Gold will become a mania just like every other mania throughout history.
Who would have ever thought tulip bulbs would sell for thousands a piece?
The John Law Mississippi land bubble in France.
US railroads early 1900s.
Gold & oil 1980.
Cabbage patch dolls.
Japan 1990.
2000 nasdaq.
current us housing.
If eek hasnt already bought, he will eventually.
Who knows, maybe eek was among the rubes that bought the 1980 high tick and thus his memory wont allow him to jump aboard this current bull market.
y found it
http://seekingalpha.com/article/60290-country-p-e-ratios-move-lower-on-market-weakness
china average p/e 49.49
arty:
its china its different THIS TIME :drink:
us 5th highest by the way
china, india, canada, and taiwan ahead of us
http://seekingalpha.com/article/60290-country-p-e-ratios-move-lower-on-market-weakness
china average p/e 49.49
arty:its china its different THIS TIME :drink:
us 5th highest by the way
china, india, canada, and taiwan ahead of us
i dont get why you guys continue to argue with dawoofdaddy and his gold predictions...he has been posting gold for years in THIS THREAD and all its done is go up and up and up...if you missed theboat like i did then so be it but dont hate on the guy for continuing to push gold he hasnt been wrong yet...
it would be like me starting a thread and saying the patriots are gonna be unstopable the day bledsoe went down and #12 took over and all they have done is win 3 SB's and are playing for a 4th and you guys would come in and say hey well they they REALLY SUCKED from 89-93...i mean give me a fucking break...the present doesnt 100% reflect the future but the guys call on gold is the best call on all of the rx no questions asked....
it would be like me starting a thread and saying the patriots are gonna be unstopable the day bledsoe went down and #12 took over and all they have done is win 3 SB's and are playing for a 4th and you guys would come in and say hey well they they REALLY SUCKED from 89-93...i mean give me a fucking break...the present doesnt 100% reflect the future but the guys call on gold is the best call on all of the rx no questions asked....
Guys this is a great thread but figure you all need to take a breath and relax a little. I took the advice and found someone to buy gold from.
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On the first part, I think jdog (and I, fwiw) believes that the Fed will indeed continue to print money.
On the second part, have you considered that the government might be the one to believe they can profit from new debt? I'm reading that some are asking for a stimulus package that includes long-term spending on infrastructure, corporate welfare expansion, health care, housing, and food. Energy of course, as well. Oh, and then there's the War on Terror.
Consumers aren't the only big spenders causing problems in the US. I agree they are getting nervous and spending less, but agree with jdog that commodities, at least, will hyperinflate over at least the next year, relative to the depreciation of the dollar.
of course they can profit from new debt that's what they've been doing for the past 5 years enslaving people in debt
the issue is who the hell is gonna take on any NEW debt?
its time for the FED owners to start collecting
run out of bubbles and sheep to sheer
i've probably posted this quote at least 3 times already in this thread
anyway here we go again
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Thomas Jefferson, Letter to the Secretary of the Treasury Albert Gallatin (1802)
3rd president of US (1743 - 1826)
the issue is who the hell is gonna take on any NEW debt?
its time for the FED owners to start collecting
run out of bubbles and sheep to sheer
i've probably posted this quote at least 3 times already in this thread
anyway here we go again
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Thomas Jefferson, Letter to the Secretary of the Treasury Albert Gallatin (1802)
3rd president of US (1743 - 1826)
husker, you have not missed the gold move.
i wouldnt recommend you load up now at 900 but its safe to take a partial position even at these levels.
even if you were to load up at 900 and it significantly pulls back for a while, in a few years you will have forgotten about any short term early price corrections.
the fed and foreign central banks arent going to stop printing money and thus the price of gold is longterm heading much higher.
i wouldnt recommend you load up now at 900 but its safe to take a partial position even at these levels.
even if you were to load up at 900 and it significantly pulls back for a while, in a few years you will have forgotten about any short term early price corrections.
the fed and foreign central banks arent going to stop printing money and thus the price of gold is longterm heading much higher.
here's some reading regarding "printing money"
--------------------------------------------------------
http://www.wanniski.com/showarticle.asp?articleid=3856
When you read about the Fed “printing money,” this is what reporters are talking about. The Fed doesn’t actually print money. That’s the job of the U.S. Mint. It does not create dollar bills of various denominations until it gets an order from the Federal Reserve. It is the central banks that directs the “money” to its member banks, which are willing to give up interest-bearing bonds in order to get that cash for the liquidity that its customers can turn into cash for transaction purposes. Remember here that most dollar transactions don’t even need “cash” in order to close. Most people pay their bills with checks or credit cards. Corporations pay their bills electronically, moving around debit and credits. This is why it is important for SSU students to understand the difference between “liquidity” and “currency.” The term “liquid” means you have an asset that can easily be converted into a real good or service. WalMart will not take a bond for a basket of stuff, nor will dentists or lawyers. They want liquid money.
Going back to the Fed’s purchase of a government bond with “ink money.” At the conclusion of a purchase, the Federal Reserve has in its portfolio an asset of $1000 that is paying interest and a liability of $1000 that is not. The interest amount covers the expenses of managing the central bank, and funds in surplus are given to the Treasury as part of its general revenues. The Fed also has the authority to reverse this process. It can decide to withdraw liquidity from circulation, doing so by taking the $1000 bond from its portfolio of assets and selling it on "the open market," to banks that are members of the Federal Reserve System. The decision on whether or not to buy bonds to create money or sell bonds to extinguish money is made by the Fed's Board of Governors and the presidents of the regional Federal Reserve banks. They come together every several weeks as "The Open Market Committee" to decide on whether to buy, sell or hold steady. Their decision is communicated to the "open market desk" in New York City, which implements the policy decision through its own operating procedures.
Conceptually, the process of creating money adds "reserves" to the banking system. The banks are required by law to hold a percentage of their deposits in ready cash or the equivalent of cash -- its own checking account at the Mint. These reserves are a cushion to meet potential demands of the depositors. Thus, a Fed decision to "ease" may put more liquidity into the banking system than the banks are required to keep by law. This will push the banks into finding borrowers who will take the surplus liquidity in exchange for an asset that will earn a profit for the bank. A Fed decision to "tighten" may take out reserves that the banks are holding in accordance with legal requirements. This means the banks have to sell assets to private buyers in order to get their cash reserves up to par.
--------------------------------------------------------
http://www.wanniski.com/showarticle.asp?articleid=3856
When you read about the Fed “printing money,” this is what reporters are talking about. The Fed doesn’t actually print money. That’s the job of the U.S. Mint. It does not create dollar bills of various denominations until it gets an order from the Federal Reserve. It is the central banks that directs the “money” to its member banks, which are willing to give up interest-bearing bonds in order to get that cash for the liquidity that its customers can turn into cash for transaction purposes. Remember here that most dollar transactions don’t even need “cash” in order to close. Most people pay their bills with checks or credit cards. Corporations pay their bills electronically, moving around debit and credits. This is why it is important for SSU students to understand the difference between “liquidity” and “currency.” The term “liquid” means you have an asset that can easily be converted into a real good or service. WalMart will not take a bond for a basket of stuff, nor will dentists or lawyers. They want liquid money.
Going back to the Fed’s purchase of a government bond with “ink money.” At the conclusion of a purchase, the Federal Reserve has in its portfolio an asset of $1000 that is paying interest and a liability of $1000 that is not. The interest amount covers the expenses of managing the central bank, and funds in surplus are given to the Treasury as part of its general revenues. The Fed also has the authority to reverse this process. It can decide to withdraw liquidity from circulation, doing so by taking the $1000 bond from its portfolio of assets and selling it on "the open market," to banks that are members of the Federal Reserve System. The decision on whether or not to buy bonds to create money or sell bonds to extinguish money is made by the Fed's Board of Governors and the presidents of the regional Federal Reserve banks. They come together every several weeks as "The Open Market Committee" to decide on whether to buy, sell or hold steady. Their decision is communicated to the "open market desk" in New York City, which implements the policy decision through its own operating procedures.
Conceptually, the process of creating money adds "reserves" to the banking system. The banks are required by law to hold a percentage of their deposits in ready cash or the equivalent of cash -- its own checking account at the Mint. These reserves are a cushion to meet potential demands of the depositors. Thus, a Fed decision to "ease" may put more liquidity into the banking system than the banks are required to keep by law. This will push the banks into finding borrowers who will take the surplus liquidity in exchange for an asset that will earn a profit for the bank. A Fed decision to "tighten" may take out reserves that the banks are holding in accordance with legal requirements. This means the banks have to sell assets to private buyers in order to get their cash reserves up to par.
Any govt bonds not bought by the public and/or foreigners, the fed prints money and buys.
Its called monetizing the debt.
They have also been monetizing the stock market for years.
Both processes are increasing in both frequency and magnitude.
Possibly they will attempt to monetize a large portion of the mortgage market.
Thats sort of what the stimulus and rate freezing programs are going to attempt to accomplish.
Its called monetizing the debt.
They have also been monetizing the stock market for years.
Both processes are increasing in both frequency and magnitude.
Possibly they will attempt to monetize a large portion of the mortgage market.
Thats sort of what the stimulus and rate freezing programs are going to attempt to accomplish.
The hope for gold bugs is that it becomes desirable private property, like what happened with houses.
Then it would be a great investment.
At the moment, to compare it with land and buildings is silly, it aint happening, you would have got about 200% tops over the last 25 years.
A bit of physical gold in your portfolio is not a bad idea, so you can ride a bull run if it happens, but gold bugs have been pushing for this to happen since the 1970s and its still aint really happened yet.
Meanwhile a lot of us in other sectors have made a fucking killing.
Stuff like decent property has been a one way trip...and I never needed to hover over a CBS bizchannel ticker for a moment, I just got on with life.
Obvious stuff like the energy and financials sectors have done far better as well over the last 25 years.
So I would never advise anyone to put too much of their life savings into gold, its track record to date suxx and a wee flurry after 25 years is nothing to get too excited about as far as Mr eek is concerned.
Then it would be a great investment.
At the moment, to compare it with land and buildings is silly, it aint happening, you would have got about 200% tops over the last 25 years.
A bit of physical gold in your portfolio is not a bad idea, so you can ride a bull run if it happens, but gold bugs have been pushing for this to happen since the 1970s and its still aint really happened yet.
Meanwhile a lot of us in other sectors have made a fucking killing.
Stuff like decent property has been a one way trip...and I never needed to hover over a CBS bizchannel ticker for a moment, I just got on with life.
Obvious stuff like the energy and financials sectors have done far better as well over the last 25 years.
So I would never advise anyone to put too much of their life savings into gold, its track record to date suxx and a wee flurry after 25 years is nothing to get too excited about as far as Mr eek is concerned.
Woofy is spot on with his monetising post btw.
Government prints it and the cappytalists soak it up and stash it away, sometimes as cash, sometimes as hard assets.
The jews I keep an eye on have been plonking much of their cash into hard property assets in more recent years.
Which makes sense to me, hard property is less volatile than liquid assets and the more money sloshing about the more volatile the liquid markets can become.
Government prints it and the cappytalists soak it up and stash it away, sometimes as cash, sometimes as hard assets.
The jews I keep an eye on have been plonking much of their cash into hard property assets in more recent years.
Which makes sense to me, hard property is less volatile than liquid assets and the more money sloshing about the more volatile the liquid markets can become.
