Posted on 11/06/2009 8:27:40 AM PST by FromLori
he melt up in stocks on no volume was fully expected after the worst possible employment news to come in over 20 years: the market-economy disconnect is now complete, and all stocks are freeriding purely on Bernanke's printing press. At least gold vigilantes are beginning to whisper in Bernanke's ear he can go fornicate himself and his dollar destruction deathwish: let's see what happens when gold melts up ala the S&P to 1,200, 1,300 and maybe 1,500 in a few weeks. Look for some old-fashioned massive panic at the Federal Reserve.
The melt up in stocks on no volume was fully expected after the worst possible employment news to come in over 20 years: the market-economy disconnect is now complete, and all stocks are freeriding purely on Bernanke's printing press. At least gold vigilantes are beginning to whisper in Bernanke's ear he can go fornicate himself and his dollar destruction deathwish: let's see what happens when gold melts up ala the S&P to 1,200, 1,300 and maybe 1,500 in a few short weeks: can you spell panic at the Fed? Also next up: failed auctions, the only question is when and by whom...Oh wait, those never happen right... yeah, until they do.
gold and silver will crash eventually
I agree.
Gold will be at $200/oz, silver at $5/oz after this market crashes again.
yes, when people realize they can’t buy food or firewood with gold bullion.
Maybe, maybe not.
Lead however, will still be on the rise. Particularly lead encased in little brass cylindrical containers.
—bflr—
When will they no longer be able to buy things with gold? When has that ever happened besides when somebody physically dies?
You sound like someone who doesn’t have any....
When a fiat currency assumes its true value (zero) - and, historically, it eventually always happens, you will not be able to buy food or firewood or anything else with paper. Gold and silver, on the other hand, will be demanded. In a barter economy, all it takes is one willing buyer and one willing seller.
Gold will be at $200/oz, silver at $5/oz after this market crashes again.
What do you expect the Dow to be when Gold is at $200?
PM is like house insurance...never hope u have to use it
and the funny thing is...over time...it pays a dividend!
as the fiat money loses value ...PM’s rise....
SIMPLE AS THAT...dont make it complicated
Probably thinks the same way on house insurance....
also...if you'd like to trade some worn out pre 64 coins for some brand new shiny ones..let me know...
If not,...You may want to rethink your position
“...if you’d like to trade some worn out pre 64 coins..”
####
Just scored 1K face of those; dimes and quarters for future use with the butcher, the baker and the candlestick maker.
Off they go to a good hidey place.
Well then I suggest you go out and load up on a bunch of futures contracts to that effect.
Fair enough. I’m rethinking it. Is it still logical to buy PMs given current prices, or has that train already left the station? I’ve got some cash that I don’t know where to park.
That's a bit like don't confuse the gay marriage agitators with 5000+ years of Judeo-Christian morality
Around the world most peoples think viscerally and instinctively about gold. They intuitively know it is real money and is inherently valuable
This has been bred out of Americans, Europeans and those who live in other developed nations with paper fiat currencies and plastic credit cards at their disposal. But when fiat money systems reach their limits of creating money out of thin air.... Wall Street tried to do the same, to conjure up value and wealth via collateralized mortgage obligations derivatives and credit default swaps
But you take the Arabs, the Indians (Hindus), Chinese, Brazilians, Russians etc etc. These less modernized, less sophisticated people. They have a visceral attraction to gold. Same for many Freepers
Lots of excellent comments at Zero Hedge for such a short post by “Tyler Durden”
Gold is a magnet
Either you are aware of and are magnetically attracted to AU or you are not and have lazily complacently assumed the myth of paper money, electronic entries on bank ledgers and plastic credit cards is reality. Same as your father and mother did and same as generations of trusting Americans have
I used my credit card a few times today. You can get hypnotized by them into thinking you are spending free money. When you pay with paper currency it seems more real. If you had to pay with silver and gold coins you would be even less prone to part with your money
Dow will be sniffing 3000 or less shortly (within 18 months). Oil will be sub-$15/bbl. All assets classes will get hammered, IMO.
Then Zimbabwe here we come, as hyperinflation starts to spiral out of control. I'll be loading up on gold/silver when it gets to the right level.
This is just my opinion and worth what you paid for it. :)
I find lots of good info. there and on EPJ too.
what is EPJ?
thanx!
I like the gold i can wear....so i have a lot of it..hahaha. Who will buy it if everyone is broke?
if PM’s goes down more then u expect, which it will at times, don't worry...U still have your insurance...
Ive always owned a bit, but bought some on the hi side back in the 80s.....felt like a jerk for a few yrs....but as i did an inventory not long ago, i realized my insurance had beat inflation all to hell!.....
(I personally like “junk silver” as in a time of crisis everyone knows what it is and there's less of a premium to buy it)
In any event.....Do your own DD!!! As to whether the train has left the station...here's 1 take on it http://www.financialsense.com/editorials/casey/2009/1104.html
Then Zimbabwe here we come, as hyperinflation starts to spiral out of control. I'll be loading up on gold/silver when it gets to the right level.
The right level eh? Well the reason for the strength of gold right now is the holders know that the Fed won't let the Dow go that low, not even 6000 again. The second part of your scenario won't happen either. Instead we will have a decade or two relearning the lesson of Japan. The Fed claims to have already learned the lesson as they are easing early with gusto, hence the strength of gold. If they follow their own strategy, the strength of gold is one of their few metrics for whether they are easing enough.
On a more mundane level, the Fed has never (and likely will never) tighten with rising unemployment. In the current situation that means QE not just zero short term rates (or negative considering the carry trade). The extreme cycles like Dow 3000 require major bank failures and the Fed has the spigots open to them now. Think of it like this: big bank profit = rises in gold from QE and negative rates and big bank profits = guaranteed.
You mentioned QE, that means that the U.S. is buying U.S. debt while the biggest foreign entities (China, Japan and Petro-Arab nations) have started to slow WAY down on these purchases.
The U.S. Gov't will have no choice but to raise interest rates to somewhere in the 20% range minimum to attract foreign debt buyers back into the fold. We both know that this is highly unlikely, as true unemployment is at 18%, and the Gov't knows that would shut off all credit to a majority of businesses = back into the recession (IMO, we've never left being in the recession/depression).
ORRRRRR THE EASIER ROUTE-
The power that be can crash the market (via Government Sachs and state-run media) to make the dollar skyrocket.
This way China et al will continue buying U.S. debt, and the game continues. China prefers this scenerio as they can buy more assets with those dollars in a deflationary tumble.
It's just time for another correction. Long-term we agree that Gold/Silver is better than fiat FRN's - but it will not go in a straight line, IMO.
The problem is one you point out, that they won't use the deflationary hammer to any great extent while there is 18% unemployment. There is no inflationary spiral to kill off, plus the risk to the financial system is too great. Perhaps China will prod them into a little tightening so that they can slowly exit the dollar. The problem is to do that China has to pretend they aren't exiting.
But yeah, there's no straight line, just a series of booms and contrived busts while the real economy slowly withers away. I wish you luck with your gold entry, I am in for the time being.
Wealth is not destroyed so much as simply transferred.
i think wealth may be stolen. i dint volunteer..so far only people losing are the working class...destruction of small business will take the left far
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