Hmmm....I'm not sure what to make of this:
This was the cover of The Economist three weeks ago....
....and the news this week is all about the high-living (?) Greeks and their impending default on a multi-billion-Euro loan payment. Greeks have made a run on their banks, and now the banks have no liquidity....they have no more paper currency in their vaults and can no longer fill up their ATM machines. People may have money on paper, but....
There was a piece on the local news earlier this week telling of a HUGE property value bubble building here in Dallas. It seems investors are buying up houses for over-the-top prices, and paying cash, freezing many hopeful buyers out of the market.
Now today I learned that Texas Governor Greg "Who's on First" Abbott has signed into law a bill authorizing the State Comptroller to set up a State Bullion Depository (literally a secure vault) with HSBC Bank.
It seems the University of Texas endowment fund (now in excess of $25 Billion dollars), on the advice of its investment team, has bought $1 Billion dollars worth of gold....not gold CERTIFICATES, but 6,000+ actual gold bars, and needs a place to put them. Oh, and any Texan is invited to park their precious metal there, too.
The insiders say there is growing concern that gold certificates may not be readily redeemable if TSHTF (The Shit Hits The Fan), and that's why they are stashing away actual physical gold. Having gold on paper is not necessarily the same as having gold, if you get the distinction.
Is there a message here for us lowly peasants?
Being the contrarian that I am, I'm considering diversifying with a new barter currency, too, but I'm thinking something like toilet paper or bullets, or maybe cans of Spam. What do 'ya think?
S
