QE3 is on! Open ended stimulus to infinity! Gold pops higher!!!

James Grant Calls for a Gold Standard

Thursday, September 13, 2012 – by Staff Report
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Must Read: Jim Grant Crucifies The Fed; Explains Why A Gold Standard Is The Best Option ... The Federal Reserve Bank of New York has invited some of its public critics to visit the bank to unburden themselves of their criticisms. On March 12, it was Jim Grant's turn. The text of his remarks follows: Piece Of My Min ... My friends and neighbors, I thank you for this opportunity. You know, we are friends and neighbors. Grant's makes its offices on Wall Street, overlooking Broadway, a 10-minute stroll from your imposing headquarters. For a spectacular vantage point on the next ticker-tape parade up Broadway, please drop by. We'll have the windows washed. – Zero Hedge from Grant's Interest Rate Observer
Dominant Social Theme: Return to a gold standard is an absolute necessity.
Free-Market Analysis: We've always admired James Grant's writing style and self-deprecating wit. But perhaps in this Internet era he has aged out a bit.
We don't know why he continues to insist on a formal gold standard. This is a standard in which governments set the price of gold.
In the US, as we understand it, the government's refusal to recognize additional silver discoveries in the 1800s via its mints helped destabilize silver.
When we look at the process of silver de-monetization it appears as a pattern throughout the world. The power elite that controlled government had apparently decided on a two-step process of de-monetization – first silver and then gold.
Grant doesn't recognize any of this. He wants to give the power of the mint back to the government for precious metals. Here's some more:
In the not quite 100 years since the founding of your institution, America has exchanged central banking for a kind of central planning and the gold standard for what I will call the Ph.D. standard. I regret the changes and will propose reforms, or, I suppose, re-reforms, as my program is very much in accord with that of the founders of this institution. Have you ever read the Federal Reserve Act?
The authorizing legislation projected a body "to provide for the establishment of the Federal Reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper and to establish a more effective supervision of banking in the United States, and for other purposes." By now can we identify the operative phrase? Of course: "for other purposes."
.... The nation was on the gold standard. It would remain on the gold standard, Glass had no reason to doubt. The projected notes of the Federal Reserve would—of course—be convertible into gold on demand at the fixed statutory rate of $20.67 per ounce. But more stood behind the notes than gold. They would be collateralized, as well, by sound commercial assets, by the issuing member bank and—a point to which I will return— by the so-called double liability of the issuing bank's stockholders.
... One can think of the original Federal Reserve note as a kind of derivative. It derived its value chiefly from gold, into which it was lawfully exchangeable. Now that the Federal Reserve note is exchangeable into nothing except small change, it is a derivative without an underlier.
Or, at a stretch, one might say it is a derivative that secures its value from the wisdom of Congress and the foresight and judgment of the monetary scholars at the Federal Reserve. Either way, we would seem to be in dangerous, uncharted waters ...
We can see from this that Grant is partial not only to government gold ratios but also to the initial Fed act. He does admit the Fed "fell into sin almost immediately," but in doing so implies this was some sort of unusual occurrence.
It was not. Very obviously, this was what the cabal behind the Fed intended. Are we meant to believe that the Fed's immediate printing of notes beyond legal ratios was some sort of accident?
No, it was premeditated. At this point, seeing what is going on in the modern age, we'd even advance the idea that such overprinting was done in the full knowledge that it would cause a crash. And it did.
It is simply a fact, in our humble view, that once you give government the monopoly power over money, those in charge will abuse it.
In this case, a great, globalist conspiracy took advantage of Money Power. The result has been an implosion of wealth.
It is very necessary to divorce Leviathan from money because government is inevitably manipulated by mercantilism.
Conclusion: The best idea is to keep government out of the monopoly money game. Let currencies – even pure fiat – compete. Within such a context, gold and silver could freely float and find their rightful place in the monetary universe as they have in the past.

Don't feel bad Mamboni. I am getting so old I cannot remember where or how I lost mine. Wait. Did I ever have any? Oh my. I hate when that happens. Maybe I was just dreaming I had some. I guess it is better to have had and lost than to lose your mind and not even know if you had.

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Originally Posted by Golden

Can we post rockets now? lol

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I've seen too many people, even myself, thinking things were going to rocket [at any time] even back when I thought GIM1 would never end. It may be the time, it might not....

The Fed and the Crisis
www.youtube.com/watch?v=vIr-IG6Ln5Y
www.youtube.com/watch?v=vIr-IG6Ln5Y
Published on Sep 13, 2012 by TheRealNews
A commentary by Jane D'Arista assessing the actions of the Federal Reserve in managing the economic crisis

Has anyone else heard yuan for oil as of 9-6-12?

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Originally Posted by steyr_m

I've seen too many people, even myself, thinking things were going to rocket [at any time] even back when I thought GIM1 would never end. It may be the time, it might not....

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Common Steyr m

They're off and running!


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At times she may look like a cutter


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But you know where things are going


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Originally Posted by Dogman

The timing is sort of strange, or maybe not, with the shit brewing over there in camel land.

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5773? = @23 x

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Originally Posted by Spectrism

It is not just gold & silver they want to confiscate. Like a drowning swimmer gasping for air and clawing the water to remain on top, the government will gasp for any wealth and claw at any visible target.

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until those banksters arent sent to jail/death row, I seriously doubt a return to sound currencies, though black market willl LOVE metals.

ps:I am more in favor of life sentences but for "them" I support the death penalty.

One thing just struck me... What if this is part of the preparation to attack Iran?

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Originally Posted by Neuro

One thing just struck me... What if this is part of the preparation to attack Iran?

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I smell that. There are a multitude of outcomes in what the rock is cookin. From the Bernank droppin QE from a helicopter to the MIC droppin ordnance. Its still rock n roll to me.