Thanks, roadrunner. To your point, 27 months out of 12 years (144 months) = 18.75% of the time that gold and the dollar moved up at the same time (on a monthly basis.)
While not "almost never" it is nonetheless a very low correlation, statistically. Meaning, the there is very little correlation between a strong dollar and a higher gold price.
Coho is out to lunch. So sad.
Q: Are You Printing Money? Bernanke: Not Literally
I gave you an entire year when both gold and the dollar moved in same direction, yet you dismiss it. Roadrunner does same and you accept it. That is willful ignorance. And that's especially sad.
I gave you an entire year when both gold and the dollar moved in same direction, yet you dismiss it. Roadrunner does same and you accept it. That is willful ignorance. And that's especially sad.
You presented it as the rule, roadrunner illustrated that it was the exception. The salient fact is the correlation, or lack thereof.
fries will give you arthrosclerosis if you make it a habit.
Q: Are You Printing Money? Bernanke: Not Literally
Just listened to Art Laffer and Stephanie Pomboy expect to lose another 30% in the next 6 months on top of what you've already lost. Stephanie also claimed it's going to be everything all at once and a very hard landing. God help us, I hope they're wrong.
The dollar can rise against other currencies for a year while gold is also rising against those same currencies, but that bears no relation to the fact that the relationship between gold and the dollar is an inverse relationship - always and over time.
This is correct. Gold's inverse relationship exist with all fiat currencies. Gold normally inversely follows the direction of the dollar (dollar index DXY). DXY normally rises because it's comparative "basket" currencies drop. When one of these basket currencies drops in price gold will normally rise when priced in that currency.
The key here is to understand the DXY itself has an inverse relationship also with the index "basket" currencies.
For example as the euro drops the dollar will rise. Gold in euros will rise as gold in dollars drops.
Keep an open mind, or get financially repressed -Zoltan Pozsar
@jmski52 said:
Just because the dollar index rises against other currencies, that doesn’t mean that the inverse relationship isn’t happening.
The dollar index has no bearing on gold’s relation to the dollar.
If a tree falls and you didn't hear it, did it still make a sound?
If $ is created out of thin air does it make a sound?
Have you ever seen it created out of thin air?
Yep, because of banking regulation policy 100% of my last bank loan was funded by only 10% of the banks actual deposits. If the remaining 90% was not a creation on paper, please tell me where it came from.
Keep an open mind, or get financially repressed -Zoltan Pozsar
@TwoSides2aCoin said:
Follow the money, or follow the miner. They're both headed to the bank
Now enter crypto . How good is a digital currency held in an insolvent bank ?
there are two ways to own digital currency;
1. In a personal "wallet" that involves no banks
2. In a crypto account with a crypto bank that is subject to failure. I use paypal for this purpose, view it as the least risk.
Keep an open mind, or get financially repressed -Zoltan Pozsar
because of banking regulation policy 100% of my last bank loan was funded by only 10% of the banks actual deposits. If the remaining 90% was not a creation on paper,
It's not even fractional reserve banking anymore. The reserve requirement was dropped to Zero a few years ago. The free money has no limits at this point.
(Free to the banks if they can find a borrower willing to dig himself into a debt hole.)
Q: Are You Printing Money? Bernanke: Not Literally
@jmski52 said: I gave you an entire year when both gold and the dollar moved in same direction, yet you dismiss it. Roadrunner does same and you accept it. That is willful ignorance. And that's especially sad.
You presented it as the rule, roadrunner illustrated that it was the exception. The salient fact is the correlation, or lack thereof.
No. I cited as an example, which is what you asked for.
fries will give you arthrosclerosis if you make it a habit.
And participating in the this forum gives me a headache, yet some things are worth it. I'm assuming you've never had 5 guys fries?
Per Seeking Alpha At -0.92, DXY has a near perfect inverse correlation to Gold. If the DXY falls, Gold rises, and vice-versa. Guess that makes it a Russian website. LOL
Keep an open mind, or get financially repressed -Zoltan Pozsar
Look at the US Dollar Index from October 2008 gold low to the Sept 2011 gold high. Gold ramped almost straight up in that period....$682 to $1923. YET.....the USDX stayed in a consolidating flag or rectangle that entire time. The dollar's change from end to end was only 0.86 to 0.83.....negligible while gold nearly tripled. A not very good correlation. If anyone were trading gold off the dollar's movements during those 2-3 yrs....they would have had a tough time of it....despite the "long term 92% correlation." This 3 yr period is a pretty darn big exception. For hands on charts go to Netdania Below are the monthly charts of each. Gold rallies more off the lack of confidence in govt's....not necessarily off the currencies, or inflation, or money supply, or sovereign debt. Though over the long term gold seems to catch up to all those factors.
@roadrunner said:
Look at the US Dollar Index from October 2008 gold low to the Sept 2011 gold high. Gold ramped almost straight up in that period....$682 to $1923. YET.....the USDX stayed in a consolidating flag or rectangle that entire time. The dollar's change from end to end was only 0.86 to 0.83 while gold nearly tripled. A not very good correlation.
Oh boy....jmski, you hear this?
What did the price if firewood do during this time? Dang...it went up too!!!
@roadrunner said:
Look at the US Dollar Index from October 2008 gold low to the Sept 2011 gold high. Gold ramped almost straight up in that period....$682 to $1923. YET.....the USDX stayed in a consolidating flag or rectangle that entire time. The dollar's change from end to end was only 0.86 to 0.83 while gold nearly tripled. A not very good correlation.
Oh boy....jmski, you hear this?
What did the price if firewood do during this time? Dang...it went up too!!!
Nope. Cohodk needs to learn to read charts, a skill usually mastered by 5th grade.
And we're not talking about the total 3 yr move....but all the major whipsaws that made up that move. Your wood chart only proves what I was saying all along.....For this 3 yr period the USDX was not a good predictor of gold's movements. Nor was gold's movements a good predictor of Firewood pricing....lol.
Talk about irrelevant charting! We're discussing gold vs USDX and CoHo tosses in firewood. And even worse the firewood chart has the same big whipsaws from Fall 2008 to Fall 2011....as the USDX. Which only proves my point that neither USDX (or even Fire wood) was tracking gold properly. Firewood crashed throughout 2009 (with USDX) while gold was moving strongly up. Both poorly correlated to gold. Other things were forcing gold higher than just the USDollar. We can discuss those reasons separately. QED.
Maybe Coho can do a more detail USDX vs Firewood analysis over on the CU Wood Forum....lol. And worse yet, he's using the modern CPI / PPI "firewood" methods that having nothing in coming with pre-1980 and pre-1990 methods. The current PPI index is no less massaged (and inaccurate) as the govt's published CPI-U.
Nope roadrunner. Amd if you weren't so jaded and contemptuous, narrow minded and influenced, you would realize my point.
Yes, we discussed gold and USDX. My point is that any asset or commodity that is priced in dollars will have correlation. So I chose the mundane, wood chips, to illustrate what takes you a 1000 word diatribe to discuss. And I did it in one simple.sentence, because the truth does not need a dissertation. The truth is the truth. It does not need a narrative.
@cohodk said:
Nope roadrunner. Amd if you weren't so jaded and contemptuous, narrow minded and influenced, you would realize my point.
Yes, we discussed gold and USDX. My point is that any asset or commodity that is priced in dollars will have correlation. So I chose the mundane, wood chips, to illustrate what takes you a 1000 word diatribe to discuss. And I did it in one simple.sentence, because the truth does not need a dissertation. The truth is the truth. It does not need a narrative.
Your post lacks substance (as usual). Nothing to back up or refute an assertion. No data, no charts, and most of it is about the quantity of words in the opposing post, not the message of that post.
PS:
A commodity priced in dollars will sometimes have a "negative correlation" to the dollar index. Rarely will the two have a positive "correlation".
Yes, I hear this. I hear that for a short 3 year period, the strong longterm inverse correlation between the price of gold and the dollar index was out of sync.
And to somehow dispute the fact that a strong longterm negative correlation exists, coho decides to bring in a totally irrelevant factor.
Coho didn't choose to discuss the reasons why the statistically significant longterm trend didn't hold for those 3 years, no - he started discussing firewood charts that bear zero relationship to the question at hand.
So who's jaded and contemptuous?
Q: Are You Printing Money? Bernanke: Not Literally
@jmski52 said:
Yes, I hear this. I hear that for a short 3 year period, the strong longterm inverse correlation between the price of gold and the dollar index was out of sync.
And to somehow dispute the fact that a strong longterm negative correlation exists, coho decides to bring in a totally irrelevant factor.
I'm not disputing anything. I'm actually agreeing. Are you guys that daft?
What i am doing is belittling the point point that gold is some sort of miracle by stating that all assets and commodities will appreciate when the USDX declines. Hence the reference to wood chips and the similar chart patterns. Roadrunner wants to make up some convoluted reasoning to support gold and I post a chart of wood chips with the same chart. If his reasoning applies to gold, then why not wood chips?
You guys are so blinded by hate. Get out into the real world and live a little. Sheesh.
Your post lacks substance (as usual). Nothing to back up or refute an assertion. No data, no charts, and most of it is about the quantity of words in the opposing post, not the message of that post.
PS:
A commodity priced in dollars will sometimes have a "negative correlation" to the dollar index. Rarely will the two have a positive "correlation".
Where are your charts and data to back this up?
If you're going to make it a game, at least make it difficult.
May I change the tenor of the discussion slightly, with a question and an observation? In very plain language, what do you learn by looking at the correlation of gold with the dollar index?
The dolllar index tends to fluctuate around a mean that has been basically flat for 40 years. Gold fluctuates but of course has been on an upward trajectory against the dollar and the dollar index. So, over long periods of time, all of the major “fiat” currencies are remarkably in sync with each other, and are losing value versus gold. This is a very simple message. Unless you are a trader, why care about shorter term correlations?
@Higashiyama said:
May I change the tenor of the discussion slightly, with a question and an observation? In very plain language, what do you learn by looking at the correlation of gold with the dollar index?
While gold tends to have an inverse relationship with DXY, what is more important is gold's inverse relationship with faith in dollar future value. Dollar index has nothing to do with buying power of the dollar in its native country; DXY has no bearing on US inflation rate.
Gold price is simply a reflection on faith in the dollar and faith in it's masters.
Keep an open mind, or get financially repressed -Zoltan Pozsar
I gots me gold, but unlike you I don't feel the need to sit up in my bunker 24/7 praying for the demise of America, the end of the world etc. It's spring for cripes sakes! I beg you....go outside, take a deep breath and enjoy the world. Trust me, it's an unbelievably beautiful place. THKS!
@blitzdude said:
I gots me gold, but unlike you I don't feel the need to sit up in my bunker 24/7 praying for the demise of America, the end of the world etc. It's spring for cripes sakes! I beg you....go outside, take a deep breath and enjoy the world. Trust me, it's an unbelievably beautiful place. THKS!
It is not knowing what one thinks one knows that makes one stupid.
Keep an open mind, or get financially repressed -Zoltan Pozsar
So, over long periods of time, all of the major “fiat” currencies are remarkably in sync with each other, and are losing value versus gold.
The fiat currencies are so poorly mismanaged that they are losing purchasing power versus everything - not just gold. The main difference between gold and wood chips is that nobody has ever used wood chips to store value or to transact, and they probably never will.
What i am doing is belittling the point that gold is some sort of miracle by stating that all assets and commodities will appreciate when the USDX declines.
I don't think that anyone implied that gold is some sort of miracle, but it is in fact an asset that can be easily stored, concealed and kept as a long term financial asset that doesn't depend on empty paper promises by corrupt bankers and politicians. Same goes for silver, maybe even more so.
Q: Are You Printing Money? Bernanke: Not Literally
@jmski52 said:
gold ....... is an asset that can be easily stored, concealed and kept as a long term financial asset that doesn't depend on empty paper promises by corrupt bankers and politicians. Same goes for silver, maybe even more so.
I thought many have argued that those "empty paper promises" are EXACTLY what gold depends upon?
@jmski52 said:
gold ....... is an asset that can be easily stored, concealed and kept as a long term financial asset that doesn't depend on empty paper promises by corrupt bankers and politicians. Same goes for silver, maybe even more so.
I thought many have argued that those "empty paper promises" are EXACTLY what gold depends upon?
how so?
Keep an open mind, or get financially repressed -Zoltan Pozsar
@jmski52 said:
gold ....... is an asset that can be easily stored, concealed and kept as a long term financial asset that doesn't depend on empty paper promises by corrupt bankers and politicians. Same goes for silver, maybe even more so.
I thought many have argued that those "empty paper promises" are EXACTLY what gold depends upon?
Lost my "faith in paper" stuff & promises back around 1971 when the gold window was closed and the collectibles' bull market was born. It didn't help any that the stock market was already in a 5 year slump......with another 11 years still to go. Even as a young coin collector during the 1965-1971 period one was an eye witness to silver coins slowly disappearing from ones change. The end of sound "money."
The roots of many of today's billionaires can be found in that 11 year period. What a great time to have been stacking equities. It's a shame so many were afraid then.
@RonB said:
The SVB financial bank collapse will affect 1000 startups, a third will not be able to make payroll next week. Thousands of jobs will be affected.
One commenter calls it an extinction level event, that could set back innovation by 10 years.
And 4+% rates have attracted a new, and very powerful investor, the US citizen. Americans will pour trillions into US debt. The sword of Damacles the Chinese govt thought they would hold over our head has been snatched away and instead pointed to their throat.
What is it now? $31.4 trillion? Now rolling over at higher rates. Buy that debt, coho! Don't worry about it all collapsing on you. You can explain how you just made millions, when a McDonalds burger will cost you $25. (They've already gone sky-high.)
Q: Are You Printing Money? Bernanke: Not Literally
@jmski52 said:
What is it now? $31.4 trillion? Now rolling over at higher rates. Buy that debt, coho! Don't worry about it all collapsing on you. You can explain how you just made millions, when a McDonalds burger will cost you $25. (They've already gone sky-high.)
Speaking of MCD it made a new all time high 😄
I manage money. I earn money. I save money . I give away money. I collect money. I don’t love money . I do love the Lord God.
The sword of Damacles the Chinese govt thought they would hold over our head has been snatched away and instead pointed to their throat.
History will show that foreign grip on your sword is tightening, not getting looser, Third world status continues to get closer. Still far off, but closer.
Keep an open mind, or get financially repressed -Zoltan Pozsar
@cohodk said:
And 4+% rates have attracted a new, and very powerful investor, the US citizen. Americans will pour trillions into US debt.
And, why not invest in a losing bet? Socialism always includes socialist economic policy. Got a central bank digital currency account yet?
I's gots several. BTC and ETH etc...... THKS!
PS: I's gots US Treasuries too, and even savings accounts north of 4%. As it's been said, conservatism tends to leave one right smack in the middle of the stinky gutter, RGDS!
Comments
Thanks, roadrunner. To your point, 27 months out of 12 years (144 months) = 18.75% of the time that gold and the dollar moved up at the same time (on a monthly basis.)
While not "almost never" it is nonetheless a very low correlation, statistically. Meaning, the there is very little correlation between a strong dollar and a higher gold price.
Coho is out to lunch. So sad.
I knew it would happen.
5 guys burger and fries so yummy.
🍔🍟
I gave you an entire year when both gold and the dollar moved in same direction, yet you dismiss it. Roadrunner does same and you accept it. That is willful ignorance. And that's especially sad.
Knowledge is the enemy of fear
I gave you an entire year when both gold and the dollar moved in same direction, yet you dismiss it. Roadrunner does same and you accept it. That is willful ignorance. And that's especially sad.
You presented it as the rule, roadrunner illustrated that it was the exception. The salient fact is the correlation, or lack thereof.
fries will give you arthrosclerosis if you make it a habit.
I knew it would happen.
Just listened to Art Laffer and Stephanie Pomboy expect to lose another 30% in the next 6 months on top of what you've already lost. Stephanie also claimed it's going to be everything all at once and a very hard landing. God help us, I hope they're wrong.
This is correct. Gold's inverse relationship exist with all fiat currencies. Gold normally inversely follows the direction of the dollar (dollar index DXY). DXY normally rises because it's comparative "basket" currencies drop. When one of these basket currencies drops in price gold will normally rise when priced in that currency.
The key here is to understand the DXY itself has an inverse relationship also with the index "basket" currencies.
For example as the euro drops the dollar will rise. Gold in euros will rise as gold in dollars drops.
Keep an open mind, or get financially repressed -Zoltan Pozsar
Yep, because of banking regulation policy 100% of my last bank loan was funded by only 10% of the banks actual deposits. If the remaining 90% was not a creation on paper, please tell me where it came from.
Keep an open mind, or get financially repressed -Zoltan Pozsar
there are two ways to own digital currency;
1. In a personal "wallet" that involves no banks
2. In a crypto account with a crypto bank that is subject to failure. I use paypal for this purpose, view it as the least risk.
Keep an open mind, or get financially repressed -Zoltan Pozsar
because of banking regulation policy 100% of my last bank loan was funded by only 10% of the banks actual deposits. If the remaining 90% was not a creation on paper,
It's not even fractional reserve banking anymore. The reserve requirement was dropped to Zero a few years ago. The free money has no limits at this point.
(Free to the banks if they can find a borrower willing to dig himself into a debt hole.)
I knew it would happen.
Blind Faith.
No. I cited as an example, which is what you asked for.
And participating in the this forum gives me a headache, yet some things are worth it. I'm assuming you've never had 5 guys fries?
Knowledge is the enemy of fear
I'm assuming you've never had 5 guys fries?
Hah, I thought they'd gone Chapter 11. Maybe not.
So, when you said:
One can also find charts of firewood with an inverse relationship to the dollar.
Were you not strongly implying that there is no inverse relationship between the price of gold and the dollar?
It's plainly obvious that you were attempting to discredit that fact in order to derail the conversation.
So I'll repeat the point - there is very little correlation between a strong dollar and a higher gold price.
I knew it would happen.
Per Seeking Alpha At -0.92, DXY has a near perfect inverse correlation to Gold. If the DXY falls, Gold rises, and vice-versa. Guess that makes it a Russian website. LOL
Keep an open mind, or get financially repressed -Zoltan Pozsar
Per Seeking Alpha At -0.92, DXY has a near perfect inverse correlation to Gold. If the DXY falls, Gold rises, and vice-versa.
I think that's what they refer to as "statistically significant". Seems pretty obvious to me, even without the stats.
I knew it would happen.
I'm seeing 120 day @ -0.92 and 15 day @ -0.88
Look at the US Dollar Index from October 2008 gold low to the Sept 2011 gold high. Gold ramped almost straight up in that period....$682 to $1923. YET.....the USDX stayed in a consolidating flag or rectangle that entire time. The dollar's change from end to end was only 0.86 to 0.83.....negligible while gold nearly tripled. A not very good correlation. If anyone were trading gold off the dollar's movements during those 2-3 yrs....they would have had a tough time of it....despite the "long term 92% correlation." This 3 yr period is a pretty darn big exception. For hands on charts go to Netdania Below are the monthly charts of each. Gold rallies more off the lack of confidence in govt's....not necessarily off the currencies, or inflation, or money supply, or sovereign debt. Though over the long term gold seems to catch up to all those factors.
Oh boy....jmski, you hear this?
What did the price if firewood do during this time? Dang...it went up too!!!
Knowledge is the enemy of fear
The big banksters JPM and BLK doing well today
Big fat dividends too 😊
I give away money. I collect money.
I don’t love money . I do love the Lord God.
Nope. Cohodk needs to learn to read charts, a skill usually mastered by 5th grade.
And we're not talking about the total 3 yr move....but all the major whipsaws that made up that move. Your wood chart only proves what I was saying all along.....For this 3 yr period the USDX was not a good predictor of gold's movements. Nor was gold's movements a good predictor of Firewood pricing....lol.
Talk about irrelevant charting! We're discussing gold vs USDX and CoHo tosses in firewood. And even worse the firewood chart has the same big whipsaws from Fall 2008 to Fall 2011....as the USDX. Which only proves my point that neither USDX (or even Fire wood) was tracking gold properly. Firewood crashed throughout 2009 (with USDX) while gold was moving strongly up. Both poorly correlated to gold. Other things were forcing gold higher than just the USDollar. We can discuss those reasons separately. QED.
Maybe Coho can do a more detail USDX vs Firewood analysis over on the CU Wood Forum....lol. And worse yet, he's using the modern CPI / PPI "firewood" methods that having nothing in coming with pre-1980 and pre-1990 methods. The current PPI index is no less massaged (and inaccurate) as the govt's published CPI-U.
Nope roadrunner. Amd if you weren't so jaded and contemptuous, narrow minded and influenced, you would realize my point.
Yes, we discussed gold and USDX. My point is that any asset or commodity that is priced in dollars will have correlation. So I chose the mundane, wood chips, to illustrate what takes you a 1000 word diatribe to discuss. And I did it in one simple.sentence, because the truth does not need a dissertation. The truth is the truth. It does not need a narrative.
Knowledge is the enemy of fear
Your post lacks substance (as usual). Nothing to back up or refute an assertion. No data, no charts, and most of it is about the quantity of words in the opposing post, not the message of that post.
PS:
A commodity priced in dollars will sometimes have a "negative correlation" to the dollar index. Rarely will the two have a positive "correlation".
Yes, I hear this. I hear that for a short 3 year period, the strong longterm inverse correlation between the price of gold and the dollar index was out of sync.
And to somehow dispute the fact that a strong longterm negative correlation exists, coho decides to bring in a totally irrelevant factor.
Coho didn't choose to discuss the reasons why the statistically significant longterm trend didn't hold for those 3 years, no - he started discussing firewood charts that bear zero relationship to the question at hand.
So who's jaded and contemptuous?
I knew it would happen.
I'm not disputing anything. I'm actually agreeing. Are you guys that daft?
What i am doing is belittling the point point that gold is some sort of miracle by stating that all assets and commodities will appreciate when the USDX declines. Hence the reference to wood chips and the similar chart patterns. Roadrunner wants to make up some convoluted reasoning to support gold and I post a chart of wood chips with the same chart. If his reasoning applies to gold, then why not wood chips?
You guys are so blinded by hate. Get out into the real world and live a little. Sheesh.
Knowledge is the enemy of fear
Hey roadrunner...maybe we should base 1980 CPI off of 1937 data. What you think?
Knowledge is the enemy of fear
And you haven't answered by question about the correlation of the sp500 to USDX. Is that because the answer doesn't fit your narrative?
Knowledge is the enemy of fear
Where are your charts and data to back this up?
If you're going to make it a game, at least make it difficult.
Knowledge is the enemy of fear
May I change the tenor of the discussion slightly, with a question and an observation? In very plain language, what do you learn by looking at the correlation of gold with the dollar index?
The dolllar index tends to fluctuate around a mean that has been basically flat for 40 years. Gold fluctuates but of course has been on an upward trajectory against the dollar and the dollar index. So, over long periods of time, all of the major “fiat” currencies are remarkably in sync with each other, and are losing value versus gold. This is a very simple message. Unless you are a trader, why care about shorter term correlations?
While gold tends to have an inverse relationship with DXY, what is more important is gold's inverse relationship with faith in dollar future value. Dollar index has nothing to do with buying power of the dollar in its native country; DXY has no bearing on US inflation rate.
Gold price is simply a reflection on faith in the dollar and faith in it's masters.
Keep an open mind, or get financially repressed -Zoltan Pozsar
I gots me gold, but unlike you I don't feel the need to sit up in my bunker 24/7 praying for the demise of America, the end of the world etc. It's spring for cripes sakes! I beg you....go outside, take a deep breath and enjoy the world. Trust me, it's an unbelievably beautiful place. THKS!
The whole worlds off its rocker, buy Gold™.
It is not knowing what one thinks one knows that makes one stupid.
Keep an open mind, or get financially repressed -Zoltan Pozsar
So, over long periods of time, all of the major “fiat” currencies are remarkably in sync with each other, and are losing value versus gold.
The fiat currencies are so poorly mismanaged that they are losing purchasing power versus everything - not just gold. The main difference between gold and wood chips is that nobody has ever used wood chips to store value or to transact, and they probably never will.
What i am doing is belittling the point that gold is some sort of miracle by stating that all assets and commodities will appreciate when the USDX declines.
I don't think that anyone implied that gold is some sort of miracle, but it is in fact an asset that can be easily stored, concealed and kept as a long term financial asset that doesn't depend on empty paper promises by corrupt bankers and politicians. Same goes for silver, maybe even more so.
I knew it would happen.
I thought many have argued that those "empty paper promises" are EXACTLY what gold depends upon?
Knowledge is the enemy of fear
how so?
Keep an open mind, or get financially repressed -Zoltan Pozsar
I thought many have argued that those "empty paper promises" are EXACTLY what gold depends upon?
You thought wrong. The bond market depends on empty paper promises.
Gold doesn't change, and it doesn't need any type of promise to be gold. It's valued only for what it is.
It's the paper - bonds & fiat currency, both - that depend on promises which are being proven to be empty ones.
I knew it would happen.
What happened to your faith?
Knowledge is the enemy of fear
Lost my "faith in paper" stuff & promises back around 1971 when the gold window was closed and the collectibles' bull market was born. It didn't help any that the stock market was already in a 5 year slump......with another 11 years still to go. Even as a young coin collector during the 1965-1971 period one was an eye witness to silver coins slowly disappearing from ones change. The end of sound "money."
The roots of many of today's billionaires can be found in that 11 year period. What a great time to have been stacking equities. It's a shame so many were afraid then.
Knowledge is the enemy of fear
Hind sight is always 100%..... fore sight ummm.... not quite so much.
Because, as demonstrated frequently in this forum, we spend too much time looking backwards.
Knowledge is the enemy of fear
Pretty much a nothing-burger now, a month later.
I traded BLK at 695, still holding JPM and BAC....
I give away money. I collect money.
I don’t love money . I do love the Lord God.
And 4+% rates have attracted a new, and very powerful investor, the US citizen. Americans will pour trillions into US debt. The sword of Damacles the Chinese govt thought they would hold over our head has been snatched away and instead pointed to their throat.
Go ahead China, dump those Treasuries!!
Knowledge is the enemy of fear
What is it now? $31.4 trillion? Now rolling over at higher rates. Buy that debt, coho! Don't worry about it all collapsing on you. You can explain how you just made millions, when a McDonalds burger will cost you $25. (They've already gone sky-high.)
I knew it would happen.
100k at 5% is $5000. That will buy 200 of your $25 big macs.
Although I don't eat MCD stuff, dont be jealous.
Knowledge is the enemy of fear
Speaking of MCD it made a new all time high 😄
I give away money. I collect money.
I don’t love money . I do love the Lord God.
And, why not invest in a losing bet? Socialism always includes socialist economic policy. Got a central bank digital currency account yet? Note that those with good credit will be paying higher mortage rates to subsidize those with risky credit.
History will show that foreign grip on your sword is tightening, not getting looser, Third world status continues to get closer. Still far off, but closer.
Keep an open mind, or get financially repressed -Zoltan Pozsar
I's gots several. BTC and ETH etc...... THKS!
PS: I's gots US Treasuries too, and even savings accounts north of 4%. As it's been said, conservatism tends to leave one right smack in the middle of the stinky gutter, RGDS!
The whole worlds off its rocker, buy Gold™.
Tip: the higher the interest rate paid by a bank the higher that bank is on the "risk" list.
Keep an open mind, or get financially repressed -Zoltan Pozsar
Truth
Not really
Risk more about their depositors leaving
I give away money. I collect money.
I don’t love money . I do love the Lord God.
We’re done with “gradually”. We’ve now reached the “suddenly” part
"Logarithmic decay is like how Hemingway famously described going bankrupt in The Sun Also Rises– “Gradually, then suddenly.”"
Keep an open mind, or get financially repressed -Zoltan Pozsar