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Gold Still Looking Really Sick...
TBI ^ | 9-19-2011 | Joe Weisenthal

Posted on 09/19/2011 11:16:36 AM PDT by blam

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To: tet68
There was a financier during the depression, I don’t remember his name but well known who said that when his shoeshine boy started giving him stock tips he knew it was time to get out of the market, he did and didn’t lose it all.

I think that has been attributed to the patriarch of the America destroying Kennedy pack.

61 posted on 09/19/2011 2:27:00 PM PDT by Stentor
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To: wolfman23601
Go ahead and put your eggs in one basket,

Gold, silver, lead, brass, wheat, corn, friends and farmland is hardly one basket.

62 posted on 09/19/2011 2:52:54 PM PDT by Centurion2000 (Watch what people DO, not what they say.)
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To: OB1kNOb

Still a dollar world, oil, gold, pretty much everything is done in dollars.

Euros won’t be accepted on the street in many countries but they still will take a dollar.


63 posted on 09/19/2011 3:06:43 PM PDT by dila813
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To: Oatka
Dollars which, I understand, the Fed created out of thin air. When the dust settles and they convert from euros to dollars, what happens to the newly created "money"? Disappear or go into circulation? I bet on the latter and will hang on to gold.

We are in the middle of one of the biggest bank runs in history!

To the extent that foreigners purchased Treasuries, money wasn't "created." Rather, they loaned the equivalent amount of dollars to the U.S. government for the term of the bond they purchased. The government will print the money necessary to repay principle and interest when the security matures (unless they somehow find tax money to pay it off).

To the extent that foreigners transferred money from one bank to another, it was "converted" from one currency to another - i.e. there was a bookkeeping entry where euro reserves were subtracted from both a European bank and the customer's account, and dollar reserves were added to both an American bank and the customer's account. Again, in this case, currency wasn't "created." Rather, it changed form - from Euros into Dollars.

There was a tremendous transfer of financial reserves from Europe to the U.S. This money is no longer available for lending or investment in that part of the world. So, what prevents European banks from collapsing?

First, many European banks are borrowing some of the money back from their U.S. contemporaries. Unfortunately, this doesn't work for long since it encumbers the bank's capital - which is in woefully short supply after their ill-advised forays into PIIGS debt.

More important, the Fed (along with the Japanese, British and Swiss), on the third anniversary of the Lehman collapse no less, has arranged the "accommodation" of an emergency loan. The event is roughly described here: The Global Liquidity Bailout Arrives: World Central Banks Announce Global Dollar Shortfall Funding Resolution. In other words, Uncle Sam is bailing the idiots out with loans created from "printed money." It will supposedly be somewhere in the neighborhood of a half trillion or so, and will supposedly be repaid in about 90 days (coincidentally right after the year end banker boy bonuses) and therefore supposedly not be inflationary. Supposedly. For real.

So, how will the Europeans going to repay the U.S. loans. I'll give you three guesses and the first two don't count. And what will the Fed do what all that money flees Europe for U.S. banks? Another free guess. And so it goes.

This is one of the few of many reasons why a lot of smart people believe we are caught in an economic death spiral ... or what has been termed, "a race to the bottom."

Personally, all things considered, I think you are wise to hang on to your gold.

64 posted on 09/19/2011 3:19:18 PM PDT by Zakeet (If it ain't broke, the Wee Wee will fix it until it is)
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To: Zakeet

Thanks for a detailed explanation of what I had a feeling of but couldn’t express.


65 posted on 09/19/2011 3:59:50 PM PDT by Oatka ("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
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To: wolfman23601

Your barber and me have a lot in common!


66 posted on 09/19/2011 8:25:19 PM PDT by SaraJohnson
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To: blam

Gold looking like a huge Christmas Present coming!

Finally a guaranteed buy coming.


67 posted on 09/19/2011 8:27:34 PM PDT by editor-surveyor (Sarah Palin - 2012 !)
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To: Beelzebubba

>> “Less than 7% off an all-time record high is hardly even a decent buying opportunity.” <<

.
But its all there is.


68 posted on 09/19/2011 8:30:34 PM PDT by editor-surveyor (Sarah Palin - 2012 !)
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To: Zakeet; Oatka
"This is one of the few of many reasons why a lot of smart people believe we are caught in an economic death spiral ... or what has been termed, "a race to the bottom." "

U.S. Economic Death Spiral Into the Second Great Depression

69 posted on 09/19/2011 8:33:10 PM PDT by blam
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To: Beelzebubba

Of course if you started following it last week, or the week before it looks like the bottom is falling out!

I would warn anyone and everyone that silver is not the place for the feint of heart. That sucker whipsaw’s around like nobody’s business.


70 posted on 09/19/2011 8:38:36 PM PDT by Vermont Lt (I just don't like anything about the President. And I don't think he's a nice guy.)
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To: editor-surveyor; Diana in Wisconsin
"Gold looking like a huge Christmas Present coming!

Get Ready for Gold and Silver Christmas Rally

71 posted on 09/19/2011 8:39:34 PM PDT by blam
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To: Zakeet
We are in the middle of one of the biggest bank runs in history!

Prescient call!

The Corporate Bank Run Has Started: Siemens Pulls €500 Million From A French Bank

72 posted on 09/20/2011 7:16:00 AM PDT by OB1kNOb (The prudent see danger and take refuge, but the simple keep going and pay the penalty. - Prov 22:3)
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To: Vermont Lt
I would warn anyone and everyone that silver is not the place for the feint of heart. That sucker whipsaw’s around like nobody’s business.

Agreed. Stop watching the prices fluctuate and you will feel a LOT better. And buy physical and just put it in the gun safe. Take it out a year later and see how you've done. (Hint, profit every year for the last 10 years, 890% yield 9/11/01 - 9/11/11)

73 posted on 09/20/2011 8:27:44 AM PDT by Centurion2000 (Watch what people DO, not what they say.)
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To: blam

“Get Ready for Gold and Silver Christmas Rally”

It’s the most wonderful time of the year! :)


74 posted on 09/20/2011 1:16:50 PM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Centurion2000

“Gold, silver, lead, brass, wheat, corn, friends and farmland is hardly one basket.”

Amen! :)


75 posted on 09/20/2011 1:18:40 PM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: blam
Whoah!

Just got up, and gold's dropped into the $1730s. USD index has leapt to almost $78.5, higher than it's been since I've been watching it.

Crude's down over $5.

Can anybody explain / summarize what's going on to a Bug that's been stuck at work for the last three days??

76 posted on 09/22/2011 7:06:08 AM PDT by misanthrope ("...Everybody look what's goin' down.")
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To: misanthrope
Nothing we haven't seen before (2008). Whiffs of deflation. The Fed propping up long bonds by using up cash and short term money (hoping to avoid the printing press for now). If a couple Eurobanks go, then we could see a nice bump in the dollar and even better buying opportunity for PM's.

The main difference between 2008 and today is we are three years closer to hyperinflation.

77 posted on 09/22/2011 7:24:50 AM PDT by palmer (Before reading this post, please send me $2.50)
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To: palmer

Thanks, Palmer.

Off to work........


78 posted on 09/22/2011 8:15:05 AM PDT by misanthrope ("...Everybody look what's goin' down.")
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To: palmer

October 4th and here we go again. WTF?!?


79 posted on 10/04/2011 9:15:18 AM PDT by misanthrope ("...Everybody look what's goin' down.")
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To: misanthrope

Yep, a couple more whiffs of fake deflation with euro bank troubles. Have no fear though, the PTB will be along shortly with giant bags of money to prop up those banks. We are still long run inflationary so buy the dips!


80 posted on 10/04/2011 11:46:21 AM PDT by palmer (Before reading this post, please send me $2.50)
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