The Metropolitan Plan: Swapping Bonds for Gold

Discussion of the Gold portion of the Permanent Portfolio

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MachineGhost
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The Metropolitan Plan: Swapping Bonds for Gold

Post by MachineGhost » Wed Apr 06, 2016 9:38 pm

Yeah, I'm rolling my eyes, but it is plausible in a SHTF scenario.

[quote=Porter Stansberry]Last Friday, I (Porter) wrote about a dinner meeting I had a few days ago. One of the most powerful figures in America had invited me to dine at his table at the Metropolitan Club in New York. I've dubbed the plan he told me about – to exchange the Federal Reserve's bond holdings for gold – the "Metropolitan Plan." Assuming the exchange took place today, it would establish a new dollar/gold price of around $10,000 per ounce. Could this really happen?

I don't know, of course. But the fact that such a plan exists and is being discussed at the highest levels of America's financial circles and politics is shocking to me. Honestly, the meeting left me speechless... and shaken.
[/quote]

[quote=Porter Stansberry]The only reason the government would tie the dollar to gold again would be to immediately re-establish the credibility of the currency and stop a global "run on the bank."[/quote]

[quote=Porter Stansberry]Unlike, say, Japan, where almost all of the currency and government debt is held locally, the U.S. dollar is the de facto global currency. In the event of a bona fide global bank run, it won't be possible for the U.S. government to simply shut down the banks and halt the panic. Almost all of the "banks" are overseas, and almost all of the currency is held overseas. That's the huge difference between today and the last time our government defaulted on its obligations (back in 1933). This is the Achilles heel of our currency that most people don't understand... and that many of our policymakers won't see coming.

In the event of a real run on paper currencies, the U.S. government won't be able to stop the panic by simply closing domestic banks and stock exchanges. It doesn't have an easy way to stop the panic because so many of the dollars are held overseas.
[/quote]

[quote=Porter Stansberry]According to my Metropolitan source, in the event of a global currency crisis, there would be a "race" between the U.S. and China to tie their currencies to gold and establish the world's most elite and stable currency. Doing so would mean controlling the world's reserve currency for the next 50 years or more.[/quote]

Also, this was disturbing:

[quote=Porter Stansberry]Last night in Zimbabwe, my friend Doug Casey was having dinner at Dr. Gideon Gono's house. Dr. Gono is the former head of the Zimbabwean Central Bank. You might recall that Zimbabwe suffered a massive currency crisis that began in the mid-2000s. Dr. Gono orchestrated the crisis at the behest of Zimbabwe's dictator (Africa's version of the "Lone Ranger"). The point is, if anyone in the entire world knows what a currency crisis really looks like firsthand, it's Dr. Gono.

What did Dr. Gono tell Doug? He made his son get his laptop computer. He explained that there was an American financial writer who really understood where the world was heading. "It's like I wrote this myself," Dr. Gono explained. He asked his son to show the computer to the group... And he began playing my End of America documentary, which I produced in 2011.

There's just no way I could make this stuff up. Life is truly stranger than fiction.[/quote]
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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Bean
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Re: The Metropolitan Plan: Swapping Bonds for Gold

Post by Bean » Fri Apr 08, 2016 9:05 am

Interesting read, what's the source? Would like to read the rest of it.
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Re: The Metropolitan Plan: Swapping Bonds for Gold

Post by rickb » Fri Apr 08, 2016 10:05 am

Bean wrote: Interesting read, what's the source? Would like to read the rest of it.
I don't know where MG saw it, but it is at http://thecrux.com/porter-stansberry-a- ... is-coming/
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Re: The Metropolitan Plan: Swapping Bonds for Gold

Post by Bean » Fri Apr 08, 2016 12:20 pm

rickb wrote:
Bean wrote: Interesting read, what's the source? Would like to read the rest of it.
I don't know where MG saw it, but it is at http://thecrux.com/porter-stansberry-a- ... is-coming/
Thanks, watching his youtube now.  Still waiting for the punchline on what to invest in or how to prepare.  I suspect it will be Gold and Silver though  :P
“Let every man divide his money into three parts, and invest a third in land, a third in business and a third let him keep by him in reserve.� ~Talmud
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Re: The Metropolitan Plan: Swapping Bonds for Gold

Post by MachineGhost » Fri Apr 08, 2016 1:28 pm

Bean wrote: Thanks, watching his youtube now.  Still waiting for the punchline on what to invest in or how to prepare.  I suspect it will be Gold and Silver though  :P
You are correct.  Stansberry is launching a new gold stock advisory newsletter for $1500 ($100 per stock since the first portfolio has 15 stocks).  That's the punchline.  He reportedly offered $4 million to entice John Doody of Gold Stock Analyst fame to come work for him, but don't know if he bit (it sounds like he did not).

I am somewhat confident the guy Stansberry and friends met with at the Metropolitan Club was gold bug doom porner, Jim Rickards.  Neither Rickards nor Stansberry understand our "functional finance" operational reality, so they mentally operate within the "sound finance" framework.  Then again, so does 99% of the rest of the planet and they are the ones that will move the markets with their actions during a panic and fear crisis, so...  don't bet against the madness of crowds.

So either these advisory publisher networks are very small and clique which are easily wow-influenced by new entrants like Rickards with "fresh ideas", or there really isn't a lot of people in the world that have major influence over investor's behavior if Dr. Gono is any indication.  The Internet may have changed everything in terms of information dissemination.
Last edited by MachineGhost on Fri Apr 08, 2016 1:33 pm, edited 1 time in total.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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Re: The Metropolitan Plan: Swapping Bonds for Gold

Post by MachineGhost » Fri Jun 24, 2016 4:20 am

Here are the Metropolitan Man's three predictions... the three tangible signs we're likely to see before the run on the U.S. dollar begins.

1. Japan's central bank begins directly buying U.S. and European financial assets in an effort to further weaken the yen.

The Bank of Japan has already been buying tons of Japanese stocks. It's a top-10 shareholder in nearly every company on its major stock exchange.

It's soon likely to expand its purchases into U.S. and European markets.

2. China follows the Japanese by devaluing the yuan substantially.

China has already been testing these waters...

The People's Bank of China devalued the yuan by 2% last August – creating the biggest one-day change in its currency since 1993. It followed that move with a smaller devaluation in January, and another last month.

The yuan is now trading near five-year lows versus the U.S. dollar, but it will likely only get much worse from here.

3. Over the next few years... more and more mainstream newspapers and political leaders will call for pegging currencies to gold in order to stop the world's increasingly chaotic currency fluctuations.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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Re: The Metropolitan Plan: Swapping Bonds for Gold

Post by Libertarian666 » Fri Jun 24, 2016 9:08 am

This is not a new idea; it has been around for decades.

That doesn't mean it is good (or bad, for that matter).

Personally I think it would be a good idea, but I could be accused of bias. :P
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Re: The Metropolitan Plan: Swapping Bonds for Gold

Post by MachineGhost » Fri Jun 24, 2016 4:51 pm

Libertarian666 wrote:This is not a new idea; it has been around for decades.

That doesn't mean it is good (or bad, for that matter).

Personally I think it would be a good idea, but I could be accused of bias. :P
The point is they're actively working on it right now to implement it. It's not just academic talk.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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Re: The Metropolitan Plan: Swapping Bonds for Gold

Post by Libertarian666 » Fri Jun 24, 2016 11:00 pm

MachineGhost wrote:
Libertarian666 wrote:This is not a new idea; it has been around for decades.

That doesn't mean it is good (or bad, for that matter).

Personally I think it would be a good idea, but I could be accused of bias. :P
The point is they're actively working on it right now to implement it. It's not just academic talk.
I'm not sure how you can be certain of that. What is your source that they are actually working on it at present?
No, Stansberry doesn't count as a source; he is a shill.
Of course that doesn't mean that he is necessarily wrong, but it doesn't give him much credibility.
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Re: The Metropolitan Plan: Swapping Bonds for Gold

Post by MachineGhost » Fri Jun 24, 2016 11:47 pm

Libertarian666 wrote:I'm not sure how you can be certain of that. What is your source that they are actually working on it at present?
No, Stansberry doesn't count as a source; he is a shill.
Of course that doesn't mean that he is necessarily wrong, but it doesn't give him much credibility.
Well, I didn't say it was my source. And it wasn't Stansberry, it was a hedge fund manager who is a protege of Metropolitan Man. I'm not sure who has that much access to the powers that be, so I'm keeping my bet on Rickards who is an overblown turd. But unfortunately, my opinion will matter little when there is an internal coup.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
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