Gyroscopic Investing

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]

Interesting read, what's the source? Would like to read the rest of it.

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/

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 

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 

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.

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.

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.

The point is they're actively working on it right now to implement it. It's not just academic talk.

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.

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.

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.