Posted on 09/16/2009 7:57:26 PM PDT by blam
The Financial Crash, U.S. Dollar, Cash and Gold
Sep 16, 2009 - 09:21 AM
By: Tarek_Saab
With the Dow continuing its steady climb into September, economists are giddy with enthusiasm as they usher forth a stream of emotional pontification throughout the news media. Calls for a new bull market and an end to the recession are increasing with the rising levels of optimism (see: MarketWatch). How anyone can be bullish on stocks despite the innumerable economic warning signs is beyond my comprehension.
The recent figures in the Daily Sentiment Index reporting that traders are 89-90% bullish is a testament to human emotion as a market mover and the efficacy of state-run propaganda. Do economists really believe in the power of green shoots? Incidentally, the college term "green shoot" represents a different kind of stimulus. Maybe that explains it.
But one man's bull market is another man's gilded rally, as the mania always peaks at the end. This mania has been especially intriguing to observe among gold bugs, at the present time vindicated by gold's heroic push into four-figure territory. Some claim gold is "finally" on the verge of breaking out, as though the yellow metal hasn't spent the entire decade breaking out.
[snip]
Many people have already lost half of their investments so far in this market, in addition to losing a huge amount on their house, stretched to the limit. Pretty soon they will lose the other half if they stayed in the market.
Cash is King. During deflation your dollar is worth that much more buying power.
Reflation or not, end of recession or not, the global economic fundamentals have not changed one bit thanks to the misguided actions of central bankers. Nassim Taleb, author of the Black Swan says: ‘We still have the same disease'
[snip]
(Nassim is The Black Swan mentioned in post #20 above)
I think it's undervalued, at least in dollars. The Fed just bought another umpteen billion dollars in T-bills. The snake is eating it's own tail. We are Zimbabwe light. It's not that gold is so great, it's that the dollar is so crappy.
Therefore: fixed rate mortgages might be better than gold.
Gold is for suckers and ... it is the next bubble.
Let’s review why gold is not in a bubble:
- Nothing can be in a bubble unless it is well past the previous inflation-adjusted all-time high
- Gold regularly drops up to ten percent in three days or less and once dropped more than twenty percent nearly without a break in 2008. Bubble price action goes one way.
- In every case, gold “corrections” have taken weeks and months to recover. Bubble price action is exponential — not a grinding, grudging “recovery”.
- It is almost a commodity, yet supply is not readily available. That’s a supply shortage, not a bubble.
- Boiler-room companies (i.e. cash4gold) are begging the masses to sell to them, not to buy from them
- CNBC is still bashing goldbugs instead of worshipping them
- We haven’t seen a TIME or Business Week magazine cover with a cartoony John Q. Public engaging in borderline-sexual acts with Lady Liberty from the Saint Gaudens Double Eagle
- Nobody you know, knows what Lady Liberty from the Saint Gaudens Double Eagle looks like
- Hollywood hasn’t yet made gold-related TV shows, movies, etc.
Can you eat gold?
Food help you survive a crisis. Gold helps your WEALTH survive a crisis.
Yeah, that paper stuff the US Treasury is printing and pumping out the door 24/7 and dropping from helicopters, that’s the real stuff. That yellow shiny stuff, that’s just for suckers.
I’ve been saving seeds from my garden. Got a bunch of cabbage seeds today, between what I got and what I had from last year, I think there’s about a pound of cabbage seeds in there!
Had one carrot plant in a special place where I let it go to seed and holy cow I must have gotten 10,000 seeds off that one plant!
Also lettuce seeds, beet seeds, radish, mostly fast growing crops that do well in the PNW
Is this the one you posted?
CAUTION: Monetary System Collapse (Youtube K. Denniger)
Posted on Tuesday, September 15, 2009 11:10:33 PM by Errant
People blathering on with the “can you eat gold..” stuff.
OK, tell ya what. You walk in to one of the few stores that still have anything left. They have a couple cases of beef stew or whatever.
Some guy want to buy it and writes a check.
You show up with your credit card.
A third person walks in with a few small gold coins.
Guess who walks out with the food?
Hint:
It ain’t you...
Looks like I struck home with my comments. Several gold bugs posted one after another. I collect coins not gold and I have seen gold go up and DOWN several times.
People like you are always spouting the same thing. Saw it a couple of years ago with real estate. They ain’t making any more non-sense. Gold buying is for sucker right now. Believe what you want.
No...I did not post it as a thread. I posted it 'to' an existing thread on the same subject. Sorry for the confusion.
Looks like I struck home with my comments.
No problem Blam. I wasn’t sure if the software was screwing up or what... Thanks!
Gold buying is for sucker right now.
Why are you posting in opposition to people who are not advocating big gold buys right now?
Thu Sep 17, 2009 4:59am EDT
By Rajkumar Ray
NEW DELHI, Sept 17 (Reuters) - Surging food prices have driven India into inflation faster than expected, adding pressure on the central bank to speed an exit from easy monetary policy and prompting further government steps to curb price rises.
India's wholesale price index (WPI) INWPI=ECI rose by 0.12 percent in the year to Sept. 5, compared with the previous week's 0.12 percent fall and analysts' forecast of a 0.08 percent decline, a weekly data release on Thursday showed.
The food articles sub-index rose an annual 15.4 percent, up from the previous week's 14.8 percent rise, as a dry spell parched nearly half of India's districts, hurting summer crops.
[snip]
“My opinions are personal and not financial advice.”
Sad that it has to be said these days.
“And the dollar is? Gold is money.”
I would check out post 13. Gold is wealth but it’s not money.
The dollar will continue to fall against the euro. That’s an opinion not a fact.
FedEx me your paper stuff. I’ll freepmail you my address. :)
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