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  1. #46
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    Mad Max, The Walking Dead, The Road, I Am Legend, The Book of Eli, Revolution, etc etc..............

    Regardless how on point or outlandish you think a doomsday type scenario novel/movie/tv show might be. None of them have tried ti incorporate any type of value to what we use/have as monetary currency or means for payment of today. And wisely so.

    Food, shelter, gas, oil, *****, weapons..................those will be important. Pieces of metal and/or paper......not so much.
    Last edited by Breed; 07-16-2014 at 04:03 AM.
    The world is a toll-free toilet
    Our mouths neurological ass0s
    And psychologically speaking
    We're in a state of mental diarrhea
    Talking sh*t a mile a minute
    Or in a state of constipated notions
    Can't think of nothin' but sh*t, and in this world of stinky futures
    Sh*tty memories and constipated 19 now-nows
    Emerges from the hiney of your head the doo doo chasers
    The Promentalsh*tbackwashpsychosisenemasquad
    Bringing you music to get your sh*t together by

  2. #47
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    Quote Originally Posted by flyerhawk View Post
    They were guaranteeing us that the dollar was on the verge of bankruptcy and the only safe investment was gold.
    They still are flyer. Doomsday/rapture is ALWAYS just around the corner.
    "We are what we pretend to be, so we must be careful about what we pretend to be."
    -Kurt Vonnegut "Mother Night"

  3. #48
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    Quote Originally Posted by Fandango View Post
    They still are flyer. Doomsday/rapture is ALWAYS just around the corner.
    "What's so funny about peace , love and understanding?" - Elvis Costello

  4. #49
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    Quote Originally Posted by KickSave View Post

    That's awesome. What is that from?

    Wait, is that his junk getting chopped off at the end and flopping to the ground? Oh damn, it is! Ouch!

  5. #50
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    Quote Originally Posted by Predicto View Post
    That's awesome. What is that from?

    Wait, is that his junk getting chopped off at the end and flopping to the ground? Oh damn, it is! Ouch!
    Near final scene from the movie "This is the End"... Seth Rogen, Jonah Hill, Franco, etc. Funny movie about the apocalypse and rapture. Those blue beams are rapture beams being sent down to lift Rogen and Jay Baruchel up to Heaven. That they happened to cut of the Giant Lava Demon's lava junk is a bonus.
    "What's so funny about peace , love and understanding?" - Elvis Costello

  6. #51
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    Central banks continue to net physical gold. 4th year in a row. China is the largest gold producing country in the world and exports exactly none of it. They import huge quantities though. So does India. Both imported more than was produced globally last year.

    So on one hand demand is quite high for the physical, but people are running from the paper. And the paper effects the physical price. I'm not sure when that will change, but it will. You can't keep a charade going forever.

    Worth noting that the Cyprus 'bail in' likely had a pretty dramatic effect on this demand as well. They didn't go after bullion. They did take from any paper investments though.

    A new strategy has been unveiled around the world, with the first test run in Cyprus. Despite early denials, the “bail-in” strategy for insolvent banks has already become official policy throughout Europe and internationally as well.

    At first glance, the “bail-in” resembles the normal capitalist process of liabilities restructuring that should occur when a bank becomes insolvent. Equity investors and most-junior creditors lose everything; less-junior creditors get a debt/equity conversion, and senior creditors get 100%. The bank can remain in operation, and does not have to liquidate any assets. No public money is required.

    I have been an advocate of restructuring insolvent banks according to these basic capitalistic principles, which requires no public funds.

    The difference with the “bail-in” is that the order of creditor seniority is changed. In the end, it amounts to the cronies (other banks and government) and non-cronies. The cronies get 100% or more; the non-cronies, including non-interest-bearing depositors who should be super-senior, get a kick in the guts instead.

    Here’s what it looked like in Cyprus:

    All insured deposits (individuals and legal entities) up to €100.000 have, as of 26 March 2013, been transferred from Laiki Bank to the Bank of Cyprus. In addition, the entire amount of deposits belonging to financial institutions, the government, municipalities, municipal councils and other public entities, insurance companies, charities, schools, educational institutions, and deposits belonging to JCC Payment Systems Ltd have been transferred to the Bank of Cyprus.

    All other deposits exceeding €100.000 remain in the ‘bad’ Laiki Bank.

    Did you get that? Financial institutions (e.g. German banks, and central banks including the Bundesbank) get full repayment, along with government entities, while everyone else gets to eat sand.

    If you were robbing a bank, would you take only a little of the money in the vault? No, you would take all of it. The bankers see it the same way when they rob you.

    Once you have performed the initial crime of sticking the losses with the non-crony creditors (who are generally senior), while the cronies (who are generally junior) get out scot-free, you might as well keep going.

    This can take a number of forms. One is the possibility that the assets of the bank will be sold at firesale prices to other cronies. A “bad” loan might not be worth the full 100 cents on the dollar, but it might have a reasonable economic value of 50 cents. Sell the loan to a crony for 5 cents, and the crony effectively gets forty-five cents of instant profit — a nice 10x gain. The losses are taken by the non-crony creditors. This is one reason why I generally do not recommend liquidation, but rather continuation as a going concern for insolvent banks.

    Another strategy is loan write-downs. Crony borrowers effectively get loan forgiveness — you no longer owe any money! Indeed, the crony borrowers might get the loans (due to advance information) just before the bank’s restructuring. The loan forgiveness ends up as losses for non-crony creditors. This has already happened in Cyprus, where investigations have already begun regarding loan write-offs for local lawmakers.

    Then we have the “use-the-bank-as-a-dumpster” strategy. Another crony bank, which also has impaired assets, sells the assets to the failed bank at full price. The failed bank might use a loan, perhaps from the central bank, to pay for this purchase. After the restructuring, the central bank claims front-of-the-line status and gets all its money back. Again, the non-crony creditors eat the losses — losses which originated at another bank!

    As it is, many banks in southern Europe have what amounts to large borrowings from the Bundesbank, in the form of “Target2″ balances. These total more than €750 billion presently, indirectly owed by banks in Spain, Italy and elsewhere. The Bundesbank would claim front-of-the-line status on these borrowings as well, and again non-crony creditors, who would otherwise often be super-senior, eat the losses.

    But we would never do that in the United States, right? Try this headline: “Citigroup Says Debt Beats Peers in Advance of ‘Bail-In’ Rule.”

    In principle, depositors are the most senior creditors in a bank. However, that was changed in the 2005 bankruptcy law, which made derivatives liabilities most senior. In other words, derivatives liabilities get paid before all other creditors — certainly before non-crony creditors like depositors. Considering the extreme levels of derivatives liabilities that many large banks have, and the opportunity to stuff any bank with derivatives liabilities in the last moment, other creditors could easily find there is nothing left for them at all.

    A bank is a levered structure. It might have $10 of assets, $1 of capital and $9 of liabilities. If the value of the assets falls to $8, then the bank is insolvent. That would mean the creditors (liabilities) would have $8 to distribute among themselves. They would get $8/$9 or eighty-nine cents on the dollar of debt and equity book value. Even then, most of the losses would be borne by junior creditors, and senior creditors should get a full recovery.

    Let’s give a real-life example: In December 1931, the Bank of the United States, a large commercial bank, failed in a wave of bank insolvency that claimed six hundred and eight U.S. banks in just two months.

    It was the Great Depression. Over six hundred U.S. banks failed in two months alone. The assets of the Bank of the United States were liquidated into one of the worst markets of the twentieth century. It was, in other words, the worst imaginable situation to be a creditor to an insolvent bank.

    Nevertheless, creditors eventually recovered $0.835 on the dollar. Senior creditors probably got a full recovery. That’s the way it is supposed to work.

    When super-senior depositors have huge losses of 50% or more, after a “bail-in” restructuring, you know that a crime was committed.
    http://www.forbes.com/sites/nathanle...bankster-scam/

    Note the 2005 law change. They didn't know this was going to happen though. It was all so innocent and accidental.

    Anyway they did not take bullion from folks, and the policy in many countries, including my own (and yours) - is to follow the Cyprus model.

    Global demand for physical is at all time highs and the paper gold market is about 100x the size of the actual gold market (fraud is fun, just look at the monetary system!) and it's the paper that's mostly being sold.

    It's a very bizarre market due to financial manipulation.
    Last edited by Yellowknifer; 07-17-2014 at 07:31 AM.
    "There were many ways of not burdening one's conscience, of shunning responsibility, looking away, keeping mum. When the unspeakable truth of the holocaust then became known at the end of the war, all too many of us claimed that they had not known anything about it or even suspected anything."

    - Richard Von Weizsaecker

  7. #52
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    Quote Originally Posted by Fandango View Post
    They still are flyer. Doomsday/rapture is ALWAYS just around the corner.
    I don't believe I like having words put into my mouth. Now, sell me your gold please.
    "There were many ways of not burdening one's conscience, of shunning responsibility, looking away, keeping mum. When the unspeakable truth of the holocaust then became known at the end of the war, all too many of us claimed that they had not known anything about it or even suspected anything."

    - Richard Von Weizsaecker

  8. #53
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    Quote Originally Posted by Breed View Post
    Mad Max, The Walking Dead, The Road, I Am Legend, The Book of Eli, Revolution, etc etc..............

    Regardless how on point or outlandish you think a doomsday type scenario novel/movie/tv show might be. None of them have tried ti incorporate any type of value to what we use/have as monetary currency or means for payment of today. And wisely so.

    Food, shelter, gas, oil, *****, weapons..................those will be important. Pieces of metal and/or paper......not so much.
    Mad Max and its sequels touch on Gasoline as a valuable commodity.... Most others still have us scavenging and don't really touch on the, "What do we do when we've picked the shelves clean of all remnants of old society....

    However, I like that you reference a lot of these apocalyptic shows and movies because its true that there has certainly been a proliferation of them of late... Then you have your "Doomsday Bunkers" shows and such... There is an obsession with "What happens when society breaks down" shows of late..... People are eating it up (Myself included)... I've had interest in these types of shows since I read "The Stand" decades ago... Of course that one's a bit different and departs from reality a tad.
    "Yeah, everything that guy just said is Bullsh!t..... Thank you.." -Vincent LaGuardia Gambini-

  9. #54
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    I would like to point out that gasoline degrades super quick and most of it would be bad after a year.
    Fear is the mind killer

  10. #55
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    Quote Originally Posted by Nunchuckz View Post
    I would like to point out that gasoline degrades super quick and most of it would be bad after a year.
    Sure, just pointing out that the Mad Max movies did go that route with using gasoline as an exchangeable commodity.
    "Yeah, everything that guy just said is Bullsh!t..... Thank you.." -Vincent LaGuardia Gambini-

  11. #56
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    Quote Originally Posted by Payton34 View Post
    Of course that one's a bit different and departs from reality a tad.
    I watched 'Waterworld' (parts of anyway) on TV the other day, never had seen it before. I thought it was funny, they couldn't stay logically consistent from one scene to the next. They ROWED the Exxon Valdez around, but had enough gas to run a small fleet of wave runners.
    "the blade itself incites to violence." - Homer

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    "There are two novels that can change a bookish fourteen-year old's life: The Lord of the Rings and Atlas Shrugged. One is a childish fantasy that often engenders a lifelong obsession with its unbelievable heroes, leading to an emotionally stunted, socially crippled adulthood, unable to deal with the real world. The other, of course, involves orcs." - Kung fu Monkey

  12. #57
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    Quote Originally Posted by Yellowknifer View Post
    Central banks continue to net physical gold. 4th year in a row. China is the largest gold producing country in the world and exports exactly none of it. They import huge quantities though. So does India. Both imported more than was produced globally last year.

    .
    What % goes to jewelry (probably a lot) and electronics ( probably not as much but a lot). Just curious.
    I promise I won't do it again

  13. #58
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    Quote Originally Posted by Nunchuckz View Post
    I would like to point out that gasoline degrades super quick and most of it would be bad after a year.
    Fortunately some of us have hemp seeds and diesel engines.
    "There were many ways of not burdening one's conscience, of shunning responsibility, looking away, keeping mum. When the unspeakable truth of the holocaust then became known at the end of the war, all too many of us claimed that they had not known anything about it or even suspected anything."

    - Richard Von Weizsaecker

  14. #59
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    Quote Originally Posted by Raid View Post
    What % goes to jewelry (probably a lot) and electronics ( probably not as much but a lot). Just curious.
    I don't have those numbers handy, but of course a decent %. The point is though that demand has massively outstripped production and the price continues to fall. This isn't normal.
    "There were many ways of not burdening one's conscience, of shunning responsibility, looking away, keeping mum. When the unspeakable truth of the holocaust then became known at the end of the war, all too many of us claimed that they had not known anything about it or even suspected anything."

    - Richard Von Weizsaecker

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