The Goldwatcher

Since the last Goldwatcher post:

It’s almost three months since my last Goldwatcher posting the day after Goldman Sachs were humiliated in congress for putting  lipstick on a pig.  On the same day politicians in the US  gloated they had ambushed President Obama’s drive to effectively regulate the US financial services industry.

It’s probably more than a coincidence that yesterday the U.S. Senate passed the biggest overhaul of financial-industry regulation since the Great Depression and Goldman Sachs settled the SEC fraud charge for $550 million. $250 million will  be returned to bilked  investors; $300 million will  be paid to the U.S. Treasury. The settlement does not resolve SEC charges against Goldman vice president Fabrice Tourre, the joint defendant named in the  lawsuit. Getting him off the hook  may yet cost Goldman a few hundred million more.

I was surprised to find near universal criticism of President Obama while in the US recently.  In this blog I have consistently taken the view that the President has been effectively seeking solutions to an unholy financial mess and there is progress now on two key domestic fronts. But there are other open cans of financial and geopolitical worms in the US and elsewhere. Contagion risks flowing  from Greece, Portugal, Spain and other countries  still menace the security of the Euro and the solvency of European banks. Global agreements on financial regulation remain stalled. Issues on sovereign solvency are unresolved.

 Gold’s stateless money franchise:

The last Goldwatcher posting ended with this conclusion as valid now as it was when first posted:

Goldman’s worst day with this issue may have been yesterday. They may yet escape any compensation and, even if settling could cost them  $1 billion or so,  Goldman MD Blankfine indicated yesterday big sums are managable everyday issues for them.

  For most of us that isn’t the case. We need to protect our assets against contagion. Gold’s stateless money franchise ensures potection.

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