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The Coming Financial Tsunami
In light of what’s happening right now (and the fact that I never posted it on ZH before), I thought it relevant to post this article that I wrote in the February of 2009 as a primer for friends and family to help them become aware of what was happening (and prepare for what I saw coming). Remember – this was written for people who were very much enmeshed in the MSM propaganda world and had no clue of the reality behind our economic, financial and monetary system. The idea was to gently introduce them to the truth and give a brief overview, so you won’t find me going into the full technical and gory details; plus I wanted to keep the length manageable so as to not put them to sleep.
If you find it worthwhile, feel free to forward it to your near and dear ones who are still entrapped in The Matrix. Here it is:
What's happening now is just the beginning of the collapse of a multi-decade debt bubble. All the so-called "growth" since the 70's has been based on ever increasing amounts of debt - not just the US, but the entire world. Here is a US Debt (public and private) to GDP percentage graph:
You can see that the debt has increased exponentially since ’71. In fact, the last peak occurred at the time of the Great Depression in the 30’s, and this one is even bigger than that, so you can imagine what the crash this time is going to be like.
A bit of history first. It really starts with the creation of central banking paper-money system in the US in 1913 - the Federal Reserve System, but for brevity's sake we'll just jump onto the story after World War II, as the biggest structural economic imbalances have occurred since then. After World War II, all the major countries decided on the US dollar as the reserve currency for international trade (since the US was the most powerful nation left, and with the biggest reserve of Gold at 20,000 tonnes). All countries would base their currencies on the US dollar, which was in turn backed by Gold. So, in effect, all countries' currencies were backed by Gold. This is also known as the Bretton Woods System. Under this system, all foreign countries could redeem their dollars for Gold. This kept a limit on the number of dollars in circulation and consequently, the debt in the world economy - basically it imposed discipline on all parties concerned. With the Vietnam War, US deficits started to soar and it could no longer afford to redeem dollars in Gold. Its gold hoard was down to 8,000 tonnes from 20,000 tonnes. So under President Nixon, they decided to delink the dollar from gold (Bretton Woods II). From now on, no country could exchange its dollars for gold. They called it a “floating” exchange system, but really, in terms of purchasing power, all currencies started to sink together. What followed was an explosion of money, as the US could now issue (print) virtually unlimited paper dollars for all its purchases. Other countries followed suit, in order to maintain their exports’ competitiveness. This explosion in money fuelled (or rather was fuelled by) an explosion of debt. I shall leave the detailed mechanics of all this for another post, but suffice to say that this explosion in paper money has caused massive misallocation of resources throughout the US, and indeed, the entire world. The stock market boom in (crashing in 2000) and the massive real estate boom (crashing in 2007) were both manifestations of these misallocations. The global boom starting in 2002 was caused by the Federal Reserve printing money and keeping interest rates artificially low (in order to boost consumption and maintain GDP "growth"), and thus injecting massive amounts of money into the economy - which had no basis in the real productive growth of the economy. Since the dollar is the reserve currency used for world trade, this artificially inflated the entire world economy, which is now crashing. This was done to alleviate the fallout of the 2000 crash, but the cure turned out to be worse than the disease. The "Subprime Crisis" was just the tip of the iceberg and, in fact, an effect not a cause of this meltdown. The real cause is unbridled growth of money supply and debt by the Fed and other Central Banks of the world.
At heart, this economic crisis is in fact a currency crisis. Throughout history no paper currency (or "fiat currency", since it is accepted as money by virtue of Government fiat or decree) has survived, and this time will be no different. The average lifespan of fiat currencies has been 16 years*. The present system is unique in that it has survived for 38 years and for the first time ALL countries throughout the world are on a fiat money standard. This means that the resulting crash will be on the scale of something the world has never seen. This will be a time of hardship for many, but for those who are "economically literate" and prepared - they will come through largely unscathed, even prosper. If there ever was a time to educate yourself about financial matters, this is it. And don’t listen to the stock-pumpers and so called “analysts” on television – who really are just a part of the Wall Street sales force. These are the same guys who peddled complete garbage as “AAA” securities and that there was no “bubble” in real estate. The rating agencies (Moody's, S&P, etc.) are in cahoots with these crooks, and in their pay. The same goes for the regulatory agencies in the US such as the SEC (and I think pretty much everywhere), which was caught not only napping, but deliberately ignoring the doings of the biggest "Ponzi Scheme" perpetrator of all time - Bernard Madoff. All they are interested is in making a quick buck off of you. Doing your own research on the internet is the only way of finding unbiased information. Just switch off the TV, and switch on the Internet.
I am no financial adviser or any kind of expert, but an ideal portfolio in my opinion would be majority in Gold (strictly physical – no ETF’s or any kind of “paper” gold), some Silver (again, physical) and some cash for day-to-day needs. As you must be aware, more and more banks are failing every day, so it’s not advisable to keep an amount over and above that insured by the FDIC in any single bank. If you are not sure about the solvency of your bank (which can be said of pretty much every bank these days), you can also park your cash in short term Treasury bonds. It is also advisable to keep some cash at home in case there is a “bank holiday” or withdrawal restrictions are imposed by the government. Why the bias towards gold, you may ask. Well, gold is a long and complicated subject so I can’t explain it here (although I do urge you to explore it on your own), but suffice to say that not only will it protect your assets in case of Financial Armageddon, but is sure to rise manifold in value as this crisis progresses. It has retained its purchasing power for thousands of years, and this time will be no different. The record of paper currencies on the other hand is quite dismal, to say the least. This is a once in a 100 year crisis, so you really need to have a historical perspective about this. I reiterate - NO other asset is safe, not even the dollar itself. If anything, gold is a sort of insurance for your portfolio that you will not regret buying. And beware of people who tell you that gold is just an "asset" or "commodity", for they don't know what they are talking about. It's not. It's a currency - the best there is.
At some point, after a huge crash has occurred, the stock market will rise. In fact, it may rise tremendously. It will rise not because of strong fundamentals of the economy, but because of the depreciation of paper currencies (hyperinflation). Hence, any steps that you take to retrieve your investments from the stock market will only prove useful if you invest the proceeds in Gold, as Gold will rise much, much more than the stock market at that point. In fact, in such a scenario, it may even become impossible to obtain physical Gold in exchange for paper currency.
There is a lot more to this than what I have just mentioned, so I urge you to do your own research and take the steps necessary to protect yourself and your family financially. We are heading towards a global currency crisis and it will affect everybody throughout the world.
[Update 13th May, 2010: I originally provided a list of blogs/websites, books and people to follow as a starting point for their research, but some of them have since become dated/irrelevant in my mind. Feel free to provide them with your own list]
And if you think the Government can get us out of this mess, think again. They had a major role in screwing things up so far, and what they are doing now will only make a bad situation even worse. This crisis was caused by excessive money printing and debt, and guess what the Government's solution is - more money printing and more debt. The best they could do in this dire situation was to come up with a budget full of pork randomly throwing money - our money - here and there without any rhyme or reason. All it will do is ensure that the ensuing collapse is even more severe than it otherwise would have been. The Government and the politicians will keep mouthing lies such as it's going to get better next quarter, next year, ad infinitum even as thing get worse and worse everyday. Don't believe them. All they are interested in is preserving their own power. Read a bit of history and know that it's every man for himself now.
As you may or may not be aware, Gold recently hit $1000 an ounce for the third time in history. It started rising from 1999 onwards when it was priced at around $250 an ounce. This is the proverbial "canary in the coal mine" telling us that the international monetary system is at risk of collapse. I can't put a finger on when this is going to transpire - it may happen next month, next year or in a couple of years – but happen it will and the risks today are greater than they ever were. As I am writing this, another crash is brewing in the global stock markets (it may not happen now, but it will - sooner or later). On Friday, the US stock market closed at its’ lowest level since 1997 - over a decade of gains wiped out. Gold has receded in price a bit, presently undergoing a correction after a quick rise from $900 to $1000 an ounce within a span of ten days in February. It has become pretty volatile in the short term (although the long term trend remains up and away), so I am not sure how long this correction will last. It may continue moving a bit downwards or sideways for a while, but it may just be the last chance we have to get it at such low prices. America's - and indeed the world's - disastrous experiment with paper money is about to end in a catastrophe.
*I’m not sure where I got the 16 year figure from.
Brief Opinion: Massive PM Demand in Europe
As an aside, ZH just reported that bullion dealers in Europe were sold out, with many such as Kronwitter having to shut shop temporarily due to their inability to meet the massive demand [sure, they might open back up ala 2008 with or without massive premiums above the spot price, but they just as easily might not if there starts a real run on the PM’s with unlimited demand (i.e. the beginning of hyperinflation) - which WILL be the case at some point in the not too far off future].
Here is what a potential run on bullion looks like:
Kronwitter Sold-out page (translated using Google translate)
Here is one of the bigger dealers Proaurum:
(Translated using Google translate)
Another one Westgold sold out:
(Translated using Google translate)
Tell me, what good is the paper price if you can’t buy the real metal at it? The only thing providing credibility to the paper/futures price is its link to the physical metal. If there is no metal available at that price then it’s just a worthless paper ticket with the words Gold/Silver printed on it. You think that was silver you just bought in the futures market? Nope. More likely a WORTHLESS contract to deliver and it’s not even paper, just some bits in a computer somewhere! (This is practically true even right now for certain corrupt exchanges like the COMEX, considering how hard it is to obtain delivery there). If there is no metal available at the “displayed” price, then it’s just a government dictated price level (ala price controls), with an illusion of free trading thrown in to draw the retail suckers into the casino – just like the stock market. What’s more, due to these hidden price controls created by massive government interference in various markets, we have no price discovery in ANY market right now.
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Robo's posts are a free-for-all of scantily dressed babes. We admire beautiful women, so convict us all of that. As for the banksters, they do own us, except that their power is waning, and they don't realize it. The revolution is coming, but it won't happen overnight.
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I'm shocked, Leo, I must admit --- that is the first time I have seen you make even a glancing accusation or grudging indictment of the corrupt and criminal financial elite.
But no, the banksters do NOT own me, or anyone else, unless they willingly allow themselves to be owned. That is partly why I own gold and silver ---- I have cashed out of their rigged casino and crooked banks. As Gandhi demonstrated so well in India, one can fight the system by merely refusing to take part in it.
1. Everybody likes to mess with Leo, but I actually respect his opinion and analysis very much. With that said, just because we agree doesn't mean that we are colluding or something.
2. Why are you so emotional about anybody that disagrees with you. I'm mean to you because I personally dislike you. I wouldn't outright be mean to people because they disagree with me necessarily though.
3. Look at your tin-foil hat posts. "Anybody who disagrees with gold is a bankster sucking homo that's pro-establishment, and anti-truth, and will eat babies and rape little puppies."
I mean, my god.
Finally getting on board Leo? Lots of good opportunities in the Canadian market if you have access. Much better than the well-known players on the NYSE.
You know it's a good sign when everybody and their mom turns bullish...
Yesterday, my barber was telling me he bought some gold.
Now, even Leo's bullish. Uh oh. I wonder who's next? The shoe shine boy? The barista at Starbucks? Maybe the retarded kid bagging groceries?
OMFG Leo said "forget about Chinese solars."
Wow.
BTW, I think Leo is the only person on this site who actually knows anything about Chinese solars. Heck, they might be pretty good!
Thanks for all your wonderful feedback people!
But But..Precheter says that Gold has not yet made a high in Martian Currency....This is a fake rally right?
I will be able to get Gold at $640 whihc will be a "Great Tactical buy" right? Please say yes.
Prechter, Elliot Wave, technical analysis, fundamental analysis:
All that shit's voodoo man!
Gold is pretty, shiny, and I can hold it in my hand! It's a hedge against hyperinflation! The guy on TV said so!
Don't believe in fundamental or technical analysis. Join the goldbug religion and "get physical" today! Gold to 2000 by June. 6000 by July!
GOLED BITCHEZ!!!
Johnny Bravo, I used to respect you (as MB) for going your own way and not following the crowd on this forum. However, it is becoming clear that you are just as emotional about gold as the goldbugs you criticize and you offer few arguments supporting your position other than the old nostrum to buy low and sell high. Furthermore, you show you are bigoted with your anti-gay rhetoric. Like they say in wartime, loose lips sink ships--similarly, innocent anti-gay, anti-jewish, anti-whatever remarks have a way of contributing to eventual violent outcomes. You don't convince anyone with your sarcasm and do your own possibly rational instincts a disservice. Maybe your strategy is to just look like a nutcase knocking gold to produce the opposite effect. The Wall Street Journal used to apply the same strategy by showcasing Alexander Cockburn on its op-ed page. Perhaps you're just a closet goldbug. If so, good luck in your gold purchases, but you may just be chasing prices.
I'm not chasing any gold price, believe me.
Two, I'm not homophobic. I use the word "gay" in a different sense. One of my best friends is gay. (LOL! The typical argument, right?) But no, I have nothing against gay people. Only "gay" people. There's a difference.
Also, I've never said anything anti-semitic. My girlfriend is Jewish, even, but aside from that, never said anything anti-semitic.
You want a real argument? Okay, how's this?
The reason that there was a bust in the economy was because too many assets were produced and priced higher than the number of dollars in circulation. The number of dollars could not support the high asset prices.
Therefore, ASSETS were priced too high, which is why they are now deflating. At the time that assets were overinflated, too many houses were produced for the number of dollars.
Two things wouldn't support the price of housing. The housing supply, and the money supply.
All this points to one thing: deflation is legitimate.
What does that have to do with gold, you ask?
You can print as many dollars as you want, and you'll still be below the nominal 2007 prices for assets.
Printing dollars only brings the value of assets to parity with the money supply. With that said, you can print a lot more dollars and still have no inflation because there aren't enough dollars to buy assets as it is now.
The hyperinflation argument due to money printing, therefore, is bogus. Hyperinflation is a myth, deflation is the reality.
Yet, severe hyperinflation that has not occured yet is priced into gold. Gold is fundamentally overvalued. Therefore, it will deflate as well. (not to mention that the technicals also suggest this.)
I wouldn't say I'm "emotional" about gold though. I'm just killing time, procrastinating studying for finals. I don't really care if people lose their money or not. It doesn't affect my emotions ar all.
I wasn't suggesting that you are anti-Jewish but merely saying that offhand remarks against any group, such as retarded people, for example, have bad consequences when they are tolerated by more and more people. As for your use of the word "gay", the distinction you makes escapes me, but please don't respond to that.
You talk about dollars in circulation as a basis for inflation or deflation, but I had the impression that what we have is called debt-deflation. Debts get written off and that causes asset values to depreciate. Actually the debts in our case are not being written off as such but merely transfered from private debtors to the taxpayer who will be paying them off for years to come. It's true that this involves dollar depreciation, but this is depreciation against other currencies primarily and precious metals (currently, but that could change as the dollar, for example, either tracks gold or runs counter to it). As asset prices decline the dollar actually buys more for those few who have not lost their shirts.
In case it's not obvious, I'm struggling with these ideas--frankly tensor calculus is easier than economics. I find those supply and demand graphs absurd from a mathematical point of view. For example, stocks are tradable goods, so every time the "price" rises or falls, the whole demand curve shifts left or right! But what do those points on the demand curve (a separate demand curve for each price or tick on a stock chart) other than the equilibrium price actually represent? They are non-existent phantoms to trick the unwary into not noticing that the economic king is buck-naked: an absurdity, the economists' equivalent of epicyles in Ptolemaic astronomy--do epicycles exist in a real sense?
Sorry for rant, but as Feynman said, "Nobody understands economics, er, quantum mechanics." The difference is that quantum mechanics is both rigorous and useful. Economics is useful in the "Guns do not kill people, people kill people" sense, on substituing the word economics for guns. Are you an economics major?
If I saw a semi truck cream your ass on the highway, I would just laugh.
"People" like you are not worthy of even breathing the same air as most of the members of this forum.
If I met you in a dark alley, I'd beat ya, and take your gold.
I have a friend who is due an insurance settlement in the next year. Seven figures, tax free.
What does one do in a case like that?
His rough plan is to move to Washington state and buy real estate as rental property, houses and maybe a farm.
After that it is a dark area.
He is uncertain about Gold.
Any suggestions? He sees the dark future approaching. He just wants to weather it out with as little loss as possible.
Thank You
100% physical Gold in personal possession paid using cash to render it untrackable. If he wants to buy real estate I think he should wait as I expect real estate to keep deflating in terms of Gold even though it might start rising nominally in terms of dollars.
The other problem with real estate is you get taxed just for owning it. It is a horrible asset from that stand point. And as state and local govts get more and more desperate to pay for their unsupportable liabilities, they are going to turn to property owners for money.
That's why you allocate a lot of your wealth in Au - maybe taxes can be pre-paid in fiat once Au starts to really ratchet up - by then gold is out of reach in comparison to what you can still do with your paper; but the county might accept a lump sum for 10 years and give you a receipt. Might be worth a try instead of paying in metals down the road. Maybe I'm talkin' out of my ass.
Hulk not long ago said something similar. If I understand his situation, he has farmland and gold. He will pay his property taxes with some of his gold if the chips are down.
Hulk, if I got this wrong, speak up and accept my apologies.
Correct DCRB. Otherwise, historically speaking, property gets confiscated when the monetary system fails and folks can't pay the prop taxes. Yet another wealth transfer mechanism from the poor to the wealthy...
good point
Yup. And it's illiquid too.
He needs to start reading suvivalblog.com
Yes. WW is right. If he is heading for the hills as well, survivalblog.com is an excellent place to start.
Nothing wrong with buying rural property AND gold AND guns & ammo.
If he buys gold, he will be looking at a 25-30% loss.
When? Around the same time we'll have hyperinflation!
"Soon."
(No really, we've been saying it's going to happen since 2008, but we're still in deflation, just like we, the goldbugs said gold to 2000 by June. All it did was make a double top though...
Don't worry though, cause the U.S. is just like Zimbabwe! We even have a black leader! D'oh! See? I told you. Just like Zimbabwe. We'll have trillion dollar bills next week, I tell you.)
We'll be mad maxxing in the streets, eating spam from a can, and only the gold holders will survive!
LOL. But no really, I wouldn't buy gold if I were your friend unless he wants to lose his ass when the big, multi-year, crappy, bearish rising wedge breaks down.
There are two targets for the breakdown:
900 something was the target of the smaller wedge it's in now, due to 61.8 fib
and then the target for the ten year wedge was 611 at the 61.8 fib.
God deflationists have to be the dumbest fucks around. Still waiting for that deflation, hanging on to your fiatcos? Awesome investment strategy there.
The problem is deflation is now a reality, hyperinflation is not.
So calling him "dumb" is just joining in on the idiotic name calling thing.
I'm not sure I see hyperinflation, as the massive amounts of credit reduction are causing Ben some real problems, hence his need to keep rates at zero.
Well, they can't go below zero, so how you make the leap from lowest rates on record and highest credit contraction in history to hyperinflation sort of loses many here.
That's my point too, but for slightly different reasons.
Check it out:
The reason the economy busted and that there is a severe recession is because we made more assets (houses) than money could buy. Nobody could afford assets anymore, so now we're in deflation.
We can print as much money as we want, and there still isn't enough money to pay for nominal asset prices in 2007.
THAT is why there can't be hyperinflation, because there are already too many assets for too few dollars. Printing more dollars just brings assets to parity in nominal terms.
"The reason the economy busted and that there is a severe recession is because we made more assets (houses) than money could buy. Nobody could afford assets anymore, so now we're in deflation."
The stupidity that comes out of you mouth sometimes just floors me. You don't understand what money is nor will you ever. Everything technically is money. It is all just supply and demand ratios. Saying we made too much stuff is like say we made too much capital because thats all in reality money is, it is capital. The problem wasn't the creation of wealth, it was the creation of credit which is the antithesis to wealth. Your mindboggling misunderstanding of fundamental economics deserves to be a record for the lunacy of this era.
"We can print as much money as we want, and there still isn't enough money to pay for nominal asset prices in 2007."
This statement is even worse the first, and I really couldn't think that was at all possible. You are the kind of person that thought that because the banks didn't have enough gold in their possesion when the stock market crashed it was gold's fualt. When are you going to realize that fiat money is debt, and it is because it is debt that it is a tool to confiscate wealth. The only solution to unpayable debt is default, which the government never allowed to happen. The reason that you can "print money and still not raise the nominal assets to 2007 prices" is for the reason that wealth has been transfered from everyone holding dollars to the money printers. This means a lower standard of living for everyone other than the money printers or the people close to the money printers. It is why government employement is up, and private employment is down. It is why the standard of living in this country for 70+% of the population has been down and incomes have been stagnant.
"THAT is why there can't be hyperinflation, because there are already too many assets for too few dollars. Printing more dollars just brings assets to parity in nominal terms."
Wrong, there are two ways for hyperinflation to happen but the end result is the same. 1) Increase in money velocity (i.e massive money printing with the money getting to the general populace). 2) Massive debt saturation on an increasing large poor population will cause a loss of confidence in the currency, essentially people decide its time for them to stop playing a game that is rigged against them as bailout after bailout causes massive distortions and volatility with money being massively moved around by fewer and fewer hands. When fewer people actually have money the few left with it become the market movers as essentially ordinary people have been cut off from the money supply.
well done. your light does indeed shine. BB
"The reason the economy busted and that there is a severe recession is because we made more assets (houses) than money could buy"
that's the only reason?
Hyperinflation is nothing more and nothing less than the collapse in paper faith and, like busting economies, that can and will happen for LOTS of reasons not the least of which is Gordon's demonstration above. Why have we gone into such deep debt? Hell, pick a reason - peak resource, population explosion, expensive wars, laziness, corruption, theft......
I agree. Now can everyone stop the name calling thing and can we discuss this like adults?
My view has been that since 2000 we've had hyperinflation through credit creation, but that the central banks hid it and only published the "2%" lie. I can see Gold rallying if the EUR dies, and it probably will. But that doesn't mean that all of the sudden hyperinflation ensues.
The US will have to adjust, no question. But the leap to all-of-the-sudden hyperinflation among most developed economies really means that one advocates anarchy, chaos, and complete economic melt down. I find that plausible in the stock market, but not in everyday life.
Remember: The stock market is NOT the economy. That's where I think many on here lose their frame of reference. More jobs are held by businesses that have less than 10 employees than any other type of business, and I assure you most of these businesses are not listed on the NYSE and will not simply fold up tent if things get even more sour.
The gov't needs to keep pensions and liabilities afloat, and that's why this market is melting up as a result of low interest and liquidity. Gold is a side bet, and will rally further. But I think the $5K per ounce thing is way too optimistic.
bernanke and geithner come here in disguise. Wonder what their alias is?
This guy is the TROLL, Master "Baits"
Yes, I'm MB. I've admitted that multiple times.
Just because I disagree with you doesn't mean that I'm a "troll" however.
True, your disagreement with anyone here does not prove you are a troll.
Your rabidly anti-gold, pro-bankster trolling is evidence enough of that.
Who pays you to fight the truth, and how did you become such a spineless sellout to be willing to do it?
LOL at pro bankster. Never made such a comment in my life.
Just because I'm against gold doesn't mean that I'm "pro bankster" anymore than being against Bush makes me "pro Obama."
I guess that that kind of logic is hard to grasp for the illogical.
Also, I'm not fighting the truth. The goldbugs are. The truth is that the dollar has devalued 33%, and gold is up 500%. That does not correlate.
You can keep believing Cramer, Kudlow, Glenn Beck, and the rest of the mainstream media if you want to. They surely don't have any interest in lying to you, now do they?
But like I always say when I see you, akak... you're gay.
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If I were gay, you can bet I wouldn't want anything to do with reaming YOU in the ass. --- bankster sloppy seconds are just not my thing. Plus, why would I want to wait for Bernanke, Geithner, et al. who are already ahead of me to finish? You know how long they take screwing a willing bitch!
If you, or anybody, came near my ass- they'd be spitting out teeth!
Notice how you neglect every part of the argument and just make more insults and false platitudes?
"If you, or anybody, came near my ass- they'd be spitting out teeth!"
Wow you are so coollllllll BJ, I didn't know you were a bad ass as well as a pimp with the ladies and mega tychoon who gets rich fleecing dumb money. You are so fucking pathetic. Everytime someone says something to you your all like "nah uh I am so super not gay that I like bang a new chick every week, and I am so super good at investment that its what I do for a living and can afford to bang a new chick each weak. Oh and I can kick your ass too! Wow its like the my dad is better than your dad argument on the play ground when I was five years old.
"Notice how you neglect every part of the argument and just make more insults and false platitudes?"
Notice how you never ever stick to the argument. You never respond to intelligent discussion and only respond to people who attack you because you are a fucking troll?
Actually, the dollar is up more than gold over the short term.
So where's this "hyperinflation" I keep hearing is coming "soon?"
Oh wait, it isn't, despite being priced into gold. All that tells you is that the price of gold is artificially high based on speculation.
Also, I make WAY more money trading than I ever could "holding and praying" but that's just me.
Hyperinflation will help stocks more than it helps gold "when" it happens, which will be "soon." (/sarcasm)
"Actually, the dollar is up more than gold over the short term."
I love you try to weasel your way out of this point. Hmm Gold was 1200 an ounce when the dollar was at 74 and now its above 1200 when the dollar is at 85.
Wow the dollar really roared back in the short term there buddy, fucking idiot.
"So where's this "hyperinflation" I keep hearing is coming "soon?""
I don't know, where is this 800 dollar gold I keep hearing about, like the same call you made BEFORE gold ran back up to 1200 you were touting it was going to 800.
"Also, I make WAY more money trading than I ever could "holding and praying" but that's just me."
You mean like the penny stocks you were pumping, I remember you saying that penny stocks moved 400%!! OMG REALLY! No way what great investment advice lets all dump some of our money into AIG and Citi so we can ride the wave of bankrupt companies. God you are so fucking dumb.
Great Post GG.
I'll second that. Top quality post.
Now, I finally have something to show to my wife if she starts complaining of my bullion purchases...
Keep it simple.
Ben B works for the Federal Reserve not the Govt. He like Greenspan is doing an excellent job.
"Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders."
– The Honorable Louis McFadden, Chairman of the House Banking and Currency Committee in the 1930s
We will go down as the "Stupidest Generation."
1. We believe increases in food and energy prices is not inflation.
2. We believe in hedonics. The doctrine which the Bureau of Labor Statistics (BLS) applies when calculating the price indices and for the computation of the real gross domestic product and of productivity e.g. when prices rise, but product improvement are deemed to be larger than the price increases, the calculated inflation rate will fall. Pure magic.
Until we the Government of the people change the rules, don't complain
Nice.
Even if you are a gold skeptic, and there are many, this article makes you think twice about going without gold as part of your investment and family survival strategy. Indeed, a relatively small holding of gold might prove to be enough to buy an entire block in your hometown.
A small holding? You're kidding.
All in, man, the ONLY way. You may sell eventually a small coin, but you don't lose your purchasing power!
Nothing says "great investment" like putting all of your eggs into one basket at the peak of prices...
I hope you weren't "all in" in Pets.com in 2001, or in condos in Phoenix in 2007...
Probably not. Such egregiously stupid mistakes are the realm of the radical paperbugs, not those who actually understand something about economic reality and monetary honesty.
Pro-Gold = Informed
Pro-Paper = Ignorant