Know What Your Gov't Is Up To
By Keeping The News Going
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Posted on 05/08/2011 2:24:13 PM PDT by SeekAndFind
Jim Rogers didn't buy or sell anything during last week's commodity sell-off.
He says he isn't good at market timing. What he does believe is that we're in the middle of a commodity bull market where everything will go up for years. Rogers tells the Economic Times:
"5% correction in gold is meaningless. These things correct 10-15-20-30% every year. Nothing unusual about that. That is the way the markets work. I do not see anything unusual. I expect there would be more correction during the course of the bull market. I hope that the bull market goes up, consolidates, goes up, consolidates, goes up and consolidates for years to come. That is my expectation for all commodities.
"I have not sold any commodity. I own all my commodities. We are in a flexible bull market. I hope I am smart enough in the entire 15 years to realize when the commodity bull market is finally coming to an end, I am probably smart enough to sell. This commodity bull market will probably end in a bubble. Most bull markets and most sectors, whether it is stocks, real estate, whatever it happens to me, lands in a bubble. We are far-far-far from a bubble so far."
(Excerpt) Read more at businessinsider.com ...
The “Business Insider” , the definitive reverse barometer.....well them and Jimmy Carter.
That being said, even a blind sow finds an acorn once in awhile.
I was thinking of buying some silver coins...something to put in the safety deposit box. Never can be too careful.
Besides, it would make a great way to freek out a certain D&D player. Huzahhh!!!
Ten years ago that would have been a great move.
The rules of the game are: buy low sell high, not the other way around.
You will have plenty of better opportunities to buy silver—just be patient.
Not sure what your point is relative to Jim Rogers. He is hardly what I would call a blind sow based on his investment record.
Nevertheless, the drop back in commodities will give us consumers a breather for a few months, and help keep excessive speculation out of the market. I hope you had a chance to read the silver link I sent you a few days ago.
As the Fed has learned the Wisdom of Hayek (when you inflate the money supply, you cannot predict where it will go) I expect they must now stop the QE. They really have no choice.
Otherwise the world will starve while it's awash in food.
Both stocks and commodities are in for a tough spell IMHO.
The slow spiral of deflation continues.
Yes I did, thanks.
I have not seen anytihng in our government’s fiscal policies that tell me that the US dollar won’t devalue further.
Unless spending i controlled I don’t see any fundamentals changing anytime soon.
Yes I did, thanks.
I have not seen anytihng in our government’s fiscal policies that tell me that the US dollar won’t devalue further.
Unless spending is controlled I don’t see any fundamentals changing anytime soon.
Think you know hardship? Wait till the dollar is no longer the world’s reserve currency.
How does the Fed stop QE when it needs to print $400 billion dollars per year or, more if the Chinese and others decide not to buy Treasuries????
Perhaps they will stop QE by renaming it.
The Fed can stop QE at any time, completely independent of what the US Treasury and Congress do.
However, considering the sheer volume of purchases by the Fed lately, that would drive interest rates on Treasuries WAY WAY up. It would also drive up our annual interest expense in the Federal Budget...eventually, perhaps, forcing a sovereign default.
Ultimately either course will lead to significant economic problems. They are under the belief that market manipulation and “controlled” inflation will keep the party going and make the debtors shoulder much of the party's cost.
In the end, Mr. market will call the shots not the Fed.
bull-oney
They always have a choice.
When it comes to immediate pain for long term gain, a politician generally choses to avoid the pain. And a bankster always choses for the most hurt to go to the other guy.
They might stop QE for a short run, but I don't think they will for the long run.
The government still needs to borrow an additional 1.5 trillion a year for the foreseeable future, and also has to rollover a good part of the current 14 trillion debt in the next few years.
Should interest rates increase, as they are quite likely to do should QE end, all levels of government (state/fed/local) will be in a world of hurt trying to pay the higher rates.
I think the Fed knows about Hayek, I just don't think they have the political will to follow through as far as it needs to go. The pain would be immense, and Obama would be out of a job unless they can turn it around before the next election, only 18 months away.
At most, they might hold off on QE3 for a while, until things crash and pain abounds, and then blame it on the Republicans and turn on the money spigots again to spruce things up for the next election. The Fed has followed politics in the past, I expect them to continue to do so.
Here's another argument on why they don't have to stop QE: This could be said of the Masters of the Universe: They won’t have to outrun hyperinflation — only to outrun the madding hoards who will be as eager as they to unload dollars in exchange for real things. So, the banksters can handle inflation, as they know when it's coming. Just like the guy who made the million dollar long shot bet on silver falling, just a couple of days before the Comex raised margins and the price collapsed.
If the Republicans can eliminate the eliminate the extra $1 Trillion from the budget added by Obama, then maybe the Fed can stop QE. I think both are pretty unlikely.
but then again, I'm not an economist, banker or even businessman, just a cynic. I actually hope you are right, but am planning otherwise.
Of course they have to stop. If, as you contend, they know Hayek then they know the eventual outcome of their folly and will fear being drug into the streets and hung.
If the US Dollar becomes worthless then every fiat currency in the world becomes worthless.
Universal Default.
That would really pi$$ people off.
I believe in the end it will be the US consumer who decides. That's at least 20% of the world economy.
And, right now, they are not borrowing even IF they could incur more credit, and they are not spending.
It's Fed and Govt money driving the GDP, Stock and Commodity markets.
Unfortunately the Fed believes they can force money down peoples throats. Instead that money pours into markets. And the citizenry gets angrier and more desperate. More so in the less developed world right now, but it'll come here too.
Prepare for default...one way or another.
Whether inflation or deflation, there's no political way out.
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