25 Replies to “Y2Venezuela: The Hockey Stick, Pt2”

  1. This represents ‘printed money’ in the USA alone.
    About 9 trillion dollars. The world total printed money is 43 trillion dollars.
    It is about 50% of the total money in US$’s in all banks in the world. It will have to be devalued by 50%…

  2. Follow up.
    Nobody calls this ‘printed money’ – they call it ‘public debt’ or ‘sovereign debt’.
    It gives the holder of these moneis an incredible clout, and it incites corruption in unimaginable ways, apart from eventually causing inflation and being totally unfair since we would all want to do the same printing if we could.
    Welcome to the new world order.

  3. Wait a minute?
    We have 148 million troy ounces of gold at Fort Knox,
    I have seen some of it.
    148 million times 1260 dollars an ounce is 18 trillion 684 billion dollars.
    Sell half of that gold to Canada,
    pay off China,
    repossess the White House, kick Obamas ass out.
    That would solve part of the worlds problems.

  4. Fearless Leader:
    Your number looked great until I verified the math. 148 million x 1260 = 186 billion. A drop in the bucket, unfortunately.
    Which goes to say gold is grossly undervalued.

  5. i hate to be the rain on the parade guy and yes i am in touch with reality .
    I belive the average person is becoming more and more aware of the going’s on around the world not just the u.s.a. and so for me i think that soros and madoff and the likes will be held accountable same with obama . our economies have slowly recovered we are soo connected to each other now in this world it doesn’t take long to react to a situation …this recession was indeed the worst since the depression ..but if you remeber in 2002 it was only .1% behind this most recent one and in both cases in roughly about a year we started the up slope will the be another recession ..you betcha…typically they occour every nine years on average depending on the clowns in office it is inevitable they have to happen ..why ? think of a bunch of little to moderate sized earthquakes every nine years as apposed to one big huge eathquake every say 100 years that destroyed countries …so recessions are fairly normal and fairly regular can the bottom fall out absolutly.
    is it good to buy gold and silver and store food and guns and ammunition i will alway’s say you bet .
    But remeber the really rich people need to to help them keep getting richer so it is in there best intrest to not let the people fall flat on there faces as it will ruin there cushy spot at the top as well it also means that if you manage your money/gold right you will surrvive the worst and at the end of the day folks if the economy completley tanks you won’t have to worry about your mortgage debt or papaer money investment’s or any of that ..all of us not just you yourself will be in the same boat period no matter what is a dollar tanks to negative value then the whole country tanks and people will fight for a grain of rice and the whole new wolrd order thing don’t worry about that either as there will be many millions of people around the world that will ensure via guns and ammo it won’t happen myself included the majority of people do not will not give up there sovrien countries for a new world or one big country it just won’t and can’t work there will be soo much blood shed and we the people will always rise up no matter what military or army or nato,u.n. shite tries to force us to do other wise you can only kill so many people before your out of total resistence and then you have to start looking around at who is going to clean the toilet’s and who is going to be king can’t be two king’s so they know they being the n.w.o. junkies know that they can only go as far as the people let them and if we start pushing them backwards they have no choice but to do so ..look at brewer in arizona ,look at christie in new jersy ..look at idaho kicking and refusing work and property to illigals ..it is slowly happening and if people like you and kate keep it up you will reap the fruits of your labour .
    So let the money fail let it happen the crooks will get run out of town and we will recover and we will learn and built it better . sorry a bit of a rant .
    Paul in calgary

  6. But remeber the really rich people need to to help them keep getting richer so it is in there best intrest to not let the people fall flat on there faces
    ~Paul in calgary
    I disagree.
    Truly wealthy people can have as many mansions, cars, planes, even islands as they want.
    Getting one or 2 more makes no difference, doesn’t make them more powerful either because it’s already carved up into owned turf by the other rich people.
    The only way to get comparitively richer is to make the majority of people poorer.
    That alone increases the power and prestige of the truly wealthy.
    They’re the movers and shakers.
    It’s time to make the little people move out of their homes and shake them off the ladder of success.

  8. Most money is just bits in a computer somewhere. It’s book-keeping. It’s been that way for a long time now.
    Remember Jimmy Carter’s stealth devaluation (10:1)?
    No? Strange…

  10. O.k. ..that may be true all i am saying is cover your but and let it happen it is to me natural those crooks will be run out of town …you alway’s know who is naked once the tide goes out you know . they will be exposed right to the very person no matter how hard or long they try to hide it eventually they will be exposed .
    hyperinflation or no inflation it will all end at some point and getting back to what i said earlier ..it will expose the crooks, the people will remain standing . and let’s say it tanks but not quit like the great depression or maybe just slightly worse again the crooks wil be exposed they will be run out of town and we the people will learn and we will build the system back up to be better so it won’t happen again …it is a natural flow of thing’s am i worried yeah i am alittle but if it goes i want it to completley tank i mean again apocolyptic this way we will be back to zero and we will have learned and we will have a cart blanche crooks are alway’s caught no matter if it is in this world or then ext …and the damage they casue can be repaired and it for the most part will be china and india will emerge as the first and second world powers but america will be third and in time when the policies are in place to stop the soros,madoff,obama’s,chavez type of people we will expierience the best yet ..and ifi t goes to a depression liek state ..so keep in the market’s and keep buying if you can or feel secure enough to do so why ? because what you have now will be worthless and what you earn and invest durring the down times ..in time will recover and you will be better for it ..i know most people don’t have time on there side anymore but i can assure you a depression would not last as long as it did simply because people have more efficient and better means of communication look at way back when the vocano errupted the only reason people knew it errupted was becaseu the cloud came half way around the world six day’s after it erupted mount st .helens people were given i beleive a 72 hour evacuation notice …and the iceland volcano people had been monitoring it for quit awhile and new with in a certain time frame it would pop and they were right ..so all i am saying is we are better equiped now to repond much more quickly than ever before and again with us and these blog’s and staying the course i think a depression (although it sounds bad) would be a great opportunity for the average working joe to do some good investing (provided they can ) i am doing the smith manouver right now and my very first payment the way it is set up took 3 year’s off my mortgage ..my mortgage loan (bad debt loan) will be paid off in 8 years and that is provided i do nothing else but stay the course so i say let the idiot’s who are corrupt and greedy ruin the market’s go right ahead who is actually set to loose more the billionaires who have 5 homes and 3 yacht’s and money all over the world or the average joe ? i say the billinaires as the money (paper) they have is worthless right so again it WILL sort itself out once the tide goes out they will all be exposed you just can’t hide where you put your money once you start signing pieces of paper there is alway’s a paper trail of some sort some where . sorry for a lack of a better example but so you have a tumor it is making you sick …you fight it and chemo and everything you do everything to avoid an operation ….well now it is soo bad they have to go in there and geti t all out and soon after (provided it is completley gone) your body is left healthy or at least canacer free and is able to somewhat or fully recover in most cases no different with banking govornment or both “bodies” at some point the tumor will get so big and bad maybe the “body” dies great start over. or maybe the body just get’s to sick and need’s an opperation to get the illness out . sorry if i sound stupid i just have a little bit of a different view and i am pretty young still maybe i am an eternal optimist and nieve but i have faith in YOU the people that want thing’s to be better i have faith in good people all around the world and call me silly if you want i want what you want and if enough people want the bad gone and the good to prevale then it WILL happen politicians cannot completley ignore the people no matter what there agenda is .
    Like i said earlier let it fall out let it all tank if you have the will you will come through it and begin to prosper once again …and yes i hatei t and it is scary for me to but i will not just sit there and do nothing becaseu doing nothing gurentees it will happen …and can you imagine if it did fall out and you were able to once thing’s settled purchase some shares or something like that you will laugh at your success the is alway’s opporunity in crisis and no not the “don’t let a good crisis go to waste” kind but the good kind the kind to become closer to the people around you or to help yourself or someone else community can be amazing when everyone chips in abit and even if you don’t if you don’t go off the left end you will be fine as well keep your guns and ammo and protect your property and if everyone does than your community will be safe and your nieghbours will trust you as well and that cannot or is very dangerous to mess with ..politicians know this and so do bank’s . The people do have the power they are just not using it right now .sorry if i sound again like a blabber mouth but it is my opinion and how i feel and see thing’s and i would liek to share that with you all . thnak you.
    Paul in calgary

  11. Not sure what the point of this post is. It seems to be a very weak argument for returning to a gold standard. But we had a gold standard and central banking in the 1920s — and still got the Great Depression. There were numerous panics through the 19th century with a gold standard, with and without central banks.
    It doesn’t matter what backs your currency if you let the bankers & speculators run amok in the economy blowing bubble after bubble. Doubly so if the central bankers and government itself are in on the ponzi.

  12. “Doubly so if the central bankers and government itself are in on the ponzi.”
    We should stop being so innocent and add ourselves to the list of culprits. That “poor-little-guy” shtick just doesn’t wash. We are all gluttons for easy credit.
    Neither bankers nor governments would set up “ponzi” schemes if we didn’t want what they offered.

  13. Most money is just bits in a computer somewhere.
    ~mojo
    Not sure what the point of this post is.
    ~Ian in NS
    I looked at the “PAPER RESERVES” and saw how the blue part of the graph was rising like a Nike AA missile and the first thing that went through my head was that they were stockpiling actual PAPER
    currency at bank branches in preparation for anticipated Bank Runs.

  14. Ian in NS
    Actually Canada did not have a central bank until 1934 or 1935. Currency was either Dominion of Canada notes or issued by a bank (BMO, BNS, RBC etc). In the Great Depression only a couple of Canadian banks failed. They were quickly merged with still solvent banks (hence CIBC and TD).
    We officially left the gold standard with amendments to The Bank Act in 1967. We unofficially left the gold standard when the Dominion government started printing Dominion notes in excess of gold holdings in 1917 (we needed the cash for a European adventure).
    Yes there were bank panics under the gold standard but it was always only a few banks which were panicked not the whole banking system. Recessions occurred but they were of shorter durations and usually less volitile. Leaving the Gold Standard allows financial movement, good and bad, to be amplified. The booms are bigger and longer but so are the busts.
    What the Gold Standard does is put the reins on government spending; governments cannot create money from nothing. If wars are fought, big public works projects started or a social program undertaken, taxes must be raised to pay for the war/public works/social program. That alone tends to make the voters really consider if the undertaking is worthwhile.

  15. “What the Gold Standard does is put the reins on government spending; governments cannot create money from nothing.”
    WOW norm,just wow. You had better tell the Zero that,before the Chicoms come calling for their money back.Did you fail economics 101,or were out sick the day “fiat currencies” were discussed?

  16. I’m sitting back having a good snicker at all the fiat money paper bugs frantically trying to convince us their hyper inflated currency is worth more than the paper it’s printed on.
    I have my gold reserves, bought at $416/oz,and a couple of unincumbered deeds
    Muuhhahahahahahaha

  17. “We have 148 million troy ounces of gold at Fort Knox”
    There is not enough actual physical gold for a nation of 320 million people to use as currency or to back gold notes in this day of e-tronic currency trading.
    In fact there isn’t enough gold in the world for a globe populated by 6 billion souls.
    So you could not:
    a) make enough coin out of it
    &
    b) make gold backed notes because the governments of yore printed more of those than there was gold to back them or they wouldn’t have gone off the gold standard to begin with
    (and I don’t think today’s government is more trustworthy)
    Ronulans and Libertarian gold bugs are living in La La Land endlessly harping about a return to the gold standard that is PHYSICALLY impossible.
    There isn’t enough gold on the face of the earth to pay for existing liabilities, let a lone pay those liabilities and run a future global economy on.
    If that debt/liability could be erased then there wouldn’t be any point in going back to the gold standard, even if there was enough gold, which there isn’t.
    You can’t eat gold and you can’t shelter under it.
    It’s fiat money itself.
    If the global economy collapses you couldn’t trade me 20lbs. of gold for a single one of my stache of canned peaches.

  18. “If the global economy collapses you couldn’t trade me 20lbs. of gold for a single one of my stache of canned peaches.”
    No, but my loaded 357 magnum will 😉
    Someone’s going to come up with a plan to restart the way we trade. Watch for it.
    Clean slate. A change to start again.
    All empty promises the nations will swallow hook line and sinker.

  19. Just got my 100 trillion dollar note from Zimbabwe. Got in on eBay – $6 – nice curiousity.
    Well, the gold standard ain’t never coming back. It may have worked before China became “rich” in US dollars. Chimerica – China shipped over consumer goods, and the US shipped back recycled cardboard and paper (money).
    What if not gold? Well, the US dollar has been the reserve currency, because of NYMEX and IPE selling oil in USD. So – what’s the next proxy? Not gold. Not US dollars.
    Methinks oil, said he, in Alberta!

  20. Sorry about the math- 148 million troy ounces.
    Those canned peaches?
    Venezuela’s Hugo Chavenass continues to loot homes with food storage.
    Obama could try food for oil?

  21. Agian like i posted let it fall out …let it all crater who cares as long as you have food ,water ,guns and ammo and medical supplies let the other sort it out again what year are we in look around you i am not a fear monger but mabey the myans were onto something ? …lol..and i am a christian but maybe christ will return ..i can only hope ..lol. …….. you all should read patriot’s it a newer book about the colapse. anyway my money is soo tied up in mutal funds and gold coins and silver coins it aint eve funy but what ever happens i really don’t care ..some one will be standing in the public eye with there pant’s down and they will be properly dealt with and we WILL move on !!
    Paul in calgary.

  22. We are a while away from the goldbug and gun collapse. Greece, well, not so much.
    However, Canada needs to get its house in order. A quick deficit reduction strategy. A reduction in government expenditure in real terms rather than Flaherty’s BS % of GDP increases. An end to transfer payments when every province is in deficit. Interest rates which actually reflect the need to control the debt induced inflation.
    Caada has stuff that the rest of the world needs. We can remain, relatively, stable. And, with a bit of political courage, we could become “safe haven” for billions of dollars whose owners look at the Euro and the USD and despair.
    We have the opportunity to become the Switzerland of the 21st century. But we would need to stiffen our currency, slash our non-productive immigration and price our resources in hard currency. And we would need to shrink the size of government, federal and provincial, by about 1/3. Bye-bye CHRC, CRTC, official bilingualism, the CBC and so on.

  23. justthinkin’ @ 7:20
    no I passed Economics 100 as well as 201 & 202. Quite good marks in all three.
    You don’t believe the gold standard can put the brakes on government spending? With fiat currency an issuing government can create as much money as it wants. It can spend the money on the voters who realize too late the resulting inflation from the created money.
    With gold backed currency you must acquire gold to issue more currency, e.g. raise tax revenue. This can create problems as it limits genuine economic expansion and inflation can still occur if a load of gold falls on the country (e.g. Spain flooded with gold and silver from their colonies in the Americas).
    If China wants it money back from the USA all the yanks need do is work the Bureau of Printing & Engraving harder.

  24. norm:
    I was composing a long reply to justnotthinkin last night, but got tired and trashed it.
    You’re quite correct that, under a gold standard, major new gold finds/takings creates inflation. Spain is an ancient example; the US after the gold strikes in California and the Yukon is a more modern one.
    The converse is also true. If the country’s gold supply remains stable or grows only slowly, prices cet. par. go down. Here’s a fact I’ve cited before, but few seem to remember:
    From 1800 to 1900, prices in the US dropped by half.
    The US was under a gold standard the entire time (well, it might have been suspended during the Civil War; I’m too lazy to check), and yet, for the most part, its economy expanded pretty robustly.
    The thing about the gold standard is it rewards savers and lenders, and punishes debtors. The seductive thing about fiat currencies is they allow people to fulfill their desires without waiting for them. And no politician who has discovered he can win support and adulation from the masses by giving them something for nothing can resist the temptation to do more of it. That is why, time and again, over and over, fiat currencies have collapsed through the years.
    But these days, we’re so much brighter and more sophisticated, and we have computers, so of course we can cleverly manage the risks and avoid any problems. Look at how well that worked for Bear Sterns.. er, I mean Lehman Bros… er, I mean AIG.. er..
    never mind.

  25. I agree with norm. Russia was on the gold standard until 1917, when the Bolsheviks took over they sold the gold reserves because they had bankrupt the country. The Russian reserves were enormous and the Bolsheviks sent gulag slaves to mine for more gold in Siberia so they flooded the market.
    If you watch Glen Beck you will know that USA had a brief depression in 1918 -1919, the Americans hired a couple of good Presidents, Coolidge/Harding, who stopped gument spending, reversed the socialist handouts and almost eliminated taxes – result – the roaring Twenties – the rise of the middle class, the halt of serfdom. The President of the US is the exact opposite of Harding or Coolidge, IMO.

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