Friday, May 31, 2013

WWE Wrestler Kane!

WWE wrestler Kane. Very impressive!! Hope he gets to senate and does a few chokeslams, and then teach those senators some Austrian Economics and libertarianism.

Tom Woods: 
"Ron Paulian WWE wrestler Kane, who has the longest active career of anyone on the WWE today, is considering a run against Lamar Alexander, Mr. Establishment, for U.S. Senate in 2014. He's smart, too. Even the Daily Caller has to write about him with respect."

Thursday, May 30, 2013

Bernanke to exit in Jan 2014?

First it was treasury secretary Timothy Geithner. Now Ben Bernanke wants to leave his Fed chairmanship too. They must know that they have screwed up the country. This is the exit strategy that Ben Bernanke has been talking about for years folks! His own exit strategy, literally.

Last year, I've combed through about 15 possible successors to Ben Bernanke. It seems that all of them love money printing.

Anyway, the time of reckoning is ticking ever so closer.

Saturday, May 18, 2013


I have not posted anything about bitcoin in my blog, but had done so on my facebook. As predicted, those in power always try to control private currencies. This has happened throughout history for thousands of years. Whenever there is a popular, profitable currency, the authorities will try to control it. They are afraid of competition to their fiat currencies.

The Antigoldbugs

Antigoldbugs watched gold go from 300 to 1900 without buying any, and then watch it go through a correction, and then say "I told you so!"

Seems like it's the only bubble in which nobody owns the asset.

If we go back to Bretton Woods...

Here I try to calculate the implied value of gold in USD, if the US were to go back to the Bretton Woods (40% backing by gold). Of course, I don't do my gold (actually silver) investment based on this scenario. Gold should be viewed as an alternative currency -- a super undervalued currency that is. Anyway, just for fun:

From the US websites,

Estimated April 2013 M2 money supply: $10525.9 billion
US official gold reserves: 8133.5 tonnes = 261527331.1897106 troy ounces

We assume that these figures are *cough* honest and accurate.

Take (M2 x 40%) / (oz of gold), and you will get an implicit value of $16,099.12 per ounce. If gold hits this kind of price, silver will be at a few hundred bucks per oz.

The price of gold when I started this blog: $950/oz
The current gold price: $1350
The price of silver when I started this blog: $14+/oz
The current silver price: $22.30

Thursday, May 16, 2013

Silver milestone

I've reached my target silver oz yesterday, 15th May. After about 3.5 years of collection! Through those years, I actually sold some 200oz - part of my collection - in 2011, near the peak of the silver bull run. It was going up 60-70% in just a few months. There were too many bullish short-term speculators in the market.

It is very tempting to buy more given that prices have come down substantially recently.
I have been doing research on agricultural commodities. It might be a good chance to start buying when a crisis hits this year or next.

I'll still continue to short the US 30-year bond. Surprisingly my positions have been in the green since I started shorting it a few months back.

Saturday, May 11, 2013


Abenomics and currency debasement is nothing new. It has been (literally) tried repeatedly for thousands of years and failed every single time.

What the administration needs to understand is that:
1) Real demand ONLY comes from real supply, not the creation of more currencies.
2) Economic growth is not synonymous with GDP growth. GDP is just another fanciful way of measuring inflation (i.e. money printing). Even the calculation of real GDP is flawed.
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