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Tuesday, November 26, 2013

Let's check the articles at mining.com


An economic sector is only as good as its commentary, so let's look at a couple of mining.com's recent articles.



mining.com - bitcoin will replace gold because bitcoin is better. Quote:
Gold is going to decline 90% to 95% because bitcoin just has more advantages argues blogger
and I stopped reading at "argues blogger". Though I saw the next two words were a Russian name, which didn't make me enthusiastic to continue either. As for bitcoin, when the inevitable hyperinflationary Mad Max apocalypse comes, I'm going to want to own yellow metal and not a fucking flash drive.



mining.com - Jay Taylor interview. After surprisingly interviewing Kaiser, Cookie and Eric Coffin, Jay resurrects my baseline opinion of him with quotes like these:
Jay Taylor: We're in a deflationary environment that policy makers are trying to overcome with inflation. That won't work as long as people remain confident in the currency—but if there's a loss of confidence in the currency, deflationary forces will give way to inflation. It might even lead to a hyperinflationary situation down the road. That's the worst outcome, but I fear it could happen.
So he's still on the hyperinflation bandwagon, which means he's never bothered to understand what Ben Bernanke's been doing for the past five years. Except now he's grafted in Gary Tanashian's inflation/deflation narrative onto it, which probably means Taylor's at least got enough money for a newsletter subscription.

Later, he says
Deflationary implosion doesn't bother me because I'm more favorably disposed toward gold in credit deflation such as what we had in the 1930s. It was very bullish for the gold mining sector. Catalysts for triggering an explosion in the gold price could be a loss of confidence in the mainstream assets: the dollar, Wall Street, a collapse of the London Bullion Market Association (LBMA) or the COMEX.
I underlined the crazy ZeroHedge goldbug buzzwords for you there. Because with language like this, it's unnecessary to parse these phrases into actual sentences and paragraphs.



1 comment:

  1. You carved Taylor like a thanksgiving turkey. I guess him interviewing 3 sane guys was some sort of aberration. I feel kinda bad for those 3 - aside from each other, who do they have to talk to in the junior sector who isn't some sort of nut?

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