My I say your recent article “Let’s Be Honest About Gold: It’s a Pet Rock” struck a nerve in my consciousness.
Honesty is a lonely word as Billy Joel has written concerning relationships among lovers. There may be little to love about gold, but lets be honest. There is much to understand about gold. Ignorance on gold is a common theme, yet given advertising budgets these days, I wonder if deceit might give Billy Joel something to sing about.
The Gold Anti-Trust Action Committee or GATA for short, has amassed a wealth of documented decisive evidence concerning the manipulation of the precious metal markets. They have presented questions that might even make a WSJ editor blush, or at least hesitate for a second to think about what they are writing about. If not for consideration of factual reporting, possibly for a split second, reality might enter a journalists mind, even if they must patronize their advertisers.
Contrary to what the WSJ might report, Pet Rocks seem to be rather important exclusive of market price considerations.
1. Pet Rocks are newly designated Tier 1 Capital under the new Basel III Regulatory Capital rules.
Pet Rocks are a Tier 1 regulatory capital asset. Supreme collateral equal, if not above foreign currencies and the US dollar.
Please see slides 25 and 37.
2. Pet Rocks have their own carve out rules exclusive of Generally Accepted Government Accounting Standards (GAGAS). Pet Rocks, and Pet Rocks leased out is reported on the same line item on the FED and US Department of the Treasury financial statements.
Note, Pet Rocks are reported on the same line item as Pet Rocks leased out to other countries.
Secondly, as of January 1st, 2015, Pet Rocks are now reported on the same line item as foreign exchange contracts on bank regulatory filings. It seems a great deal of effort to obfuscate classification of Pet Rocks by maintaining a separate set of accounting rules which would be designated as fraud under Generally Accepted Accounting Principles (GAAP). Many individuals that have reported cash and accounts receivable on the same line item have gone to jail, but apparently in the realm of gold, accounting rules don’t apply.
Pet Rocks are combined with Foreign Exchange Contracts (FOREX) on the same Line item. FOREX is now full of rocks, or are rocks full of FOREX?
See page 75 of 84 which displays RCR Part II, Line M2b.
3. Financial writers that work overtime to save the public specifically from gold even though less than 10% of the population has ever owned investment gold, and likely less than 1% physical gold.
4. Interventions in the financial markets specifically for pet rocks have been advertised on the Bank of International Settlements website products list.
The BIS advertises for Pet Rock intervention. Please see slide 17.
5. Pet rocks are becoming quite the collectible in China based on 600 tons a year of imports contrary to China’s official disclosure of gold holdings.
China buys more Pet Rocks, than the World produces!
6. Pet rocks are the supreme collateral in international trade beyond foreign currencies, and the US Dollar.
Pet Rocks are supreme collateral in international trade.
7. Its a pet rock for United States Citizens, but its also badly needed capital (collateral) for financial institutions.
Once US citizens have divested themselves of pet rocks, the pet rocks may soon appear as something quite rare, of inherent value, difficult to obtain, and quite shiny. My guess is that in a few years or months, many WSJ editors which either called gold a pet rock, or felt it to be a pet rock will very much wish they hold a pet rock! After all, only Gold is inherent collateral with no liability. I can’t think of a leveraged derivative that can say that, so discount our Pet Rocks while you can. It makes them a little easier to obtain for financial institutions, but not necessarily for the US citizens, as the US MInt keeps limiting production and availability with declining prices.
Doug Casey talks pet rocks: