Daily Digest

Daily Digest 2/12 - IMF Calls For Dollar Alternative, Silver Bullion In Backwardation, Oil Prices Could Rise Quickly

Saturday, February 12, 2011, 11:42 AM
  • IMF Calls For Dollar Alternative
  • In the Midst of the Big Bang: Collapse Has Already Occurred
  • Dutch Central Bank Orders Pension Fund To Sell Its Gold
  • Silver Bullion Backwardation Suggests Supply Stress
  • How Confident Are You in a Hyperinflationary Future?
  • Congress Warned Over States’ Bankruptcies
  • Do I Hear $150? Oil Prices Could Go Up "Very, Very Fast," Says Stephen Leeb

Learn how to protect your wealth against the Three E forces using our 'What Should I Do?' guide

IMF Calls For Dollar Alternative (RW)

The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world's reserve currency. The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.

In the Midst of the Big Bang: Collapse Has Already Occurred (VeganD)

We often discuss “collapse” in terms of an event that has yet to occur - a scenario that will unfold at some point in the future. The reality, however, is that we are already within the collapse. Most people have simply not realized it yet because they haven’t been told by those in control of our information infrastructure.

Here Comes Executive Order 6102 For The QE Generation: Dutch Central Bank Orders Pension Fund To Sell Its Gold (Johan V.)

Perhaps the most stunning example of what may be in store for asset managers and pension funds (and possibly retail holders) who dare to challenge central bank monetary authority comes from the Netherlands, where we have just witnessed the 21st century equivalent of Executive Order 6102. The story in a nutshell (and as translated loosely from the primary source presented below): the glassworkers pension fund (SPVG) was ordered by De Nederlandsche Bank (DNB, or the equivalent of the Dutch central bank), that it has to sell the bulk of its gold assets. After the SPVG refused to comply with the order, the DNB went to court and the decision has come out, siding with the central bank, ordering the SPVG to sell the required gold within two months.

Silver Bullion Backwardation Suggests Supply Stress (pinecarr)

Backwardation is when the market quotes a lower price for spot delivery or a more nearby delivery date, and a higher price for a distant delivery date in the futures market. It indicates that buyers are concerned about securing supply in the future and are willing to pay a premium for spot delivery. It suggests that silver bullion in volume is difficult to buy and that the physical market is stressed and becoming less liquid.

How Confident Are You in a Hyperinflationary Future? (pinecarr)

Perhaps balancing one's faith in a particular outcome with an appreciation for unforeseen contingencies is a wise path in such uncertain times.

Congress Warned Over States’ Bankruptcies (pinecarr)

US lawmakers were warned yesterday that allowing states to declare bankruptcy would upend the $2.8 trillion (£1.7 trillion) municipal bond market, making it much harder and more expensive to fund local government, and potentially destablising the economic recovery.

Do I Hear $150? Oil Prices Could Go Up "Very, Very Fast," Says Stephen Leeb (woodman)

Unfortunately, raising production might not be enough to stop prices from spiking this year, says Stephen Leeb, chairman of the Leeb Group and author of The Coming Economic Collapse: How You Can Thrive When Oil Costs $200 a Barrel. "What's really important for investors to realize is how sensitive oil prices are to changes in demand," he says in the accompanying video.

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

9 Comments

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Re: Daily Digest 2/12 - IMF Calls For Dollar Alternative, ...

Ye Gods!

What's a poor boy to do?

Inflation or deflation???  Mu. (Japanese word, "the question is not valid.") 

My pathetic prognostications are that Oil is the key. Not Cash. We are living in a real world of things that you can drop on your foot.

My key insight is to watch the oil avilability.

If the wheels come off the bus then we will have to rely on Mr Maslow for  advice. Water food shelter clothing

 

It is the bottom of the triangle that is important.

Woodman's picture
Woodman
Status: Diamond Member (Offline)
Joined: Sep 26 2008
Posts: 1028
Re: Daily Digest 2/12 - IMF Calls For Dollar Alternative, ...

 

From Charles Hughes Smith's article linked above:

If the public truly believed high inflation was inevitably just around the corner, it wouldn't be paying down credit cards, it would be maxxing them out, knowing they could pay them down later with much cheaper dollars.

I would say this differently. 

If high inflation is expected, folks want to spend dollars now before they become worth less.  If folks expect a bigger brighter future, they max out their credit knowing they will be more easily be able to pay back in the future.  However, fixed rate debts are not easier to manage in the future unless your wages keep up with inflation as well, which personally is not my experience the last 10 years.

 

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Re: Daily Digest 2/12 - IMF Calls For Dollar Alternative, ...

My big fear for silver and gold is Executive Order 6102. They will just confiscate the stuff.

Even if I hold it, how would I convert it into something useful?

I am asking, Will it be liquid?

LogansRun's picture
LogansRun
Status: Diamond Member (Offline)
Joined: Mar 18 2009
Posts: 1444
Re: Daily Digest 2/12 - IMF Calls For Dollar Alternative, ...

There will always be a black market for PM's.  Always.

robie robinson's picture
robie robinson
Status: Diamond Member (Offline)
Joined: Aug 25 2009
Posts: 1182
Re: Daily Digest 2/12 - IMF Calls For Dollar Alternative, ...

Might my JM bars or Sunshine rounds by virtue of their not being "legal tender"like say Eagles be more safe? safe from confiscation?

 

You can spend most recognizable hallmarks here at our farm for anything from grain,vegs,dairy,firewood to...

 

robie 

DavidC's picture
DavidC
Status: Silver Member (Offline)
Joined: Sep 29 2008
Posts: 243
Dutch Central Bank Orders Pension Fund To Sell Its Gold

"Here Comes Executive Order 6102 For The QE Generation: Dutch Central Bank Orders Pension Fund To Sell Its Gold"

Idiots.

Can they not see what's happening in Asia and China? All the DNB is doing is preventing the Dutch pension funds from being able to meet future pension liabilities.

DavidC

britinbe's picture
britinbe
Status: Gold Member (Offline)
Joined: Dec 28 2008
Posts: 381
Re: Dutch Central Bank Orders Pension Fund To Sell Its Gold
DavidC wrote:

"Here Comes Executive Order 6102 For The QE Generation: Dutch Central Bank Orders Pension Fund To Sell Its Gold"

Idiots.

Can they not see what's happening in Asia and China? All the DNB is doing is preventing the Dutch pension funds from being able to meet future pension liabilities.

DavidC

At the risk of being a bit CT, isn't that the point, they all share the pain?  The argument that PMs are too volatile doesn't stand, look at equities over the last few years.  I personally know of one other person who has bought PMs but that is it; to allow a pension fund to invest in gold would be an indication that gold is money and the masses would smay start to ask questions, especially if the fund out performs other funds during the next stock market dive.  Just MHO...........

ao's picture
ao
Status: Diamond Member (Offline)
Joined: Feb 4 2009
Posts: 2220
Re: Daily Digest 2/12 - IMF Calls For Dollar Alternative, ...
robie robinson wrote:

Might my JM bars or Sunshine rounds by virtue of their not being "legal tender"like say Eagles be more safe? safe from confiscation?

No, just the opposite.  The bars and rounds have absolutely no numismatic value.  More importantly though, you'll find when it comes time to sell them, you'll discover their liquidity is considerably less than that of well recognized coins such as eagles.  That's just one reason why eagles command a higher premium.  

CitizenJim's picture
CitizenJim
Status: Member (Offline)
Joined: Oct 7 2011
Posts: 1
backwardation

Well oil is at $83 per barrel today on the 7th of october and silver bullion at $32 an oz, somewhat off their highs earlier in the year. Is silver still in backwardation, it has not recovered from the drop in may when it was pushing $50 an oz.

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