Honey EC: It's no surprise that Brinker was gone today. He has worked THREE weeks in a row now. He always takes off (at least) one week per month. The February 10th Moneytalk show was old calls spliced together and old monologues. That fact was never revealed on that show or mentioned on later shows.
Lynn Jimenez is a business reporter for KGO 810, which is San Francisco's most powerful radio station. KGO dropped Moneytalk a couple of years ago, but the show was picked up by KSFO 560, KGO's much less powerful sister station.
Jimenez is a great business reporter and gave a great business report in the opening monologue of Moneytalk. She quoted CNN, CBS Marketwatch and other news sources.
A long time Brinker listener sent these comments during the program today:
ras here: Early in the show, kind of embarrassing that Lynn didn't know if Bernanke was pumping $85 million or $85 billion into the economy. Not the most sophisticated explanation of the process either. Yikes!Ras is right! Vincent in NY asked: "I think the Fed is buying something like a trillion dollars a year in bonds. Is that correct?" Lynn Jimenez answered: "I think it's 85, what is it, million or billion, a month."
Honey EC: The following is the only call that I think you might find entertaining. I promise you that I rewound the tape several times as I transcribed it because I wanted to be sure that I got every word right. It's an accurate transcription of exactly what Jimenez said to Chris from Arizona.
Chris in Arizona, who said he was a Marketimer subscriber and had been listening to Bob Brinker since about1999, told Jimenez that he had taken $400,000 out of the stock market last December. He now wants to know the best way to reinvest it back in.
Jimenez replied: "You should be dollar-cost-averaging in. You should not invest a lump sum. I think weekly, maybe a little bit more like a lump sum investment than dollar-cost-averaging, but a lot of it depends upon the market. I mean, if you have the time to monitor it and can be opportunistic about it, that might work. But usually, dollar-cost-averaging would suggest at least a month, to a couple of months. But again if you can monitor the market. What are you going to invest in? Are you going to invest in index funds? Are you going to invest in individual stocks?
Chris answered: "Yes, ma'am. I follow pretty much Bob Brinker's portfolio one. I'm a newsletter (Marketimer) subscriber. So I just follow that."
Jimenez continued: "Okay, alright, dollar-cost-averaging is great. I think every week might be a little aggressive. However as I said, you know, if you do monitor the market closely and you can be opportunistic so you have a significant pullback for a day or two, well that's great. But then exercise discipline, you know. I think we still have maybe as much as 20% more to run up here. Don't forget, you know, we haven't felt the effects of sequestration in the budget battle yet. But we will later this year and in 2014. Nevertheless, the housing market, which is a multiplier, which means that it multiplies its impact, is only at the beginning of the recovering and that is huge. It's going to be very important. I do think you're on the right track. Do dollar-cost-average."
Honey EC: I've noticed that Jimenez sometimes talks so fast that it's not easy to catch exactly what she is saying. I think that answer shows the depth of her lack of expertise.
On the other hand, it also shows that she never reads Marketimer or even listens to Brinker's Moneytalk. The fact is, Brinker STOPPED advising subscribers to dollar-cost-average last October! October 2012 was the last month that Bob Brinker's Marketimer recommended dollar-cost-averaging for "new" money. (Of course, all of his Marketimer model portfolios are still fully invested.)
One of Lynn Jimenez' guests was Ed Whitacre: American Turnaround: Reinventing AT&T and GM and the Way We Do Business in the USA
* Whitacre made the claim that GM had repaid all of the money that the government gave them. I question that. I think that the GM stock that we taxpayers were given as collateral is still underwater.
Jimenez' third-hour guest was Vince Malta, a San Francisco realtor:
* Malta said that in some areas, like San Francisco and Arizona, the real estate market is becoming over-heated again, and is now a seller's market with multiple offers -- and offers for more than the asking price.Jeffchristie's Moneytalk Final Exam Question:
One of Lynn's guests today was real estate expert Vince Malta. While discussing how to get top dollar for your property Lynn suggested:
A) Remodel your kitchen.
B) Stage the property.
C) Put lipstick on a pig.
D) Advertise on the internet.
ANSWER
San Francisco, Ca. KSFO 560: 1-4pm (KSFO archives Moneytalk Free on Demand for seven days after broadcast. You can download and listen on the go.)
47 comments:
ras here: Early in the show, kind of embarrassing that Lynn didn't know if Bernanke was pumping $85 million or $85 billion into the economy. Not the most sophisticated explanation of the process either. Yikes!
Hi Ras,
I missed the first 45 minutes of Lynn's first hour, but will try to get in from KSFO archives.
I had some special visitors that came up to go to church with me and took me to lunch.
Bob Brinker (I didn't know it was Lynn) sometimes has to take a backseat with me on Sunday afternoons. :)
I would not give you two cents for Ed Whitacre or GM.I retired from banking after over 37 years. I wrote Mr. Whitacre two letters about two problems I was having with one of their $50 thousand autos that I was having. I know he can't address all customer problems but during my banking tenure, if we had a major problem with a customer I personally would get involved because without the customer we would not exist. I received no reply from him or anyone. I then wrote a letter to his replacement. I never received a "kiss my derriere" or anything. I later told them that I would persuade other folks to no purchase a GM product and that I would never buy another one either, and I have owned several GM products in the past. I can now name four people that I convinced to not but a GM product and they have purchased two Lexus's and one BMW and one Mercedes.
As I originally said, GM can "kiss it"
MikeE
I agree with the GM can kiss it sentiment. I have been a very happy owner of past GM products, I own a 94 and 99 and both are still going strong. However I will eschew GM in the future because of the deal it cut with the Government, sacrificing shareholders and debenture holders for the sake of the corrupt unions.
No Government Motors for me now or in the future.
the previous post on GM by tfb
Bob usually takes off on the weekend that Nascar races in Vegas in order to take his grandson to the race. That is what I have heard him say in the past.
MikeE
Republicans have caved on defunding Obama Care.
On Wednesday, the House Republican majority led by Speaker John Boehner used the cover of a fake “snowstorm” to pass a continuing resolution that funds Obamacare for the rest of the 2013 fiscal year and they could lose their majority as a result of the decision.
The bill passed the House by a margin of 267 to 151, with only 14 principled Republicans voting against funding Obama’s massive new entitlement. The disappointment among conservatives about this baffling rejection of a campaign promise and core principle is even greater, because it had seemed that the tide was beginning to turn in favor of principled stands.
Read more: http://www.politico.com/story/2013/03/go....l#ixzz2NBjvnlyx
FICA
Here are my comments on GM. I owned a 1969 427 Corvette. It was a great car and I drove it until it fell apart.
Then I bought a new Buick Rivera in 1980. It was a beautiful car. Shortly after the warranty expired the paint started to flake off. I was told that all of the two tone blue and silver cars did this. GM did pay for 50% of the repaint. After a few years it flaked off as well. That was the last GM car I ever owned.
I have had two Jaguars that were great cars and last summer I bought a pre-owned Mercedes SL600. This car is better than anything I have ever owned.
My brother had a 2012 Camero convertible. It was a nice looking car but under full power the engine bogged when shifting into second gear. I let him drive my Mercedes and after about three miles he said I can't see why you would ever want to drive anything else.
He decided to trade in the Camero. After looking at the all new Cadillac ATS, he told the salesman he was disappointed. He bought an Infinity G37 with a folding top and loves it.
GM may have improved their products as Mr. Whitaker claims but I seriously doubt that they are as good as the high end European and Japanese cars. What experiences have other people who post here had with GM products?
I wonder what Mr. Whitaker would think of this video on the Chevy Volt?
Volt Parody Video
Nice blog here. Just discovered it and as a long time Brinker fan, I appreciate it. As I'm sure you all know, he has been spot on at times over the last several years, which along with his strong understanding of macro-econ and financial markets that he clearly possesses, has earned a certain degree of my trust. But let's face it, he's missed some major moves as well, just like he may miss the next downturn. That said, I'm tuned in. Thanks for providing this blog!
Post copied from here
Colortini made the comment that "Bob takes more time off than Obama."
Colortini,
LOL! Not sure I can agree with that.
For Anon who must get his daily news (fix) from the democratic underground:
Rep. Paul Ryan: House budget will assume the repeal of ‘ObamaCare’
House Budget Committee Chairman Paul Ryan (R-Wis.) on Sunday said he will not back down from the battle to repeal the 2010 Affordable Care Act even though some Republicans think the party should move on.
Ryan dismissed criticism that House Republicans have virtually no chance of dismantling the signature legislative accomplishment of Obama’s first term and their efforts might be better expended elsewhere.
He said his budget assumes the repeal of the healthcare law, in an interview on “Fox News Sunday.”
When host Chris Wallace challenged him on that assumption, Ryan said he would not give up the fight.
“That’s not going to happen,” said Wallace.
“We believe it should,” Ryan shot back. “That’s the point. This is what budgeting is all about. It’s about making tough choices to fix our country’s problems. We believe ‘ObamaCare’ is a program that will not work.
Read more: http://thehill.com/blogs/blog-briefing-room/news/287205-rep-paul-ryan-house-budget-will-assume-the-repeal-of-obamacare#ixzz2NFATri2E
Follow us: @thehill on Twitter | TheHill on Facebook
Read more: http://thehill.com/blogs/blog-briefing-room/news/287205-rep-paul-ryan-house-budget-will-assume-the-repeal-of-obamacare#ixzz2NFALPpeW
Can we get back to bashing brinker now instead of diverting the thread?
FUTA
Wow, Jeffchristie, your car sounds fabulous. When do I get a ride in it? :)
Speaking of GM, I owned a Buick LaSabre for many years. I really loved the car, but it started falling apart last year.
I thought, like Brinker and his beloved 15 year-old car, I could put a few dollars into it and keep driving it. I was wrong! I put many dollars into it and stuff just kept on happening.
The Friday that I had it towed to the garage where it sat for the weekend (while I was on foot), was the final straw for me.
I decided that I would never again own a GM car -- largely because of the government takeover and dirty treatment of white car dealers and bond holders.
I bought a Honda Accord Sedan and I absolutely love it!
Hi Everyone,
Thanks so much for this great site Honeybee, I thought I would comment on GM. Like Jeff, I own a 1969 Corvette Convertible that I bought about ten years ago. It's a 4 speed with a 350 and I love it. But.. In 1984ish, I bought a used 82 Camaro that had about 30k miles. What a cheap piece of junk, worse car I ever owned. Everything was plastic! When I closed the doors the AC vents would pop out on the floor. Not long after buying it the Transmission went out, when I got it repaired I was told that it wasn't the factory trans so I was putting in at least the third one in 50k miles. About a year later, the head gasket blew and I had to put $800 into it just to trade it in. The AC compressor had also died but I didn't fix that. I got a Toyota 4-Runner and loved it for years and 300k miles. (Still ran great when it got totaled, Darn) I would never again buy GM after that car.
Jeff
Here is an AMAZING video of the motorcade that accompanied the two Santa Cruz Police officers that were recently murdered.
It starts at the Boardwalk in Santa Cruz and goes through town to Highway 17, past Scotts Valley and on up through the Santa Cruz Mountains to the summit, then down the other side into Los Gatos, then on to downtown San Jose to the HP Pavilion.
You get a view of the whole 30-35 mile trip in fast forward -- in about 7 minutes.
Some people like to slam Californians, but they never mention THESE Californians.
Turn to full screen if you can:
Motorcade for Sgt. Butch Baker and Officer Elizabeth Butler, killed in the line of duty February 26, 2013.
God bless the Santa Cruz Police!
My GM vehicle:
A 1960 Chevy Bel Air purchased in 1973. White with green vinyl interior. Unlike the Dan Akyroyd's car in the movie, The Blues Brothers, the lighter in my Chevy worked.
Link:
https://www.youtube.com/watch?v=yil9wlfa0yo
But it burned oil – so much that at the gas station, it was “check the gas and fill up the oil.”
I drove it home from college, arriving late at night. The next morning my father came into the house with the dipstick to show me there was no oil on it. I said, yeah, ”it burns some oil.”
We ended up giving the car to his buddies at the service station who were always looking for clunkers to drive in demolition derbies. So my Bel Air passed over to vehicle Valhalla in a blaze of glory somewhere on a dirt track in south Florida.
-- Frankj
Frank J,
Here's your link live:
The Bluesmobile
My GM story: I was totally into Chevys growing up in the '60s. Most of my hotrodding buddies were into GMs also.
I worked at a GM plant from '77 til '81, and my best buddy and I kept telling each other "This cannot last." The place was a joke, people walked around drunk or stoned or both, most guys only worked maybe 2 hours a day, some less some more. All you had to do was look busy and the bosses wouldn't bother you. The UAW union was a cancer on the system and its presence caused continuous tension between management and "workers." I finally quit in disgust; I couldn't take it any more.
Over a span of 30-some years I probably owned 12-15 GM products, some old junkers, some brand new, and I had two new trucks that were lemons.
The last GM I owned was a new '98 pickup and it was fine, but I would never, ever own a GM again mostly because it has been tainted by Obama.
So my Bel Air passed over to vehicle Valhalla in a blaze of glory somewhere on a dirt track in south Florida.
LOL!
tfb
8:36 AM Short interest in the High Yield Corporate Bond ETF (HYG) spiked 52% in as one fixed income manager after another said the bell is tolling for the junk bond sector. Bill Gross, however, is adding to his high-yield holdings even as he cuts exposure to Treasurys, emerging markets, and MBS.
Oslo
I apologize for this off-topic post. I'm trying to obtain an objective assessment of New Directions IRA, Inc. (I was referred to the firm by a precious metals dealer, Monex). Several years ago, I used fundalarm.com for such questions but, on checking now, it seems that that site no longer exists. At any rate, I'd greatly appreciate any information anyone has about New Directions or, even better, a current site comparable to fundalarm.com. Thanks very much.
Tex,
I'm sorry but I never heard of that firm and Bob Brinker has never mentioned it.
Perhaps you should take a look at Schwab, Vanguard or Fidelity -- if you have doubts about the other firm.
It is interesting to hear about the comments on GM. Most of the low information reality TV addicts have no idea of GM's history. I've never had any investment in GM. I currently own a Suburban. It will be a long time before I forgive GM for what they did to the bond and stock holders. That was so wrong. We own 5 vehicles and I will never buy a GM again. There are too many other choices. I bet there is a large chunk of the public who are awake enough who used to buy GM but now will look elsewhere.
Honeybee,
Thanks for your reply. The only reason I'm considering that firm is that it offers an IRA holding physical gold/silver (https://newdirectionira.com/investment-options/precious-metals-ira/). My IRA now is with Vanguard but they only offer a precious metals mining index fund (in which I have a tiny amount and the index is doing poorly relative to metals prices). I'm not wild about New Direction's fees, though, so should look into Schwab and Fidelity.
"The only reason I'm considering that firm is that it offers an IRA holding physical gold/silver (https://newdirectionira.com/investment-options/precious-metals-ira/)."
Tex, would you trust an IRA to hold physical gold and silver when you are having trouble even finding basic facts about them?
aledc45
Dear Honey,
I would appreciate some advice from your group of well educated followers. In my retirement fund I own a TIAA/CREF inflation linked bond fund (about 12% of my portfolio). I was hoping that if inflation occurs maybe spurred on by Helicopter Ben, the fund would protect me. However I notice that 30 plus percent of the bonds are longer than 10 years. The value of the fund is down a bit this year. Should I get out of this fund? I can put the money into a money market or into the TIAA real estate fund. I have about 20% in this fund and it is doing well. I appreciate any advice.
Anonymous said...
"Tex, would you trust an IRA to hold physical gold and silver when you are having trouble even finding basic facts about them?
Oh, no, the website seems pretty thorough regarding the company's operations, principals (computer science and engineering in addition to biz degrees), etc. My posting was meant to try to find an objective assessment of the firm's performance by someone who doesn't "have a dog in the fight." Perhaps fundalarm.com wasn't the best example to use but it's the only "watchdog" site that I've used. Since I rarely add new funds, I've not had occasion to use that for awhile. A Morningstar search does yield one mention of New Direction IRA, Inc. but it's apparently so buried in the IRA section that finding it would be like the proverbial needle in a haystack.
Fees for precious metals IRA at New Direction IRA, Inc.
1.$50 Application Fee (one-time)
2.$40 Transaction Fee (per purchase/sale/exchange of metals)
3.$25 Bank Wire (one-time)
4.$75 Annual Fee Minimum (Calculated at $0.75 per $1,000 invested)
5.(storage provider fee) Varies depending on the storage provider.
Tex, if you already have an account at Vanguard, you can open a IRA Brokerage account very easily and purchase GLD or SLV, both ETFs, and easily traded. Or, IAU an iShares gold etf among others.
Here's an article comparing expense fees. GLD at 40 basis points, IAU at 25.
http://seekingalpha.com/article/913621-why-the-spdr-gold-trust-should-cut-fees-now
On an investment of 10,000 IAU is at $25 per year. New Directions is at $190 + storage fees the first year, then minimum of $75 plus storage thereafter.
-- Frankj
"Tex, if you already have an account at Vanguard, you can open a IRA Brokerage account very easily and purchase GLD or SLV, both ETFs, and easily traded. Or, IAU an iShares gold etf among others."
Can anyone REALLY verify that GLD and SLV are backed by REAL gold or silver at all times?
Can you redeem your shares for actual metal?
Do you remember when the muni bonds were safe because they were "insured"...until the insurance companies went bust?
I don't trust them.
MO
First off, I apologize if I'm dragging this comment thread too far off the topic of Brinker, Moneytalk, etc. That said, I greatly appreciate the remarks by Anonymous and MO. I have a GLD prospectus at home and was all set to sign up until I spoke with several precious metals dealers and also heard financial programs on the radio state that shares in GLD and SLV aren't redeemable in the actual metal(s). Granted, most or all of those folks may well "have a dog in the fight" (dealers certainly do). Nevertheless, I would much prefer be able to take possession of the metal at some point. So, this may just come down to how much I value that feature over and against the relatively hefty fees of New Direction. Of course, the ideal combination would be a Vanguard fee structure along with shares redeemable in metal. I imagine I'll find that at about the same time the GM stockholders get all their money back.
MO,
You asked some excellent questions. Ones that I have also asked.
Bob Brinker has repeatedly claimed that GLD and SLV are backed up by actual bullion.
Does anyone actually believe that they are holding those PMs in safe storage and able to hand it over in exchange for shares of the ETF?
Somebody wrote: Can anyone REALLY verify that GLD and SLV are backed by REAL gold or silver at all times?
Can you redeem your shares for actual metal?
"No" to both.
And how do you know that another party will actually store your physical gold? Even if you went to see it, it doesn't mean that it will be there the next day.
Maybe you should buy and hold the metal yourself.
In the puget sound area there was a respected gold firm that was found to not have customers' gold in its vault. Investors lost millions and the owner went to jail. The owner served his time ( a couple of years) and is now back selling gold. I hope he has turned over a new leaf. I have not given any money or my gold bars to the convicted felon to keep in his safe.
I'm no expert in all this and will gladly stand corrected, but I believe the holders of others' bullion can operate similar to fractional reserve banking, in other words, more than one party may have claim to the same asset.
Fractional reserve banks loan out much more money than they hold in assets and the same can be done with precious metal storage. You may be able to go there and retrieve your gold, but other parties may also have claim to it because it was loaned out.
As long as the holder has enough gold reserves on hand, then nobody knows any different. But if everybody wants their gold at the same time, then the SHTF.
"And how do you know that another party will actually store your physical gold? Even if you went to see it, it doesn't mean that it will be there the next day."
A bonded warehouse or storage facility where there is an actual bond to secure the receipt for the gold. Bonded warehouse receipts trade like securites.
"Bonded whiskey" means that it is stored in a bonded warehouse while it ages.
Who is actually holding the gold backing GLD? I'm just asking... where's the storage facility and are they bonded?
MO
This just in:
http://www.oregonlive.com/business/index.ssf/2013/03/ex-treasury_secretary_timothy.html#incart_flyout_business
AP article about forthcoming book by Tim Geithner about .... the meltdown. Yawn. When will it end?
-- Frankj
-- Frankj
Frank J,
Here is your Geithner link live:
ex-Treasury Secretary Writes Book
Maybe he can explain what it's like to cheat on your taxes and still be appointed Treasury Secretary.
To MO: Yes, but just because they're bonded, does that mean they cannot loan their assets? (gold)
Like a bank, as long as they have enough in reserve to cover claims, are they doing anything illegal? I'm just throwing these questions out there; I don't know the answers.
Your comment about the receipts trading like securities is actually how paper money (gold-backed, not fiat) came into existence some hundreds of years ago. People would have the local goldsmith store their physical gold and would get a certificate for it. At some point they realized that trading the certificates was a lot easier than having to withdraw their gold.
If you Google around I think you will find a lot of info about the GLD and SLV ETFs, and if memory serves, they are constantly buying, selling, and loaning the metals. So they do operate much like a fractional-reserve banking system where more than one party can lay claim to the same asset. Again, I could be wrong, but this is how I remember it.
In the puget sound area there was a respected gold firm that was found to not have customers' gold in its vault. Investors lost millions and the owner went to jail. The owner served his time ( a couple of years) and is now back selling gold. I hope he has turned over a new leaf. I have not given any money or my gold bars to the convicted felon to keep in his safe.
Yep, that was in the 80s I believe. They even issued Certificates to the owners. You got you certificate and they charged you a storage fee. And then one day...
tfb
Boiling down these gold-related posts, it seems that the two questions to ask of any firm are: 1) Do you use a bonded warehouse? and 2) Is every dollar you receive from an investor redeemable in physical metal, i.e., not "fractional reserves." By the way, when I spoke with Vanguard about a gold fund, the rep asked the reason for my interest in it. When I mentioned an inflation hedge, he tried to sell me on their Inflation Protected Securities fund. That went nowhere once I pointed out its negative yield and the fact that I already own it (thanks to BB's rec), albeit in a microscopic amount.
Tex,
Are you aware that Bob Brinker has sold all Marketimer holdings in TIPS? (Vanguard Inflation Protected Bond Fund)
Tex said: Boiling down these gold-related posts, it seems that the two questions to ask of any firm are: 1) Do you use a bonded warehouse? and 2) Is every dollar you receive from an investor redeemable in physical metal, i.e., not "fractional reserves."
"Fractional reserves" is a type of banking system, not something that is or is not redeemable.
To your above question, I'm sure they would say that yes, you can get your physical gold back anytime -- the same as any bank would tell you yes, you can withdraw your money with us at any time.
But the important question to ask is: If EVERYONE wanted their physical gold back on the same day, could you do it?
Aside from all that, anyone who is this worried probably should hold the gold themselves.
"But the important question to ask is: If EVERYONE wanted their physical gold back on the same day, could you do it?"
Is that a realistic test? If EVERY depositor demanded their money back on the same day, there is not a bank in this country that could do it.
If EVERY policy holder died on the same day, there's not an insurance company that could pay.
Why should a gold custodian be held to more stringent standards than banks and insurance companies?
GLD
"But the important question to ask is: If EVERYONE wanted their physical gold back on the same day, could you do it?"
Anon said: Is that a realistic test? If EVERY depositor demanded their money back on the same day, there is not a bank in this country that could do it.
Of course not, because they are all fractional reserve instead of full reserve. More than one party may have claim to the same asset. This is the whole point. It is why FR banking is a bad idea, not to mention inflationary.
If EVERY policy holder died on the same day, there's not an insurance company that could pay.
Insurance companies base everything on risk. It's a whole different type of business than banking -- especially fractional reserve banking.
Why should a gold custodian be held to more stringent standards than banks and insurance companies?
Well the other poster was worried about it. I was just pondering whether they operated like a fractional reserve bank or like a safe deposit vault. Huge difference.
"Of course not, because they are all fractional reserve instead of full reserve. More than one party may have claim to the same asset. This is the whole point. It is why FR banking is a bad idea, not to mention inflationary."
That's just not true Bluce. You are confusing gold storage somehow with the reserve requirements of the banking system.
If you put 1 oz of gold into a bonded storage facility, you get a receipt for 1 oz of gold. Nobody else has ANY claim whatsoever on the same gold. It belongs to you.
This country hasn't been on any sort of a gold standard for years and your greenbacks are backed only by the government's promise to pay. You have NO claim on any gold whatsoever.
The FED dictates the amount of deposits which must be held in "reserves" but in only means those funds cannot be used for other purposes. Those reserves are held at the FED but they certainly have no relation to gold whatsoever.
GLD
Honey, how many times has Bob stated the the gov't won't take our 401k's 403b's etc ? somebody ask him about what's going on right now in Cyprus ?
Tom in Vallejo, Ca.
Tom in Vallejo,
You must be referring to this:
Cyprus bailout comes at a cost to bank depositors
Can it happen here? Can they dictate what we do with our IRAs, etc., in effect, taking them over?
I think they can if they want to. The U.S. seems to be on a downhill roll into tyranny. When the Constitution is ignored, there are no boundaries.
"Of course not, because they are all fractional reserve instead of full reserve. More than one party may have claim to the same asset. This is the whole point. It is why FR banking is a bad idea, not to mention inflationary."
That's just not true Bluce. You are confusing gold storage somehow with the reserve requirements of the banking system.
No, I'm not confusing the two. Do some research. As I stated earlier, I have read that some gold funds (GLD maybe being one) are allowed to loan out their assets (gold). If I read this wrong then I will gladly stand corrected on it, as I also previously stated.
If you put 1 oz of gold into a bonded storage facility, you get a receipt for 1 oz of gold. Nobody else has ANY claim whatsoever on the same gold. It belongs to you.
Is it the same as getting a receipt from your bank after you deposit money? If so, then you have a claim, but someone else also likely has a claim to the same asset.
This country hasn't been on any sort of a gold standard for years and your greenbacks are backed only by the government's promise to pay. You have NO claim on any gold whatsoever.
Have you actually read my posts? No where have I said ANYTHING about a gold-backed currency. Storing physical gold somewhere has absolutely nothing to do with the monetary system.
The FED dictates the amount of deposits which must be held in "reserves" but in only means those funds cannot be used for other purposes. Those reserves are held at the FED but they certainly have no relation to gold whatsoever.
Again, I never said that they did.
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