November 09, 2009
– Comments (5)
The video Peter Schiff references...
Man tires to sell an ounce of gold for $50:
Unbelieveable. For two reasons. Nobody had any cash. And nobody understood the value of trade. Not even the pirate with the parrot on his shoulder. Unbelieveable.
Thanks for posting. I guess this confirms anecdotally that Gold has a long way to run yet.
I'm just assuming that everyone figured it was a scam of some kind. Even so, you'd figure at least one person would take him up on the offer.
I'm thinking too that the mere fact that no one has any cash means that it is all on plastic and safely corralled by the Banks. This is what allows them to lever up and make mistakes. It also means the Banks are tapped out in terms of raising new capital...they already have all of ours.
There is no balance in the system anymore. The same holds for Stock Certificates. Shares held in Street Name are the playground for Proprietary Trading, it is where the resource comes from. You take away the share certificates and the Investment Houses are forced to rely on their own funds for trading instead of yours. Nobody really knows this part of the transaction, and this explains the temptations Banks are put under, especially once they are given the Glass-Steagall green light to go ahead and invest the resource....in their own name.
If someone's trying to scam me or begging for money I usually lie and say I don't have any cash on me, so I don't read too much into their response that they didn't have any cash. Either way, it's still a funny video.