Jim Rickards: ‘There’s money supply increase but no pickup in velocity so no wealth effect increase in housing – Forced inflation vs. ‘natural deflation’ – Dutch pensions forced to disinvest out of gold

BLOCKBUSTER REVEAL: Dutch central banks mandate disinvestment of Dutch pension money out of Gold.

19 comments on “Jim Rickards: ‘There’s money supply increase but no pickup in velocity so no wealth effect increase in housing – Forced inflation vs. ‘natural deflation’ – Dutch pensions forced to disinvest out of gold
  1. Harry says:

    What are the democratic means to influence (Dutch) central bank policy?
    I mean: the forced move out of metals is simply dictatorial and not understandable in the context of the financial system at this point in time.
    They pretend like they know better, so how to prove them wrong?

  2. MirrorMirror says:

    @Harry

    AFAIK, in the UK, Trust Funds are VERY limited in terms of how much physical Gold they are allowed to hold ( in %-age terms ). That probably applies to Pensions Funds I suppose.

    Yes, I agree .. it is dictatorial … but we knew what to expect.

  3. Harry says:

    Hmmm. Why is the strict regulation? they are not savings banks, all that counts is return on investment so if they have a safe and sane policy (historical figures speak…) then why clamp down on the metals?
    If that is the official policy, am I being subversive by actively getting into metals?

  4. Troy Ounce says:

    Welcome to Holland, entitlement coutry nr 1 where a “lack of money” was never an argument to stop spending. Viva Fiat Money!

  5. karate kid says:

    another country that will be like greece.
    selling thier land for servitude.
    people love thier slavery. look at britan they flood the streets.
    here we are master save us .
    as the saying goes its easy to part a fool and thier money.
    i bet you the old dutchmen has gold in his mine hahhahhaahah

  6. Jack says:

    Re Holland. They seem to have a law that Pension Funds are only allowed to invest 5% of monies into risky investments, such as ..erhhh… gold? That is the excuse the government used to order them to sell the gold ! Mind you when you read financial newspapers in places like Holland they applaud Bernanke etc … and believe in the recovery. REALLY people on here are switched on but most are watching the Royal wedding and believe their extremely dumb investment advisors.

  7. Re the Dutch pension funds and gold, here is the story from Feb:

    http://www.bloomberg.com/news/2011-02-10/dutch-central-bank-pension-fund-must-sell-gold.html

    AMSTERDAM (AP) — A pension fund in the Netherlands says the country’s central bank has ordered it to sell its gold holdings because it is overexposed to a fall in the value of the yellow metal.

    The Vereenigde Glasfabrieken pension fund said Thursday it wants to keep the gold but a Rotterdam court sided with the bank in a ruling Tuesday. The fund will now sell its gold holdings down from 13 percent of assets to 3 percent at most.

    The fund began buying gold in 2008 due to concerns about inflation and the stability of the euro. It argued the investment has performed well since then, rising about 70 percent to around euro1,000 per ounce.

  8. ZORRO LONDON says:

    Morning SLA-YERS (Slayers! sounds an interesting coincidental play on words)
    I have provided several links from Ex-CIA Bob Chapman.
    Tells it like it is and puts the complex matrix (that so many find it hard to get their heads round) into clear focus.
    Because I believe what Bob and many others, (Jordan Maxwell,
    Lyndsay Williams, etc. etc. Celente, Alex) have been telling you is the truth or as near to the truth as one can get for many this is all to much to take on.

    Trouble is………1. It all fits 2. Its a matter of simple fact although one has to have the capability to take the broad view.

    I pesonally have put much of this together through haphazard personal experience and research, and people of greater intellect and experience than I simply have validated it.

    I beg (yes beg) you to watch these links.

    For those with purely PMs in mind, you have an extremely logical and pheasable prognosis for where its going to go.

    I will stop rambling and of course you will all draw your own conclusions

    BOB – CHAPMAN EASTER

    http://www.youtube.com/watch?bodGi5T8ZU&playnext=1&list=PLD4EAB72DBFC16C85

    http://www.youtube.com/watch?v=S1H3fxzfyYE

    http://www.youtube.com/watch?v=RYKNiF1IBQ4&feature=relmfu

    http://www.youtube.com/watch?=3Q80fahi_Pk&annotation_id=annotation_610487&feature=iv

    http://www.youtube.com/watch?v=5_jc_bxSeFc&feature=relmfu

    Something new I learnt today.

    Definition of a “shill”

    A shill or “a plant” is a person who helps another person or organization to sell goods or services without disclosing that he or she has a close relationship with the seller. The shill pretends to have no association with the seller/group and gives onlookers the impression that he or she is an enthusiastic independent customer. The person or group that hires the shill is using crowd psychology, to encourage other onlookers or audience members (who are unaware of the set-up) to purchase the said goods or services. Shills are often employed by confidence artists. The term is also used to describe a person who is paid to help a political party or other advocacy organization to gain adherents; as with the situation of selling goods or services, the shill gives the impression of being unrelated to the group in question, and gives the impression that he or she finds merit in the ideological claims of the political party.

    I feel this is so IMPORTANT! I will post it on a couple of other strings.
    Bob is not infalible, as none of us are, but he and others are as close to the truth as you will ever get.

    Finally, if you are lucky enough to own say 100 ozs of Gold, and after a re-adjusted devalued Dollar IS introduced, or Amero, or whatever, IF! the price of any new global currency was then re-set against Gold to say $6,000 an ounce, you would be worth $ 6 MILLION.

    Even if this calculation was in error by a downward factor of 1/3
    thats still $4 MILLION.

    If you dont have the time now to watch all the links I suggest you save them, and watch them at your leisure.

    You can do the maths for silver based on whatever ratio you see fit.
    Frankly I cant be bothered, but you will still be doing very well!

    Bless you one and all whatever you SLA-YERS choose to believe………………….Z

  9. I am amazed at how corrupt the system is .How this judge manages to sleep at night , what a load of B******s .

    Can the pension fund not just keep appealing and hire more lawyers with the money they are making from all their PM holdings .

  10. Gordo says:

    Jim Rickards, clown, neo-Con and neo-liberal all rolled into one.

    And people listen to him why???

  11. Street Person says:

    Why would anyone want Gold in their pension fund when they can have toilet paper ?

  12. Youri Carma says:

    Google trans from Dutch

    Pension Fund to sell gold bars

    Published: February 10, 2011 8:31

    AMSTERDAM – The pension fund for the glass factories to De Nederlandsche Bank (DNB), the bulk of its gold assets to sell.

    DNB went to court after the fund (SPVG) earlier refused to increase the proportion of gold bars in the total fund assets to reduce from 13% to 3%, according to a ruling by the judge where the Financieele Dagblad on Thursday post .

    The gold should now be sold within two months. According to the latest data had the pension fund, which invests in 1142 (former) employees in late 2009 for 34.6 million euros of gold, about 1400 kilograms. The total fund assets amounted to 288 million euros at that time.

    DNB finds that such a large proportion of gold is inconsistent with the interests of the participants. SPVG sees gold as a medium of exchange, such as euros, but DNB believes that the price of gold fluctuates and is too strong to be classified as an investment.

  13. Youri Carma says:

    DNB – NOUT WELLINK ARE CRIMINALS!

    They don’t serve the interest of the Netherlands at all but are minions of the New World Order helping sinking the bloody ship! – NOUT WELLINK is a CFR Member/Bilderberger minion and has no abilities at all.

  14. Youri Carma says:

    Nout Wellink could be Bernankes’ Mad Uncle.

  15. Dr Catz says:

    While I don’t agree with the judge’s verdict, he is just applying the rules: if 5% of your assets can be in risky investments and gold went up 70%, then the least you can say is that gold is fluctuating a lot (well, only up of course) thus gold is risky. What ever happened to this gold? Did it get sold? If so, with other that will be obliged to sell their gold to comply to the rule, it does not seem to have an impact on the market value (loads of gold getting dumped on the market and still the price moves vertical). Yeah gold!

  16. Danielz says:

    Look-up the history of DNB, it’s the first of it’s kind(kinda ;), the queen can actually still fire Nout, and her son left DNB’s board not long ago……

  17. Capt. Ray says:

    DNB was a private institution. Justice system is the monarchy’s appendix.

    What I don’t understand from the Dutch is that all they have is natural gas pumped away from the Icelandic people to balance their budget. With a heir to the thrown betting on south America.

    How fragile can you get? It’s smack in your face!

  18. Bruce says:

    Jim Rickards is one of my financial celebrities. I love listening to him.

    In fact, everyone should adopt a financial celebrity, I reckon.
    A monetary guide.

    The world would be a better place.

    (In unrelated news: Eric…we need to talk about that elongated voice).

  19. Mary Genoud says:

    Dutch pension funds should counter sue in the EU human rights court. Safeguarding retirement savings is a responsibility and 13% holdings would seem the minimum. Did the Dutch government provide any evidence that gold would depreciate???

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