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The Bodysnatchers's avatar

I've noted for decades how six of the supposed 'seven deadly sins' all stem from the primary one: excessive greed

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Paul Repstock's avatar

Well Bs; It seems that the human brain has not evolved to keep pace with civilization. We have lost the concept of value. Without value, the default position is "MORE". (Or in other words "Greed").

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David Jensen's avatar

The wild speculation driven by continual injection of central bank 'liquidity' has driven humanity into a fervor. The reference points of what constitutes value has been distorted by a Weimarian craze.

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Paul Repstock's avatar

We are seeing the inevitable Fascism rising now. Even with computers they can't print fast enough to stay ahead. Lets hope it can be stopped. What I suggested above is preferable, if the Americans could surrender Hegemony???

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David Jensen's avatar

Circulating private money is coming - it cannot be stopped.

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el Gallinazo's avatar

There is always the gilded tungsten bars housed at Fort Knox, though my understanding is that the Chinese were not amused when they arrived several decades ago.

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Justin's avatar

David; it will be interesting to see how the "Blame" for a market failure is directed? Now that USAID etc have had their money cut off we might get real reporting like yours on a broader scale??

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David Jensen's avatar

Blame will go everywhere except where it belongs.

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Mitch's avatar

Thanks David. Kinda lost for words. We've all known this was coming. It's just a case of how fast and how bad it will be.

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David Jensen's avatar

Bad at first.

But gold and silver are going to circulate as the gov paper burns.

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Faunsgarth's avatar

Alleluia... May this be the moment so many of us have been waiting for 🙏. Strap yourselves in for the ride of a lifetime 💥

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Dimitri's avatar

Ty so much David for addressing this issue. What you describe is the beginning of the "slowly to suddenly " transition. It's good to hear from an expert (you) how the scarcity will manifest in the leasing market. I was entertaining leasing my gold, but was offered a rate of return 3%/yr paid in physical weight. A far cry from the 4.5%/month that you've mentioned previously.

And we seem to be closer to the "suddenly " phase than the "slowly" phase. Needless to say, I'm going to forgo the thought of leasing.

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David Jensen's avatar

Excellent.

Cautious is good.

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Peter Redward's avatar

Yes, Turtles to the Sky. What surprises me is how calm the OTC options market is. Implied volatility has lifted in line with historical, but option skew remains minimal, especially in the short dates.

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David Jensen's avatar

The action is in London where "Metal for immediate delivery has been so in demand that short-dated forward rates have moved into a rare backwardation, pushing lease rates higher." https://jensendavid.substack.com/p/metal-lease-rates-blowing-out-in

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Peter Redward's avatar

Thanks for your reply. It's fascinating to watch. Glad I own physical and not paper gold.

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Paul Repstock's avatar

"but option skew remains minimal, especially in the short dates."

I read that as an acceptance, that the next step is "Default"?

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carlo's avatar

Hi David. If you were in their shoes how would you try to stop this from happening?

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nick's avatar

For those interested John Titus has released his latest documentary on Solaris.

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Paul Repstock's avatar

David, I think this "fear" has been with us for a long time. Even politicians and bankers are not all stupid; Thinking people intuitively know that there is no Free Lunch. Choosing the 'winners and losers' on a social and political basis was always destroy incentive.

The only remaining "Out", would be for the BRICS to support the continuation of the US Dollar 'Reserve Status'? I could imagine this happen for stability reasons if nothing else? But, Uncle Sam's suit will be forever shabby given $35 Trillion of national debt.

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David Jensen's avatar

The bond market has been burning for a long time for those who knew where to look.

Now the gold and silver market take off.

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Paul Repstock's avatar

Forget about "Debt to GDP". Too many fudges in that.

This is Real, even though Wikipedia is neither honest or current:

https://en.wikipedia.org/wiki/List_of_countries_by_external_debt

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