You can't value gold stores unless you know the amount of all outstanding debt. I don't anyone can count that high is why they don't peg gold to fiat, willingly.
PYW? Can I get your opinion on this essay esp. the China part. Hypertiger
First this is not our Hypertiger from the stool . He was a male Canadian
Most of the things she writes are at least half the truth and plausible.
But I ask myself ; why are we in the west all poor ? Because we spend and we spend
money we did not own on things that we did not need and which are now broken and not
paid for .We are like somebody who bought a car on installements and drove it against a tree and still has to pay 3 years for nothing left.
In other words we are going to suffer for another ten years before we have caught up
with the money we spent on needless things .
China was producing silk and chinese ink and calygraphy long before us . All they need is raw materials which they can pay for with the mountain of dollars they have in reserve.
We will be providing them with the techonology they need . Chinese are a saving nation and at the same time they need all "basic" things we have ; like cars . A car is probably the last thing a bankrupt person looses because it is his freedom and he allways has had one . So I think the Chinese will be doing very well ; in fact not worse then we did after
the industrial revolution : better and more things for every chinaman . Also they are getting
a lot out of Africa and if they are clever can sell a lot back there ; later on .
We are doomed for at least 10 more years of pain and writing about China or anybody else
being in dire straits is not going to help us. Basically it is like Jim Sinclair says
Pay off all your debts and stop buying on credit and hunker down for the storm which is coming. Nobody is going to save us because we all are to busy saving ourselves .
I am not saying Hypertigers rantings are wrong ; I am only saying that if we go down alone or with China does not change anything to the fact we are in trouble
Just my humble opinion
August