Friday, November 22, 2013

John Paulson finally stops buying gold. But he doesn't even know why.

Yesterday, billionaire hedge fund manager John Pauslon told his clients that he will not be adding anymore gold to his holdings. No wonder, Paulson has gotten slaughtereed in gold. And the reason he's not buying anymore is not because he has come to understand monetary operations, but because he's gotten so destroyed in gold that now he's gun shy. As a trader I've seen many other traders go through this, I know what it's all about.

Paulson is gun shy. He's been so brutalized in gold because of his simplistic, unsophisticated and ignorant views with respect to moentary policy and inflation that he can't touch another ounce.

Paulson should have listened to MMT. MMT got it right. MMT explained many, many, times that QE, interest rate setting, etc, only changes the composition of the financial assts held by the public, it does not put any new money into anyone's hands. Moreover, QE, with its strong interest income reducing effects, is more deflationary than inflationary.

John Paulson didn't understand this and he still doesn't. He's clueless. Maybe he takes his advice from another idiot by the name of Peter Schiff, who knows? But one thing is for sure, Paulson is, each and every day, looking more lucky than smart.


Joe said...

time to buy?

Kristjan said...

I guess the ignoramuses have to learn the hard way.
"Murphy urged investors to purchase an "emergency stockpile" of physical gold and silver, and predicted double-digit inflation."

Thousands of faithful followers were sucked into this game.

Unknown said...

Thousands of faithful followers were sucked into this game. Kristjan

Yes, it's sad that so-called liberty lovers preach love of mere metals.

They should heed Moses, not Mises (poetic justice that his name is so close to miser?), who ground up the Golden Calf and made the idolaters drink the gold dust. To this day, Austrians may still be hunting for the latrines they used afterwards! :)

Kristjan said...

It is sad that these creatonists in economics are taken seriously by so many people.
In investment community It should have rang the bells that if there is going to be even some catastrophic event, gold will not and cannot help a nation. I just don't understand their thinking, do they think that government is going to beg for their gold after the currency has collapsed? If not then what are you going to do with It?