We discuss that feeling you get when you’ve blown your life savings on a carnival game and all you have to show for it is a stuffed banana with dreadlocks and how the entire global financial system is not too dissimilar. They also note that those blowing their life savings on a rigged game, or stock market, always seem to turn to doubling down in a vain attempt to win back all that they lost. In the second half, Max talks to the author of Paper Money Collapse, Detlev Schlichter of DetlevSchlichter.com, about ECB policy, the gold battle between Chinese housewives and Wall Street.
Machikado Keiki Japan (roughly translated as Economic Conditions on the Streets of Japan) released their debut single, “Abeno Mix,” on April 7. It pays homage to Abe’s ultraloose economic policies that have been dubbed “Abenomics” by the media.
“Fix the yen’s appreciation. Quantitative easing. Don’t forget public investment,” a line in the dance-pop tune goes. “Monetary easing. Construction bonds. Let’s just revise the Bank of Japan Law.”
The group’s fans — who not surprisingly are 95 percent male, from high school to their 50s — have special chants that they perform during the song’s interlude.
“They yell out economic terms during our concerts, something like Shinzo Abe! Monetary policy! Private investment!” Mori said.
Stacy Summary: A must read interview with Professor Fekete.
- The Daily Bell interview with Professor Antal Fekete: The price of gold is headed for extinction
The key quotes for me:
- The price of gold is headed for extinction. I for one don’t believe that the price of gold is headed for five digits. Long before that might happen, permanent backwardation* would shut down the gold futures markets. Gold could no longer be purchased at any price. Gold would only be available through barter. World trade is facing an avalanche-like transformation flattening out monetary economy into barter economy. Continue reading
We discuss the Great Leap Forward in central banks’ central planning which has driven the Housewives of China to buy 300 tons of gold, an act of disloyalty to the central bank revolution. Max notices that Mrs. Wang has displaced Mrs Watanabe as the most important buyer in global financial markets. In the second half, Max talks to Alasdair MacLeod of Goldmoney.com about everything to do with the physical and paper gold markets – from open interest to naked short selling by bullion banks.
We discuss paper addiction and the toothless, pimply faced paper pushers hooked on an ever-increasing fix of debt. There is no paper these guys won’t push, no debt they won’t inject into the veins of the economy and these addicts refuse to sober up despite the overwhelming evidence found in gold demand that they’ve reached a bottom at which no new hit can get them high. In the second half of the show Max talks to John ‘J.S.’ Kim of SmartknowledgeU.com about the precious metals market, traffic jams outside bullion shops in Asia and central bankers buying paper.
Joe Weisenthal says this selling of GLD overwhelms physical demand:
But, as you see, it’s been a mere $16.6 billion worth of gold sold year-to-date – ie four months – via the paper gold vehicle GLD. In the past two weeks, Chinese buyers have bought $16 billion worth of physical:
According to “Voice of China” radio program, one of this year’s most popular phrases may be “Chinese housewives” – as a major force which reportedly spent 100 billion yuan (US$16 billion) over the past two weeks purchasing 300 tons of gold and thus helping to sustain gold prices at US$1,468 an ounce.
The “Chinese gold rush” has prevented short selling, where gold is sold and then bought back when prices fall. The practice was seen as a possible bid to shore up the US dollar – gold is often regarded as a means of safeguarding wealth against a weak dollar – and to maintain stable interest rates in the US.
This is just China. There is also Turkey, Thailand, Dubai, India, etc. where a similar physical frenzy is going on.
Mrs. Wang two weeks ago: