Goldtent TA Paradise

Holy Sh1t

1. Fullgoldcrown says:

   August 23, 2019 - 6:08 pm at 6:08 pm

   Velly Intellesting

2. Northstar says:

   August 23, 2019 - 6:21 pm at 6:21 pm

   Goes some way to explaining the last minute Dollar plunge today.

3. Fullgoldcrown says:

   August 23, 2019 - 6:41 pm at 6:41 pm

   So do we think the central banks will delegate reserve currency status to Facebook ?

   🙂

4. Karl says:

   August 23, 2019 - 7:30 pm at 7:30 pm

   There will be big fights over what replaces the USdollar.

   Even if it is agreed that it is to be replaced with a certain methodology–a given crypto methodology–and even if it is agreed that there will be a USdollar component–there will be splits. It may be hard for the central bankers to avoid 2 or more worldwide systems, at least w/o strife and struggle first.

   During the time of transition I expect pronounced oscillations of the USD–also gold. USD will oscillate with a downward bias; Au the opposite I would guess.

   Different factions will bicker over other components. Oil and natural gas may be big ones. Base metals and agricultural products as well. Possibly land mass, habitable land, agricultural land; population.

   It will be a laugh riot except that normal people may get hurt. Different nations’ elites (by no means necessarily unified) will try to push their own interests. Supra-national elites, also divided, sometimes shifting allegiances, will have their own interests.

   The propeller-heads may try to come up with a dynamic system such that, for example, depending on energy usage, oil/gas pricing, or perceived official effects on climate, contribution of energy components may vary to extreme degrees.

   Of course the big divide right now seems to be approximately Oceana+ vs ChinaRussia+, but things can get more complicated.

   A gold standard would seem the simplest. I predict and have long thought however that there may be complicated schemes of an international Au currency. One of many aspects I predict is that some countries may suggest that privately held Au counts towards reserves and will offer significant legal protection to people who register the Au they hold (I won’t go into details here). Some countries w/o gold may be spotted pretend gold reserves to start with.

   Again, I think we can expect at a minimum strife between a couple of competing systems from the start. However there may be a huge mess even before things get simple–we may or may not be close to the start. Lots of prices will gyrate. My guess is that USD gyrates down and gold gyrates up. But I am just lying down drinking coffee and issuing idle conjecture.

   • Karl says:

     August 23, 2019 - 8:09 pm at 8:09 pm

     For a long time I have suspected that the authorities may try to count inferred-resources-in-the-ground as national reserves for an international currency. Certainly if there is a hint of brains in the Canadian ruling elites there will be support for this sort of thing.

     Some international body would establish standards for inferring Au content of rocks in beloved national parks etc with minimally invasive exploratory criteria. Wink wink nod nod methodologies would be established for inferring gold beneath pyramids, Angor Wat, etc. This latter methodology might be used to give pretend reserves to countries with little gold above ground or in the ground.

     Countries would get rewarded for not mining gold under many circumstances. Regulators and supervisors would keep busy and be just as Serious and Important under this apparent gold-based currency as any other.

     Explorecos might go wild.

     • Fullgoldcrown says:

       August 23, 2019 - 8:17 pm at 8:17 pm

       Now that’s a whacky thesis Karl

       But I like the way you are thinking out of the box

       My whacky thesis is Canada ( which has NO Gold reserve) will nationalize the Gold Miners.

       And thereby have a LOT of Gold (in deep storage)….all over the world.

       Your shares will become Canada Bonds

       🙂

     • North says:

       August 23, 2019 - 8:20 pm at 8:20 pm

       Don’t hold your breath in finding “a hint of brains” in the Canadian ruling elites. One of the brainiacs there sold all the gold they held above ground.

       • pedro_deleon says:

         August 23, 2019 - 9:27 pm at 9:27 pm

         Speaking of ruling elites, don’t forget that Carney was Governor of Bank of Canada before he got the BOE gig.

         So this has probably been in the Looney water all along.

         Now we watch to see where Carney goes next. IMF ???

5. Aurum Maximus says:

   August 24, 2019 - 1:47 am at 1:47 am

   Easy peasey, my group has already done it. Go GLINT! Should we now be expecting a knock on the door by the facebook folks?!

6. Karl says:

   August 24, 2019 - 5:51 am at 5:51 am

   Let me make clear. I do not advocate a dirty gold standard, or some sort of institutionalized crypto thing with gold included. I predict that there’s a good chance of it. It would allow for continuation of largely impenetrable extractive bureaucracies and intricate rules. Many agendas favored on high could be pushed.

   To elaborate a bit more–

   Counting privately held gold would be like a voluntary soft-confiscation. You declare your gold, you get all sorts of social credit pluses: Amazon gift cards, ability to brandish otherwise banned weapons, frequent flier miles, professional search of your property for your demented parents’ lost bullion with genuine amnesty for the nastiest contraband encountered, protection with punitive laws equivalent to those of robbing a bank or violating a government facility in case of any breech of your property, free pizza deliveries and special coupons, perhaps tax benefits… Depending on the size of your hoard, you get free super-extra grade surveillance with genuine ongoing look-the-other-way amnesty for household misbehavior. However you are probably not permitted to sell the bullion except to other citizens of the country–or to the government. Possibly only transfer within the family or sale to the government is allowed. I believe that China’s encouragement of private ownership of gold may be based on some similar sort of idea that held gold is national gold and eventually is to be declared as such and entered voluntarily into the social credit system. Why confiscate when you can reward with early flight boarding, first-in-line job interviews, and early admissions to sales and to elite universities?

   The question of gold-in-the-ground as national reserve gets messy in the case of foreign companies that own or lease properties. It is messier still in that the foreign company will have shareholders of yet other countries. I once came up with ideas of how they might allocate such unmined assets as reserves (how much to which country), but I will leave it to them to do the dirty work. For bureaucrats complications are a feature not a bug. They will love having an international currency based at least partially on gold be as complicated and opaque as possible. Though loathe to admit error, they will admit that they had it wrong in fighting the gold standard.