@blitzdude said:
Certainly, don't need to pay someone to brainwash us into the sky is always falling. These great United States of America are THE economic powerhouse of planet Earth and we be BOOMIN. THKS!
Agree, but nothing is forever. The dollar and it is impact on gold price is my concern. If you're too busy celebrating our greatness, you will miss the thunder clouds on the horizon. Those aware have their umbrella gold.
Dollars? Check, Gold? Check. Waking up every morning feeling blessed, not only to live right here in this great nation but to have my umbrella for the just in case? Yes, I would recommend it to anyone and everyone. RGDS!
How did you learn to get gold, fortune cookie? No, like the rest of you do your research that others publish whether it be bad statics from the government or maybe just a combination of opinions from professionals that get paid for what they write. If it was enlightenment from a discussion with one of your range chickens, please entertain us about the conversation
I learned because it has been considered $$$ since the beginning of recorded history. In my "apparent" complex world it was deemed™ a no brainer. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
@UpGrayedd said:
I really can't believe several people on this board have no idea what freedom of the press actually means. Let me give you a clue, it has nothing to do with media bias. You guys need to go back to civics class. It appears the dumbing down of America is almost complete.
Amazing, isn't it? China and Russia know how to feed the enemy within.
@jmski52 said:
It doesn't take a genius to figure out that when a large group of countries decide to eschew buying US debt, that there will be a major impact upon the US bond market, the dollar as a world reserve currency, US inflation and gold prices.
Doesn't take a genius to figure out a large group of folk love US debt...
@jmski52 said:
It doesn't take a genius to figure out that when a large group of countries decide to eschew buying US debt, that there will be a major impact upon the US bond market, the dollar as a world reserve currency, US inflation and gold prices.
Doesn't take a genius to figure out a large group of folk love US debt...
it appears jm is referring to the future of US debt buyers ("that when a large group") while you jump with joy at the present group of buyers. The music is still playing, but there will be far from enough chairs when it ends. Losing sovereign buyers should be a serious concern.
Repetition of ignorance is ignorance raised to the power two.
@jmski52 said:
It doesn't take a genius to figure out that when a large group of countries decide to eschew buying US debt, that there will be a major impact upon the US bond market, the dollar as a world reserve currency, US inflation and gold prices.
Doesn't take a genius to figure out a large group of folk love US debt...
You think it is a good thing that the United States has so much debt and that other countries are willing to lend to us ?
How much of that debt is owned by the BRICS that you hate ?
Do you think it would be a good thing to be in debt servitude to BRICS ?
@jmski52 said:
It doesn't take a genius to figure out that when a large group of countries decide to eschew buying US debt, that there will be a major impact upon the US bond market, the dollar as a world reserve currency, US inflation and gold prices.
Doesn't take a genius to figure out a large group of folk love US debt...
@jmski52 said:
It doesn't take a genius to figure out that when a large group of countries decide to eschew buying US debt, that there will be a major impact upon the US bond market, the dollar as a world reserve currency, US inflation and gold prices.
Doesn't take a genius to figure out a large group of folk love US debt...
@jmski52 said:
It doesn't take a genius to figure out that when a large group of countries decide to eschew buying US debt, that there will be a major impact upon the US bond market, the dollar as a world reserve currency, US inflation and gold prices.
Doesn't take a genius to figure out a large group of folk love US debt...
You think it is a good thing that the United States has so much debt and that other countries are willing to lend to us ?
It shows they have great confidence in the USA.
How much of that debt is owned by the BRICS that you hate ?
I don't hate Brics. Stop projecting. The answer is easy enough to find on the interweb. Do your research.
Do you think it would be a good thing to be in debt servitude to BRICS ?
.
You seems to be a bit infatuated with the word "serviitude". Why is that?
What do you think of the strong demand of other countries to invest in the USA?
China is a large holder of US debt (although less than before). The United States is indebted to China. That is not a favorable situation for us with a world power struggle going on. But I suppose it does give us some leverage over them. If China does something we don't like, the Treasury Bonds that China holds could be declared worthless as a retaliation. Thus, one of the reasons that BRICS want more independence from the US financial realm. Has China divested enough US debt to invade Taiwan without caring if their remaining US bond holdings become worthless ? Maybe.
Debt servitude is what "bankers" such as yourself want for everyone else.
The Federal Reserve's number one goal has always been to maximize debt service payments. Above all else they want people to take on debt and service that debt to the greatest extent possible. Not quite slavery, but a type of servitude.
I use the word "servitude". That is an accurate descriptor.
You use the term "weak" all the time. The general American public is perhaps lazy and stupid, but not weak.
Debt servitude is what "bankers" such as yourself want for everyone else.
The Federal Reserve's number one goal has always been to maximize debt service payments. Above all else they want people to take on debt and service that debt to the greatest extent possible. Not quite slavery, but a type of servitude.
I use the word "servitude". That is an accurate descriptor.
You use the term "weak" all the time. The general American public is perhaps lazy and stupid, but not weak.
Bingo, give the man a cigar
Repetition of ignorance is ignorance raised to the power two.
Stocks are at record highs because the money supply is at record highs. The trend will continue. You can't expect that much money to be spent at Walmart.
Repetition of ignorance is ignorance raised to the power two.
@derryb said:
Stocks are at record highs because the money supply is at record highs. The trend will continue. You can't expect that much money to be spent at Walmart.
Either join the party or get left in the gutter. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
If you have debt that you have to service, then you are in debt servitude. That is a simple fact.
But that doesn't really apply to the Federal government when all the Federal debt is denominated in dollars and the Federal government can create dollars at will (although we all still pay for it via inflation).
For everyone else, debt servitude is the modern accepted version of slavery.
When you are in debt, your options for how you run your affairs become more limited.
Slavery takes away all your options. So in that regard, they have some similarities.
If you have debt that you have to service, then you are in debt servitude. That is a simple fact.
But that doesn't really apply to the Federal government when all the Federal debt is denominated in dollars and the Federal government can create dollars at will (although we all still pay for it via inflation).
For everyone else, debt servitude is the modern accepted version of slavery.
When you are in debt, your options for how you run your affairs become more limited.
Slavery takes away all your options. So in that regard, they have some similarities.
.
Using debt for consumption is weak....which is where your mind resides.
Using debt for investment is strength...which you don't understand.
Bankers "create" money out of thin air via debt and lend it out for a stream of interest payments that you must work to pay off over time.
At the same time, if you deposit money into the bank it is now considered a "loan" to the bank but you are last on the list of the bank's creditors if the bank mismanages its own affairs and declares bankruptcy.
On one hand, you owe the bank, but you are dogmeat if the bank owes you.
Using debt for investment is no different than using debt for consumption - in both cases you are placing a bet that you will be able to pay off the loan that was created out of thin air solely for the benefit of the bank.
Nobody else in the world gets that kind of sweet deal. End the Fed.
Q: Are You Printing Money? Bernanke: Not Literally
Using debt for investment is no different than using debt for consumption - in both cases you are placing a bet that you will be able to pay off the loan that was created out of thin air solely for the benefit of the bank.
It is much different and that you don't understand it is why we go round and round and round.
Nobody else in the world gets that kind of sweet deal. End the Fed
The track record of Gold Bugs and other Apocalpytic Warriors is horrible. Bill Parcells once said "You are what your record says you are."
Those guys -- with their names, arguments, charts, and tables posted here -- have a TERRIBLE long-term track record and anybody hiring them would have fired them within 3-5 years for lousy performance.
Which ultimately shows you their arguments and beliefs are irrelevant, even if they somehow turn out to be somewhat true in 2125.
If you have debt that you have to service, then you are in debt servitude. That is a simple fact.
But that doesn't really apply to the Federal government when all the Federal debt is denominated in dollars and the Federal government can create dollars at will (although we all still pay for it via inflation).
For everyone else, debt servitude is the modern accepted version of slavery.
When you are in debt, your options for how you run your affairs become more limited.
Slavery takes away all your options. So in that regard, they have some similarities.
.
Using debt for consumption is weak....which is where your mind resides.
Using debt for investment is strength...which you don't understand.
Go back and reread those links again.
.
Tell us why we should take financial advice from a self-proclaimed "redneck hillbilly" ?
Why should we believe that you know what you are writing about ?
"Using debt for investment is strength"
This sounds like it could have come from George Orwell's prophetic work "1984".
When a private entity controls the value of money, they can make that debt-financed investment go bad.
They have done it many times to take advantage. Too much of this "leverage" caused the boom of the 1920s and the subsequent bust of the early 1930s (and WW2).
Using debt for investment is no different than using debt for consumption - in both cases you are placing a bet that you will be able to pay off the loan that was created out of thin air solely for the benefit of the bank.
It is much different and that you don't understand it is why we go round and round and round.
Nobody else in the world gets that kind of sweet deal. End the Fed
@GoldFinger1969 said:
The track record of Gold Bugs and other Apocalpytic Warriors is horrible. Bill Parcells once said "You are what your record says you are."
Those guys -- with their names, arguments, charts, and tables posted here -- have a TERRIBLE long-term track record and anybody hiring them would have fired them within 3-5 years for lousy performance.
The long term record of anyone recommending gold has been proven correct.
Repetition of ignorance is ignorance raised to the power two.
@dcarr said:
Why should we believe that you know what you are writing about ?
If you said a heart attack can result from the blockage of blood to the heart should we be dismissive because you are an engineer?
Now go back and read those.links again.
What we believe that is said on this forum is determined by how often it's source has been shown to be correct in the past. A simple matter of trust based on past performance.
Repetition of ignorance is ignorance raised to the power two.
Regarding past performance, @cohodk has been telling us for twenty years that we are not about to witness a collapse in the US economy. He has also pointed to the vitality of many regional economies across the US. He clearly recognizes that we are not without problems. I would say his track record is excellent.
I would strongly recommend that others read them; it will require a good deal of effort, but effort that is well worth it.
The Carnegie Endowment article (by Michael Pettis) is particularly interesting because it was written in May, 2019, and there is up to date data in the Investopedia article showing the evolution of things since then. Pettis explains very cogently why it would be hard for China to weaponize their US debt holdings. He lists the five paths China would need to follow to reduce these holdings. As shown in the Investopedia data, China has in fact significantly reduced their holdings subsequent to the Pettis article, from about $ 1100 billion to rough $ 775 billion at present. The Chinese have been prudent in pursuing this reduction, employing a mix of the five methods that Pettis refers to. As Pettis suggests, this reduction has probably been a bit painful for the Chinese economy. (though in my view, probably a good things for both China and the US)
@Higashiyama said:
Regarding past performance, @cohodk has been telling us for twenty years that we are not about to witness a collapse in the US economy. He has also pointed to the vitality of many regional economies across the US. He clearly recognizes that we are not without problems. I would say his track record is excellent.
Yet many here, including myself, see and warn of the signs that we are headed for an economic collapse, far worse than what was averted by money printing since 2008. Will we see it? Yes, unless the reigns are pulled in on government spending and the FED printing that feeds their vicious hunger. Coho is looking at "now." I'm looking ahead. I hope and pray that the necessary changes are made but, having worked for and seen the inside operations of our federal government for over 30 years, I'm not counting on it; I'm preparing for it.
As I have said many times here, gold's price is a direct reflection of faith in our currency and faith in those who control it. You should listen to what it is saying. It disagreeing with coho. I'm betting that gold is the one who is correct as are the many here who stack it.
Repetition of ignorance is ignorance raised to the power two.
I would strongly recommend that others read them; it will require a good deal of effort, but effort that is well worth it.
The Carnegie Endowment article (by Michael Pettis) is particularly interesting because it was written in May, 2019, and there is up to date data in the Investopedia article showing the evolution of things since then. Pettis explains very cogently why it would be hard for China to weaponize their US debt holdings. He lists the five paths China would need to follow to reduce these holdings. As shown in the Investopedia data, China has in fact significantly reduced their holdings subsequent to the Pettis article, from about $ 1100 billion to rough $ 775 billion at present. The Chinese have been prudent in pursuing this reduction, employing a mix of the five methods that Pettis refers to. As Pettis suggests, this reduction has probably been a bit painful for the Chinese economy. (though in my view, probably a good things for both China and the US)
The dollar's fate does not rest on China weaponizing their US debt holdings. Continued sales of US debt to all the foreign suckers would support a delay in it's crash, but when they no longer buy the debt the US government will buy the debt itself with increased sales of bonds to US government agencies. Check out how much the Social Security funds already own. This action is nothing more than forcing taxpayers to buy the debt.
The dollar's fate lies within, not with China and not with BRICs. Their actions to reduce holdings and to reduce purchases will hurt the dollar but the US will be responsible for the downfall of its currency.
History has repeatedly showed us this result. Different this time? . . .
Repetition of ignorance is ignorance raised to the power two.
I agree; and in spite of our amazing strengths, we have challenges that will take a generation or more to address.
@derryb said "Yet many here, including myself, see and warn of the signs that we are headed for an economic collapse, far worse than what was averted by money printing since 2008."
Barring a catastrophic war (which is not an impossibility), I think an economic collapse is very unlikely, given the diversity and resilience of the US economy. We could see a humiliating financial crisis that leads to a rapid restructuring of global institutions. (rather than the gradual one that is currently underway) Again, barring a devastating war, the US would likely emerge from this crisis as the leading (but probably not dominant) world economy. Even after such a crisis, it is not out of the question that the US, somewhat like Rome after the crisis of the 3rd century, would reemerge as the bedrock of stability in a rather perilous world. Suitably wizened, we might then last longer than Rome ...
I would strongly recommend that others read them; it will require a good deal of effort, but effort that is well worth it.
The Carnegie Endowment article (by Michael Pettis) is particularly interesting because it was written in May, 2019, and there is up to date data in the Investopedia article showing the evolution of things since then. Pettis explains very cogently why it would be hard for China to weaponize their US debt holdings. He lists the five paths China would need to follow to reduce these holdings. As shown in the Investopedia data, China has in fact significantly reduced their holdings subsequent to the Pettis article, from about $ 1100 billion to rough $ 775 billion at present. The Chinese have been prudent in pursuing this reduction, employing a mix of the five methods that Pettis refers to. As Pettis suggests, this reduction has probably been a bit painful for the Chinese economy. (though in my view, probably a good things for both China and the US)
.
Just to clarify, I never wrote that China would "weaponize" their US Treasury Bond holdings. In fact, it is obvious why they would not want to do that, because it would devalue their remaining holdings. But if those holdings get down to a level where the Chinese might consider writing them off, then look out.
@dcarr said:
Why should we believe that you know what you are writing about ?
If you said a heart attack can result from the blockage of blood to the heart should we be dismissive because you are an engineer?
Now go back and read those.links again.
.
You know that I am an engineer because I am not hiding.
You are a former investment "banker", correct ?
Why do you hide that fact ?
Could it be that you have a vested interest in keeping people in your game ?
Stop being "weak" and state your credentials so that you can be taken more seriously (or not).
Here's a real portfolio manager, currency trader, and foreign exchange expert (who is NOT an American) discussing why all this BRICs talk is nonsense.
Karthik Sankaran recently spoke to BARRONs:
Question: China and Saudi Arabia are attempting to use China’s renminbi instead of the dollar to settle some of their oil trade. That has led to some worry about the dollar’s role as the global reserve currency. Is that meaningful?
Answer: At the margin, maybe. But the argument I’ve always made is that what matters isn’t what you settle trade in.
The most important function of the dollar in the global financial system is not that it is the leading reserve asset. It’s the fact that it’s the leading nomination of cross-border debt, which is a private-sector thing. Is the renminbi a currency that can be used for large-scale issuance in deep, liquid markets by non-Chinese borrowers? We’re a very, very long way from that.
The renminbi is nowhere near ready for prime time. That won’t change until you get a large amount of issuance in renminbi, including by non-Chinese issuers.
The time to get excited isn’t when China and Brazil are trading in renminbi. It’s when Vale, the giant iron ore company, is issuing in renminbi. Then the Saudis, who are getting renminbi for the exports of oil to China, can buy something else that’s in renminbi that isn’t Chinese. That’s when it even starts to do some of the things that the dollar does in the world. And we’re nowhere near that.
As I have said many times here, gold's price is a direct reflection of faith in our currency and faith in those who control it. You should listen to what it is saying. It disagreeing with coho. I'm betting that gold is the one who is correct as are the many here who stack it.
Coho hasn't said gold won't go higher. In fact, he's stated that it will increase in price just like a McDonalds hamburger or a bag of NPK.
He has said that gold doesn't speak, talk, or have an opinion. It is not "the one", it just is.
As I have said many times here, gold's price is a direct reflection of faith in our currency and faith in those who control it. You should listen to what it is saying. It disagreeing with coho. I'm betting that gold is the one who is correct as are the many here who stack it.
Coho hasn't said gold won't go higher. In fact, he's stated that it will increase in price just like a McDonalds hamburger or a bag of NPK.
He has said that gold doesn't speak, talk, or have an opinion. It is not "the one", it just is.
And anyone who believes that prices do not "tell" us something about a market should limit they're buying to the grocery store.
Repetition of ignorance is ignorance raised to the power two.
As I have said many times here, gold's price is a direct reflection of faith in our currency and faith in those who control it. You should listen to what it is saying. It disagreeing with coho. I'm betting that gold is the one who is correct as are the many here who stack it.
Coho hasn't said gold won't go higher. In fact, he's stated that it will increase in price just like a McDonalds hamburger or a bag of NPK.
He has said that gold doesn't speak, talk, or have an opinion. It is not "the one", it just is.
And anyone who believes that prices do not "tell" us something about a market should limit they're buying to the grocery store.
What did gold "tell" us when it dropped from 1900 to 1000 a decade ago?
As I have said many times here, gold's price is a direct reflection of faith in our currency and faith in those who control it. You should listen to what it is saying. It disagreeing with coho. I'm betting that gold is the one who is correct as are the many here who stack it.
Coho hasn't said gold won't go higher. In fact, he's stated that it will increase in price just like a McDonalds hamburger or a bag of NPK.
He has said that gold doesn't speak, talk, or have an opinion. It is not "the one", it just is.
And anyone who believes that prices do not "tell" us something about a market should limit they're buying to the grocery store.
What did gold "tell" us when it dropped from 1900 to 1000 a decade ago?
It said "BUY" to those that were listening. Was it wrong?
Repetition of ignorance is ignorance raised to the power two.
"These nations have been driven to this extreme, time-consuming, and difficult project by clueless US leaders who have imposed sanctions on Russian assets (literally stealing them) and have denied Russia and other nations from using the SWIFT messaging system for trade settlement."
In the future the US should refrain from pointing a loaded gun at its own foot.
Repetition of ignorance is ignorance raised to the power two.
Comments
don't need to pay someone to brainwash us into the sky is always falling
Why do you own gold? Why not just dollars?
I knew it would happen.
I learned because it has been considered $$$ since the beginning of recorded history. In my "apparent" complex world it was deemed™ a no brainer. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Amazing, isn't it? China and Russia know how to feed the enemy within.
We are weak.
Knowledge is the enemy of fear
not all of us
Repetition of ignorance is ignorance raised to the power two.
Doesn't take a genius to figure out a large group of folk love US debt...
https://www.bloomberg.com/news/articles/2025-01-16/treasuries-death-spiral-risk-is-brushed-aside-by-foreign-funds
Knowledge is the enemy of fear
it appears jm is referring to the future of US debt buyers ("that when a large group") while you jump with joy at the present group of buyers. The music is still playing, but there will be far from enough chairs when it ends. Losing sovereign buyers should be a serious concern.
Repetition of ignorance is ignorance raised to the power two.
.
You think it is a good thing that the United States has so much debt and that other countries are willing to lend to us ?
How much of that debt is owned by the BRICS that you hate ?
Do you think it would be a good thing to be in debt servitude to BRICS ?
.
Debt it just a few digits on a computer screen. Click, click debt no more. Live life, it doesn't have to always be doom and gloom. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
My US Mint Commemorative Medal Set
It shows they have great confidence in the USA.
I don't hate Brics. Stop projecting. The answer is easy enough to find on the interweb. Do your research.
You seems to be a bit infatuated with the word "serviitude". Why is that?
What do you think of the strong demand of other countries to invest in the USA?
Knowledge is the enemy of fear
appears foreigners are the biggest suckers.
Repetition of ignorance is ignorance raised to the power two.
fixed it for ya
Repetition of ignorance is ignorance raised to the power two.
China is a large holder of US debt (although less than before). The United States is indebted to China. That is not a favorable situation for us with a world power struggle going on. But I suppose it does give us some leverage over them. If China does something we don't like, the Treasury Bonds that China holds could be declared worthless as a retaliation. Thus, one of the reasons that BRICS want more independence from the US financial realm. Has China divested enough US debt to invade Taiwan without caring if their remaining US bond holdings become worthless ? Maybe.
Debt servitude is what "bankers" such as yourself want for everyone else.
The Federal Reserve's number one goal has always been to maximize debt service payments. Above all else they want people to take on debt and service that debt to the greatest extent possible. Not quite slavery, but a type of servitude.
I use the word "servitude". That is an accurate descriptor.
You use the term "weak" all the time. The general American public is perhaps lazy and stupid, but not weak.
Bingo, give the man a cigar
Repetition of ignorance is ignorance raised to the power two.
What do you think of the strong demand of other countries to invest in the USA?
I think that capital flight from some countries has been partly responsible for keeping our real estate market and stock market afloat.
The bond market is another story, and the Fed is going to run us into the ground with inflation of the debt and devaluation of the currency.
End the Fed. There's got to be a better way than always being on the receiving end of a confidence game.
I knew it would happen.
Stocks are at record highs because the money supply is at record highs. The trend will continue. You can't expect that much money to be spent at Walmart.
Repetition of ignorance is ignorance raised to the power two.
Either join the party or get left in the gutter. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Laziness is lack of.motivation is weakness.
Stupid is lack of desire to gain knowledge is weakness.
Lack of personal responsibility is weakness.
Looking for someone to "make it better" is weakness.
Blaming others is weakness.
Now how about a little read on how the global economic engine works. Read it...1x, 10x, 100x...until you get it.
See below....
Knowledge is the enemy of fear
https://www.investopedia.com/articles/investing/040115/reasons-why-china-buys-us-treasury-bonds.asp
https://carnegieendowment.org/china-financial-markets/2019/05/china-cannot-weaponize-its-us-treasury-bonds?lang=en
How's that "Serviitude" work again?
Knowledge is the enemy of fear
.
If you have debt that you have to service, then you are in debt servitude. That is a simple fact.
But that doesn't really apply to the Federal government when all the Federal debt is denominated in dollars and the Federal government can create dollars at will (although we all still pay for it via inflation).
For everyone else, debt servitude is the modern accepted version of slavery.
When you are in debt, your options for how you run your affairs become more limited.
Slavery takes away all your options. So in that regard, they have some similarities.
.
.
You sure are fixated on being "weak",
I will add this to your list of weaknesses:
Hiding behind a mask and an anonymous keyboard.
.
Yes...i am weak in that i continue to interact with you. But i have a soft spot you. I'm flattered with your attention.
Btw--- that ain't a mask.
Knowledge is the enemy of fear
Using debt for consumption is weak....which is where your mind resides.
Using debt for investment is strength...which you don't understand.
Go back and reread those links again.
Knowledge is the enemy of fear
Bankers "create" money out of thin air via debt and lend it out for a stream of interest payments that you must work to pay off over time.
At the same time, if you deposit money into the bank it is now considered a "loan" to the bank but you are last on the list of the bank's creditors if the bank mismanages its own affairs and declares bankruptcy.
On one hand, you owe the bank, but you are dogmeat if the bank owes you.
Using debt for investment is no different than using debt for consumption - in both cases you are placing a bet that you will be able to pay off the loan that was created out of thin air solely for the benefit of the bank.
Nobody else in the world gets that kind of sweet deal. End the Fed.
I knew it would happen.
It is much different and that you don't understand it is why we go round and round and round.
You didn't read the links either.
Knowledge is the enemy of fear
The track record of Gold Bugs and other Apocalpytic Warriors is horrible. Bill Parcells once said "You are what your record says you are."
Those guys -- with their names, arguments, charts, and tables posted here -- have a TERRIBLE long-term track record and anybody hiring them would have fired them within 3-5 years for lousy performance.
Which ultimately shows you their arguments and beliefs are irrelevant, even if they somehow turn out to be somewhat true in 2125.
.
Tell us why we should take financial advice from a self-proclaimed "redneck hillbilly" ?
Why should we believe that you know what you are writing about ?
"Using debt for investment is strength"
This sounds like it could have come from George Orwell's prophetic work "1984".
When a private entity controls the value of money, they can make that debt-financed investment go bad.
They have done it many times to take advantage. Too much of this "leverage" caused the boom of the 1920s and the subsequent bust of the early 1930s (and WW2).
.
I read your links, and they were informative.
My US Mint Commemorative Medal Set
only if that debt is not personal debt used to play the stock market or buy PMs.
Repetition of ignorance is ignorance raised to the power two.
The long term record of anyone recommending gold has been proven correct.
Repetition of ignorance is ignorance raised to the power two.
If you said a heart attack can result from the blockage of blood to the heart should we be dismissive because you are an engineer?
Now go back and read those.links again.
Knowledge is the enemy of fear
What we believe that is said on this forum is determined by how often it's source has been shown to be correct in the past. A simple matter of trust based on past performance.
Repetition of ignorance is ignorance raised to the power two.
Regarding past performance, @cohodk has been telling us for twenty years that we are not about to witness a collapse in the US economy. He has also pointed to the vitality of many regional economies across the US. He clearly recognizes that we are not without problems. I would say his track record is excellent.
Regarding Coho's two links, they are worth reposting:
https://www.investopedia.com/articles/investing/040115/reasons-why-china-buys-us-treasury-bonds.asp
https://carnegieendowment.org/china-financial-markets/2019/05/china-cannot-weaponize-its-us-treasury-bonds?lang=en
I would strongly recommend that others read them; it will require a good deal of effort, but effort that is well worth it.
The Carnegie Endowment article (by Michael Pettis) is particularly interesting because it was written in May, 2019, and there is up to date data in the Investopedia article showing the evolution of things since then. Pettis explains very cogently why it would be hard for China to weaponize their US debt holdings. He lists the five paths China would need to follow to reduce these holdings. As shown in the Investopedia data, China has in fact significantly reduced their holdings subsequent to the Pettis article, from about $ 1100 billion to rough $ 775 billion at present. The Chinese have been prudent in pursuing this reduction, employing a mix of the five methods that Pettis refers to. As Pettis suggests, this reduction has probably been a bit painful for the Chinese economy. (though in my view, probably a good things for both China and the US)
Yet many here, including myself, see and warn of the signs that we are headed for an economic collapse, far worse than what was averted by money printing since 2008. Will we see it? Yes, unless the reigns are pulled in on government spending and the FED printing that feeds their vicious hunger. Coho is looking at "now." I'm looking ahead. I hope and pray that the necessary changes are made but, having worked for and seen the inside operations of our federal government for over 30 years, I'm not counting on it; I'm preparing for it.
As I have said many times here, gold's price is a direct reflection of faith in our currency and faith in those who control it. You should listen to what it is saying. It disagreeing with coho. I'm betting that gold is the one who is correct as are the many here who stack it.
Repetition of ignorance is ignorance raised to the power two.
The dollar's fate does not rest on China weaponizing their US debt holdings. Continued sales of US debt to all the foreign suckers would support a delay in it's crash, but when they no longer buy the debt the US government will buy the debt itself with increased sales of bonds to US government agencies. Check out how much the Social Security funds already own. This action is nothing more than forcing taxpayers to buy the debt.
The dollar's fate lies within, not with China and not with BRICs. Their actions to reduce holdings and to reduce purchases will hurt the dollar but the US will be responsible for the downfall of its currency.
History has repeatedly showed us this result. Different this time? . . .
Repetition of ignorance is ignorance raised to the power two.
@derryb said "The dollar's fate lies within"
I agree; and in spite of our amazing strengths, we have challenges that will take a generation or more to address.
@derryb said "Yet many here, including myself, see and warn of the signs that we are headed for an economic collapse, far worse than what was averted by money printing since 2008."
Barring a catastrophic war (which is not an impossibility), I think an economic collapse is very unlikely, given the diversity and resilience of the US economy. We could see a humiliating financial crisis that leads to a rapid restructuring of global institutions. (rather than the gradual one that is currently underway) Again, barring a devastating war, the US would likely emerge from this crisis as the leading (but probably not dominant) world economy. Even after such a crisis, it is not out of the question that the US, somewhat like Rome after the crisis of the 3rd century, would reemerge as the bedrock of stability in a rather perilous world. Suitably wizened, we might then last longer than Rome ...
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Just to clarify, I never wrote that China would "weaponize" their US Treasury Bond holdings. In fact, it is obvious why they would not want to do that, because it would devalue their remaining holdings. But if those holdings get down to a level where the Chinese might consider writing them off, then look out.
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You know that I am an engineer because I am not hiding.
You are a former investment "banker", correct ?
Why do you hide that fact ?
Could it be that you have a vested interest in keeping people in your game ?
Stop being "weak" and state your credentials so that you can be taken more seriously (or not).
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Maybe he's an algorithm programmed to disagree
Repetition of ignorance is ignorance raised to the power two.
Most everything China does deliberate.
I knew it would happen.
Here's a real portfolio manager, currency trader, and foreign exchange expert (who is NOT an American) discussing why all this BRICs talk is nonsense.
Karthik Sankaran recently spoke to BARRONs:
Question: China and Saudi Arabia are attempting to use China’s renminbi instead of the dollar to settle some of their oil trade. That has led to some worry about the dollar’s role as the global reserve currency. Is that meaningful?
Answer: At the margin, maybe. But the argument I’ve always made is that what matters isn’t what you settle trade in.
The most important function of the dollar in the global financial system is not that it is the leading reserve asset. It’s the fact that it’s the leading nomination of cross-border debt, which is a private-sector thing. Is the renminbi a currency that can be used for large-scale issuance in deep, liquid markets by non-Chinese borrowers? We’re a very, very long way from that.
The renminbi is nowhere near ready for prime time. That won’t change until you get a large amount of issuance in renminbi, including by non-Chinese issuers.
The time to get excited isn’t when China and Brazil are trading in renminbi. It’s when Vale, the giant iron ore company, is issuing in renminbi. Then the Saudis, who are getting renminbi for the exports of oil to China, can buy something else that’s in renminbi that isn’t Chinese. That’s when it even starts to do some of the things that the dollar does in the world. And we’re nowhere near that.
Coho hasn't said gold won't go higher. In fact, he's stated that it will increase in price just like a McDonalds hamburger or a bag of NPK.
He has said that gold doesn't speak, talk, or have an opinion. It is not "the one", it just is.
Knowledge is the enemy of fear
And anyone who believes that prices do not "tell" us something about a market should limit they're buying to the grocery store.
Repetition of ignorance is ignorance raised to the power two.
.> @derryb said:
What did gold "tell" us when it dropped from 1900 to 1000 a decade ago?
Knowledge is the enemy of fear
It said "BUY" to those that were listening. Was it wrong?
Repetition of ignorance is ignorance raised to the power two.
I think it was saying.....help, I've fallen and can't get up. Please send a little bug, a bunch of clowns and $100 Trillion.
Knowledge is the enemy of fear
And you're saying "I don't know how to listen."
Repetition of ignorance is ignorance raised to the power two.
How to Stop the BRICS Nations from Abandoning the Dollar
"These nations have been driven to this extreme, time-consuming, and difficult project by clueless US leaders who have imposed sanctions on Russian assets (literally stealing them) and have denied Russia and other nations from using the SWIFT messaging system for trade settlement."
In the future the US should refrain from pointing a loaded gun at its own foot.
Repetition of ignorance is ignorance raised to the power two.
Or i know how to see and think.
Knowledge is the enemy of fear