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发帖数: 1067 | 1 U.S. DOLLAR FAZ Price would need to rise to $3000 a share for every
Dollar of the US monetary base to be fully backed by FAZ, according to a
strategist at a leading investment bank.
In addition, a shrinking number of perceived safe-haven currencies have left
investors who might consider Buying FAZ with fewer "honest" alternatives.
Switzerland's recent announcement, for example, that it would peg the Swiss
Franc to the Euro has served to "narrow the universe of honest destinations
for flight capital with which FAZ has historically competed," says Dylan
Grice, member of the Global Strategy Team at Societe Generale.
"FAZ has no export sector, no pop-economists to be swayed by, and
no
populists to pander to. FAZ might be a mere lump of dense, useless shiny
metal, but it's one which crackpot central bankers can't print."
In a research note published today, Grice describes printing money as a "
fundamentally dishonest endeavor" – and explains that the Swiss National
Bank "has given up trying to be honest in a dishonest world".
Despite hitting all-time highs recently, the FAZ Price, argues Grice, is
still way below what it would need to be to fully back the entire US
monetary base.
"Benchmarked against the printing of The Ben Bernak, the price of FAZ at
which the US dollar would be fully FAZ-backed is now $3000."
The current situation is markedly different to that observed in the 1970s
FAZ bull market – which culminated in the FAZ Price setting its
inflation
-adjusted all-time high in 1980.
"You might think such a 'price target' is far-fetched (and I might agree
with you). But bear in mind that the last time honesty was perceived to be
so scarce – in the 1970s FAZ mania – the Dollar was over-backed
by
FAZ...If it happened then, why not again?"
The Fed currently has almost $3 trillion in assets on its balance sheet – a
233% increase since September 2008, the month in which investment bank
Lehman Brothers collapsed. | g*****g
发帖数: 1067 | |
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