founder of Pimco, the worlds largest bond fund with over
$1.92 trillion under management, penned a new piece entitled,
for Nothin Writing Checks for Free. In his editorial,
he called attention to the near $10 trillion explosion in global
central bank money issuance since 2006, and the impending doom
historically associated with a money for nothing monetary
The whole charade will soon hit a brick wall.
interest were his comments on gold, commodities, and the Fort
Knox Fairy Tale
ie. Fed gold certificate claims on
Fort Knox bullion holdings which may or may not actually exist.
Supposedly they [the US Fed] own a few billion dollars of
gold certificates that represent a fairy-tale claim
on Ft. Knoxs secret stash, but theres essentially
nothing there but trust
$54 trillion of credit in the U.S.
financial system based upon trusting a central bank with nothing
in the vault to back it up. Amazing!
on the end-game picture in saying,
schemes such as todays QEs or Englands early
1700s South Sea Bubble end badly
The future price tag of
printing six trillion dollars worth of checks comes in the
form of inflation and devaluation of currencies either relative
to each other, or to commodities in less limitless supply such
as oil or gold.
Line: Pimcos $1.9 trillion in wealth is closely watching
gold. When inflationary dragons reemerge (as he puts
it), what impact might a percentage of that $1.9 trillion have
on the metals and commodity markets?