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Mike Krieger On Why 2011 Is Not 2008 - Why It Is Much Worse - And On Dow-Gold Parity
From Michael Krieger of KAM LP:
If we are to have another contest in the near future of our national existence, I predict that the dividing line will not be Mason and Dixon's but between patriotism and intelligence on the one side, and superstition, ambition and ignorance on the other.
- Ulysses S. Grant
Mubarak has been an ally of ours in a number of things. And he’s been very responsible on, relative to geopolitical interest in the region, the Middle East peace efforts; the actions Egypt has taken relative to normalizing relationship with – with Israel. … I would not refer to him as a dictator.
- United States Vice President Joe Biden
Stuck in a Time Capsule
I remember as a kid on several occasion putting together a time capsule as part of a school project. I am sure many of you reading this have done a similar thing at some point. The concept is simple and elegant. The group involved in creating the time capsule picks various things from their current society or culture that they feel is representative of the environment at the time and then they bury these items so that future generations can get a glimpse of what life was like for people in a prior time. The reason humans have a desire to perform acts such as this is because our collective consciousness understands how much things change over time. Empires rise and fall, major belief systems dominate and then become discredited, broad concepts of what is considered acceptable human behavior with respect to our fellow human beings also change and vary within different cultures over time. Everyone knows the saying “nothing is certain except death and taxes.” Actually this is garbage. Taxes may be certain in the current society we live in but there is nothing eternal about taxes. It is entirely a human creation. I would replace taxes with the word change (not Obama change, real change). From my perspective the one thing in addition to death that is certain in humanity’s existence is change. Volatile, massive change. What confuses people is that this change happens very suddenly and seemingly out of nowhere to those only paying attention to the establishment parrots that assure you all is stable and ok because they are the elites and they want things to stay the same. They want that giant boot stamped firmly on your face forever.
This is exactly where we find ourselves today. In the middle of the most profound change in the paradigm of the world as we know it that we will ever see in our lifetimes. Hosni Mubarak had been dictator of Egypt since 1981. So basically my entire life on this planet this guy had dominated the Egyptian people (with complete and total U.S. government support). He was an immovable object. Yet within a couple of weeks this guy was tossed out with relatively little violence. For someone like me that lives and breathes within the macro zeitgeist of this planet this event was absolutely extraordinary and more importantly just a small piece of the wider puzzle of the world changing all around us. As anyone that has been reading my pieces for several years knows I have been saying for a very long time that we are in a period of immense economic, geopolitical and social change throughout the world. This change is of an order of magnitude so great that by the time this period passes (we are still very early in the process) virtually nothing about the way we live our lives and view the world will be the same. This will be the case everywhere, but nowhere will the impact be as great as in the United States. The reason is quite simple. What we are witnessing in the Middle East is the dismantling of the American Empire, the existence of which is actually not even known to the majority of Americans as a result of highly effective media and cultural propaganda. Most Americans have lived their lives in complete ignorance that it is this American Empire rooted in a counterfeit currency that we force down the world’s throat which has given them their bloated standard of living and will therefore be completely confused about why their standard of living has collapsed once the Empire crumbles. The entire purpose of these articles is to wake up as many people in the United States as possible to the reality of the situation we are dealing with so they can prepare for what is coming and ride out the storm as best as possible. So that people can form tighter communities and learn to help their neighbors. The biggest risk we face is not lower standards of living. That is written in stone in the near-term. The biggest risk is that the emotional trauma caused by such an event allows us to be thrown into the arms of a demagogue that promises us security, stability and strength. This is exactly how it went down in Nazi Germany.
So back to the time capsule. On the infrequent occasions that I do turn on the television I am absolutely stunned by the characters the stations wheel out. I listen to the ways these guys talk and I really feel as if I have found the “Time Capsule 2006 Station.” We can call it the TCS. One guy the other day was squawking about how what is happening in the Middle East was “interesting but not significant.” When it became “significant” he said he would act accordingly. Seriously, where do they find these clowns?
The worst part about the crisis in 2008 was the reaction to it. We promoted and bailed out the “leaders” in all spheres of life, not least of which were money managers. While I may offend many people on this list with what I am about to say, it needs to be said. Many of the “investors” managing a significant amount of American capital right now have absolutely no business doing so. They had no idea what they were doing into 2008 and they have less of an idea what they are doing now. I am not going to try to call out who knows what they are doing and who doesn’t because we are all about to find out relatively shortly, but by the time this is over the financial industry will be unrecognizable. In fact, it will probably have to be restarted completely from scratch. Many massive funds will simply go away in the dust pile that will be their investors assets. Right now the financials weighting in the S&P500 is 16.5% and the basic materials is 3.5%. Within five years I expect these weighting to have completely reversed.
We continue to roll out people on television who are morally repugnant yet the media elevates them to the status of superstars to be emulated. Warren Buffett is a prime example. When they rolled out this dinosaur (who wouldn’t even exist without the Fed’s IV into Berkshires vein) on CNBC the other day he basically defended the concept of too big to fail. Of course he did. His company is essentially a financial institution and therefore he needs too big too fail to stay around so that he can continue to parade around like some oracle. Then there was Larry Fink on Bloomberg television the other day. The first words out of this guy’s mouth (the CEO of Blackrock which manages over $3 trillion) was “market’s like totalitarian governments.” Link here http://news.hereisthecity.com/news/business_news/12455.cntns. As I retorted last week: “market’s may like totalitarian governments but humans do not.” Furthermore let’s make one thing very clear. He did NOT say “market’s like stability” he said “market’s like totalitarian governments.” The word totalitarian was right on the tip of this guy’s tongue. The fact that he blurted that word out says a lot about this man’s character and what sort of dark thoughts percolate in the recesses of his sick mind.
What about that lover of fascism George Soros who markets himself as some victim that cares about the people when he is the biggest elitist control freak I have ever seen. He could barely contain his enthusiasm for China’s authoritarian political regime the other day. He was quoted as saying: “Perfect order and global governance are not realistic expectations. However, it is a sad fact that Western democracies provide less successful leadership than China.” Of course, Soros and his buddies would rule us and the rules wouldn’t apply to his pals who would be in charge of the “order”. This is just a continuation of the “markets like totalitarian governments” meme rolled out by that Fink last week. They are trying to sell tyranny to us! Link here: http://www.businessinsider.com/soros-chinese-leadership-is-better-than-western-leadership-and-it-could-become-the-envy-of-the-world-2011-3
This is NOT 2008
This is not 2008, it is much, much worse and far more dangerous. This will not simply be the collapse of the banking system (although I fully expect that), rather it will be the collapse of the central banking system. This will not be the temporary collapse of some phony paper wealth, it will be the permanent destruction of real wealth and the end of how the economy functions today which we can simply call “the system.” While many people think the stock market will fly up 5,000% as it did in the Zimbabwe hyperinflation I have never held this view and still do not. I do however believe that the Dow Industrials and the price of gold will trade at a 1:1 ratio. If I had to take my best guess that level will be around 5,000. That said, I may change my mind about this depending on what happens going forward but I still think that is the most likely scenario.
I have not commented on the Dow/Gold ratio for awhile but I think the time has come to do so because I anticipate a MAJOR move here over the remainder of 2011. Below is a chart of this ratio going back both eighty years years on a monthly chart and five years on a daily chart.
Dow/Gold Monthly Chart 1925-2011
Dow/Gold Daily Chart 2006-2011
During my days at Bernstein I used to write about this a lot and in meetings I would always call the first chart the most important macro chart in the world. For you see, during the prior two major secular bear markets for stocks the Dow:Gold ratio hit about 1:1. It didn’t matter whether it was a deflationary period or an inflationary one. Given this cycle is as bad as the Depression and way worse the 1970s I fully expect the same to happen again.
The second chart is important because it shows what has happened since the bottom in share prices in March 2009. At that time the Dow:Gold ratio hit a new low for this cycle of 7:1. It then rallied to the high that fall of 10:1 and has actually been declining ever since. So the truth of the matter is that stocks in real terms had a very brief but sharp bounce into the fall of 2009 but have basically been falling ever since, down about 15% to the current ratio of 8.5:1. The key thing is that new lows have not been hit since March 2009. The reason I am mentioning this now is because I believe this range trade is about to end and we are about to see a massive plunge in this ratio in the months ahead. Specifically, I think we are going to be at new lows to around 6:1 within twelve months, which would represent a 30% drop in stocks in real terms. I actually think the Dow will sell off but more importantly gold will soar.
No one expects this and even those that do are probably not positioned for it. Everyone thinks if stocks plunge gold will plunge. I think they are about to move in opposite directions and in a massive way that virtually no one will be positioned for. Only time will tell, but I think those calling for a major plunge in everything are wrongly staring at a time capsule from 2008.
Have a great weekend,
Mike
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Perhaps it's a kind of Googlelabs 'Gmail Goggles' to prevent drunken postings
Perhaps it's a kind of Googlelabs 'Gmail Goggles' to prevent drunken postings
Could it be that captcha gets harder with more wine?
"joe biden is a traitor, and should be charged and sentenced."
Before or after the Bushes, Cheny, Rumsfeld, Woo, Bernanke, Buffet, Blankfein, Dimon, Baccus, Armey, Rove, Shelby, Demint,the entire SEC & DTCC and at least 5000 other lying, cheating scumbgs?
Beyond a critical point within a finite space, freedom diminishes as numbers increase. This is as true of humans as it is of gas molecules in a sealed flask. The human question is not how many can possibly survive within the system, but what kind of existence is possible for those who so survive.
- Pardot Kynes in "Appendix I: The Ecology of Dune"
ORI
http://aadivaahan.wordpress.com/2011/03/09/axis-of-evil-doing/
re: They want that giant boot stamped firmly on your face forever.
Your next stop: The Twilight Zone
"This is not a new world; it is simply an extension of what began in the old one. It has patterned itself after every dictator who has ever planted the ripping imprint of a boot on the pages of history since the beginning of time. It has refinements, technological advancements, and a more sophisticated approach to the destruction of human freedom. But like every one of the super states that preceded it, it has one iron rule: logic is an enemy and truth is a menace."
-Rod Serling, The Obsolete Man
Awesome quote. Thanks.
ORI
Thanks, I had completely forgotten that episode.
is Joe Biden still alive ?.....have not heard or seen him in a long time
Either way...as long as we keep on not seeing or hearing him...
Oh yea, he is out lecturing Russia on corruption today. You can't make this shit up. http://www.telegraph.co.uk/news/worldnews/europe/russia/8374223/Joe-Bide...
Why would the Dow be tied so closely to gold? Is that based only on previous market data? Or, is it speculation?
Next, definately avoid the corporate business MSM. I get almost all of my accurate market information from abroad. It takes time, but it can be done. You just have to know where to look.
As to what system replaces "capitalism", most reputable sources that I'm finding are saying it involves some degrees of socialism (applied responsibly to benefit everyone).
However, remember the idiotic double standard here in the States regarding socialism. We have govt. health programs. But then many say we don't wnat govt. health care. Yes, I know that's been mentioned a million times, and you're sick of hearing it. But it's still there.
At this point, it's going to be various groups fighting it out for what they feel is their "fair share". Unfortunately, some unions have more money, power and celebrity connections than others. Yeah, it's cool when Michael Moore comes to talk at your rally. But imagine if no big "name" was there. Would the MSM give this the time of day? Maybe 10 seconds of video and that's it.
The class warfare's only going to get worse.
The Dow isn't tied to gold. Both are tied to the dollar, specifically the amount of dollars available to invest. Only in different ways.
"The worst part about the crisis in 2008 was the reaction to it. We promoted and bailed out the “leaders” in all spheres of life, not least of which were money managers."
Exactly.
That is why I started blogging on financial sites because it is my way to express my anger and non-violent protest.
I am angry not only for my Mother who is trying to live off of what my Father left that was taxed three times and then used for speculation and gambling by the brats on Wall Street; but also for my Children who are being handed the bill for the malfeasance of those who should be hanging by their necks from a lampost.
very well said!
Short This Market, I’ll Say It Again, hopefully better response from the crowd this time around: Which Names I'm looking to Short-
http://www.hedgefundlive.com/blog/short-this-market-ill-say-it-again-which-names-to-short
"Most Americans have lived their lives in complete ignorance that it is this American Empire rooted in a counterfeit currency that we force down the world’s throat which has given them their bloated standard of living and will therefore be completely confused about why their standard of living has collapsed once the Empire crumbles"
Impressive. Bravo. Nobody knows what the ratio of Dow/Gold will be, but I suspect it may very well be 1:1. How high they will reach anybody's guess.
As for the political landscape, perhaps President Palin's New Theocratic States of America will entertain the world for a few years in the same way as GW Bush did, before inviting nuclear annihilation to fulfil her prophecy.
quick question...do you HONESTLY believe that Paylin is a theocrat who believes in a damned thing?
I would prefer Paylin as President because at least she'd be ENTERTAINING. This current guy is just so unfunny and tragically so.
shit is gonna burn anyhow so may as well get a laugh out of it
Good catch! I guess the only thing Palin believes is the lowest common denominator.
Fuck entertainment and the Matrix it rode in on.
Whatever believes, the presidend does not matter.
If the gang believes that she is useful for a while, she will be prez.
Guaranteed Palin is more of a patriot & American then you will ever be.
You people are obviously scared of the woman. It cracks me up watching y'all get your panties in a wad over that hot ex Alaskan governator.
great article, you are absolutely right about the drones on cnbc, fox etc. They do not even realize that the stock market is rising because of inflation.. It is like living in the twikight zone
<<< We continue to roll out people on television who are morally repugnant yet the media elevates them to the status of superstars to be emulated. Warren Buffett is a prime example. >>>
You got that right. Warren Buffett's staunch defense of a stringent Federal Estate Tax is sickening to the core. The idea that the federal goverment has some fundamental right to levy a massive tax on estates upon someone's death is sickening. It is nothing but a money grab.
It is nothing but a money grab.
How is it different from all the other taxes?
Mike - if you read these - Precious Metal stocks? I know they usually dip with the market, but recover much faster and ramp up much higher if the metals themselves do. What do you think would happen to PM stocks? I'm hip deep in USAGX since $17 a share.
Hey Chumba, or anyone else who is rowdy politically, I have a notion for you to comment on.
I see Wisconsin and the apparent recall of Alvarez in Miami as GOOD things. You know, people finally striking out against .govs gone wild.
Comments?
We're going to re-open alcatraz for terrorists like yourself
;-)
<sarc>
Only after I run out of ammo!
<no sarc>
Well, thank you for finding my dumn opinion worthy of consideration.
Yes, I would concur that it is a good thing. However, it is not guaranteed that a promising outcome will ensue.
The problem is that the People still haven't got it right. The protests are centering on Union rights. What pro-Union Americans today don't understand is that, whereas the Union may have been a beneficial social construct 70 years ago, as with all things political its original intent has been abbrogated and its function has been coopted by statist forces to work instead for the same interests that necessitated a union in the first place.
I have nothing against worker cooperation and collective bargaining as these are human rights. I refer you to Doug Casey's piece on unions just a few short days ago:
http://www.gold-prices.biz/doug-casey-on-labor-unions/
He stated precisely my own position.
As far as what's happening in Wisconsin, I'm no fan of Walker, nor am I a detractor. I have not bothered to follow the events there in detail other than to check up on it every other day or so to see what direction it's taking. All I know is that he's been acting contrary to the wishes of the People of Wisconsin, and that makes him a douche. Sure, the People are asking for the wrong solution. But it is his job to carry out the wishes of the People. Of course, because of our dysfunctional political system, he'll carry on with the political agenda of those in whose pockets he is safely nestled.
What the protestors in Wisconsin have not yet figured out is that they can bring back the Union X 10 if they want, but it won't fix a damn thing. They are going after the wrong target. THERE IS NO FUCKING MONEY.
The problem is probably not even entirely their state government. The problem is the Federal government. The problem is the iron fist of the banksters that has them in their grip. The problem is US empire. What the protestors in Wisconsin are unwittingly saying is, "THANK YOU SIR! MAY I PLEASE HAVE ANOTHER?"
And another they will get, until they finally figure it out.
I am Chumbawamba.
Thank you Chumba for your thoughts above. I checked out your link re Casey.
I agree, there is NO MONEY for public service union nuttiness.
...
Actually, I should have worded my notion a little better. I am HAPPY with the results in Wisconsin.
If Alvarez gets kicked out in Miami (he raised taxes and gave in to the public service unions to do it), that would mean that SOME people are waking up.
EDIT:
I also completely agree re the federal government too big and warlike, spending too much money, the FED banksters, etc.
It's all connected. The reason the system is about to break is because of unchecked empire, which begat unchecked spending, which begat unchecked counterfeiting, which begat unchecked corporate thievery, which begat unchecked political corruption, which begat USA 2011.
Everything is failing because it goes back to one thing. In summary: America turned its back on its Constitution, its very values, the things that made America great. The USA is no longer "America". As Casey said in his article, America is an idea, and that idea has left the shores of this continent. I'm not sure where we'll find them again, but when they do surface, somewhere on this planet, there will rise America.
I am Chumbawamba.
Well said!
He is, after all, Chumbawamba.
"Do not blame Caesar, blame the people of Rome who have so enthusiastically acclaimed and adored him and rejoiced in their loss of freedom and danced in his path and gave him triumphal processions. ... Blame the people who hail
him when he speaks in the Forum of the 'new, wonderful good society' which shall now be Rome's, interpreted to mean 'more money, more ease, more security, more living fatly at the expense of the industrious.'" - Roman statesman Marcus Tullius Cicero (106-43 B.C.)
When the people find that they can vote themselves money, that will herald the end of the republic. — Benjamin Franklin
Round and round we go! :>(
Importantly passed over in most reporting is only collective bargaining for benefits ( health & retirement) were abrogated. The Union still uses collective bargaining for wages. This keeps politicians from kicking cans down the road or at least makes it harder.
" I have not bothered to follow the events there in detail "
Which is why you glibly state: THERE IS NO FUCKING MONEY."
Had you bothered to follow the events more closely you would better comprehend that the kochsucking Walker had just given a 170M tax break to Corps which is what created the "deficit" and that the point of the whole exercise was to kill the unions-- as part of a repugnicant national strategy to disable Obama fundraising and 2012 vote getting so the koch's and their co-exploiters could take full control.
Why is it so hard to comprehend that Walker and other corporate handmaidens are only interested in servicing their monied masters-- Looking forward to that "good time in Cali" after the peoples' interests are totally sold down the river.
Why is it so hard to understand that without corporations in Wisconsin THERE IS NO TAX REVENUE!!!. When you complaint about tax breaks for corporations you speak as if the money belonged to the public workers unions and it was stolen from them to give them to corporations (like TARP and Bailout and QEx). The money belongs to those who produce it!!. If a shoe factory decides to move their facility to Wisconsin because they will pay less taxes than in NY that is a good thing for the citizens of Wisconsin. What is happening in Wisconsin, as its happening over a lot of US states and EU countries is that the unions have come to believe that all wealth should be redistributed to them, if not by agreement, then by force. When a union claims that the jobs are the property of the workers (absurd) and that more money must be confiscated by the implicit use of violence from the producers to give to the moochers, the obvious result is that the producers move their production elsewhere. If there is a rash of home invasions in my neighborhood I take steps to protect my family, including moving away from the neighborhood. When is the state doing the stealing in the name of buying union votes it is the same shit. Damn, why is it so hard to understand.
1. Goldsaver is right - if you don't give the corps an incentive to stay, they WILL leave. In case you hadn't noticed, that's been going on all over the country, resulting in millions of permanently unemployed. Walker is just trying to stave it off in WI.
2. So giving the corps $170 million created a budget deficit of $3.6 billion, which deficit required a slight turning of the screws on some public so-called servants? REALLY? Did you fail 1st grade math?
3. Are you aware that the AVERAGE teacher in WI earns a total compensation package, which means salary + medical + pension + a few other goodies of over $101,000? Pardon me for being a heartless bastard, but I'm not exactly shedding too many tears for people that have all summer off and who are being asked to raise their medical and pension contributions to a level that is STILL BELOW THAT OF THE AVERAGE PRIVATE SECTOR WORKER (who, by the way, doesn't have the same job security and makes less). IOW, fuck'em!
+1, Well said, with pertinent facts included.
Yeah, see, this is why I don't bother following it in detail, because ultimately it's just a pointless partisan screamfest, and I don't have time nor do I even have the desire to be a part of that. I only observe it as an interesting temporal marker in this journey we're all on towards some uncertain fate.
What I meant by "there's no fucking money" is exactly that. Those government workers are being paid by the taxpayer, the people, and yes the corporations, as people and taxpayers, should pay their fair share of the taxes. And the people are tapped out. There's no more money to give them to pay their ever increasing penches, benefits, and salaries. They just don't have anymore to give. It's all over.
Maybe we wouldn't have to have taxes at all if we just did away with government and used computers and networks to do all that administrative bullshit for us. I mean, really, when are people going to realize that the internet obsoleted government? Right here, right now, government is obsolete, and the internet is a testamental fact to that. Government workers are a dying breed. Their cost to the economy of their unproductive jobs could be absorbed when the easy credit was flowing and the market was flooded with dollars, but those days are done. Time to reel back, scale back, downsize, and get fired.
Reality is knocking. Answer the door already.
I am Chumbawamba.
First: there is no money. the golden goose of productivity is being choked to death to keep the current system in place
Second: there are a handfull of solutions that would solve the problems. However, TPTB have cleverly divided these up between the false left/right divide, and to make sure, they have planted their own puppets into each camp. This ensures that endless fighting keeps the populace distracted and unable to formulate any real solutions, and any solutions enacted benefit the elites. Thats why even when changes are made, they end up bastardized and ineffective.
1) the gravy train is over. haircuts for all
2) the constitution does not provide for empire building. its over
3) going cold turkey will be devastating for a number of people. some sort of safety net must continue, though tapering down.
4) speculative investment must be crushed. productive investment encouraged. statists will argue for laws. a true free market could take care of this quickly on its own
5) fiat printing must stop. the ability of politicians for endless vote buying must stop. taxes repealed and lowered WHILE CUTTING SPENDING. government shrunk back in size.
6) safety is not worth the price of a police state.
how is that for a start?
Damn good.
I am Chumbawamba.
I agree.
Much too much complacency in the nation.
Much too much comfort in the political and business classes.
Whether you agree or disagree with Unions is not the issue; the real issue is do you support the rights of the individual, of the family - versus the corprotocracy, the oligarchy, the kleptoligarchy - the two-headed Hydra of crony-capitalism and government run amok that is strangling the homes of the nation.
Exactly. The battle is between the (inalienable) rights of the individual versus the statist corporate machine.
There can be only one.
I am Chumbawamba.
but then there is that whole 'corporations are individuals' thing-y that the Supremes came out with.
See, and that's what's going to fuck them. They also inadvertently opened themselves up to some negative aspects of the law, such as deportation. I already know of one such attempt here in California, to have an Australian company running the red light cameras in some of the cities out here to be deported (as a "person") as a result of an impending federal conviction for numerous violations of California and Federal law.
Use their tools against them.
I am Chumbawamba.
I haven't had a hard captcha in a while.
read that however you want
Try alternating right-clicks with left-clicks...
Krieger is right.
The Dow:Gold ratio will fall.
Look at this ratio for the past 100 years. Once the Dow:Gold ratio dips below 10, then the path is clear: Look out below.
Got gold?
Weimar Republic in the 1920s.
http://www.youtube.com/watch?v=IoXCvwVO1J4&feature=related
Which led to the rise of Adolf Hitler.
At the end of the video they talk about:
"All useless spending to be cut."
Compare this to the current situation in the U.S.
The banksters were pigs back then, when they starved the German population to death, and the bankers are pigs now.
They want to starve the U.S. population to death.
The parallels of the current U.S. to 1920s Weimar Republic are striking beyond belief.
The German economy during the beginning of Weimar was growing, with a vibrant manufacturing sector. Our economy, well, let's just say that we don't have much job growth or manufacturing going on at all these days. Cost-push inflation for the US vs. demand-pull for Weimar.
If the correlation fails, then the Dow can advance while gold falls.
By definition
I don't get why the dow to gold ratio should be 1..
My explanation is that when there is a lot of inflation, corporate profits fall which means stock prices fall while at the same time inflation raises the price of gold
Is this explanation correct ??
The idea is if the economy is totally screwed and the government prints money to infinity gold will rise while the Dow falls. At some point they will cross or be equal to each other. This is purely a mathematical oddity with no particular meaning.
Looks to me like the fed is getting ready to pull the plug on stocks by sitting tight on further QE's. They will certain roll out QE3,4,5... once the equities have cracked hard. Ben needs some political cover from the heat he's getting. Gold's going to get kind of bumpy as well --- until comex gets busted, physical is still trading at the hip with Bythe's bullshit paper. The Hedge Funds will sell the shit out of gold in a equity crash. Long term the printing resumes with a fucking vengence, so gold is the right play -- long term. Gold longs, like me, are going to have to walk through the desert to find the promised land.
I think they're just posturing about pulling the plug. Remember last week the central bank of Europe was posturing about raising rates and the Euro went up. Notice it was just bs as they left the rate unchanged. Same shit here.
I don't get why the dow to gold ratio should be 1..
My explanation is that when there is a lot of inflation, corporate profits fall which means stock prices fall while at the same time inflation raises the price of gold.. So eventually the price of gold rises and stocks fall until they achieve parity.
Is this explanation correct ??
You've got it. The point where the 2 graphs cross has no particular meaning.
There is a contradiction in Mike Krieger argument! The price of gold is a function of fiat ponzi scheme. In order for the price of gold to advance, fiat backed money must continue into perpetuity. Otherwise its value equates to cost of labor; that is, it simply becomes a medium of exchange in a barter system which is its historical role.
So the best thing any gold hoarder can expect is for re-introduction of new fiat currency after the old one ceases to retain any value: the risk here is the exchange rate of gold to new fiat. While it is true that gold will retain some value which will be greater than worthless fiat, there simply won't be enough wealthy players to exchange gold for something else to make a fortune--like most imagine.
linrom
a stupid inane remark with zero substance
are you smoking ignorence .
or does it come with the taco territory
+++
linrom clearly does not understand that gold is the best wealth preserver in town.
dow-silver-gold all 1-1-1 in my lifetime.
Yep.
Thanks, Michael, and you're exactly right. The false meme being thrown around by the MSM is that the threat from a breakdown in the economic and social order comes from the right. WRONG.
The threat comes from the left, like Soros, who are ecstatic at the accelerated big government control and the police state. They scapegoated the free market system in 2008. We already see signs the usual suspects are ramping it up to roll out a Latin style marxist/socialist agenda "for our protection."
Since coercion and force never work, people will be beaten until moral improves.
They are implementing a ME type police state to protect their concentrated wealth. Wealth preservation is on every elite's mind: it's their number one priority.
"The threat comes from the left..."
The threat comes from all greedy venal mthrfkrs who will sell their own children into corporate-govt fascist slavery to gain/maintain their own wealth and power. They have tricked sheeple like you into thinking it's a right - left thing, when it's purely about more money and profit for the pigs.
that's right gwar5, set 'em straight
man I get tired of all those lies being told until people think they are true just because they've heard them so many damn times
you can see the same shit here, ignorant acceptance of lies just because "our side said it" it must be true
and the leftists are the masters of it
Guns and Roses
sLaSH
If we are to have another contest in the near future of our national existence, I predict that the dividing line will not be Mason and Dixon's but between patriotism and intelligence on the one side, and superstition, ambition and ignorance on the other.
- Ulysses S. Grant
Wait a minute -- SAME DAMN LINE!
http://sensoryoverload.typepad.com/sensory_overload/2004/11/free_states_vs_.html
Horses always feel safest while in the barn. If the barn catches on fire, it's not enough to get the horses out, you have to keep them out, or the dumb brutes will just run back into the flames. This morning I was reminded of this as I watched UUP and TLT popping on the "flight to safety" meme.
I've got ammo cans full of nickels and pennies. Been collecting them for over a decade.
BTW, to refine out Nickel from cuper-nickel heat the ground alloy and pass a hot stream of carbon monoxide through the granulated Cu-Ni particals, then train the gas onto a cold surface (closed loop system so you don't kill yourself).
The CO stream will absorb the Nickel and will deposit the purified Nickel on the cooler surface. This process is still used to purify Nickel.
Has anyone ever done an estimate to how much money is sitting "out of the economy" in the form of coinage?
A cousin of mine has been "hoarding" pennies over the years.
For me, Silver and Gold is all I need!
Quoting baby_BLYTHE
>> A cousin of mine has been "hoarding" pennies over the years.
For me, Silver and Gold is all I need!
Sounds like too much inter breeding to me!
Mr. Krieger you are right, but money is not that important! Do you know what your name means in German? I think this meaning is appropriate. It is not easy for Americans to see the truth, so obvious for people outside the States, you are so washed with propaganda!
I do. He's a real warrior.
Welcome to the club, Germanicus.
Schön hier einen Mitstreiter zu haben.
(hint: use google translate)
CNBC sucks W. Buffet's dick pretty good every time he comes on. He loves it. He lives for money and power. Telling everyone how much $ he's going to give to charity (population control for his NWO friends) when he croaks. Bet he would pass a starving bum on the street and not even give him a glance. Hey Warren! If you want to help us out use your bully pulpit to talk about the benefits of gold and silver money. You A-hole fraud!
Yeah, Becky and Joe are obessed with Warren. Carl with Greenspan.
I caught that interview with Dr. Seuss end of last week...
Carl: "Is there anything we can do differently, Dr.? change of curtains?
Sad...
http://www.impact-books.com/wp-content/uploads/2011/03/butterbattle.jpg
^^^ kind of looks like an insect. Like a tick or something. Maybe a stretch.
A great piece of writing ! Worth sharing with those who are still using their brain and not allowing mainstream media to do their heavy lifting. Thank you Mr. Krieger!
http://www.theblaze.com/stories/you-will-die-read-the-shocking-e-mail-se...
I've seen harsher comments in flame wars.
Here's a useful chart ...
http://stockmarket618.files.wordpress.com/2011/01/2011-01-15_sp500-mth.png
Mike, lets say I agree with your premise, and mostly I do, as a 48 yr. old retired broker with ~$750k in a ROTH IRA and about $500k in other stocks, options, etc. and ~$100k in physical gold/silver, what would you suggest I do? I can't liquidate everything and buy $1mm in metals, I can't sell my house and rent and buy physical, I still have a kid in college and a family, so it's not as simple as just renting a 1 br 1 ba apt. and selling everything. Your thoughts...
i love you man!!!!
this article is full of gems....i can't even quibble with a minor point....there is more wisdom packed into this brief essay than in a lifetime's utterances from the arrogant assholes running this universe....
please keep writing.....