Ben Davies: Greece is Just a Preview of What's Coming For the Rest of Us

The LTOR #1 and the upcoming #2 has no effect?   This will decrease GDP so less tax revenue.   But less GDP and more paper means inflation kindling.  So again, if something in the world blows up a massive deflation could occur as economies implode but then massive inflation as the politicians do not allow the central banks to vacuum up excess liquidity.

Would it be OK to allow x2 capacity of persons to get on a ship?  Will the ship not tip over?

It is hard to know if resources are constrained because the central bankers have distorted the commodity markets so much with printed money.   If the marginal profit is good, the oil producer will not want increase supply as long as profits are increasing.  So the FED creates the constraint.  But what happens when economies implode again?  Or are fossil fuel economies not affected by the price of oil?   Hall of Mirrors!

Wow!  Someone else is on fractals and self-similarity.  Galaxies crash.

The take away from fractal, chaos is that the results are not predictable because of 'sensitivity to initial conditions'; why blowups happen, it is built-in.  That is why slack needs to be built into money systems because blowups cannot be prevented.

Ben is very giving with his outlook.. I have been listening to him on Kingworldnews for some time.  I am kind of surprised though that Ben both espouses the belief that there will be a, "cataclysmic end to this" and yet he also thinks that banking and other systems will continue to function such that his allocated Gold accounts will remain his.  Since we have already been through a situation (MF Global) where people who "owned" serialized bars were told that they no longer did.... what is he thinking?  I suppose when you have these fiduciary responsibilities, you have to maintain faith in the system to some degree... otherwise, if you have enough personal integrity, you have to literally pull an Ann Barnhardt, give back your clients money, and call it quits.   

He must have it (figuratively) in his hot little hands -- stored at a private facility in his own account?  And not hypothecated out to any other party?

Viva -- Sager

So this sort of thing is already happening?  Seems like the kind of event[s] that cause[s] Bad Things to Happen.

Or am I missing something?

Viva -- Sager 

No, I don't think Davies has the Gold outside of the system... another quote from the transcript;

"And some people say to me, well, don’t you need to own it in your house or in safety deposit boxes? And I do not feel that, because at my core, I believe the system will ultimately continue to exist, although in a bastardized form, and hopefully, it will have a new beginning whenever that will be. But I think you will be amazed at how society continues – even under the extreme duress. You just have to look at Latin America. You know, I just talked to a lot of the businessmen there and how they coped with hyperinflation. They continue to run their businesses. They just manage their billing system and their receipts and they made it work for them. So it is amazing how ingenuous we can become."

Earlier, he had said, "And part of safety for me – and this is where I see gold – physical allocated gold is, by definition, outside the constructs of the financial system."

The question is, if you have allocated Gold in an account run by the JP Morgue.. in a vault owned by the JP Morgue.. or other banker... are you really outside of the (financial) system, or not?

Also, you may have heard Ben talk about making yield with his Gold... and I can tell you how he does this... for at least a portion of his account value, he is timing the market, selling high, and buying low.  He discusses his outlook on short term Gold price trends more on his regular Kingworldnews.com podcasts.  My point is not that there is anything wrong with this... the guy is REALLY smart and is often correct on his calls.. my point is rather that you need to have the Gold in the system to do this... not out of it, in a safety deposit box or private vault. 

So I go back to my original point.. that to me, there is a cognitive dissonance in saying that the system will have a cataclysmic end, and yet the allocated Gold accounts will be safe, sound, and unhypothecated by any other parties.       

reading the transcript of this interview begged a question in my mind:  Chris & Adam -- Can we develop a 'Man on the street' network of people in places like Greece, Portugal, Argentina, Ireland, Italy, et al?  heck, different parts of the USA vary radically from the other in energy prices, unemployment, etc

the above referenced fractals can be gathered by such a network and sifted here

Ben obviously has street cred and, by virtue of where he sits, what he does, offers us a perspective we may not get sitting in Anytown, USA (apologies to International readers)

much like FerFAL it helps me to hear what they would have to say about what is REALLY happening on the street, are ATMs empty, what are quantity & quality of goods on Grocery stores, what are pump prices, level of civil unrest, etc

(see my posts on topic in member forum on SHTF barometers/indicators)

I think such a network of informed observers would/could act like a network of seismometers of 'real' data vs the filtered MSM BS we wade through

as a Scientific PhD Chris has a highly developed ability to filter such data and see these fractals and offer us an early warning net

maybe it is just me, but I would much prefer this form of 'humint' 

 Capital suggestion, estatesavr!

Yep.  When I got a few pages on in the transcript I answered my own question.  Although he does say it's in private vaults in der Schweiss, which is probably as safe as it gets outside of a vault in your basement (or buried on the back 40).  But your point that he trades the gold market and therefore must have X amount in the system is a point well-taken.

Viva -- Sager