Jesse's Café Américain Sat 2009-10-10 13:07 EDT

Why the Feds Seized the Gold in 1933

Jesse

...The Feds acted on gold because at the time it WAS the currency of the country, and the government had some proper claims on it. When the US left the gold standard it relinquished all such claims, as gold became purely private property. Except perhaps if you are holding gold American eagles, which bear the patina of 'currency.' It should also be noted that the sole action of the government was to ask for the gold, to withdraw convertibility of gold notes from the domestic public, and to monitor the activity of safe deposit boxes taking certain categories of gold, and essentially nothing else. There were no investigations, searches, or even active prosecutions for non-compliance. The purpose of the confiscation was to prepare the way for a formal devaluation of the dollar while it was still on the gold standard.

1933; Feds seize; gold; Jesse's Café Américain.

Jesse's Café Américain Thu 2009-10-08 16:28 EDT

Gold: Until the System Is Reformed and Trust Is Restored

Jesse

Gold has obviously broken out of a big inverse Head and Shoulder formation, possibly an ascending triangle if you prefer that for reliability. In combination, as they often are, this is a powerful sign of buying pressure, accumulation and a sharp rise in price...despite the obvious efforts of the monied interests to disparage it publicly while accumulating it privately, is rising because the US dollar is being used badly, is being weakened by the failing schemes of a corrupt combination of the government and financial interests...gold is telling us...the era of the US Dollar as the world's reserve currency is over...

gold; Jesse's Café Américain; reform; restore; Systems; trust.

Tue 2009-10-06 21:12 EDT

The demise of the dollar

Robert Fisk

In the most profound financial change in recent Middle East history, Gulf Arabs are planning -- along with China, Russia, Japan and France -- to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar...Sun Bigan, China's former special envoy to the Middle East, has warned there is a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security."...

demise; Dollar.

Tue 2009-09-29 11:10 EDT

Steeling for a Currency Deal in Pittsburgh? - Up and Down Wall Street Daily - Barrons.com

RANDALL W. FORSYTH

An options play suggests somebody expects the G20 to hatch a scheme to stabilize currencies. Duct tape for the dollar?...Reports John F. Brady, futures expert at MF Global, there was a big seller of "volatility" in the euro versus the dollar Thursday...What's curious, Brady explains, is that vols on the euro already are low, so it's hard to see them going much lower...Which got me to wondering if the volatility seller was thinking the G20 would do something to force volatility lower -- that is, stabilize exchange rates...Notwithstanding the calls for a replacement of the dollar as the main reserve currency, gold isn't it, according to long-time market observer David P. Goldman,..."Even a rather wobbly reserve currency is better than gold," he writes as his alter ego, Spengler, whom he "channels" for Asia Times (www.atimes.com.) "Gold is far less liquid than U.S. Treasury securities, costly to store and insure, and above all more volatile in price...gold isn't an investment but an insurance policy against a breakdown of the function of the world financial system."

Barrons; com; currency deal; Pittsburgh; steel; Wall Street Daily.

Thu 2009-09-17 10:31 EDT

China, Bernanke, and the price of gold - Telegraph Blogs

Ambrose Evans-Pritchard

China has issued what amounts to the ``Beijing Put'' on gold. Former Vice-Chairman of the Communist Party's Standing Committee Cheng Siwei: China has fundamentally lost confidence in the US dollar and is going to shift to a partial gold standard through reserve accumulation. [dollar losing reserve status]

Bernanke; China; gold; Price; Telegraph Blogs.

Jesse's Café Américain Sun 2009-09-13 10:32 EDT

Barrick Capitulates

Jesse

Barrick and their partner J.P. Morgan were the target of lawsuits by the gold bulls, most notably Blanchard and Company, for price manipulation through the use of their forward sales in their hedge book. Barrick's original defense was reported to be that they were acting in conjunction with J. P. Morgan and the central banks to cap the price of gold, and were therefore immune from prosecution since the central banks are immune from prosecution. Gold market manipulations.

Barrick Capitulates; Jesse's Café Américain.

Asia Times Online Sun 2009-09-13 10:25 EDT

THE BEAR'S LAIR : Possible October surprises

Martin Hutchinson

The inflation that might be expected in the United States from unprecedented expansionary monetary policies has failed to appear, while huge budget deficits have yet to produce higher interest rates. Far from being signs of a new economic paradigm, this merely means new bubbles are forming...Commodities and gold therefore are the destination of this year's hot money and are forming the new bubble...a fair-sized bubble has developed in the T-bond market...however...a modest resurgence in US inflation or difficulty in a long dated T-bond auction could cause confidence to flee the Treasury bond market and yields to leap uncontrollably upwards...the long-term costs of excessively cheap money are beginning to be seen in the US economy itself. By allowing money to remain so cheap for so long, and by running incessant payments deficits, the United States has surrendered the advantage of its superior long-established capital base, narrowing its capital cost advantage over emerging markets and exporting that capital to countries with less profligate approaches. Huge budget deficits, themselves worsening the trade deficit, merely export yet more US capital to the surplus nations. That makes it inevitable that the years ahead, in which the United States will no longer enjoy a capital advantage over its lower-wage competitors, will see highly unpleasant declines in US living standards.

Asia Times Online; BEAR'S LAIR; Possible October surprises.

Credit Writedowns Tue 2009-09-08 15:10 EDT

China to diversify out of U.S. dollars

According to an account published in the Daily Telegraph by Ambrose Evans-Pritchard, the Chinese government is quite anxious about money printing in the United States and the effect this printing could have on China's dollar denominated reserve assets. Dollar losing reserve status; Chinese buying gold.

China; credit writedowns; diversifying; U.S. dollar.

Jesse's Café Américain Fri 2009-09-04 19:12 EDT

Hong Kong Bringing Its Gold Home From London

Jesse

"In the house of the wise are stores of precious treasure and oil, but a foolish man devours all he has." Proverbs 21:20 The People's Republic of China has been urging its citizens to convert some part of their savings into gold and silver, having recently liberalized the procedures by which individuals can obtain it. Hong Kong has built a new world class bullion vault, and is repatriating its gold reserves from the London Bullion Market Association (LBMA), where some speculate it had been committed for sale many times over. Hong Kong wishes to become its own regional Asia market maker for bullion metals. The rest of the world will rein in the Wall Street financial establishment, because the bankers have demonstrated an inability to manage their financial affairs...

Gold Home; Hong Kong Bringing; Jesse's Café Américain; LONDON.

Jesse's Café Américain Fri 2009-09-04 19:00 EDT

Five Reasons for the Recent Surge in Gold

Jesse

1. Seasonality 2. Continuing Risks in the Financial System 3. Moral Hazard: Tipping Point In Confidence From Over a Decade of Monetary and Regulatory Policy Errors 4. Blowback from Banking Frauds on the Rest of World 5. A Failure in Political Leadership to Deliver Essential Reforms

gold; Jesse's Café Américain; reasons; recent surge.

Thu 2009-07-30 00:00 EDT

Will The Dollar Standard Collapse?

By John Carney; Sahm Adrangi opines ``Abandoning the gold standard has gradually resulted in a very overvalued US dollar, and that the dollar is headed for disaster. The dollar standard is inherently flawed and increasingly unstable. Its collapse will be the most important economic event of the 21st century.

Dollar Standard Collapse.

Tue 2009-06-16 00:00 EDT

naked capitalism: Guest post: Breaking news - China has been secretly stocking up on gold

dollar losing reserve status

breaking news; China; gold; Guest Post; naked capitalism; secret stock.

Tue 2009-06-16 00:00 EDT

Jesse's Café Américain: China Admits to Significantly Building Its Gold Reserves

Jesse's Café Américain: China Admits to Significantly Building Its Gold Reserves

China admits; gold reserves; Jesse's Café Américain; significant buildings.

Fri 2009-05-08 00:00 EDT

Terms of Service

Global Crisis `Vastly Worse' Than 1930s, Taleb Says (Update1) - Bloomberg.com; ``Gold, copper and other assets that China will like are the best investment bets as currencies including the dollar and euro face pressures''

services; term.

Mon 2009-04-27 00:00 EDT

CHINESE GOVERNMENT BUYS LOTS AND LOTS OF GOLD << Culture of Life News

Perot family hedge fund implosion

CHINESE GOVERNMENT BUYS; Culture; gold; Life News.

Wed 2009-04-01 00:00 EDT

Jesse's Café Américain: Most Chinese Economists Favor Gold Over US Treasuries for Their National Reserves

Jesse's Café Américain: Most Chinese Economists Favor Gold Over US Treasuries for Their National Reserves

Chinese Economists Favor Gold; Jesse's Café Américain; national reserve; Treasury.