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Market Now Just 15% Above 666 Lows, 22% Off 2010 Highs, When Priced In Gold
It may come as a surprise to some that when the market's performance is expressed in the opposite of infinitely dilutable paper, we are currently just barely 15% higher than the generational S&P low of 666. As the chart below demonstrates, the S&P expressed in gold is plunging, and has dropped 22% from its 2010 highs, down 18% from the beginning of the year, and just 15% higher than March 5, 2009. As Russia and GLD have been demonstrating so aptly over the past 5 months, gold is not dilutable, and can not be contaminated with various Greek sovereign bond holdings. It is, in summary, pure, and is immune from that strain of 100% lethal, and printerborne, Central Banking syphilis where one's paper rots off. Which is why the Dow may easily pass 36,000. The issue is that at or about that time, the Dow to Gold ratio will be 1. Note also, the downward channel in the SPX/Gold index: each day this channel is not broken, is another day that Bernanke pops a few extra Ambien.
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Man I love reading your notes, Tyler. Keep it up!
halp us ppt!
So if the IMF is lowering its gold holdings and everyone (countries) are all loading up and forgive me but the IMF may as well be the evil incarnated upon humanity destine to rule us all then why does everyone think that when all is said and done you wont be buying SDR's (future world currency) for your worthless gold when the game is up.. Am I the only one thinking this?
Because the ultimately if the dollar goes so does the IMF, will be hard to get funding after all. The IMF is just a tool of the US establishment, a way to obfuscate imperialism (and it's totally visible now). The world hates them and when the dollar goes and the US is a shattered broken husk, why would anyone want to do business with the now powerless IMF?
The IMF can sell gold because J6P does not put two and tow together that the IMF selling gold = the US selling gold. Even J6P would eventually have to ask why is the US selling gold. Remember a lot of normal peopel out there still think that the dollar is gold backed.
Maybe im confused then becuase Im trying to understand what entity it is that will at some point try to assume control via new world currency. Are they selling gold? And if so why would we buy it?
There are more players than you probably assume. Bulk gold sales are not commonly known nor accounted for. All we fleas can do is hope to get a ride along on the dog.
The movement of gold is etching the death of money in our social consciouness, not merely the death of the dollar. I don't mean to be dramatic about this, but that is what is happening. No institution (government of otherwise) will be left to pick up the pieces...
Seen Steve Keen's latest paper at DebtWatch - he has some (but not all) of the clues.
Here: http://tinyurl.com/2fn3rc2
Oh I think we will see a world currency in the next generation. It will likely either be gold, oil, or carbon credits. Naturally those in power now would prefer carbon credits. It's basically more fiat, and a control freaks dream. Oil is a possibility because of the worlds strong desire for energy, and would fit the system reasonably well. Gold exists as a possibility because many of the old big money players have it, central banks have it, and it's etched in humanities memory to use as money. Gold would be the most natural progression to move back to either gold as a currency or a world currency with a gold backing. This would be welcome by the banks, after all we know they are willing to leverage gold to the moon as seen in the gold standard periods. However I will not discount the other two as possibilities. It all depends on how the US dies. If the US engine of destruction and death can rattle forward another decade or more I'm likely to think it may be carbon or oil, if not probably gold.
The IMF will of course want to hold the world currency. See that plan going back to Keynes and Bretton Woods. However the epic fallout of the fiat (dollar) crash will burn people. It will burn them the same way the Wiemar episode burned Germany. It will take generations to be able to move back to a fiat currency. The IMF now is not trying to establish the world currency, they are trying to save the dollar. In reality the dollar is the world currency. The IMF is trying to save the dinosaur system from going extinct.
Yes - gold, silver, other PMs are the only money
Before you say that, try charting the GDP of the United States and the global economy by the price of an ounce of gold since 1933 and 1971 respectively...
I am not sure you want to see what it tells you.
Of course everything is down relative to gold, since gold is overvalued.
Try pricing anything in 2008 oil, or 2001 askjeeves.com stocks, and you see the same thing as well!
Don't chart it against the current price of gold, silly. Chart it against the annual price of gold for each year. In 1929 the gold was pegged to 20.67 dollars. Watch what happens to GDP when the peg is devalued and then allowed to float in 1971
how has the market moved relative to pork bellies?
LOL. Exactly my point.
I say we pick another arbitrary overvalued asset to compare the market to.
I say canned ham, since it's obviously worth more than fiat dollars...
And exactly how long have central banks and the establishment been hoarding pork bellies as wealth and/or money?
JB seems to be unaware that the cost of things relative to other things (other than gold) has continually dropped due to increases in productivity.
Less energy, labor and materials to produce a product means you can buy more of it, for less. Thus the reason gold seems "overvalued" to him.
No, gold seems overvalued to me because it has risen 500% in a period of deflation with no fundamental basis based on retail speculation by people who do not know their asses from their elbows.
That and the mining cost is 400 an ounce.
#1: Deflation is a myth and a lie being propagated by a corrupt and sociopathic power elite, with NO fundamental reality to the average person or his continually RISING cost of living.
#2: The average production cost of mining one ounce of gold is far above $400 --- you need to stop reading and believing the anti-gold disinformation of Jon Nadler.
Seriously can this thing just break one way or another. It's like watching a fucking basketball game and the only thing that counts is the last 15 minutes.
just watch volume- no need to watch price
It just broke.
Hey, Douchinger, what ya got to say? How about a Guest Post here at a REAL forum?
He'll get junked as he types it.
(Douching's Answering Machine)
Hi and thanks for calling. I am too busy whining about all the illegal activities that keep happening yet nothing ever gets done. Big banks walk free, government lies, etc. Like a broken record, I have little else to say and if you say something less than positive about my Genius you will be banned from my forum.
I am God and have decided you can not leave a message at the sound of the beep because you have not paid me money to join my Double Secret discussion board.
And the irony is that if you do join you can be either a GOLD or SILVER member !!!!!
I BAN YOU!
BAN BAN BAN!!!
AND WITH MULTIPLE GRATUITOUS REFERENCES TO ANAL SEX!!!
BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN BAN!!!!!!!!!
JUNK JUNK JUNK!!!!
MOMMY, HE SAID BAD THINGS ABOUT GOLED!!! KILL HIM!!!!!!
Wasn't it just you that was advocating to ban other anti-gold people not long ago? Crying that you were going to "tell tyler" on him and what not?
What was that fellows name again? He was funny. It's sad that he isn't here anymore.
Still, you're a total hypocrite for making this post.
Apparently, you are as blind to irony as you are to the truth about gold.
My post was mocking Karl Denninger's arrogance and intolerance, and had nothing to do with gold at all.
And the irony is that if you do join you can be either a GOLD or SILVER member !!!!!
So true... Bwaaaahahahahahahahahahah!!!
Look out, there goes the SPX below 1040.
WHOA. Didnt think 1033.25 would break.
Lets leave some lows for the friday jobs report guys come on!
It was leaked.
Leaked to the priviledged few and Friday will be dumped on the masses.
Look; only an absolute moron would go long SPX with ADP private coming @ 13K. Whoever went long on that deserved whatever loss he/she incurred.
LoneStar
"Leaked to the priviledged few and Friday will be dumped on the masses."
JUNE 30, 2010, 11:10 A.M. ET
WSJ
"Private-sector jobs in the U.S. increased by 13,000 last month, according to a national employment report published by payroll giant Automatic Data Processing Inc. and consultancy Macroeconomic Advisers.
Economists had expected ADP to report a jobs gain of 60,000 for June. "
__
Leaked to planet Earth 6 hours ago.
The truth is that this market just wants to go down.
(and say "bitches" while doing so)
MUIR: The leak he's referring to isn't the news article you cite, but rather the Non-Farm Payroll report officially coming out on Friday.
And yes, I believe the big players got notified ahead of the little people like us, so they could sell before we heard about it.
Anyone playing at ANYTHING in this market, is picking up nickels in front of a turbocharged bulldozer with a broken accelerator pedal, with a drunken Ben Bernake at the wheel.
Thank you.
It's droping like a stone!!! WTF???
Surprised?!
I think the 3 exclamation marks was a dead give away. How anyone would be surprised at anything (other than a meteor hitting Los Angeles) is beyond me.
LA, not surprising. Fort Knox....well that would be 'too convenient'....
Ah, but that is the beauty of the precious metal. It would survive.
I'd be there along with many others picking up the molten little souvenirs.
That assumes that there's gold in Ft. Knox to begin with, of course. :)
I'm confused - does this mean that most are deflating at the same rate? (I say most goods because obviously some prices have increased.)
Most things are deflating in terms of gold. Who knows with the dollar (and I would posit who cares?--you should be in PMs already anyways).
Correction: gold is inflating in terms of irrational speculation based on poor economic outlooks from amateurs.
Then what accounts for the concurrent and similar percentage rise in the prices of silver, platinum and palladium since 2001 as well, each of which is largely or mostly an industrial metal, with both platinum and palladium in particular having only a minuscule percentage of investment demand relative to annual production or overall stocks?
When you say "goods," are you referring to precious metal prices? As of April 6th (3rd quarter fiscal year), the DJIA has dropped approx. (10.74)% since the new fiscal year, and the S&P has dropped (13.58)%. Ag has risen 28.57%, and Au +30.71%. Neither of these markets are showing any sign of reversing their trends either. Other more utilitarian commodities, such as oil, have increased by about 44.23% (since April '09). I won't get into inflation adjustment, as there is only a trival difference between the adjusted and nominal prices given only one fiscal year.
tl;dr
The faux markets are deflating at approx. the same rate (around -12%); with precious metals gaining about 29%. I believe that the more necessary commodities will continue to inflate, vis a vis the whole inflation and delation paradox; we have indexes and cash losing value, but low (almost zero) stagnent interest rates. 1982 this is not.
Looks like it'll be a huge flash crash into the close......
No? Wow, PPT, wow.......
- she's going down.
PM support is all still in line....still.....
WTF
Platinum stick save.
=.=
You think the PPT is going to allow a crash before November?
Yes they will. Need to paint a bad picture to tell congress about martial law and such so QE2 passes. The con is that QE2 will be sold as a way to make voters happy and avoid the next leg down... plus the UK and EU need QE2 as well. A unified QE means all major currencies devalue at the same time.
OTOH, the market is 55% higher as compared to left-handed, blonde, Aborigine prostitutes' hourly wage (weekdays, before 5pm).
But when she uses that left hand - the Coriolis forces - oh, my...
...and the 2010 award for Best Pornographic Use of the Coriolis Effect is...
<opens envelope>...
KEVINB!!!
Don't expect to see these charts show up on CNBS anytime soon.
OMG, we broke 1040. Burn baby burn. Short party after market close.
PPT must be buying every single piece of crap that GS sells into the market for it not to have broken down completely. This is the ugliest manipulation on both sides of the same coin...
F*** your coin, Bernanke!
lol
Deutsche bank on commodities;
In our view, the complex has been susceptible toan escalation in European sovereign concerns and fears of a double dip recession.
We believe such fears are overdone as the scale of Spanish sovereignand bank redemptions slow rapidly from next month and for as long as the S&P500 can remain close to current levels. According to our US Equity Research team, the S&P500 would need to fall to 975 to signal a disruption to the US economic recovery.
The only index going up is the volatility.
I've been saying it all along...
VXX is the shit, yo.
Na Na Na Na.......Na Na Na Na... hey hey hey GOOD_BYE!!!!
This market is wrecked, not even Benny Boy can save it.
Yesterday's ES low was at 3:30 @ 1030.25.
In a stunning development, today's low is amazingly, 1030.25.
So far...
ES now at 1027 YIPEE!!!! I had $50k that I put in Futures Trading acct last week, and after shorting ES at 1112, I know own a proud $152k. Hello GOLD bars! BOOYAH JIM! lol
so far..........ppt save us!
It's lower now. But that was interesting.
You think they'll let er close below 1040? I don't think they have a choice.
I think so. It will be very close. Still think we hover until Friday. Then kaboom.
phew, here they come. Don't worry folks, nothing to see, green shoots still abound!
How about the DOW measured in breadsticks?
Seriously, inflation-adjusted DOW went hyperbolic just twice in 1929 and 2000.
Otherwise, $100 in DOW stocks in 1920 would have bought about the same number of breadsticks in 1950.
Saw a story 10-15 minutes ago about Merkel's candidate for President passing. Market reaction started immediately - it no likey. "Strength" earlier in the day coincided with story about 1st round failure.
It's collapsing. And still twenty minutes left.
Are you fucking kidding me there's 20 minutes in this market it's a lifetime
for it to correct itself back to 1040.
Don't think there going to pull it out today.
Just broke yesterday's lows...
No PPT recovery for S&P today!
Ruh..Rho...Watch out if the DOW closes below 9800, also!
closed 9,773.49
Q2 2010 Gold +11.7%
Q2 2010 S&P 500-10.5% (with 15 mins left in quarter).
One wonders if Bernanke is still confused about what is going on with gold?
Who would have thought that an economist with a Ph.d could be so easily confused when a mere blogger has explained the movement in gold, with such ease (if not a touch of hyperbole). Perhaps the explanation is why the Fed is working to discredit all those without a Ph.d?
"One wonders if Bernanke is still confused about what is going on with gold?"
Bernank-ster is confused because his tried and true Gold suppression tricks just ain't workin' like they used to...
Damn near makin' him scratch the hair right off of his head...
Lizzy36, ever consider that shalom Bennie understands gold very well, but is trying to bullshit the masses? A Central Banker lie...Never!
"It is, in summary, pure, and is immune from that strain of 100% lethal, and printerborne, Central Banking syphilis where one's paper rots off"
LMFAO
It looks like they're not waiting for after hours to bring gold down, lost $3 in the last 10 minutes, PPT working the other side of the fence now.
As a counter excercise, why not look at the CRB spot index priced in gold ounces over the last 30 years. Much more insightful.
now that's amazing. what a turn down.
as per usual; "Gold Bitches"...
I'm calling 1040 resistance now.
Relax folks, someone tripped over the network cable at 3:30 and we just got it plugged back in.
-Squid
PPT just fumbled on their own 30 with 1:48 to go... Bears can run out the clock...
Maria B. was talking central banks and gold as long play.
PPT has 10 minutes to bounce it back.
BUY bitchez, BUY!
Someone must have gotten the jobless claims early that will be reported tomorrow. Must be Goldie shorting the hell out of the market.
Probably means the numbers are good and they are shoving it down so they can get long for Friday.
Get your $0.01 "flash crash" bids ready folks...
Rolling brownouts will occur as the stick save cranks into Turbo and Overclocked CPU's start to melt.
thank god the PPT intervened.
30 yr now at 3.89%
10 yr now at 2.94%
Can you say inverted yield?
Um...
Inverted yield" refers to situations where shorter term maturities have higher yields than longer term maturities.
Thanks for playing, though.
The Fed cares not for the equities. It's the dollar it's trying to save. Uptrend intact.
http://www.bloomberg.com/apps/quote?ticker=dxy%3Aind
I'll even venture to say that it will play a part in destroying the markets as it prepares it's member banks to gobble up the lot at depressed prices.
And such an excellent job of saving it they have done, too!
Why, they've managed to save around 50% of it since 1990, and almost a full 4% of it since 1913!
Dollar for dollar, your standard of living has also increased 25x since 1913. I will also argue that it has probably doubled since 1990 with the advent of computers, cell phones and wireless comm. I can also bet your productivity has double in 20 years.
PS. I was the last guy in 1997 to send an inter-office note within the company.
I would argue, in contrast, that the American standard of living has not materially increased during my lifetime, and for a given age bracket has decreased since probably the later 1960s, and certainly since the 1970s. My father, a public school teacher, could comfortably support a family of five, with summer-long vacations traveling around North America in a travel trailer for 12 consecutive years, on his income alone. I dare you to show me such an individual, or family, today.
Do not mistake technological progress with a standard of living --- that is the most vulgar and crassest of materialistic nonsense. Is the average American 25 times happier than in 1913? Do we have 25 times more free time to enjoy life since 1913? Is our society and are our families 25 times more healthier than in 1913?
And you failed to address the key point of my comment: the 96+% loss in the value of the US dollar since 1913. Just think of the VAST amount of real wealth and savings that have been stolen from the American public via the ongoing devaluation of the US dollar ---- cumulatively, it would have to be in the hundreds of trillions of dollars.
PS: Cell phones are a net subtraction from one's standard of living, and one of the most socially-corrosive inventions of the last 50 years.
+1
Yeah, our busted GM cars, morbidly obese figures, cable teevee; sure are happy about our quality of life.
Wonder what would happen if the printing press stopped. Hmm. Standard of Dying?
I have generally found that those who try to argue that our standard of living is so many multiples higher than it was 20 or 40 or 80 years ago almost invariably come across as the type of person (today the overwhelming majority of Americans, sadly) who focuses strictly on quantity as opposed to quality. I will fully admit that for me, the equation is almost always tipped towards quality over quantity (e.g., I would rather eat one meal in a fine restaurant than 10 meals at McDonalds) (Well actually, I would not want ANY number of meals at a McDonald's, as I categorically refuse to eat such swill.)
I don't understand why you consider McDonalds to be unhealthy. My 4 yr old daughter loves the $1 Big Hamburger ar Carl's Junior more than the burger I make at home from scratch. Anything in moderation is good even McDonalds.
The S&P move is making me look like a fool for now. I am long UNG and BP since last week. . Will wait and cut and take the loss for now. I was expecting a S&P crash after the US mid-term election. Long Physical Gold since 2006.
I take it you're not familiar with the beef production process. I wouldn't touch McDonald's with a ten foot pole.
www.counterpunch.org/rosenberg02012010.html I dare you to eat a commercially processed burger after reading this (unless you raise your own beef or know who does). and you should be thrown in jail for feeding it to your daughter.
Thanks for the link. I have to rethink my Fast Food Burger health rating.
I buy my Beef/Chicken from Halal Muslim market. They bid for these live animals in live auction and skin them with their butcher. Also my Butcher do not sell Beef but they sell Veal. Wonder if these animals are also effected by these Hormones
There are so many things i want to internet-yell at you for in big CAPS that it makes me question whether or not this was a sarcastic post.
I await your confirmation.
Happiness is a state of mind. Americans are by far NOT the happiest people on earth. By contrast, it's the nations that are highly taxed and socially dependent with the government in all of their business that seem to be the happiest. That's what the ZH community opposes, right??
Probably. I don't really have time to pick turnips or wrap rubber around wooded spokes. A trip back home every year would have taken me 25x longer. More than enough rotten ale I can consume on a ship before I go bonkers.
Maybe but you're talking to a guy who's anti prescription drugs and GMO foods so their advancements are questionable IMO.
Ozzy your point is completely idiotic. I can just as easily claim that the FED destroyed capital and competition within the market making our present day worse than a present day with out such things as the FED. The FED did not contribute to the quality of life as it pertains to current day inventions and products.You are making connections that do not exist. Fiat money did not invent the light bulb, the car, the computer, phones, tv's, radio's...etc.
AKAK's point about lower standard of living has everything to do with purchasing power. Just because in the last 100 years their have been many inventions that have improved lives has absolutely nothing to do with how much purchasing power a person has, and you can not deny the fact that we have far less purchasing power, or that it takes more work per hour to pay for the cost of living. That was his only point. All you have to do is look at the savings rate to realize that people do not make enough money (or rather purchasing power).
Further more the cost of all those luxuries that have improved lives over the years would cost less if it were not for fiat money. You should be asking yourself why a lot of things do not cost less when innovation and industrialization of products reduces their cost. Instead we have had nearly flat or slight increases of costs for appliances when in fact they should be decreasing.
Agreed, akak. Our standard of living has dropped a LOT in my lifetime. And it's gonna keep dropping. I just want to give a heartfelt thank you to ZH and posters for educating me in the financials, not my area of expertise. It gives me a better view of when its time to hit my bug out bus and go live in my cave with my goats and shotgun. : )
You are quite correct, except you're understating the magnitude of the backslide in the standard of living.
The most important --- and troubling --- fact is, this backslide happened while technology HAS indeed moved substantially forward. To understand what is happening, we must ask and answer the following question:
How can these two facts be reconsiled?
The answer has many parts, most of which are massively revolting, but I'll just mention a couple here.
To begin, understand how huge the backslide has been. Your example is a good start, but is only half complete. Consider the actual, visible, physical, existential "standard of living" that your neighbor enjoys if he borrowed a million dollars ten years ago and has been spending $100,000 per year of that loan each year in addition to his $50,000 income. The obvious answer is, his existential (measured) "standard of living" has exploded to the upside! Every year he spends 3 times as much as before. But actually, it is (or appears) even better than that. Most of his $50K income was consumed by "basic expenses" like rent, utilities, car, gas, taxes and so-forth --- leaving only $5K to $10K for "enjoyment spending". Now he has $110K per year to spend on non-necessities, an increase of 11 times! How wonderful is that? And how visible to the neighbors? Plus, it's even better than that, because he pays taxes on his income, but the loan is not taxed - because it's not income.
So far so good --- because all the benefits and enjoyment of this insane "party-time" behavior happen "up front", very visibly so. But later comes the "hangover" --- when the rest of the consequences come due. Except the party-time behavior was so extreme in this case, the appropriate consequence is "massive, terminal overdose" instead of merely "painful hangover".
Thus, those folks who simply OBSERVE millions of people like your neighbor described above can "honestly" point at the world and say "look how much our standard of living has risen"! Of course, they must keep their intellect disabled, otherwise they'd realize the obvious, even during the party --- that this behavior necessarily leads to death by overdose, or at best, a horrific long term hangover. In fact, "long term" almost certainly means "the rest of his life".
But this is only one part of the point --- the part that explains why some folks can point to observations that imply "the standard of living is rising" when in fact, it most certainly is NOT. Not when ALL things are considered.
Another important point is this. This phenomenon (the accumulation of insane levels of debt) has provided the perfect cover for the elitist criminal gangster predators-that-be (government, central-banks and mega-corporations) to misdirect far, far more than ALL the very substantial gains in efficiency introduced in past decades by the private sector. Since people were living high by borrowing against the fictional value of their homes, they didn't notice this massive, overt theft.
Make no mistake. The standard of living has dropped MASSIVELY since the USSA abandoned the last shred of link between the dollar and gold. But that was masked by the scams I describe above, which are finally obvious to every honest human at this point, since the music has now stopped, and the overdose-hangover symptoms are becoming too painful to ignore.
Understand this: If anyone had taken a loan for $100K, or even $10K in 1913... they too could have enjoyed a much higher "standard of living". The reason they didn't was... humans were not nearly as insane, intellectually corrupt, vastly removed from reality, and mentally disabled by endless lies, confusion and propaganda from mainsteam media. Nobody in their right mind would carelessly lend GOLD to people in 1913. And sure enough, nobody would carelessly lend their GOLD to people today either. But the predators-that-be know perfectly well that "federal-reserve-notes" have ZERO value, and can be created by them at zero cost. Which is why they are free to utterly manipulate everyone willing to accept their totally bogus, fake, fiat, fraudulant federal-reserve-note green-and-brown toilet paper (and computer bits).
Yup. Humans can ignore those parts of reality they prefer not to acknowledge... but the reality exists nonetheless, and eventually they have consumed all the benefits from "the totality of consequences"... and have nothing left but nasty consequences.
And THAT is the legacy of debt. Which applies to entire societies just as inescapably as to individual humans.
The only game that remains - now that the music has stopped - is the craven game of "consequences shifting". This is where the masses of irresponsible debtors (and "printers" AKA "predators-that-be") become willing to do ANYTHING to stick the nasty consequences on those few who were responsible - and avoided the party. They want to enslave or destroy the frugal folks who purposely lived a LOW standard of living for decades so they could afford to honestly and responsibly enjoy a "better life" after they earned it.
That can't work, of course, because far, far, far, far, far too few folks were honest and responsible enough to live the frugal life. But that won't matter, because humans behave just like a swarm of locusts --- they don't care one bit that far too few crops exist below them to feed the entire swarm. They will devour until everyone and everything is destroyed. That is the future of mankind.
The only honest and responsible folks to survive will be those who prepare very carefully and very diligently - and who have a substantial measure of luck. Only those who accumulate gold and hide it extremely well will have real spending power. And only those who move to the boonies and establish as much self-sufficiency AND invisibility as possible will have much of a chance.
In other words, the standard of living of mankind is headed over a steep cliff. Better get ready... NOW.
+1.
You've harped on the true, and only really tangible denominator: standard of living. Whether you wish to measure it qualitatively or quantitatively, society and the economy have made seemingly unfathomable leaps since the turn of the century. Forget the nominal indexes, they are meaningless in the grand scheme of things. In my opinion, this recent "depression" is akin to the last turn of the century's hiccup before prosperity and innovation rained down. All that technology isn't going to disappear or regress a la the Dark Ages, it's still there, compounding daily; providing REAL gains unlike the numerology cult following Keynes's ancient text of Sorcery and Magic.
Ozz you make a good point and here is the only side of the Keynesian argument I can get behind.
If we can invent a form of paper used as money that is used a tool to increase productivity and temporarily lessens the impact of poverty or in our case the impact of a modern day depression have we not achieved something?
If we use this paper to keep innovation and civility in line and have been able to speed up our technological advancement and the creation of technologies that increase our overall standard of living than is this debt truly such a horrid thing and would we not have grown as a civilization as quickly?
Only on this point that I do not think the Keynesians even consider can i possibly agree with since we cannot undo the technology we created. The rational side of me says however all this wonderful advancement is no different than any debt accumulation and when you pull forward productivity the laws of supply and demand tell me we are incredibly overdue to pay the piper since this debt still exists and resources are finite. What I am saying is that like kicking the can this debt will inevitably lead to the most horrific modern war in global history and one which will leave the political structure and geopolitics of the world as we know it today unrecognizable in 20 years.
This kind of event could easily sterilize or mute standard of living and technological advancement. Basically we may due for the mother of all global depressions and wars.
Or simply put even steven.
is she gonna bust that 1030 hyman???
history in the making. Brilliant to be looking at it from the inside out.
How do you sway a society so deeply ingrained into deficit spending? The idea that debt is good is so widely held that the argument isn't about debt ... but instead, at what point do we stop digging the hole?
Paper and ink does not feed your children.
You can't eat gold either.
Government isn't going to disappear ... rather morph to the new environment. The bank holiday under Obama demonstrated that the powers that be recognize that no matter what, don't let the sheeple understand. Each time the system has neared literal bankruptcy, the sharks have swarmed around each other to protect the cluster of the Big 5 Mega Banks within the Federal Reserve System.
Politicians promise stability. Yes, slavery provides stability. No, it isn't stable.
Survival has become a difficult thing to manage.
Careful...
That'll get ya junked around here. It's true but irrelevant.
Word
You can't eat bullets, bandaids, plowshares or fingernail clippers, either. Good to have the appropriate amount of these things around anyway.
I kinda consider bullets semi-edible because while you can't eat them, without them you might not eat.
This is not going to resolve itself to the buy-and-hold crowd's satisfaction. Hint: if you still own equities, this is as good a time as any to bail.
I would love to see the homes vs gold chart.
Just about anything looks worse when compared to gold's rebirth.
Your wish is my command: Home prices in gold/silver:
http://www.sharelynx.com/chartstemp/USHLSPOG.php
Awesome. Thanks.
You're one of those friendly talking raccoons whose name looks misspelled just like mine.
Misspelled on purpose. Just my exercise in poetic license I guess.
Wow, what great charts (great information)!
How many people know the peak of the housing bubble was in late 2001? Freaking wowie! Thanks.
Beautiful...now perform the same charting with nominal GDP back to 1933 and wet your pants...
http://fofoa.blogspot.com/2009/08/call-of-century.html
Great piece! Thanks for posting the link.
Great comment! Thanks for posting the quotes.
Come on biatchez--Dow:Gold 1:1 @ 5,000 in 2012.
You know that you can do it...come on, ROGUE...let the value move to the groove....
Wanna REALLY have a good time? Make that chart linear instead of logrithmic.
OW.
I second that. I find linear charts to be much more informative and intuitively comprehensible. And I'll bet most others do too.
ROFL
S&P Warns Rival Moody's: We Might Downgrade Youhttp://finance.yahoo.com/news/SP-Warns-Rival-Moodys-We-cnbc-4178316918.h...
Weird, huh? Which one was the pot or kettle again?
jk,
yep, and we have a card game going, I raise you, and call.......NO!, I raise you & CALL.,BITCH.
Tyler Durden:
May I implore you, please, to place, in a visible and obvious place on ZeroHedge, a metric demonstrating the value of various "things", including the SP500, the DJIA, the USD, etc., as priced in a real money (i.e., a money without a corresponding liability)? Maybe more than one?
Gold?
And keep it there? So that everybody, everywhere, becomes cognizant of the idea (at least) that "pricing" anyTHING in a manipulable, depreciable paper non-asset, is the wrong way to THINK?
Thinking correctly leads to correct conclusions, and proper observatory skills. This would go a long way to helping everyone think.... differently.
@Tyler Durden: Tyler, do you buy your daily dosis of coffee with gold ounces ???
Sure he does, and he wipes his butt with dollars. As do we all.
RR,
Or, Roll & SNORT, as Bennie & Timmmay Are doing...............
both funny and sad at the same time
Do you, MrTrader, drink your water from the tap? As was once commonplace (like use of metals for currency), fell out of use as "modern" things like bottled water appeared (like use of fiat currency) and is becoming common, now, again (as metals will) as people understand the wisdom of reducing their exposure to estrogen analogs in plastic bottles?
Or are you simply incapable of conceiving of anything beyond a very limited scope of knowledge, and therefore you drink only the Koolaid provided by your masters?
Thank you, sir, for the gold comparison charts. Keep 'em coming!