Bill Buckler Discusses The Last Price Standing Of "True Money", Answers The Only Question Relevant To Gold Bugs

Submitted by Tyler Durden on 09/19/2010 17:27 -0500
Bill Buckler, publisher of The Privateer Report, has released one of the most scathing critiques of paper money we have read to date: "Before it can be exchanged, wealth must be created. Wealth cannot be created out of thin air. By definition, an economic good is “scarce”. If it were not, there would be no such thing as economics or exchange. Neither would be necessary because no effort or choice in the face of alternatives would be required in order to provide the GOODS which further our lives. Before we can talk about money and the VITAL role it performs, we must stress this point. Money is NOT wealth, it is the means by which wealth is exchanged amongst those who produce it. Paper money is not suited to this function." So what is the only rational investment in times in which money's role is so often confused by pretty much everyone? "Ninety-seven percent of all existing Treasury debt has been created since August 15, 1971! Ninety-three percent of it has been created since Mr Volcker “saved” the paper Dollar in late 1979! Please note that the gain in Treasuries and the loss in the US Dollar almost exactly cancel out. Please note also that even the biggest gain in these paper markets fades into insignificance against Gold’s rise."And here is the answer all the "gold bugs" have been waiting for: "The paper money “price” of Gold will last as long as the attempt to make paper money “work” lasts. In the end, Gold will no longer have a “price” because it has reverted to its role as MONEY. Whenever and wherever that happens, that nation can return to the production of wealth - rather than “money”."


Jim Sinclair’s Commentary
Three solid fellows present their view on the future of the price of Gold.

Alf Field: $4,250 – $10,000 Click here to read the article…

Harry Schultz: $6,000 Click here to read the article…

Martin Armstrong: $5,000 Click here to read the article…



Jim Sinclair’s Commentary
The Green Hornet makes two points concerning the Western World pension disaster.
1. This is a quiet disaster because pension managers have a legal liability towards their performance.
2. This is a quiet disaster because Wall Street has always treated pension funds as the waste basket for financial garbage.

US Pensions Are Massively Underfunded, And Have Ridiculously Rosy Assumptions 

Joe Weisenthal | Sep. 19, 2010, 8:01 PM
A piece in the WSJ on the rosy forecasts that US pension funds are making is getting a lot of buzz.
Here’s the key stat:
The country’s 15 biggest public pension systems have an average expected return of 7.8%, and only a handful recently have changed or are reconsidering those return assumptions, according to a survey of those funds by The Wall Street Journal.
Given how low rates are, and how dicey the economic outlook is, this seems insane.
But it’s all about extending and pretending.
After all, reducing expectations is very costly:
The Colorado Public Employees Retirement Association showed in its 2009 financial report the impact of reducing the rate. Using a 8% expected return rate, the plan faced a $23.4 billion deficit, based on market values, at the end of 2009. If the rate was cut to 6.5%, the shortfall would jump to $34 billion.
More…

Jim’s Mailbox

Posted: Sep 20 2010     By: Jim Sinclair      Post Edited: September 20, 2010 at 12:49 am
Filed under: Jim's Mailbox

Now Brazil Is Intervening To Weaken Its Currency, As The Competitive
Devaluation Cycle Heats Up 

CIGA Eric
Several months ago the British Pound took a hit. Soon afterwards, it was the Euro’s turn. Last week the Bank of Japan took steps to weaken the Yen. Now the Brazilian Real appears to be headed behind the global liquidity woodshed.
These competitive currency devaluations, designed to benefit one nation at the expense of another, only temporarily redistribute rather than alter the size of the economic pie. Yet, despite minimal long-term impact, there’s no end in sight for fiat devaluations. Why? Currency devaluation or the cheapening of previously issued bonds through on-going default maintains the status quo. Yes, it punishes saving and savers within the paper world, but that voice is relatively quiet in terms of influence.
Fear not, the world of risk and reward vote with their feet. As the fiat world continues its on-going default, capital both large and small, continues to move into the safety of gold (and silver). This is reflective in the persistence, secular up trends in the global fiat price of gold.
British Pound Gold
Euro Gold
Yen Gold
Real Gold
Source: businessinsider.com
More…


Swiss Institutions Ask: Where's The Gold?


V-Shaped Recovery Dreams Evaporate


Record Number of Bank Seizures of U.S. Homes.

  
Fannie Mae Began Buying $1,000-Down Mortgages Without Approval


 Why Can't Politicians Understand What is Really Happening?


 Real World Solutions to Economic Tyranny


 Greenspan: Fiscal Stimulus Worked Far Less Than Expected


 Americans Struggle to Regain their Shrunken Wealth


 Look Around: There's Major Commodity Inflation Happening Everywhere



 Safecastle Royal has started their last 25% off sale on Mountain House canned storage foods for 2010, with some free bonus items, depending on the size of your order. Safecastle also resumed stocking real canned butter, from Holland. Stock up!
  

China-Japan Tensions Escalate, As China Breaks Off High Level Contacts, Japanese Flag Burned In Protest