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Gold Spikes As World Gold Council Says Gold Demand Surges 36% In Q2, Sees Ongoing Demand Out Of China And Europe
Rumors of Gold's imminent death in a liquidation-driven collapse continue to be greatly exaggerated, and in fact the shiny metal continues to perform inversely to stocks, which take on ever more water, and is a confirmation that the market expects continued dollar destruction courtesy of the Marriner Eccles residents. And courtesy of the World Gold Council's just released Gold Demand Trends update, there is an explosion in demand for the precious metal which will likely not cease any time soon: in a nutshell, in Q2 demand for gold surged by 36% from 770 tonnes to 1,050 tonnes: a huge move, and one which solidifies the thesis for a fundamental rise in gold, aside from all the talk that gold is now just a backstop to Central Bank idiocy. Lastly, the WGC sees a huge demand coming out of Chinese consumers for gold in the future which will provide a constant bid floor: "Recent developments in China are likely to have positive longer-term implications for this increasingly important market. The PBoC, together with five other ministries/regulators published a proposal to improve the development of the domestic gold market, (“The Proposals for Promoting the Development of the Gold Market”). This further reinforces the WGC’s view that there is huge potential for gold ownership to increase among Chinese consumers, in a market with tight domestic supply, as discussed in our China Gold Report – Year of the Tiger, March 2010." And the firm's conclusion on demand trends: "As demonstrated earlier, gold’s relevance as a preserver of wealth is
enduring, even in conditions of relative economic optimism, since
historically gold has a capacity to provide investors with both
confidence and a sure and steady means of enhancing the consistency of
their returns." So what was the bear case on gold again?
More from the WGC report:
Outlook
The WGC expects demand for gold to remain strong during 2010. India and China will continue to provide the main thrust of demand growth, particularly for gold jewellery.
Economic uncertainties and the ongoing search for less volatile and more diversified investments such as gold, are likely to underpin demand for investment gold in the immediate future. In particular, European retail investors appear to be making an increasingly important contribution to investment demand, with lingering concerns over public debt levels and the Euro helping to drive demand.
The WGC believes support on the demand side of the gold market is expected in coming months. First, the gold price has experienced a pullback since the end of the second quarter due to short-term profit taking and a seasonally weak period for gold jewellery. Secondly, speculative positions have turned neutral and thirdly, the third quarter tends to be a seasonally strong period for gold jewellery.
Recent developments in China are likely to have positive longer-term implications for this increasingly important market. The PBoC, together with five other ministries/regulators published a proposal to improve the development of the domestic gold market, (“The Proposals for Promoting the Development of the Gold Market”). This further reinforces the WGC’s view that there is huge potential for gold ownership to increase among Chinese consumers, in a market with tight domestic supply, as discussed in our China Gold Report – Year of the Tiger, March 2010.
On the supply side, supportive factors suggest that total mine supply is likely to trend higher, particularly as the scope for producer de-hedging continues to diminish.
Growth in gold demand during the second quarter (+36% YoY to 1,050 tonnes) largely reflected robust gold investment demand compared to the second quarter of 2009. The climate was more favourable for gold investment with strong growth in most countries. Investment demand surged in Q2 2010 due to uncertainty in the global economic recovery and the spill over of European sovereign debt concerns, as highlighted in our previous GDT. As a result, gold investment represented the majority of total gold demand during the quarter. Net retail investment and gold ETF demand increased by 29% and 414% respectively, compared with Q2 2009 levels.
Putting China aside, the WGC focuses on Europe as a key and material new end market:
The past couple of years have witnessed an extraordinary increase in retail demand for physical gold products. European demand for gold bars and coins in 2008 was close to 243 tonnes and in 2009 rose to 293 tonnes. In previous years tonnage demand across the whole continent often failed to rise above single figures, with average per annum demand for the five years to 2008 at less than 10 tonnes. It can be argued that, while many of these buyers undoubtedly turned to gold as a ‘flight to quality’, prompted by the credit crunch and its aftermath, their return to gold has proved resilient, even as a sense of optimism has started to pervade some sectors of the investor community.
During the second quarter of 2010, European retail investment for gold demand rose 115% quarter-onquarter to 84.8 tonnes. This is the highest level since Q4 2008 and Q1 2009, when the global financial crisis triggered fresh investment demand for gold as the asset of last resort.
European retail investment demand in 2009 represented 40% of global demand from this market segment, compared to just 7% two years earlier. These higher levels of demand have been sustained into the last quarter. In Q2 2010, Europe was still the source of 35% of the world’s demand for small gold bars and coins.
Historically, gold demand from Germany and Switzerland makes up the lion’s share of the European retail market, 79% in 2009 (83% in Q2 2010). It is worth noting that the country-level data represents the location of the transaction rather than the location of the investor. The Swiss tonnage figure, in particular, is likely to reflect some demand from investors in other countries.
The WGC believes this demand is attributable to the following key factors which will continue to drive gold retail investment demand in Europe:
• Ongoing uncertainties over public debt levels in the region and continued lack of confidence in financial markets.
• Regional economic conditions. With the exception of Germany, the region’s near term economic recovery is likely to struggle to reach historical growth rates. According to the IMF’s July 2010 World Economic Outlook report, weaker economic growth is still expected in the euro zone relative to other regions and countries such as India and China.1 Employment in Europe is also projected to fall in 2010.
• Potential inflationary impact of the European Central Bank’s (ECB) announcement of a US$1tn (€750bn) rescue package, compared to the first half of 2009. Anxieties regarding future inflation have been a significant motivating factor for German investors. Although hyperinflation is not on the horizon, the country’s poor inflation history has nevertheless left investors wary.
• Strong gold price performance, sustained across most key currencies. The poor performance of the equity markets over the last decade has driven many private investors to look beyond traditional assets and gold’s strong performance has stimulated their interest.
• Increasing awareness of gold’s role in portfolio management due to its comparatively low volatility and its lack of correlation with other asset classes. In our analysis of gold and selected equity indices in Europe since 1999, gold has consistently moved independently from the factors that have driven the main equity markets and reliably exhibited lower volatility.
The firm's summary projections:
The WGC believes the economic uncertainty in Europe is likely to remain given the very difficult balancing act facing governments as they try to navigate a path between austerity and growth. Attempts at retaining loose monetary policy and a certain level of stimulus while seeking to address high deficit levels through dramatic cuts in public spending will present severe challenges and an uncomfortable environment for many investors. The likelihood of higher unemployment rates could further dampen domestic consumer demand.
Against this backdrop, the combination of a healthy global outlook for gold demand and the development of easier and more cost effective channels to access gold in Europe, suggests that the recent growth may be part of a sustained trend. As demonstrated earlier, gold’s relevance as a preserver of wealth is enduring, even in conditions of relative economic optimism, since historically gold has a capacity to provide investors with both confidence and a sure and steady means of enhancing the consistency of their returns.
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Yes, the seasonal run has begun.
Gold going to $1650. Look for a monster Silver pop to low 30's.
The option market max pain level for August 26 Thursday expiry for GLD is 120.
Max pain for option traders. is life fair ? Resounding No.
http://www.optionpain.com/MaxPain/Max-Pain.php
When we begin to see CNBC talking up gold, expect a smackdown, or at least an attempt at one. Regardless, hold your physical, buy on the dips, and price won't matter.
http://www.cnbc.com/id/38850557
Okay, I keep buying the dips. Now I have a lot of physical and a closet full of dips.
What I wanna know is if there's eventually going to be a viable market for all of these dips I've acquired.
"Rumors of Gold's imminent death in a liquidation-driven collapse continue to be greatly exaggerated"
I for one am somewhat counting on a liquidation-driven entry point. I'm not greedy, though, I don't need a collapse. Ok, hammer away. ;-)
I was planning on a spike down in gold this week due to options expiration. Since that hasn't happened, I fear this may be the end of the road for metals manipulation.
I wonder how many people will take delivery on options and futures contracts this month?
I put some silver mine shares up for sale today to raise a little cash, expecting a delayed smack down by tomorrow morning . JPM has plenty of freshly printed digital money. No chance they will back down this fast. The bull is just out for a walk. The charge won't get stalled into a sideways action.
We'll see. If it doesn't go down, I think I might buy some more solar panels instead. Leo needs a break every now and then, and I like being energy independent.
My God, we only wish..
And yes, that would be totally tubular gnarly bitchin rad if everyone attempted delivery.
I was planning on a spike down in gold this week due to options expiration.
Well surprize, surprize.
Something planned this and blew up Comex looks like.
Thought option period ended tomorrow...
I'm on board as a believer in physical gold and silver. I wonder if this plays nicely into Goldman Sux' recent pimping of the yellow metal? This sort of hype could be a concerted effort to goose the herd into buying at these prices....and then administering an Ultra-Massive-Grade-A-Beatdown-of-the-Highest-Caliber. Shock the sheeple into a panicked selloff, reap a few '-illions' here and there, and kick the 'Fiat-Rulez-Biatchez!' can down the street another block or so.
I'm no expert, but whatever happens, I think the proverbial Rubicon has been crossed, in terms of gold and silver. The days of sub-$900/oz gold, or sub-$12/oz silver are now solidly behind us, until THE GREAT RESET sorts this all out.
+1
Ace,
'Matters not what GoldSuxs does, you never lose till you sell.
Anyone dumping even if it did go back to $800.00 would be a fool.
The dynamics for this scenario, is in the books.
I would love it to go back to 800.--:>)
At this point, I think like you, the Hosse's is out de barn.
WHERE ARE YOU JOHNNY BRAVO????
Earth to Johnny Bravo. Come in Johnny Bravo, do you read me?
This is reality calling. Come in Jonny Bravo. Come in.
Bones: God Damn it Jim. I'm just a Doctor not a magician! I can't reach him. He may have completely lost his mind and is now out looking for it.
Kirk: Don't worry. I acted too late to save him. It's not your fault.
Found him.
http://www.thaivisa.com/forum/topic/392936-dont-beam-me-up-yet-scotty/
DON'T FEED THE TROLLS!
http://www.youtube.com/watch?v=FMEe7JqBgvg
You're just mad because jonny is going to get all the chicks next lifetime and make the powers that be a bunch of super cows.
http://www.youtube.com/watch?v=Nmkj5gq1cQU&NR=1&feature=fvwp
Johnny can't make it, he is stuck in Gender Studies Class. Then he is off to his World Youth Socialist meeting. And later he needs to write a 15 page report on the benefits of Central Planning.
+ $1230 LOL
Ground Control to Johnny Bravo: "Take your protein pills and put your helmet on!"
But CNN Money says gold is a bubble and Treasuries aren't. How could they be wrong?
http://finance.yahoo.com/focus-retirement/article/110440/5-investing-bubbles;_ylt=Al3W2JGzvLb90rrVfymcnhK7YWsA;_ylu=X3oDMTE1dGlxam5pBHBvcwMzBHNlYwNmaWRlbGl0eUZQBHNsawM1aW52ZXN0aW5nYnU-?mod=fidelity-managingwealth&cat=fidelity_2010_managing_wealth
Because they ran out of gold and their is no way to run out of treasuries.
Happy for goldbugs who reaped a profit. Wish I also had an income that actually allowed me to invest - but hey, I'm happy for what I have..and happy to leave my career in the financial world behind permanently.
Question for you, though: I don't see anyone talking about the very large Anglo-American mine in Alaska that is opening for production soon - won't that eat in to today's currently celebrated profits? Just curious..
Its because the Pebble mining project, like so many other large scale, low grade copper/gold porphyry projects are essentially copper projects with a gold by-product.
Copper prices are far more likely to affect large scale projects like this, rather than gold prices. Copper prices haven't kept up with inflation since the stock market crash of 2008, so if we are to see a bull market in the copper price, then the copper price would have to exceed ~$4.13 U.S./lb.(using CPI. With shadowstats, its ~$4.75/lb U.S.) As it stands, its trading much lower than that, and in all likelyhood follow the market into depression.
So this would either require the project to greatly exceed estimates on its grade, or increase output in the mill to keep up. Both quantities are fixed either by geology or mill capacity.
Now, the way to deal with copper price declines are copper hedges, so I would look for savvy miners to hedge their copper prices in advance, but not their gold output.
The percentage of output in a mine like this is unlikely to impact world gold mine production by a significant percentage. The amount of trade on the precious metals exchanges turns over a year's worth of gold production in futures contracts in as little as four days.
An excellent source of analysis on the gold markets is Adrian Ash:
http://goldnews.bullionvault.com/user/adrian_ash
red,
More, and HUGE ...........China/Asia/India/Russia.A
And the amount discovered will not be enough to meet NEW demand.
Plus it takes SEVERAL years to bring NEW mines online.This is the clincher.
It would have to have a hell of an output to significantly affect the supply, given that all the world's gold is still above ground. If the whole deposit had more than 3% of the world's total supply and was easily accessible, I would be dumbfounded.
Well little problem there. First off that's where they keep the haarp. The haarp eats permafrost so it's going to make housing a minining operation a bit of a hassle but not too bad, lots of land there.
2nd problem. Haarp makes people there go nuts and kill their entire family. Bit of a bummer for productivity.
News : Ron Paul calls for audit of US Gold reserves. (!)
Texas (Kitco News) -- U.S. Rep. Ron Paul , R-Tex., plans to introduce a new bill next year that will allow for an audit of US gold reserves,
http://www.kitco.com/reports/KitcoNews20100824DC.html
Gold, bitchez (!!) If they open up the panty drawer heaven only knows what will fall out. (Errr, ummm, actually our current reserve is 2 Eagles and a gold cufflink belonging to President Reagan....Chinese demanded the rest)
I read where they sold off most of the high quality gold and what's left needs refining before it's presentable in public. We once had the biggest chunk of the world's gold.
Yup. The actual amount of gold held in Fort Knox has been kept secret since after World War 2. We do know that NATO countries increasingly demanded gold in the wake of the Vietnam War when US money printing caused foreign dollar reserves to swell. As more gold was demanded, President Nixon slammed shut the "Gold Window" and devalued the dollar in 1971. The 1973 Arab Oil Embargo was probably a "Sheik_Down", paid off in gold, as Arab sheiks began to drown in paper dollars used in exchange for their oil. Royal families like gold. The Chinese, Japan, Germany? Did they at some point demand gold just to cull their overflowing dollar landfills? There has never been an accounting, but reserves almost certainly dwindled and got squandered over time. The secrecy just adds gasoline to the fire and if the number is revealed there will be shock value.
Tree,
Yeap, 28,000 TONS.
There was not a thorough audit since Ike was President and Goldfinger came out.
RP partnered a PM coin company.
EC now holds more gold than USA...
hey johhny..when you read this ..and you will..because we all know you are out there cryin like a lil girl...planning your delusional comeback case ...then go look in the mirror and say to yourself..maybe I am an idiot like all the posts say...oh well..at least your other missing friends feel the same..stupidity loves company...
I think Bill Gross has to be up by now on that GLD position in his PA; the purchase of which he was certain would mark the top for the the metal when he wrote about it a couple letters ago.
Wake up Bill. It's not too late to forsake The Dark Side.
There actually have been uncermonious dumps of bullion on the market in restricted trades between banking entities when bullion banks are out of gold. But this has had the effect of increasing liquidity in the bullion markets and raising the price.
I would say that its because of a low discount rate in the reference currency and increases in the money supply. But then when gold keeps rising and interest rates have nowhere else to go, then you just have to look around for another excuse.
Aggregate demand in the bond markets is also pushing up the gold price, so gold is acting like the bond market with prices firming up.
I did not understand fully. Are you saying increase in money liquidity is pushing bond and gold demand hence prices up ? That is the main ingredient of a Gold bug thinking.
DXY staying above support, but if we are going to have days like today, I could care less what the basket values the doelarr at! And what about this silver route?! I have not been counting but silver has been the only appreciating asset class more days than not in the last two weeks! Vs. anything and silver says, "What Fight Club?"
Why, now? Because silver is monie. Silver, snitches!
Silver goes nova first, breaks Comex, then switch to Gold and repeat.
I call BS on the "Gold Bubble". There's a rigorous dollars and cents reason and a more, um, theoretical one.
1) Gold is simply the reciprocal of the value of the currency in which one is considering an exchange. Dollar value drops, gold rises proportionately. I'll let my distinguished ZH colleagues fill you in on what constitutes dollar devaluation. Whatever the cause, the dollar's buying power off the gold standard has only gone in one direction.
2) There's a bubble in bubbles. Describing any and all negative entropy as a "bubble" is mentally challenged. Is there a bubble in average human height? Or in IP addresses? Maybe there's a bubble in how much garbage human beings produce. The rising gold price is a byproduct of the falling purchasing power of the dollar. The futures price factors in the odds and impact of anticipated changes.
If major world economies and currencies are threatened (I'm looking at you, Greece, Ireland and EuroLand), if reckless monetary policy is aimed at devaluing the dollar as a debt paying strategy, if the global economy is about to undergo sea changes, then the answer is clear: Gold. (Bitchez!!)
The gold bubble is just now appearing. It has a long ways to go before it pops.
Gold will not be "in a bubble" ever. How do you bubble monie? How do you bubble a highly liquid, desired, and finite medium of exchange? You don't. No bubble.
Not to say that its value will not peak and then decend at some point. For example, in a couple decades when we have come through this epic collapse that is currently crashing in on us, maybe gold moves from 1 OZ valued at one mansion to 1 OZ valued at a nice cottage.
You replace it with something more valuable. Little paper notes that pretend to pay interest allowing you believe your wealth is growing while it's shrinking.
"Paper gold" is a bubble that can, and will, pop.
GLD and the COMEX are high-stakes games of musical chairs.
Is the number of IP addresses going to "pop"? Or the number of days since the birth of Christ?
It's moronic to equate gold price with a bubble. It's a reflection of your shrinking buying power. In a world where money creation is unlimited, the value of each little piece of toilet paper drops with every minute. When there's a tidal wave of debt and money printing then gold surges.
Exactly. An ounce of gold today is the same as an ounce in 1980 or one in 33 B.C.
It's the valuation medium that comes and goes. Gold is not volitile, FRN's are volitile.
When the ratio of Gold to the Mkt get's CLOSE to 1-1, bail.
Right now it's like 8-1, and that mi amigos y amigas, is a WAYS OFF.
let me rephrase that for you:
The bond bubble is just now appearing…
I think it's reappearing, having made a little scare in '09. After an unknown number of years, gold will come down from it's moon orbit, maybe go into earth orbit. So be ready to take some profits.
But profits in what? FRNs? Better do something with them quickly. Because if gold goes uup that much it probably means dollars are quickly on their way to being kindling.
We're talking many years away when we have another fiat currency that everyone loves. Let's call it The Gary, after all the wonderful Garys we have all known. Except for Gary Bales, aka The Flea, most despised sticky fingered, con artist treeplanter in the province of BC. Maybe we should call the new money Chucks, we all like Chucks.
I wish I had as good a handle on the timeline as you do.
You are correct if you are referring to paper gold.
"negative entropy" isn't a "bubble"...
You obviously feel strongly about this, but, what does it mean?
Gold is a wealth-holder among various wealth-holders. But so is a home.
Gold has fluctuated as public perception has fluctuated. But so have homes.
Gold went high in the late 1970s due to public perception, then dropped as public perception changed.
Homes went high in the 1980s, 1990s, and 2000s due to public perception, and are now dropping.
Gold has no intrinsic value. Neither does a home.
Gold's value is determined by public perception. Ditto for a home.
Public perception changes for all manner of reasons, hence the value of gold changes for all manner of reasons, as does the value of a home.
What are some reasons the publicly perceived value of gold might rise? Or fall?
What are some reasons the publicy perceived value of a home might rise? Or fall?
"Do you mean to tell me, Katie Scarlett O'Hara, that Tara, that land doesn't mean anything to you? Why, land is the only thing in the world worth workin' for, worth fightin' for, worth dyin' for, because it's the only thing that lasts... [other than gold, that is]."
Careful there, Yank, Tara is sacred. Unlike Twelve Oaks.
Gold is liquid. Unlike a home.
Gold is accepted in every country. Unlike a home.
Gold is used for settlement of international sovereign debt....
Gold does not degrade over time....Or require maintenance....Can be stored....Can be quantified into discreet units of value....
But most of all, gold is the universally accepted unit of accumulated wealth, the hedge against currency instability. Currencies can be devalued rapidly in times of economic and political instability or change. Currency is subject to policy mistakes, miscalculations and planned devaluation. Currency can become worthless in war.
Currencies have come and gone. Gold is always there. China, India, Kuwait, Saudi Arabia, UAE, they all want gold.
One never truly "owns" their land because of taxes as well. Don't pay your taxes, lose your home.
Reasons publicly-perceived value of gold might rise:
1) Publicly-perceived value of dollar might fall (especially if dollar were to lose reserve currency status).
2) Elimination of special-interest efforts to keep publicly-perceived value of gold down. (To keep publicly-perceived value of dollar, treasury bonds, etc, high?)
Point is, gold sits out there among other publicly-perceived wealth-holders.
Thus far other wealth-holders have enjoyed a high degree of public confidence. Even pieces of paper with fancy writing on them enjoy a high degree of public confidence as wealth-holders.
If public confidence in those other wealth-holders were to fall, gold might see a rise in public confidence and higher demand.
If public confidence in those other wealth-holders were to rise, gold might see a fall in public confidence and lower demand.
It has nothing to do with gold. It has everything to do with public perception.
Governments, bankers, and corporations issue pieces of paper with fancy writing on them, and go to great lengths trying to maintain a high degree of public confidence in those pieces of paper. And they've done rather well.
If public confidence in those pieces of paper was to fall for some reason, or no reason, public confidence might turn back to gold. Or silver, or bottles of whiskey, or cigarettes, or whatever else the public has confidence in.
the world gold council is a lying sack of shit who has finally ackowledged what it has long denied. i wonder how much demand will surge when we find out that ft knox is dryer than a fat witch's mike hunt.
thank god for ron paul.
http://www.kitco.com/reports/KitcoNews20100824DC.html
Yeah, I remember them being amazingly bearish and out of touch. Maybe they have seen the light, covered their shorts and are ready to rock and roll. Let's take this as a bullish indicator.
Tony,
Never happen GI,(the Audit) our Gold(all supposed 8k tons) is held in FOUR locations.
With every change of POTUS, I think the RESERVES should be tested, and counted.........
But, In light of OUR Fiat issues, 8k Tons is a turd in a toilet.As far as Amelica is concerned.Unless it's revalued to $5o-$6ok per oz.
Hope not, if that happens, you will never be able to own it, or sell it......unless your in the KNOW, and have gotten the hell outa Dodge.
TO: Ron Paul
Please avoid hot tubs like the plaque.
That is all.
<signed> Grateful taxpayers.
I'm no bear on gold, but I can make a short-term bearish case for gold, if anyone's interested.
Gold moves in relation to the dollar mainly on perceptions/expectations of what's happening/will happen to the dollar supply. Recently, gold has been rising due to perceptions that the Fed's current Treasuries purchases represent a form of "QE lite", and expectations that the Fed will soon launch a bigger "QE2".
But so long as the Fed is only re-investing its maturing Treasuries and mortgage bonds, that's not QE, and people will figure that out eventually.
And if the Fed takes longer than expected to launch QE2, or never does, then gold could easily give up its recent gains.
Smart move, since PBofC hand's are tied to the "Almighty Dollar Peg", they have to print right along with us to keep the Dollar from sinking. The more we print the more they must buy our currency. They have no choice or lose their export market. If our Leaders were smart (or less corrupt, can't figure which) they would let the Dollar drop like a stone, 50% would be a good start. Let the Chinese and Japanese soak up all that printed paper, heck we'll even given 10 bps of interest a year (LOL!!!!).
Maybe Obama's new "Export our way out of this policy" has this as a card to play. The question is it not all ready to late. The servicing costs of our Total Net Debt position (not just the Treasury debt), which is the cumulative amount of the current account deficits over the last few decades, is approaching the point of going parabolic. That is the net interest we pay to foreigners is rising exponentially, when interest rates rise it will spike to gargantuan proportions.
See the seminal paper written in 2006 looking at this trend "CAN GLOBAL IMBALANCES
CONTINUE? POLICIES FOR THE U.S. ECONOMY". This was a Strategy paper from the Levy Institute.
Even in a near Depression our trade deficit and current account deficit has continued at very high levels, and our NET external debt has surpassed $5 Trillion well above the danger threshold of 40% of GDP. Forget comparing us on a Gross external debt basis it's net that counts. Why do we risk going parabolic on the Net external debt? Because of the servicing costs, ie interest expense to finance this. If a large component of the external positions is equity based, fine no fixed costs are involved, but if (like has been the trend for a while) it is focused on debt, especially short term debt, then there is the potential for major spike in servicing costs. Right now the interest cost is very low beacause of low financing rates, but what happens why rates begin to rise , whether through inflation or risk premium expansion?
You have a sudden and dramatic parabolic rise in the cost to service. Right now we are adding this servicing cost to the tab and buying foreign goods (like oil) and adding that to the tab. When you reach a certain point there is no way for an economy to EVER repay or at least pay down the tab - you have reached the tipping point. Are we getting close? 40% of Net external to GDP has been a dangerous place for other countries. When The tipping point is reached, we enter a new phase when the rate you pay increases due to risk premium (not inflation, which is devaluing the debt), you enter the "Death Spiral". More borrowing begets an even higher premium. The higher the premium the more you must borrow, in a ever increasing loop. The only way out is massive devaluation and monetization.
The Chinese Gov't have recommended their citizens stock up on gold coinage, why doesn't our government do the same?
Because some parts of our society are still free and not Communist.
Really what parts? - the voluntary tax system to pay for our "elected" leaders decision to bailout/enrich their true masters? That part?
Or how about that old shred the Bill of Rights>
You've been spending to much time watching that Saudi owned station- FOX.
Or may-be you're a fan of those high brow Sarah Pal-in dialogues.
Wait- it's time to "reload"
This thread is pretty funny - everyone is high on gold.
We're not high on gold, just the dust. You can plate the inside of your sinus cavities to 1/300 inch of thickness, yet still smell the rot of just about everything else of 'value'.
High on gold, or disgusted with govt money-printing?
I have learned, after several months of following ZH, that, as I typically do- you comment late at night on a long thread, you get nothing back- like singing in the shower, except without the slimed white swirls on a teen pic of Britney, wiped and placed back behind the towels. I just wanted to reach out a little. I gave some dollars to ZH a few days ago- JFC, talk about paying for something worthwhile. Mostly, though, I want to give my deep love to the contributors here. I am missing some, but thank you Mosley and Hulk and Do Chen and Cog Diss and Rocky and Crockett. Jesus, I love you guys. And - it is so funny about these avatars- I am in love with the tiny two cm2 avatar of MsCreant. No, she will never replace Marcia Brady, that was imprinted in 1966 - but Msceant- who is she? The tiny avatar reminds me of Mariel Hemingway- or maybe some gay attraction I had to the jacket of Johhny Tremain paperback in 1965 - with his rebel melted hand. I don't want to know who Msceant is- she is my V. Everyone, stay here, stay fucking here. I got nowhere else to go. edit fogot Turd ferguson!! Never , ever meant to forget you TF. You know, really, I mean really, how amazingly cool wouldit be if a gang of us booked into The hardrock cafe in vegas for a weekend? Would be way cool actally. even Johnny Bravo. We could just chill, drink take in a show or two. - talk. we should do this, one weekend in Vegas- pure fun, that was inititedfrom this website - fuck Tyler could come, ad tat helena bonham carter chick as well. I will go- Iwill absolutely meet the ZH contributos in VEgas, Hey, Las Vegas simply means in Spanish "The grasslands."
Las Vegas simply means in Spanish "The grasslands."
Hey Mack - Probably just about the time you posted this I saw an ad for Las Vegas vacations on another page here at ZH and was wondering about the derivation of the name "Las Vegas." Odd.
Hi Mack,
Mariel Hemingway and her sister were beautiful. She played a runner who was discovering she was a lesbian. http://www.amazon.ca/Personal-Best-Mariel-Hemingway/dp/630026968X That is for you!!! Sizzling.
Here is the original picture of my avatar:
http://www.abc.net.au/rn/artworks/galleries/2009/2503399/image2.htm
CD had asked me about the avatar on another thread and this was my response to him:
I'm happy you like her.
And yeah, who I am may not spoil it so much as confuse the hell out of it. We are all projection screens for each other. One might argue that the avatars/characters we love most here are the embodiments of our best selves, or some aspects of our selves we do not have the courage to take ownership of, yet.
I met Miles Kendig this weekend. That was pretty neat. I like him. I think a get together would be great, but my joke was that you would have a room full of folks with bags on their heads with the eyes cut out. Or something like a costume party where everyone tried to come as their avatar!
I wrote too long! Chatty.
Thanks for the kind words. Peace!
Dear Ms.
Thanks for the link to the big version of your avatar. That's truly a classic, and I love it.
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