The Price Of Gold Is Pointless - Business Insider

The Price Of Gold Is Pointless - Business Insider 

The gold bugs hate me regarding comments that I made on this article. But what is true is that gold has nothing to do with the real economy, nor does it have anything to do with the financial world. It has a place as good collateral, but it is not pristine. And low interest rates are here to stay.

I said in the comments:


We face a greater liklihood of deflation than we do of massive inflation. It is all about collateral: http://seekingalpha.com/article/1300741-we-face-derivative-collateral-deflation-and-ecb-banks-could-be-the-losers

The game has to stay as it is, because the Fed no longer can do a Volcker and raise interest rates.
and:

 Sorry to disappoint the gold bugs. However, gold is being looked at as pristine collateral [though it is not yet pristine collateral]. Gold has been released from tier 3 to tier 1 for the banks. So it has a place. But inflation is not the game and as my article above shows, there is a scam going on that assures demand for treasuries must continue oversubscribed.

and:

 People are selling gold and jewelry like it is going out of style and no one is buying either. Except the gold bugs and someone getting married. 

and:


If the Eurozone screws up I would take a dollar over silver anyday. People are not buying jewelry. I spoke to a jeweler and he said he keeps looking at his beautiful jewelry everyday and NO ONE IS BUYING.

When are people going to wake up. We have a deflationary situation here, but bankers would like to scam you and tell you otherwise.

I was met with really rude responses. The gold bugs are like a religion. As my article said, interest rates are not going up in any serious way. We will be in a slow growth situation for many, many, many years.

And while the effort to keep interest rates low is a sensible thing on the surface, the problem is that we have had many abuses and financial crimes in this process of  giving the financial giants the edge and power to control finance. I responded to a fellow who asked to name criminals regarding the ECB bailout, as if the banking system isn't criminal

You sound like Henry Blodget. The purpose of the central banks is to help the banks and steal from the people. The system is corrupt from the beginning. It isn't called money changing for nothing.

A fair return is not in the interest of the bankers. Keeping interest loans low and using scams to do it like LIBOR manipulation, the US MBS scam, off balance sheet banking, bogus Gaussian copulas and bogus risk management and forcing companies to take fixed high rates on interest rate swaps as a condition of loans, should all be enough to show that it is a giant criminal enterprise.

And, indeed it has proven to be a criminal enterprise. Low interest rates in and of themselves are probably not criminal, but the methods to achieve these low rates, and consolidate banking power, are criminal in many cases and close to criminal and unethical in other cases.

These are gods of finance, and they are not good gods. 

Here is the bottom line. There is more proof that treasuries are in massive demand than there is that they are not, which is the position of the gold bugs. The bonds are massively OVERSUBSCRIBED.

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