So, the whole idea of looking at a market and then "sleeping on it" might just be the ticket. Let your subconscious brain work on the problem while you sleep. Identify those tipping points from the chaos in the charts.
Like last night, when I kept waking up because my brain was busy trying to figure out the best layout plan for my dog fence.
Q: Are You Printing Money? Bernanke: Not Literally
<< <i>Everyone is so quiet. Fear not, McCain will win by a large margin, just keep swinging as my Father used to say. >>
I hope you're right but I'm afraid you're wrong.
"Men who had never shown any ability to make or increase fortunes for themselves abounded in brilliant plans for creating and increasing wealth for the country at large." Fiat Money Inflation in France, Andrew Dickson White (1912)
A lot of people ( the majority ) hope I am right. Most auctions are decided in the last 4 minutes and a lot of the people polled are home unemployed of their own volition. Folks who have not ever voted will vote this time, and I am not referring to those who have been registered more than once. Keep up the fight until the last moment. Interesting note Central Silver Fund of Canada Ltd (CEF) has for years trailed about $2.00 behind Silver and suddenly they are on par. Silver Rocks and it's at least a minor role needed to make change for gold coins.
It's just so hard to avoid political opinion in this thread but do it we must. Nobody needs to really say anything about it, most on this thread probably are appalled at what has been lain on our door step and even more shocked at the reality of what could actually happen with our leadership but the unspoken word is just as strong as a screaming match so nothing to gain with political discussions here; we can all see quite well. Vote your conscience! There is opportunity in all situations.
Dead cat bounce in the markets? It's just hard to make a good decision right now with 500-900 point swings in the DOW; ha, and they say gold is volitile yeah, like a pool of water. Never walk into a burning building and never swim in a shark tank. In times like this, there are many signals, many of which are contrary to one another. The operational phrase right now is don't let anyone scare you out of anything, move only when you are convinced that a move is the proper thing to do. Sometimes the hardest thing to do with a plan is to work the plan and trust your plan and have confidence in your plan. If you are scared or lack confidence, buy a CD but realize that it takes courage and will to hold steady to the tiller while shot is falling all around you and the waves are breaking over the bow. It's so easy to smart yourself out of a perfectly good plan.
I was kicking myself for not grabbing s couple of stocks I was looking at on Friday but I waited till Monday, just to see but it was already too late. I could have picked up a fair amount of goodness had I jumped in and I was a little disappointed on Monday but I was thinking...just because everyone is printing a wad of currency and putting it in their systems, what is actually gained if the currency simply is a product of the printing presses and not something that came out of real assets. What we are seeing is an attempt to salvage a system that has been already been plundered; a change in degree and not a change in kind. It does not take a heavy thinker to see that tweeking our current financial system is kind of like trying to tickle a dead mouse. We need a new mouse, this one's done.
Hold fast to things that represent real value and have the understanding to know what those things are.
"I was kicking myself for not grabbing a couple of stocks I was looking at on Friday but I waited till Monday."
MH,
Not to worry you will have your chance. This is one of those "What Changed" moments, and the market is down today. In fact things did change, they got worse. Everyone now says we are starting into the recession, the banks are being nationalized, oil continues to drop, materials orders are dropping like a rock, and it no doubt will be a scary Xmas.
This is however a great time to seek out stocks trading at book value, with high dividends, low PE's etc.
As commented here last week, this is going to be a day traders market for awhile, with big daily swings.
It rather boggles the mind. An Inflationary Depression?
Why not. It's just an exagerated example of the 1970's stagflation where we had a recession with inflating hard asset prices. The price of gold rose during the 1930's, albeit in gold stocks since you couldn't technically speculate in physical gold.
What would happen to the price of gold the same day the Comex defaulted on delivery terms? Could those sitting on the sidelines get back in soon enough before a considerable rise occurred? At what % to the physical price of gold would an ETF like GLD respond?
I wish the market had either followed thru or tanked today , it would have given us some idea of what the future holds. Instead it did essentially nothing . Maybe tomorrow it will do something ? The only guarantee is that there will be inflation in the future so prepare yourself in any way that makes sense to you .
OK campers, here's the deal...If the 10,000th post on this thread has a photo of personally owned gold in any form including US gold certificates, I will gift that poster with a piece of silver (probably a circ pre-'64 Washington quarter). Additionally, I will host an gold Indian attack with Union Generals and the Princess. Please feel welcome to post your gold till you drop on the day we get to 10,000.
That is all. Please return to your regularly scheduled programming.
Not to worry we might have a “sever recession” but no one will be allowed to go broke.
In our brave new world of electronic money everyone making less than $50,000 per year will just get money deposited to his or her account.
Since everyone now knows that there is no real money, not even paper money, why not just make electronic money in any amount one likes?
The recession has barely just begun and congress is turning on the tap. I for one am already getting immune to how many bailouts we have already had.
We need to all send our emails to congress and tell them we need MORE, how about a Trillion just for this week.
“WASHINGTON -- Democratic leaders on Capitol Hill are drawing up plans for another economic-stimulus package. House Speaker Nancy Pelosi is mulling recommendations from several economists that Congress act on an economic-recovery package that would cost taxpayers $300 billion, according to congressional aides, equivalent to about 2% of the country's gross domestic product. With the Nov. 4 election less than three weeks away, lawmakers are eager to respond to voter concerns about the economy.”
<< <i>OK campers, here's the deal...If the 10,000th post on this thread has a photo of personally owned gold in any form including US gold certificates, I will gift that poster with a piece of silver (probably a circ pre-'64 Washington quarter). Additionally, I will host an gold Indian attack with Union Generals and the Princess. Please feel welcome to post your gold till you drop on the day we get to 10,000.
That is all. Please return to your regularly scheduled programming. >>
This is only a test to see if my sig line has a personally owned gold coin.
Edited to add: Ok so I will keep a gold coin pic handy just in case.
“WASHINGTON -- Democratic leaders on Capitol Hill are drawing up plans for another economic-stimulus package in hope of keeping their jobs. House Speaker Nancy Pelosi supports any recommendation from anyone, even an economic-recovery package that would cost taxpayers a minimum of $300 billion, according to congressional aides. With the Nov. 4 election less than three weeks away, lawmakers are seriously concerned about voters tossing them from office, and then they'd have to find real jobs.”
“WASHINGTON -- Democratic leaders on Capitol Hill are drawing up plans for another economic-stimulus package in hope of keeping their jobs. House Speaker Nancy Pelosi supports any recommendation from anyone, even an economic-recovery package that would cost taxpayers a minimum of $300 billion, according to congressional aides. With the Nov. 4 election less than three weeks away, lawmakers are seriously concerned about voters tossing them from office, and then they'd have to find real jobs.” >>
So true. Politics is such a cynical business. Unfortunately giveaways always result in votes, so the bad behavior is reinforced. Then everyone complains about the amount of pork and debt in Washington. Except for my congressman, of course. He takes care of his constituents!
In reading some of the recent posts, here is my take on some of the points:
If anyone expects the FED rescue/bailout plan to turn markets or the economy quickly, they need a reality check. The liquidity injections into the major finacial institutions will work to keep a financial system solvent, and avoid total freezing up of our banking system. but it WILL take time, for liquidity and confidence to come back. The stock market will never give a clear picture over any few days trading period, I suspect we have tried to put in a intermediate bottom but it could easily retest the lows and still be working through a short term bottom. If the majority of voters are for one candidate over another in the states that decide the electoral college , the majority WILL win, there is no maybe or hope involved. People always fear the candidate they don't want, many expect the world will change drastically if someone they don't want or fear gets elected, history usually proves otherwise. Although the hand-wringing of the left and right idealogues is always amusing. As of this moment, there is no inflation right now per the USD...there is deflation, there is NO hard asset price inflation right now, there IS hard asset price deflation. IMHO, this deflation will pass , but all the money supply growth is being be absorbed by enormous capital destruction for the time being. inflation could come later, but not NOW. And of course most on here know this by now, but Pms are no safer or subject to less volatility than most other asset classes
That link to the $600 TRILLION derivatives was from Dec 2007. After that the BIS changed the number to $1.14 QUADRILLION. Maybe they found page 2.
The $14 TRILL worst case loss estimate is roughly 1% of the total derivatives. The failure of Lehman with a 91% loss rate on their credit derivatives seems to indicate that a more reasonable number might be a lot higher than 1%. If JPM went down, they would probably be looking at derivative writedowns of $20-$30 TRILLION on their own (a 2-3% failure rate of their $90 TRILL derivatives pool).
Sir, Our scouts have reported that the area is once again beseiged by Naysayers. Naysayers? So what's the problem, they are a pretty harmless bunch aren't they? No Sir. They have been stealing from the account holders, not paying out on funds, not holding promised reserves, it's out of hand. WHAT!!! OH...those Naysayers. So they're back eh? Yes Sir. They are living in caves with paper hanging from the walls. OK, Sergeant, I'll tell the princess. Give me about a week and I'll tell your lieutenant. Thanks for the report. That will be all. By your leave sir.
OK - can someone put things into layman's terms for me (joe sixpack terms, ya know) .... Even though the 'cash' will be devalued - it will still be FDIC insured?
Scenario: Joe S has $20K in CD's/FDIC insured, $15K cash (in banks/FDIC insured), $5K cash/greenbacks, and $15-20K in silver/gold. What's wrong with this picture, and how would you 'switch things up' to be better equipped for the coming supposed depression.
What happened to Sovereign bank Banco Santander will acquire Sovereign for a stock for stock transaction??????? AND will Banco hold the MASS. lotto money???????
“So true. Politics is such a cynical business. Unfortunately giveaways always result in votes, so the bad behavior is reinforced.”
Dac076, This is not a true statement !!!
Our guys on the right gave trillions this past 8 years and it did not do squat for us, ha ha ???
“inflation could come later, but not NOW.”
bluelobster I agree with this, but preparation needs to be made now, as very few can plan for the coming inflation over night.
Look at the current pressure on the physical gold market.
As some of the old hands here know, among other things I am a consultant for a mortgage company out of New Mexico. The chairman of the board called me today and ask what my advice would be if he want to buy a cheap bank in N. Dakota.
He said he thought huge amounts of regulations were headed for the mortgage brokers, but that iMortgage banks, already regulated by the government, would be exempt, I agreed.
I also told him to make plans now for a new real estate boom in approx. 18 months. After the recession we are going to have inflation, and real estate will be back for income, as well as inflation protection.
This gives everyone some time to watch the real property market drop and then get back in at the bottom.
Long term stocks in hard asset companies with good dividends, trading at close to book, should also be looked at now as the market continues to crash!
Scenario: Joe S has $20K in CD's/FDIC insured, $15K cash (in banks/FDIC insured), $5K cash/greenbacks, and $15-20K in silver/gold. What's wrong with this picture, and how would you 'switch things up' to be better equipped for the coming supposed depression.
moonshine
There is nothing wrong with this picture. Just keep adding to the piles in the same proportions for now!
It appears that we are going to have a sever recession, where cash will be king, followed by inflation where gold and silver will be King. It is very crazy out there but we somehow seem to stay a head of the curve here in this thread, so please stay tuned.
<< <i>OK - can someone put things into layman's terms for me (joe sixpack terms, ya know) .... Even though the 'cash' will be devalued - it will still be FDIC insured?
Scenario: Joe S has $20K in CD's/FDIC insured, $15K cash (in banks/FDIC insured), $5K cash/greenbacks, and $15-20K in silver/gold. What's wrong with this picture, and how would you 'switch things up' to be better equipped for the coming supposed depression. >>
I would take some of that cash and buy a nice supply of food. If there's a hyperinflation on the horizon, a run on food is a possibility.
<< <i>And we thought only South Africa had power issues, after going though one of these for a week last year I want to have power when the grid goes down.
We're marching in lockstep with our leaders to a world that can no longer even exist with the status quo. Our leaders are too frightened to make any changes whatsoever and if that means kowtowing to every special interest then that is what will happen.
We need to go to the polls and vote them all out.
It's probably too late now but it's still worth a try.
I don’t see inflationary pressure right now. We have oil prices dropping and a huge evaporation of personal wealth world-wide in the securities markets. At the same time, banks are sitting on their cash rather than lending. Even the $700 billion bailout will not be inflationary at all if the money just sits in bank vaults while businesses and consumers both cut back on spending, and unemployment is on the rise.
According to JS....it's still "this is it." Food for thought. And as usual...of no interest to the blindfolded.
Upcoming events:
As a result of "This is it and It is NOW":
US exchanges will be closed. There is a chance all world exchanges will close down. Only gold and currencies which are planetary markets will continue to trade. Retirement programs will not pay off. Medicare and Medicaid will at best buy you a bandage or pay for 1/4 of a visit to a free clinic. Social security, due to the massive upcoming inflation, will provide no security for any society. Money Market Funds will not pay off. A CD is a gift, but not to you. Unified central bank action has a short life. Central banks will soon revert to the strategy of everyone for themselves. 401Ks not self directed are headed for the toilet forever. Exchange Traded Funds will not return the assets upon which it is based to you. Sliver will demonstrate the fact that it is more industrial a metal than precious. Silver is not a currency because it is simply too HEAVY to settle debts or to be universally fungible. Silver performs best when there is reasonable industrial demand and distrust of currency. When this happens rounding up the gang and their money will have a lot to do with which party is elected. Credit card companies are going to have to be bailed out. GE Capital is a nuclear capable entity that has the capacity to take down the good old toaster and refrigerator manufacturer - SIGMA ZERO. GE Capital is a huge OTC derivative dealer but somehow I do not recall that fact being discussed. Gold is the only Honest Money because it has no liability attached to it. Gold coins are the best way to own gold for the average investor. When you select a junior gold, I would look for the highest quality, most bashed, highest short positioned, with real assets and real people devoid of crappy management. The situation is best if it is based in another country than the country you live in while doing business in a third and trading in multiple areas. The benefit is obvious. Nobody ever did or will ever trade items as insurance. That is a form of madness. At $1650 I will take my leave, having been with you to the point I promised. The only place you will find me then is at my place of business on the ground or the web. There is no question that gold will trade at or above $1650 by January 14th, 2011.
“We need to go to the polls and vote them all out.”
Not possible, they are nearly all the same now!!
TERM LIMITS
RR, I like old JS but some of his ramblings are beginning to make no sense, perhaps the stress is tiring him out?
First, gold adjusted for inflation is around $2,300 so when the manipulation stops $1,650 is just a start.
Second, if all the exchanges are going to be closed then why own stock in any juniors?
Third, If your cd’s, money markets, etc. are no good then its guns and butter, and that won’t last long since most of us are not farmers.
Forth, I do not know why he is picking on silver as it was a fine medium of exchange for 5,000 years. Sure gold is better, but at high prices it cannot be divided small enough to buy smaller items.
Many years ago, a U.S. senator made this statement, “ People do not have to worry about getting paid by the government, we will print every dollar they need”
This is what will happen, and this will cause inflation. In fact it is causing it now, but as many have pointed out here the last few days we are in more of a deflationary stage of the turmoil. I agree that the 700 billion may not add to inflation. The money has to get to the public, and locked up in the banks it does nothing.
We need to remember this is how the inflation of the 70’S got solved. The Fed sucked all of the printed dollars out of the economy and put it into Treasuries, notes, and bonds. Once the Treasuries and bonds cannot be sold, they must once again print cash and that is our signal !!!!
Goldsaint, when JS's ramblings on financial market cause and effect proves to be wrong, then I'll pay less mind to them. So far he has called all the major economic moves correctly, and if anything he underestimated the effects of how many big banks would go bankrupt so quickly. And he probably underestimated the extent that the FED and Treasury could effectively (and illegally) inject liqudity, decide bank take overs at will, etc. His only other weakness was some mis-calls on the short term price of gold....something he doesn't like doing anyways. I only really care about his long term call of $1650 which by his own words he feels is probably understated.
I know it had been argued that the price of oil and the price of gold are not linked but I see gold at its peak price this year was about the same time oil prices were at their peak.
Oil has since come down and so has gold.
The further oil prices decline the price of gold has followed.
I know percent wise oil has gone down 50% from its high yet gold has not gone down that amount percent wise yet.
If oil remains at its current price do you think gold will eventually reach 50% less than its high this year?
<< <i>I know percent wise oil has gone down 50% from its high yet gold has not gone down that amount percent wise yet.
If oil remains at its current price do you think gold will eventually reach 50% less than its high this year? >>
I would say no, because the price of oil was way overinflated by momentum players on its way up north of $145.
The price of gold, while it was going higher, never really spiked out of control. Less air in the bubble means a less violent implosion when it bursts.
RR first time (in my short memory) that Sinclair has mentioned silver and even then a no-no as far as it's worth. makes me want to trade up all my junk for some more yellow.
Comments
Like last night, when I kept waking up because my brain was busy trying to figure out the best layout plan for my dog fence.
I knew it would happen.
Chance favors the prepared mind.
<< <i>Everyone is so quiet. Fear not, McCain will win by a large margin, just keep swinging as my Father used to say. >>
I hope you're right but I'm afraid you're wrong.
Chance favors the prepared mind.
>>>My Collection
Dead cat bounce in the markets? It's just hard to make a good decision right now with 500-900 point swings in the DOW; ha, and they say gold is volitile yeah, like a pool of water. Never walk into a burning building and never swim in a shark tank. In times like this, there are many signals, many of which are contrary to one another. The operational phrase right now is don't let anyone scare you out of anything, move only when you are convinced that a move is the proper thing to do. Sometimes the hardest thing to do with a plan is to work the plan and trust your plan and have confidence in your plan. If you are scared or lack confidence, buy a CD but realize that it takes courage and will to hold steady to the tiller while shot is falling all around you and the waves are breaking over the bow. It's so easy to smart yourself out of a perfectly good plan.
I was kicking myself for not grabbing s couple of stocks I was looking at on Friday but I waited till Monday, just to see but it was already too late. I could have picked up a fair amount of goodness had I jumped in and I was a little disappointed on Monday but I was thinking...just because everyone is printing a wad of currency and putting it in their systems, what is actually gained if the currency simply is a product of the printing presses and not something that came out of real assets. What we are seeing is an attempt to salvage a system that has been already been plundered; a change in degree and not a change in kind. It does not take a heavy thinker to see that tweeking our current financial system is kind of like trying to tickle a dead mouse. We need a new mouse, this one's done.
Hold fast to things that represent real value and have the understanding to know what those things are.
JMHO
MH,
Not to worry you will have your chance.
This is one of those "What Changed" moments, and the market is down today. In fact things did change, they got worse.
Everyone now says we are starting into the recession, the banks are being nationalized, oil continues to drop, materials orders are dropping like a rock, and it no doubt will be a scary Xmas.
This is however a great time to seek out stocks trading at book value, with high dividends, low PE's etc.
As commented here last week, this is going to be a day traders market for awhile, with big daily swings.
<< <i>Everyone is so quiet. Fear not, McCain will win by a large margin, just keep swinging as my Father used to say. >>
Too bad there isn't a group called Walnut registering dead people for Brand R just to make things fair.
That should mean high unemployment, lower prices and lower corporate earnings.
Now we consider that the money supply , world wide, is expanding at a geometric rate
and much faster then the availability of mined gold. Thus will we have hyper inflation
in the face of recession/depression. It rather boggles the mind. An Inflationary Depression?
Camelot
Why not. It's just an exagerated example of the 1970's stagflation where we had a recession with inflating hard asset prices. The price of gold rose during the 1930's, albeit in gold stocks since you couldn't technically speculate in physical gold.
What would happen to the price of gold the same day the Comex defaulted on delivery terms? Could those sitting on the sidelines get back in soon enough before a considerable rise occurred? At what % to the physical price of gold would an ETF like GLD respond?
roadrunner
The only guarantee is that there will be inflation in the future so prepare yourself in any way that makes sense to you .
That is all.
Please return to your regularly scheduled programming.
Not to worry we might have a “sever recession” but no one will be allowed to go broke.
In our brave new world of electronic money everyone making less than $50,000 per year will just get money deposited to his or her account.
Since everyone now knows that there is no real money, not even paper money, why not just make electronic money in any amount one likes?
The recession has barely just begun and congress is turning on the tap. I for one am already getting immune to how many bailouts we have already had.
We need to all send our emails to congress and tell them we need MORE, how about a Trillion just for this week.
“WASHINGTON -- Democratic leaders on Capitol Hill are drawing up plans for another economic-stimulus package.
House Speaker Nancy Pelosi is mulling recommendations from several economists that Congress act on an economic-recovery package that would cost taxpayers $300 billion, according to congressional aides, equivalent to about 2% of the country's gross domestic product. With the Nov. 4 election less than three weeks away, lawmakers are eager to respond to voter concerns about the economy.”
<< <i>OK campers, here's the deal...If the 10,000th post on this thread has a photo of personally owned gold in any form including US gold certificates, I will gift that poster with a piece of silver (probably a circ pre-'64 Washington quarter). Additionally, I will host an gold Indian attack with Union Generals and the Princess. Please feel welcome to post your gold till you drop on the day we get to 10,000.
That is all.
Please return to your regularly scheduled programming. >>
This is only a test to see if my sig line has a personally owned gold coin.
Edited to add: Ok so I will keep a gold coin pic handy just in case.
“WASHINGTON -- Democratic leaders on Capitol Hill are drawing up plans for another economic-stimulus package in hope of keeping their jobs. House Speaker Nancy Pelosi supports any recommendation from anyone, even an economic-recovery package that would cost taxpayers a minimum of $300 billion, according to congressional aides. With the Nov. 4 election less than three weeks away, lawmakers are seriously concerned about voters tossing them from office, and then they'd have to find real jobs.”
<< <i>Translation:
“WASHINGTON -- Democratic leaders on Capitol Hill are drawing up plans for another economic-stimulus package in hope of keeping their jobs. House Speaker Nancy Pelosi supports any recommendation from anyone, even an economic-recovery package that would cost taxpayers a minimum of $300 billion, according to congressional aides. With the Nov. 4 election less than three weeks away, lawmakers are seriously concerned about voters tossing them from office, and then they'd have to find real jobs.” >>
So true. Politics is such a cynical business. Unfortunately giveaways always result in votes, so the bad behavior is reinforced. Then everyone complains about the amount of pork and debt in Washington. Except for my congressman, of course. He takes care of his constituents!
The French will save them
Europe stuns with €1.5 trillion bank rescue, as France plays role of saviour
Coming Soon: The 600 Trillion Derivatives Emergency Meeting
Avoiding A Blackout
The Next Bloodbath: Insurance and Auto Makers
Blatant Banker Manipulation Of Gold Prices
If anyone expects the FED rescue/bailout plan to turn markets or the economy quickly, they need a reality check. The liquidity injections into the major finacial institutions will work to keep a financial system solvent, and avoid total freezing up of our banking system. but it WILL take time, for liquidity and confidence to come back.
The stock market will never give a clear picture over any few days trading period, I suspect we have tried to put in a intermediate bottom but it could easily retest the lows and still be working through a short term bottom.
If the majority of voters are for one candidate over another in the states that decide the electoral college , the majority WILL win, there is no maybe or hope involved.
People always fear the candidate they don't want, many expect the world will change drastically if someone they don't want or fear gets elected, history usually proves otherwise. Although the hand-wringing of the left and right idealogues is always amusing.
As of this moment, there is no inflation right now per the USD...there is deflation, there is NO hard asset price inflation right now, there IS hard asset price deflation. IMHO, this deflation will pass , but all the money supply growth is being be absorbed by enormous capital destruction for the time being. inflation could come later, but not NOW.
And of course most on here know this by now, but Pms are no safer or subject to less volatility than most other asset classes
IMHO, of course. ;~)
The $14 TRILL worst case loss estimate is roughly 1% of the total derivatives. The failure of Lehman with a 91% loss rate on their credit derivatives seems to indicate that a more reasonable number might be a lot higher than 1%. If JPM went down, they would probably be looking at derivative writedowns of $20-$30 TRILLION on their own (a 2-3% failure rate of their $90 TRILL derivatives pool).
roadrunner
1918: 60 Marks per $1USD
1922: 8,000 Marks per $1USD
When war reparations failed hyperinflation ensued and in 1923 the Rentenmark was introduced to stop h-inflation.
Guess what backed and gave confidence to this new mark?
A. Government mortgaged land and industrial goods valued at 3.2 Rentenmark!!!
1924: 4.2RM = $1USD
Ren
I knew it would happen.
<< <i>What? Me worry? Bernake says that inflationary pressures are under control. Why wouldn't I believe him?
I'll give you a buck for that.
Ren
Ren
Sure you will........
I knew it would happen.
Our scouts have reported that the area is once again beseiged by Naysayers.
Naysayers? So what's the problem, they are a pretty harmless bunch aren't they?
No Sir. They have been stealing from the account holders, not paying out on funds, not holding promised reserves, it's out of hand.
WHAT!!! OH...those Naysayers. So they're back eh?
Yes Sir. They are living in caves with paper hanging from the walls.
OK, Sergeant, I'll tell the princess. Give me about a week and I'll tell your lieutenant. Thanks for the report. That will be all.
By your leave sir.
Scenario: Joe S has $20K in CD's/FDIC insured, $15K cash (in banks/FDIC insured), $5K cash/greenbacks, and $15-20K in silver/gold. What's wrong with this picture, and how would you 'switch things up' to be better equipped for the coming supposed depression.
“So true. Politics is such a cynical business. Unfortunately giveaways always result in votes, so the bad behavior is reinforced.”
Dac076,
This is not a true statement !!!
Our guys on the right gave trillions this past 8 years and it did not do squat for us, ha ha ???
“inflation could come later, but not NOW.”
bluelobster
I agree with this, but preparation needs to be made now, as very few can plan for the coming inflation over night.
Look at the current pressure on the physical gold market.
As some of the old hands here know, among other things I am a consultant for a mortgage company out of New Mexico. The chairman of the board called me today and ask what my advice would be if he want to buy a cheap bank in N. Dakota.
He said he thought huge amounts of regulations were headed for the mortgage brokers, but that iMortgage banks, already regulated by the government, would be exempt, I agreed.
I also told him to make plans now for a new real estate boom in approx. 18 months. After the recession we are going to have inflation, and real estate will be back for income, as well as inflation protection.
This gives everyone some time to watch the real property market drop and then get back in at the bottom.
Long term stocks in hard asset companies with good dividends, trading at close to book, should also be looked at now as the market continues to crash!
moonshine
There is nothing wrong with this picture. Just keep adding to the piles in the same proportions for now!
It appears that we are going to have a sever recession, where cash will be king, followed by inflation where gold and silver will be King. It is very crazy out there but we somehow seem to stay a head of the curve here in this thread, so please stay tuned.
<< <i>OK - can someone put things into layman's terms for me (joe sixpack terms, ya know) .... Even though the 'cash' will be devalued - it will still be FDIC insured? Scenario: Joe S has $20K in CD's/FDIC insured, $15K cash (in banks/FDIC insured), $5K cash/greenbacks, and $15-20K in silver/gold. What's wrong with this picture, and how would you 'switch things up' to be better equipped for the coming supposed depression. >>
I would take some of that cash and buy a nice supply of food. If there's a hyperinflation on the horizon, a run on food is a possibility.
<< <i>I'll give you a buck for that.
Ren
Sure you will........
You mean notgold.
R
<< <i>And we thought only South Africa had power issues, after going though one of these for a week last year I want to have power when the grid goes down.
Avoiding A Blackout >>
We're marching in lockstep with our leaders to a world that
can no longer even exist with the status quo. Our leaders
are too frightened to make any changes whatsoever and if
that means kowtowing to every special interest then that is
what will happen.
We need to go to the polls and vote them all out.
It's probably too late now but it's still worth a try.
<< <i>
We need to go to the polls and vote them all out.
It's probably too late now but it's still worth a try. >>
Funny Cladking, my dad and I are on the opposite ends of the political spectrum, but without getting political, we both agree with that statement.
CG
Upcoming events:
As a result of "This is it and It is NOW":
US exchanges will be closed. There is a chance all world exchanges will close down. Only gold and currencies which are planetary markets will continue to trade.
Retirement programs will not pay off.
Medicare and Medicaid will at best buy you a bandage or pay for 1/4 of a visit to a free clinic.
Social security, due to the massive upcoming inflation, will provide no security for any society.
Money Market Funds will not pay off.
A CD is a gift, but not to you.
Unified central bank action has a short life.
Central banks will soon revert to the strategy of everyone for themselves.
401Ks not self directed are headed for the toilet forever.
Exchange Traded Funds will not return the assets upon which it is based to you.
Sliver will demonstrate the fact that it is more industrial a metal than precious.
Silver is not a currency because it is simply too HEAVY to settle debts or to be universally fungible.
Silver performs best when there is reasonable industrial demand and distrust of currency. When this happens rounding up the gang and their money will have a lot to do with which party is elected.
Credit card companies are going to have to be bailed out.
GE Capital is a nuclear capable entity that has the capacity to take down the good old toaster and refrigerator manufacturer - SIGMA ZERO.
GE Capital is a huge OTC derivative dealer but somehow I do not recall that fact being discussed.
Gold is the only Honest Money because it has no liability attached to it.
Gold coins are the best way to own gold for the average investor.
When you select a junior gold, I would look for the highest quality, most bashed, highest short positioned, with real assets and real people devoid of crappy management. The situation is best if it is based in another country than the country you live in while doing business in a third and trading in multiple areas. The benefit is obvious.
Nobody ever did or will ever trade items as insurance. That is a form of madness.
At $1650 I will take my leave, having been with you to the point I promised.
The only place you will find me then is at my place of business on the ground or the web.
There is no question that gold will trade at or above $1650 by January 14th, 2011.
roadrunner
“We need to go to the polls and vote them all out.”
Not possible, they are nearly all the same now!!
TERM LIMITS
RR,
I like old JS but some of his ramblings are beginning to make no sense, perhaps the stress is tiring him out?
First, gold adjusted for inflation is around $2,300 so when the manipulation stops $1,650 is just a start.
Second, if all the exchanges are going to be closed then why own stock in any juniors?
Third, If your cd’s, money markets, etc. are no good then its guns and butter, and that won’t last long since most of us are not farmers.
Forth, I do not know why he is picking on silver as it was a fine medium of exchange for 5,000 years.
Sure gold is better, but at high prices it cannot be divided small enough to buy smaller items.
Many years ago, a U.S. senator made this statement, “ People do not have to worry about getting paid by the government, we will print every dollar they need”
This is what will happen, and this will cause inflation. In fact it is causing it now, but as many have pointed out here the last few days we are in more of a deflationary stage of the turmoil. I agree that the 700 billion may not add to inflation. The money has to get to the public, and locked up in the banks it does nothing.
We need to remember this is how the inflation of the 70’S got solved. The Fed sucked all of the printed dollars out of the economy and put it into Treasuries, notes, and bonds. Once the Treasuries and bonds cannot be sold, they must once again print cash and that is our signal !!!!
roadrunner
Oil has since come down and so has gold.
The further oil prices decline the price of gold has followed.
I know percent wise oil has gone down 50% from its high yet gold has not gone down that amount percent wise yet.
If oil remains at its current price do you think gold will eventually reach 50% less than its high this year?
<< <i>I know percent wise oil has gone down 50% from its high yet gold has not gone down that amount percent wise yet.
If oil remains at its current price do you think gold will eventually reach 50% less than its high this year? >>
I would say no, because the price of oil was way overinflated by momentum players on its way up north of $145.
The price of gold, while it was going higher, never really spiked out of control. Less air in the bubble means a less violent implosion when it bursts.
Do you think silver spiked out of control as it is also down 50% from its high?
Oct 07 gold was about $780
Oct 07 silver was about $14
So on paper silver is cheaper at the moment than it was a year ago while gold is still a little higher than it was a year ago.
<< <i>“We need to go to the polls and vote them all out.”
q]
Right, you have a "choice" between left wing socialism and right wing socialism.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
Your taxpayer dollars hard at work
Knowledge is the enemy of fear