GLD does not own any gold. It is paper. There is no vault representing an equal amount of gold to the number of assets in the ETF. It is nearly impossible to constantly be trading gold bullion to match assets, the cost would be a lot more than .4%
Menger, I'm an Austrian economist as well, but Karl would easily school you in any economic argumentation. Go call him an idiot in his forums, explain why you think so (intelligently), and get his response. Expecting hyperinflation is insane, despite the train wreck that is the USA.
The FED doesn't want to actually buy US treasuries. They'd rather buy assets now, rather than IOU's with only an implied promise to later recover their own Federal Reserve Notes ("Dollars").
The Fed talks about "monetizing debt" to encourage investors to buy US treasuries. If the Fed really wanted to buy treasuries, they would have bought them unannounced -- to get the best price. I'm sure they hoped that investors would buy treasury debt (and lower yields) so they wouldn't have to.
The trumpets of lucifer ring proud today.... DOW up 500 points. Satans minions revel in glee; the sheep scamper before the slayer, oblivious of their inevitable SLAGHTER..
they will give SDRs for gold ETFs > paper for paper
4hsbs 1 year ago
GLD does not own any gold. It is paper. There is no vault representing an equal amount of gold to the number of assets in the ETF. It is nearly impossible to constantly be trading gold bullion to match assets, the cost would be a lot more than .4%
CMeWint 2 years ago
Where did this Stacy Herbert come from?
gosciu555 2 years ago
great stuff from M&S...i started salivating homer simpson-style @ 6.56 mmmmmm.....gollllllllllllld.
ivangrozny27 2 years ago
stacy hebert makes an excellent point at 6:50.
hume12345 2 years ago
May I be the first around here to go ahead and call Mr Denninger an idiot?
The Fed just announced that they will start purchaing treasurys Wednesday, March 25, 2009.
NY Fed announcement: tinyurl (DOT) com /dl5tjv
MengersDisciple 2 years ago
Menger, I'm an Austrian economist as well, but Karl would easily school you in any economic argumentation. Go call him an idiot in his forums, explain why you think so (intelligently), and get his response. Expecting hyperinflation is insane, despite the train wreck that is the USA.
boxwi 2 years ago
Hey Max...
Went and check Denninger's latest radio show.
He thinks gold ain't going anywhere and the Fed is not actually going to buy treasurys, but they only talked about it to make the yields go down.
So apparently he thinks the Fed can solve this crisis... just by talking.
And there's no inflation/hyper-inflation threat.
Wow man... don't plug fools like him Max!!
Here's the show:
watch?v=NEVlnG0Tp-E&feature=PlayList&p=FAE54F75CDBCC4E3&index=0&playnext=1
MengersDisciple 2 years ago
The FED doesn't want to actually buy US treasuries. They'd rather buy assets now, rather than IOU's with only an implied promise to later recover their own Federal Reserve Notes ("Dollars").
The Fed talks about "monetizing debt" to encourage investors to buy US treasuries. If the Fed really wanted to buy treasuries, they would have bought them unannounced -- to get the best price. I'm sure they hoped that investors would buy treasury debt (and lower yields) so they wouldn't have to.
herbs814 2 years ago
Great Audio but where is the Video?
juegamagia 2 years ago
It's from their radio show.
MengersDisciple 2 years ago
The trumpets of lucifer ring proud today.... DOW up 500 points. Satans minions revel in glee; the sheep scamper before the slayer, oblivious of their inevitable SLAGHTER..
psbyowner 2 years ago 7
Your prognosis is 100% accurate
TheFlex21 2 years ago 6