Gold 75% Underowned In 20 Years, Or Exter's Pyramid For Gen X/Y: Zero Hedge

Gold 75% Underowned In 20 Years, Or Exter's Pyramid For Gen X/Y: Zero Hedge

Paul Kedrosky has posted an informative chart from JPM's Michael Cembalest indicating that ownership of gold in dilutable terms (aka dollars), as a portion of global financial assets has declined from17% in 1982 to just 4% in 2009. And even thought the price of gold has double in the time period, as has the amount of investible gold, the massive expansion in all other dollar-denominated assets has drowned out the true worth of gold. Were gold to have kept a constant proportion-to-financial asset ratio over the years, the price of gold would have to be well over $5,000/ounce.

Of course, the chart above pales in comparison with the true Exter pyramid, which incorporates all those wonderful JPM/Goldman inventions known as derivatives, amounting to $1.8 quadrillion, which certainly did not exist in 1982. If one were to factor the above table to include this Exter securitized credit money as well, then the true constant worth of gold would be well north of $10,000.

A MUST LISTEN: Bob Chapman : Every major Bank in The US and Europe is Broke

Bob Chapman on The Sovereign Economist 16 June 2010

From The International Forecaster of the 16th June 2010 : "US banks are fighting to preserve the use of securities that help them appear better capitalized, even as their investments in each others notes perpetuate what one regulator calls a downward spiral of losses. The cross-ownership, largely unnoticed by bank supervisors who generally discourage the practice, was made possible by a Wall Street innovation like the ones that allowed subprime mortgages to flourish. Small lenders were able to sell trust-preferred securities, known as TruPS, because investment bankers packaged them with those issued by dozens of other financial institutions."

Max Keiser on The Alex Jones Show Monday, June 21, 2010

Max Keiser on The Alex Jones Show on Monday, June 21, 2010
Alex welcomes back to the show Max Keiser, a film-maker, broadcaster and former broker and options trader. Keiser is the host of On the Edge, a program of news and analysis, and Keiser Report, a financial tabloid, that broadcasts on RT. Keiser formerly hosted The Oracle with Max Keiser on BBC World News. He invented Virtual Specialist Technology, a software system used by the Hollywood Stock Exchange. Alex also covers the latest breaking news and takes your calls.

Chossudovsky: "Major currencies can simply collapse"

RTAmerica — June 18, 2010 — Obama is urging China to review its currency policy despite Chinese officials made it clear that they are not going to tolerate any interference from abroad to this issue. Is this going to become a major topic of the G-20 meeting in Canada and what's the mood their on the eve of the summit? Michel Chossudovsky says that the financial crisis is not over as President Barack Obama has hinted at.