Comments on: US Dollar As Reserve Currency Not Working Very Well

By: etch

etch — Sat, 12 Sep 2009 01:35:54 +0000

I”M STILL WAITING FOR
“AUSTRALIA IN THE RED “DVD
TO COME DOWN IN PRICE ……………………………………..
ANYONE KNOW WHEN????????????????????????????????

By: cb

cb — Thu, 10 Sep 2009 05:28:39 +0000

PS 2: And, if investing in gold is as irrational as he seems to try making it out in that piece, it is most puzzling as to why he should not expect the gold price to crash. In fact he seems to expect the opposite, which would seem to imply that he puts more faith in investor irrationality going forward than investor rationality. Either way you look at it, unless Mr Kohler is indeed confused, the internal logic of his views, expectations and argument simply do not add up.

By: cb

cb — Thu, 10 Sep 2009 05:23:51 +0000

PS. I mean, it is hard to believe that Mr Kohler should be ignorant of why investors take an interest in gold, and if he is not ignorant of them, the question does arise as to his motive for ignoring them completely in his article. It would be hard, if you tried, to write a more derisory piece about gold and those who invest in gold.

By: cb

cb — Thu, 10 Sep 2009 05:05:23 +0000

I have submitted a comment to Business Spectator in response to Alan Kohler’s article, suggesting that Mr Kohler should educate himself on the subject. I doubt that comment will see the light of day over at that publication, so I will post here a very instructive little quote from the Maestro, Alan Greenspan himself, who apparently warned Gordon Brown in 1999 about the latter selling half of Great Britain’s gold at rock bottom prices:

“Germany in 1944 could buy materials during the war ONLY with gold. Fiat money paper, in extremis, is accepted by NOBODY. Gold is always accepted.” (Alan Greenspan 1999)

But obviously, Gordon Brown’s priorities at the time did not include the interests of his country and, at least he did not rate it high enough to stop himself from dumping vast quantities of gold in advertised public auctions, even though he was warned that doing so will crash the gold price. He did it anyway, and that is exactly what happened. Now, among those cynical of his motives, there are some who suggest that he undertook the whole exercise precisely for that reason, to crush the gold price, as Goldman Sachs was caught with its pants down with being massively short on gold.

But, however that may be, Mr Kohler should find it instructive to research and educate himself about gold being a store of value. He was claiming in that article that gold was a confused commodity, but it should be amply clear that the confusion lies with Mr Kohler, rather than with gold. But who knows what motive Mr Kohher might have for writing such a one sided, deaf and dumb article. You have to wonder, given his profile in the industry.