash (ie. treasury bonds), non speculative ag land, etc.

Truth is, I agree with him. While gold has been moved to tier one from tier 3 on the balance sheet of banks, the most pristine collateral for the purposes of backing interest rate swaps, etc, is the treasury bond of highly rated nations, like the US, Japan and Germany.

There is, as I have said here, a shortage of good collateral. Treasuries fulfill that purpose as long as there is not too much rehypothecation. The most certain way that treasury bonds will keep low yield, and steal from savers in order to secure pristine collateral, is the printing of more of those bonds.

I know that sounds crazy, but it is true. 

What is good for our economic system is not necessarily good for main street. However, we aren't certain failure of the system would be better. It probably would bring chaos.

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