Comparing publicized Yen intervention to unpublicized gold intervention.

From 2011

(Reuters) - Japan sold the yen for the second time in less than three months after it hit another record high against the dollar Monday, saying it intervened to counter excessive speculation that was hurting the world's No. 3 economy. (Sounds like Nixon in 1971)

The intervention vaulted the dollar more than 4 percent higher (Yen 4% lower) , which would mark its biggest one-day gain (Yen loss) in three years, and Finance Minister Jun Azumi said Tokyo would continue to step into the market until it was satisfied with the results.
"We started currency intervention this morning in order to take every measure against speculative and disorderly moves and to prevent risks to the Japanese economy from materializing," Prime Minister Yoshihiko Noda told parliament.

Ok, so what does this look like on the chart, when finance ministers intervene in the markets  ?

Here it is :

Looks awfully similar to this gold chart no ? But this is all conspiracy right.....

So there you have it. The G20 is smashing down the gold market to support government bond prices. As physical gold holders, we have no idea what the real price of gold is. But the propaganda machine can paint whatever price they want to make us look wrong. All we can do is keep soldiering on until they lose control. When that happens, nobody knows. Its a tough time.

Fast forward to 5:41 of this clip. And when they start talking about silver, FF to  9:48. Nobody can lay out as clearly as Chris Powell. 

Why no banana republic price inflation yet ? Its all about the store of value functions and medium of exchange functions.

 I'd like to share an exchange I've been having with Jim Willie (rumor anyway)  who's been posting as Grumps Labastard of the FOFOA blog. Jim Willie does not seem to think that the store of value (SOV) and medium of exchange (MOE) functions of money can be separated. This will also shed some light on the confusion as to why banana republics have such high price inflation with menial actual printing.

His words

A common assumption I find in the gold community is that there is a somewhat constant store of value that must be available. What this blog has done for me is that the flaws in FreeGold have allowed me to see that value cannot be trapped and isolated for a long period of time. The SoV and MoE functions cannot be separate. The concepts delineated on this blog are zero order, linear. I think the truth may lie in Fekete's Theory of Interest. It's the tension between saver, investor, and producer, the first and second order derivative relationships that make it impossible for the SoV not to be intertwined with the MoE. 

My answer

It is already happening all over the world, all the time. Do you think millionaires and billionaires in banana republics store their purchasing power in their local currency ? No they don't. That's why inflation shows up so fast in these countries. Because the producers are not saving their excess in local currency. They save elsewhere. Thus, the local central bank has no purchasing power to steal via printing (savings are not denominated in the medium that the central bank has the ability to print). The printing just floods the transactional side and you get instant price inflation.

Why hasn't the US experienced banana  republic style price inflation yet ? Simple. Too much savings to to draw from via printing to have enough effect on the transactional side. Too many fools are saving in the medium that the US central bank has the ability to print.

When the producers around the world start saving in a medium other then US dollars (gold maybe ?)
there will be a corresponding amount of price inflation in the US. So it goes back to the same thing. When the bond bubble bursts (savings exit the medium that the Fed can print) the US will join the banana republic club.

Who Cares ?

All this talk about the COMEX, silver, GLD (gold ETF's), manipulation, bull vs bear,  is all noise to me. Even I have been caught up in this.

Why should anyone care what is going on in any gold market, paper or physical until something happens in the US and Japanese 33 year bubble bull markets ?

I still maintain as I said 2 years ago, that the onset of freegold happens when there is selling/trouble in the BOND markets mainly in the US and Japan.

$1000 dollar gold, $2000 gold , what is the difference ? Who cares ? I have paid close to both. As long as BOND prices keep rising and the FED can do no wrong, nothing matters. As long as BONDS are the premier store of value for shrimps and giants alike, long or short term, nothing matters.

Nothing matters in GLD, nothing matters at the coin dealers, nothing matters at the bullion banks, nothing matters at King World News et al.

This is like being in late 60's and early 70's yaking about the price of gold as it bounces between $35 and $60. It didn't matter if you bought at $35 or $80 then until there was trouble in the BOND market and it doesn't matter now as it bounces between $1000 and $2000 now.

  Wake me up when the 33 year bull bubble grenades. Then we can talk gold prices.

And  they say that these bonds aren't a bubble because the great unwashed aren't piling in. I wonder what charts they are looking at..