{"id":18451,"date":"2016-03-03T11:30:56","date_gmt":"2016-03-03T16:30:56","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18451"},"modified":"2016-03-03T11:30:56","modified_gmt":"2016-03-03T16:30:56","slug":"interest-on-gold-is-the-new-tempest-in-a-teapot","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18451","title":{"rendered":"Interest on Gold Is the New Tempest in a Teapot"},"content":{"rendered":"
\n

Interest on Gold Is the New Tempest in a Teapot\u00a0<\/a><\/h3>\n<\/div>\n
Accustomed to Speculation<\/strong><\/div>\n
\n

Zero Hedge published an\u00a0article on Canadian Bullion Services<\/a>\u00a0(CBS) last week. Other sites ran similar articles. The common thread through these articles, and in the user comments section, is that CBS is committing criminal fraud. Or, if not, then it\u2019s a conspiracy by the Canadian government to confiscate gold. Terms like fractional reserve and re-hypothecation were dusted off for the occasion.<\/p>\n

\"t-bill\"<\/a>3-month t-bill rates: all the way to\u00a0nada \u2013 click to enlarge.<\/em><\/p>\n

I don\u2019t know anything about this company other than what I read that day. I am writing today to make a different point, not to address or defend CBS. My point is: a company offers interest on gold, and the gold community goes ballistic. Why so visceral a response? To answer that, we need to look at the backdrop of today\u2019s bizarre financial world.<\/p>\n

Interest rates have been falling for well over three decades. This has caused endless asset bubbles in which to speculate to make a fortune (or lose one). And now, in the terminal stage of our monetary disease, there is scant yield to be had even in the US. Negative yields already prevail in several other countries.<\/p>\n

We have become accustomed to it. We\u2019re trained to not expect to earn interest, to not even think about it. Instead, we\u2019re like Pavlov\u2019s dogs who know to salivate at the sound of a bell. Only we\u2019re not after food, but opportunities to speculate. All we want to know is, what\u2019s going up next.<\/p>\n

\"Pavlov\"Pavlov looks at one of his dogs. The dog is probably not happy, but it is certainly well-trained\u2026Photo credit: Corbis<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Interest on Gold Is the New Tempest in a Teapot\u00a0 Accustomed to Speculation Zero Hedge published an\u00a0article on Canadian Bullion Services\u00a0(CBS) last week. Other sites ran similar articles. The common thread through these articles, and in the user comments section, is that CBS is committing criminal fraud. Or, if not, then it\u2019s a conspiracy by […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[12734,106,158,950,374,12735,431,7957,4318],"class_list":["post-18451","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canadian-bullion-services","tag-canadian-government","tag-conspiracy","tag-fraud","tag-gold","tag-gold-confiscations","tag-interest-rates","tag-keith-weiner","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18451","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18451"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18451\/revisions"}],"predecessor-version":[{"id":18452,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18451\/revisions\/18452"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18451"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18451"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18451"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}