<< <i>Whoa, watch for the heat coming down on this little item!
CNN March 6th 2006
How many large American assets are still owned by Americans? Every four years the U.S. Treasury department is supposed to send a report to Congress on just what American assets have been purchased by foreign governments, or companies. These reports are to be filed by law under the CIFUS rules. There have been no reports filed with the U.S. Congress since 1994. The stir over the DP World Ports transaction has encouraged many new questions about just who is buying American assets, and in what quantity.
According to some estimates there have been 1500 major U.S. assets sold to foreigners over the last twelve years, almost all of these has been approved quietly by the U.S. Treasury department. It appears only one may have been rejected, that being the Unocal deal last year. The Senate Banking committee now wants to know just what is going on. Foreign companies and governments awash with Trillions of U.S. dollars, and dollar backed securities, have been allowed to by up American assets at an ever increasing rate said one inside Washington spokesman. >>
Yup - Looks like it's almost time for plan 'B': Nationalize & Demonetize Edited to add: Thanks for playing! (Suckers!)
Saw that in the news about the fed scurrying around for buks...push is coming to shove. Now that we have those new $10 notes about to hit the circulation we should have a lot more money for every one.
Love your comment Joe..."Thanks for playing". That really puts it in a nice little quip, suitable for framing. And, it does feel like it's all just a big crap shoot and your point is 4 and you're about 6 rolls into it and the dice fly off the end of the table and the spell is broken...thanks for playing.
<< <i>According to some estimates there have been 1500 major U.S. assets sold to foreigners over the last twelve years, almost all of these has been approved quietly by the U.S. Treasury department. It appears only one may have been rejected, that being the Unocal deal last year. The Senate Banking committee now wants to know just what is going on. >>
Anyone remembers property rights? I don't want the government to tell me who I can sell my stuff to and who I cannot (unless we're dealing weapons, etc, in which case the government should have some level of oversight).
Last I checked, the US was still a free republic. Let's try to keep it that way.
"The greatest productive force is human selfishness." Robert A. Heinlein
<< <i>Treasury has also been taking investments out of a $65.3 billion government pension fund known as the G-fund. The formal title for the G-fund is the Government Securities Investment Fund of the Federal Employees Retirement System >>
This isn't the same as the Thrift Savings Plan G-fund is it? How potentially disturbing.
It's nice to know that my version of a 401(k), which holds only MY money, withheld from MY paycheck (I am in the military and thus I am not getting a match when I contribute) is open for the government to use. Well, maybe not me because I put zip into the G-fund (I much prefer the International fund), but oh what a slippery slope.
A quote from the article linked:
"Numerous federal employees object to the Treasury maneuver, contending that it amounts to a raid by the government into personal savings accounts. But officials noted that the G Fund has been used to avoid defaulting on the national debt several times, including during the budget showdowns of 1995 and 1996".
Well then, I guess it's okay if it's been done before. (For those in doubt, this would be sarcasm ).
“Anyone remembers property rights? I don't want the government to tell me who I can sell my stuff to and who I cannot (unless we're dealing weapons, etc, in which case the government should have some level of oversight).
Last I checked, the US was still a free republic. Let's try to keep it that way.”
Well I certainly agree. It is much better to let the Foreign Devils own our utilities, coal reserves, electric power grids, port terminals, etc. than to have them stop buying all this debt, they must be provided with a way to spend it.
I mean if we have to sell the entire country, just to cover our spending habits, that should be O.K., at least we will have all those cool products from Japan and China, and those great social programs.
Of course our children will be working as slaves for the foreign Devils forever as all the profits leave the country, but what the heck perhaps they will someday provide them with community housing they way we did for their people when they first came here to work on the railroads.
<< <i>This chart is one that I would encourage all to copy and study. It will help you save and make lots of money over time. I think it is self explanatory but please ask if you have questions.
>>
Cohodk, Please explain this graph. Thanks...Mike
Collector of Large Cents, US Type, and modern pocket change.
<< <i>Yup - Looks like it's almost time for plan 'B': Nationalize & Demonetize >>
Yep, don't forget to tax them to death and let them only export fiat paper. When we're done they will beg to sell out for a few ounces of gold and go home.
When they own US companies and US assets they will have to play by US rules.
Don't worry about the government borrowing from your pension funds they will always pay back every dollar they borrow. They are oiling up the presses as we speak.
“Apparently, this is not the same Republican Party
we knew of yore.” There is really no difference in the Republicans and the Democrats any longer there are only entitlement politicians.
“Yep, don't forget to tax them to death and let them only export fiat paper.”
Foreign governments and many foreign companies are U.S. tax exempt!
Sorry they won’t want paper but they will buy grain, steel, coal, cotton, etc. and ship it back home through the ports they control!
Tuesday, March 7, 2006 Robert Kiyosaki Rich Dad Poor Dad
As retirement nears, millions of Baby Boomers are scrambling for deck chairs on the Titanic. For about 30 years now I have been watching a major financial disaster developing. Its contributing factors include the shaky financial foundations of Social Security and Medicare, compounded by most Americans' lack of financial education and entitlement mentality. As a result, my investment strategy is to get out of anything that's "paper with ink on it."
So it's not a good time to be captain of SS U.S.A., or the skipper of SS Big Mutual Fund or SS Pension Plan. In the coming years, I believe big will not be better.
Why so pessimistic? Well, I would rather be known as a realist. Most of us are aware of the problems ahead. Some are: 1. A pervasive entitlement mentality.
It's not just the poor who are expecting a government hand out. Everyone from senators to farmers and retirees expect it, too. Unfortunately, this problem is not an issue for my generation, the Baby Boomers, but will fall squarely on the shoulders of the children and grandchildren of Baby Boomers.
2. Social Security is a small problem when compared to Medicare.
As of 2004, Social Security was a $10 trillion off-balance-sheet liability. Medicare is a $64 trillion liability. The Social Security fund will begin to run in the red around 2015. The Medicare fund is already operating in the red, a situation that started in 1992. The combined $74 trillion off-balance sheet IOU to Americans is more money than is available in all the stock and bond markets of the world. This means life or death will be determined by your wallet, not your doctor.
3. A lack of financial education.
Many people do not know such basic realities as: · A 401(k) is not a retirement plan (it's a savings plan). · Bonds aren't safe. · Saving money is risky. · Why mutual funds have such low returns. · What is inflation. · Why workers are taxed more than owners. · Why pensions are disappearing -- legally.
Investing in Tangible Value
As an investor, I'm investing against the U.S. dollar. Let me be clear: I'm not investing against the U.S. -- America is a rich, productive country. But our dollar is toast. Those who have followed my articles know that in 1971, our dollar stopped being money and became a currency, a piece of paper with ink on it .
In my opinion, that means getting out of anything else that's "paper with ink on it" -- anything backed by the full faith and confidence of the SS U.S.A. That means I'm very suspicious of stocks, bonds, savings, and mutual funds, especially if they're U.S. dependent. Although I love real estate, I'm suspicious of any piece of property that doesn't generate cash flow today. Today, I invest in assets with tangible value, especially assets that go up in price as the dollar's purchasing power sinks. Today, I have large positions in gold, silver, and oil.
For the small investor, I believe buying silver coins is a safe bet.
Billionaires become as common as dirt, as the printing presses for money, and stocks, roll day and night.
Are you one of these?
Are you old enough to remember when you could count the Worlds Billionaires on one hand?
March 9, 2006, 5:34PM World gains 102 more billionaires
Associated Press RESOURCESSome on Forbes' billionaires list - Billionaires grouped by country - Forbes' billionaires listed by rank
NEW YORK — As emerging stock markets surged during the past year, 102 wealthy people around the world won a much-coveted title along with their stellar gains — they all became billionaires. But tepid returns in the United States ate into the fortunes of some of the richest Americans, including the founding family of Wal-Mart Stores Inc.
The number of billionaires around the world rose by 102 to a record 793 over the past year, and their combined wealth grew 18 percent to $2.6 trillion, according to Forbes magazine's 2006 rankings of the world's richest people.
Forbes editor Luisa Kroll noted that Russia's stock market jumped 108 percent between February 2005 and February 2006, while India's market rose by more than 54 percent during the same period. Brazil "was another bright star" with a market gain of 38 percent, she said.
Kroll said the changes on the list weren't driven by U.S. investments. "The more exciting story is these emerging markets," she said. "The U.S. stock market was quite a laggard with only a 1 percent increase."
Dominion Mining Limited yesterday reported continued strong gold production from its Challenger mine, with production for January and February at an average cash operating cost of $253 an ounce.
<< <i>This compares with the record production reported for the December 2005 Quarter of 29,860 ounces at a cash operating cost of A$258/ounce. Production for the 6 months to December 31, 2005 was 53,707 ounces at an average cash operating cost of A$282/ounce and for the 8 months ended 28 February 2006 73,078 ounces had been produced at a cash operating cost of A$253/ounce. >>
<< <i>The company’s ongoing program of exploration drilling at Challenger returned significant results from initial testing of conceptual exploration targets below the M1 shoot, in a position located only 150 metres from the existing underground infrastructure. >>
Robert Scot: Engraving Liberty - biography of US Mint's first chief engraver
<< <i>CARACAS, Venezuela (Reuters) - South African mining company Gold Fields Ltd. said Thursday it expected its recently acquired Choco 10 mine in southern Venezuela to produce between 120,000 and 140,000 ounces of gold in 2006. >>
<< <i>Expected operating costs in Venezuela are $161 per ounce, around half of the firm's average global costs. The difference comes in part from heavy subsidies on Venezuelan fuel as well as the lower operating costs of the open Choco mine compared with expensive underground mining operations in other countries. >>
Robert Scot: Engraving Liberty - biography of US Mint's first chief engraver
<< <i>CARACAS, Venezuela (Reuters) - South African mining company Gold Fields Ltd. said Thursday it expected its recently acquired Choco 10 mine in southern Venezuela to produce between 120,000 and 140,000 ounces of gold in 2006. >>
<< <i>Expected operating costs in Venezuela are $161 per ounce, around half of the firm's average global costs. The difference comes in part from heavy subsidies on Venezuelan fuel as well as the lower operating costs of the open Choco mine compared with expensive underground mining operations in other countries. >>
It means that there is lots of gold all over the place just waiting for someone to dig it up at very little cost. Therefore, seeing that gold is really common, it must be just about worthless. The best idea is to put most of your money into the stock market. The majority of people do this, so that must be the right thing to do. Paper investments are great. Gold is for crazy doom-and-gloomers. You can be fully confident in the US dollar. People who regulate the quantity of dollars in existance are very prudent and really care about the little people.
<< <i>It means that there is lots of gold all over the place just waiting for someone to dig it up at very little cost. Therefore, seeing that gold is really common, it must be just about worthless. The best idea is to put most of your money into the stock market. The majority of people do this, so that must be the right thing to do. Paper investments are great. Gold is for crazy doom-and-gloomers. You can be fully confident in the US dollar. People who regulate the quantity of dollars in existance are very prudent and really care about the little people. >>
Good. I just invested $36,000 from a house sale in Putnam. I hope it does well for us. I am thinking about investing another$12,000 with them next week when I get back home. They look like a sound outfit. Thanks for the info, I wasnt sure what it meant. Glad I didnt make a mistake. Its close to all the money I have although my new home is paid for. Kip
<< <i>It means that there is lots of gold all over the place just waiting for someone to dig it up at very little cost. Therefore, seeing that gold is really common, it must be just about worthless. The best idea is to put most of your money into the stock market. The majority of people do this, so that must be the right thing to do. Paper investments are great. Gold is for crazy doom-and-gloomers. You can be fully confident in the US dollar. People who regulate the quantity of dollars in existance are very prudent and really care about the little people. >>
“for the 8 months ended 28 February 2006 73,078 ounces had been produced”
“Choco 10 mine in southern Venezuela to produce between 120,000 and 140,000 ounces of gold in 2006.”
Wow Bill big numbers?
So these guys can together produce 73,078 0unces, and 140,000 ounces a total of 213,078. Lets say it all sells at $550 an ounce, so $117,192,900( one hundred and seventeen plus million)
So what you are telling us is that out of any of the 793 Billionaires, one of them could buy all of both of these companies production during the periods in your post for a mere 10% of anyone of their net worths?
Here are a couple of numbers that might be a little more impressive.
March 10, 2006 “For the United States, the trade gap with China widened in January to $17.9 billion, Over all, the United States imported $68.5 billion more in goods and services than it exported”
March 10, 2006 “U.S hits all time monthly high as Federal Deficits go! In February the U.S. Federal deficit hit 119 plus billion dollars.”
<< <i>“for the 8 months ended 28 February 2006 73,078 ounces had been produced”
“Choco 10 mine in southern Venezuela to produce between 120,000 and 140,000 ounces of gold in 2006.”
Wow Bill big numbers?
So these guys can together produce 73,078 0unces, and 140,000 ounces a total of 213,078. Lets say it all sells at $550 an ounce, so $117,192,900( one hundred and seventeen plus million)
So what you are telling us is that out of any of the 793 Billionaires, one of them could buy all of both of these companies production during the periods in your post for a mere 10% of anyone of their net worths?
Here are a couple of numbers that might be a little more impressive.
March 10, 2006 “For the United States, the trade gap with China widened in January to $17.9 billion, Over all, the United States imported $68.5 billion more in goods and services than it exported”
March 10, 2006 “U.S hits all time monthly high as Federal Deficits go! In February the U.S. Federal deficit hit 119 plus billion dollars.”
That’s $119,000,000,000 >>
That's a fascinating way to look at the numbers. For every dollars worth of gold produced by these mines for eight month the US went $10 deeper in debt in just one month.
Another way of saying the same thing is that this production divided among all the people of the world would equal about 7c each. One would need a magnifier to see his cut.
Another way of saying the same thing is that this production divided among all the people of the world would equal about 7c each. One would need a magnifier to see his cut. >>
It would take a village of 30,000 people to pool their shares to equal a $20 saint.
Seriously... I work at a small manufacturing company, whose 99% of non-management employees live paycheck to paycheck - many with a good chunk of credit-card debt. The cost of food and fuel has gone up for everyone - but hurts these folks the most. If the economy ever DOES slow down and employment drops, I think there are going to be a lot of hurting people out there.
Another way of saying the same thing is that this production divided among all the people of the world would equal about 7c each. One would need a magnifier to see his cut. >>
It would take a village of 30,000 people to pool their shares to equal a $20 saint. >>
So maybe I should have put that money in gold or something else......
There's so much gold out there that it's supply rises about 2% per year. And there are many mines out there not very profitable falling by the wayside. The infrastructure in gold mining was raped in the 1990's by the gold carry trade. It will take years to restore it.
Meanwhile our money supply has been increasing by 8% per year average since around 1996. Hmmm....2% vs. 8%, which one is the "con?" Tough question. Tough love.
The link to foreign asset ownership is posted on one of the links I have below. I believe they stated that what used to be under a trillion $ in foreign ownership is now up to $13 Trillion. That exceeds the total amount of M3. Nice!
<< <i>This chart is one that I would encourage all to copy and study. It will help you save and make lots of money over time. I think it is self explanatory but please ask if you have questions.
>>
Cohodk, Please explain this graph. Thanks...Mike >>
Hi Mike,
I just got back from a few weeks in your neck of the woods.
In order to understand this diagram you must believe in cycles. The "red" shaded area is the stock market and the "green" area is the economy. IMHO the stock market is the most accurate leading economic indicator in existance. It usually leads the economy by 6-12 months. There are only so many places to put money so it often chases "hot" sectors, thus increasing the strength of the cycle.
At the top of the diagram you see different industries. As you can see basic material, energy and staples usually are leading the stock market at its peak. And cyclicals and technology are leading at the bottom. Over the last year basic materials, i.e. steel companies and commodity related stocks and of course energy have been leading the market. Recently these areas have come under some pressure and we are beginning to see a shift to consumer staples, i.e. Proctor & Gamble and Pepsi. These stocks are considered defensive in that even in a recession demand for their products is relatively stable as are their earnings. There has also been strong demand for services stocks such as the telecom companies, i.e. AT&T and Verizon. These companies also pay very nice dividends which help these stocks outperform in a down stock market.
I posted this in response to Roadrunners post that we may already be in a recession. Given the recent money flows I believe the stock market is predicting a slowdown. The global environment has changed. The era of low global interest rates, I believe, is coming to an end. Japan is talking of raising their rediculously low rates. Rising commodity prices will force governments of raise rates to combat inflation.
If you study this diagram and learn to spot corrolations then you will be able to outperform the stock market on a consistant basis. You have to remember that the stock market and its underlying stocks are leading indicators. They will begin to falter when things look great and start to rally when all appears lost.
Crude oil is off 58 cents on access to $59.84pbl (range is 59.84 to 60.50), and is trading below psychological $60 level as April crude expires today; weakness in crude is attributed to chatter tomorrow's inventory will grow to the best levels in 7 years; also a lack of geopolitical news has traders zeroed into inventory data. The UN Security Council holds its second formal meeting on Iran's nuclear program later today in NY.
Natural gas is off a dime to $6.73mbtu (range is 6.707 to 6.85). Heating oil is off 8/10ths of a penny to $1.7339/gal on access (range is 1.7314 to 1.7476); gasoline is off 1.8 cents to $1.8120/gal (range is 1.8060 to 1.8335); April HO cracks rallied 69 cents yesterday to $12.73 while April HU cracks rose 22 cents to $12.02; The daily national unleaded avg gasoline price rose to $2.51 per gallon today, according to the American Automobile Assoc...
April gold is off $4.50 to $551.60 an ounce (range is 551.40 to 555); the yellow metal has been weak all morning and has fallen further following the release of the PPI data; gold prices have also been weighed by the pullback in energy prices (thus alleviating some of the inflation hedge) and on the heels of Fed Chief Bernanke hinting the FOMC may keep raising interest rates (something that helped the greenback in early trade); May silver is off a nickel to $10.31 an ounce (range is 10.255 to 10.365)...
Copper rises 3.6 cents to $2.37 a pound on the COMEX; LME inventories fell 750 tons to 130,300 metric tons -- something that has caused copper prices to hit a record high for the 2nd straight day; copper rose $65 a metric ton to $5,170 a ton. Zinc stockpiles tracked by the LME fell 2,400 tons to 302,700 tons (equivalent to less than 11 days of global consumption); stocks that may rise due to higher copper/zinc prices are: RIO, RTP, PD, PCU, FAL (note there is continued chatter that Xstrata Plc may top Inco's bid for FAL).
Chancellor under fire for gold sale as price nears $600 BY GABRIEL ROZENBERG, ECONOMICS REPORTER, Times
FORECASTS that gold prices are set to smash through the $600-an-ounce barrier saw Gordon Brown come under renewed pressure last night over his controversial decision to sell the majority of Britain’s gold reserves. Merrill Lynch predicted that gold would hit $600 an ounce in the long term after its recent rise above $500. Last month the precious metal hit a 25-year high of $579.50 an ounce amid concern among investors that America’s huge trade gap would force a weakening of the dollar.
The Chancellor sold 395 tonnes of Britain’s gold reserves between 1999 and 2002, generating $3.5 billion. At yesterday’s London closing price of $554.10 he would have generated more than $7 billion (£4 billion).
The sale of Britain’s gold reserves — which are stored in vaults under the Bank of England, alongside billions of pounds of bullion owned by other institutions, was attacked even in 1999 for poor timing.
Chinese Central Bankers might be smarter than European Central Bankers, but none of these guys including the Chinese are the smartest guys on the planet. The Chinese are still buying 16 Billion dollars worth of U.S. debt each MONTH. Their entire gold reserve is not even one months buying of U.S. debt.
So if the Chinese bought the Europeans out, where is all the Gold?
The Times March 25, 2006 China's gold reserves double in valueBY PETER KLINGER
CHINA has put Gordon Brown’s investment philosophy to shame by enjoying a near-doubling of the value of its gold reserves. The People’s Republic has gold reserves worth $10.8 billion (£6.2 billion), based on yesterday’s $558.60 gold fix in London, compared with about $6.6 billion at the end of 2002, when China last increased its stake.
The Chinese central bank holds 600 tonnes of gold, according to new figures from the World Gold Council, the gold industry’s marketing arm. China almost doubled its gold reserves to the 600 tonne level between 2000 and 2002, at a time when the Chancellor was a bullion seller.
British taxpayers missed out on £3.6 billion (£2.1 billion) worth of gold profits because Mr Brown sold most of the country’s reserves during the 1998-2002 gold price slump. Mr Brown’s dismal record is matched only by his counterparts in Switzerland and the Netherlands, which have been among the most active sellers of gold over the past five years.
Switzerland’s decision to sell 908.3 tonnes of gold between January 2002 and March 2005 has cost it about $8 billion in forgone profits. Its central bank will argue that the sell-off was part of a strategy to diversify its foreign reserves.
Honestly, $10.8b is peanuts for a country the size of China. What's more interesting is how this number compares to their other reserves. What is it, % wise?
"The greatest productive force is human selfishness." Robert A. Heinlein
About 2% of our circulating currency is backed by the supposed 8000 tons of gold the US Govt still thinks it has. If you start to consider unfunded liabilities, then the gold backs about 1/2% of our total debt ($50-$75 TRILLION). But never fear, with $300+ TRILLION in world wide derivatives we can still sleep well at night.
That would be equivalent to a homeowner having a $200K mortgage with 1-1/2 ounces of gold as his emergency "backup" plan.
Ah, a little bug talk! So, what's happening with the pull forward, fall-back on the spot price of gold? Granted, it's only $10 or so but it is indicitive of some kind of activity but it does seem like there is activity somewhere. Any ideas?
It does seem though that we were pretty much all right earlier in this thread by predicting: 1. ARM's are gonna start kicking some butt...done 2. Gold and silver will rise dramatically...done 3. Oil will become critical...almost done
What no one saw is the effect of the immigration issue on our home economy. The economic effects may become measurable if W doesn't get this one right. So, maybe 20 million service industry jobs go on strike for a week......hummmm. Ha!, and we thought gold bugs had problems.
From the Mogambo Guru in today's Daily Reckoning Newsletter:
The gold lease rates posted at Kitco.com are again converging to a rough singularity. In fact, short rates are actually higher than longer rates! If this resolves like it usually does, then soon the price of gold will shoot up and the lease rate spread will widen. It works to the advantage of the market manipulators in the same way that the yen-carry trade works, except that the rate spreads in gold are easier to manipulate, move a lot more, and move a lot faster.
Hmmm........
I bought 100 one ounce Gold Eagles last week when we were down at $544 and change. It seemed like the right thing to do, just a strong gut feeling.
I had an option on another 100 one ounce gold Maple Leafs at only $8 over spot, but I had to act fast. I couldn't find anybody to flip a portion to so I had to pass. It would have drained all my reserves to do it. Now I'm wondering if I shouldn't have just gone ahead with it anyway.
It promises to get interesting, very interesting.
"Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose." John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
With gold shares moving up over the past week or so, and the see-saw action of the gold price for the past two months, seems to point towards going higher rather than lower. The double top has come and gone. Now we have a triple top. The past times this has happend since 2001, the movement resolved upwards. Considering that the FED is going to tighten this week, gold is moving opposite to what normally occurs. Interesting!
Silver running up towards $11 during the downward move in gold also seems bullish for gold to eventually respond. Small generic gold has continue to move up in the face of lower gold prices. Saints have taken a short term dip while working off some oversupply from a Large deal that recently hit the market. This will be short-lived and 63-66 Saints should continue to march upwards.
I'm with Deadhorse on this one and the gut says up. Wish I had some "loose" change to pop for 100 1-ounce Eagles.
Very little has changed fundamentally in the last couple of years to push up the price of the metals. Interest rates reversed and attitudes among a small percentage of investors/ comnsumers have changed but the Hoover dam still pumps electricity and the bridges are still in place. The economy isn't in tatters. If the fundamentals do change then there will be no gaurantee that gold would have any particular value anyway.
Gold will continue higher only so long as people think it's a relic of the past and silver should continue higher as long as the economy produces wealth and peo- ple remain inventive.
Gold is an excellent value but silver is a long term hold.
The US will find it increasingly difficult to maintain its position of "sole military superpower." When THAT also becomes "shared" as it is evolving right now, the game is over for the dollar.
Comments
<< <i>Whoa, watch for the heat coming down on this little item!
CNN March 6th 2006
How many large American assets are still owned by Americans?
Every four years the U.S. Treasury department is supposed to send a report to Congress on just what American assets have been purchased by foreign governments, or companies. These reports are to be filed by law under the CIFUS rules. There have been no reports filed with the U.S. Congress since 1994. The stir over the DP World Ports transaction has encouraged many new questions about just who is buying American assets, and in what quantity.
According to some estimates there have been 1500 major U.S. assets sold to foreigners over the last twelve years, almost all of these has been approved quietly by the U.S. Treasury department. It appears only one may have been rejected, that being the Unocal deal last year. The Senate Banking committee now wants to know just what is going on.
Foreign companies and governments awash with Trillions of U.S. dollars, and dollar backed securities, have been allowed to by up American assets at an ever increasing rate said one inside Washington spokesman. >>
Yup - Looks like it's almost time for plan 'B': Nationalize & Demonetize
Edited to add: Thanks for playing! (Suckers!)
The Fireman...
Love your comment Joe..."Thanks for playing". That really puts it in a nice little quip, suitable for framing. And, it does feel like it's all just a big crap shoot and your point is 4 and you're about 6 rolls into it and the dice fly off the end of the table and the spell is broken...thanks for playing.
<< <i>According to some estimates there have been 1500 major U.S. assets sold to foreigners over the last twelve years, almost all of these has been approved quietly by the U.S. Treasury department. It appears only one may have been rejected, that being the Unocal deal last year. The Senate Banking committee now wants to know just what is going on. >>
Anyone remembers property rights? I don't want the government to tell me who I can sell my stuff to and who I cannot (unless we're dealing weapons, etc, in which case the government should have some level of oversight).
Last I checked, the US was still a free republic. Let's try to keep it that way.
Robert A. Heinlein
<< <i>Treasury has also been taking investments out of a $65.3 billion government pension fund known as the G-fund. The formal title for the G-fund is the Government Securities Investment Fund of the Federal Employees Retirement System >>
This isn't the same as the Thrift Savings Plan G-fund is it? How potentially disturbing.
edited to add:
Linkage
Why yes, this is disturbing.
It's nice to know that my version of a 401(k), which holds only MY money, withheld from MY paycheck (I am in the military and thus I am not getting a match when I contribute) is open for the government to use. Well, maybe not me because I put zip into the G-fund (I much prefer the International fund), but oh what a slippery slope.
A quote from the article linked:
"Numerous federal employees object to the Treasury maneuver, contending that it amounts to a raid by the government into personal savings accounts. But officials noted that the G Fund has been used to avoid defaulting on the national debt several times, including during the budget showdowns of 1995 and 1996".
Well then, I guess it's okay if it's been done before. (For those in doubt, this would be sarcasm
Last I checked, the US was still a free republic. Let's try to keep it that way.”
Well I certainly agree. It is much better to let the Foreign Devils own our utilities, coal reserves, electric power grids, port terminals, etc. than to have them stop buying all this debt, they must be provided with a way to spend it.
I mean if we have to sell the entire country, just to cover our spending habits, that should be O.K., at least we will have all those cool products from Japan and China, and those great social programs.
Of course our children will be working as slaves for the foreign Devils forever as all the profits leave the country, but what the heck perhaps they will someday provide them with community housing they way we did for their people when they first came here to work on the railroads.
we knew of yore. It should be renamed Republocat Party.
I feel really sorry for whoever is elected to clean up the mess.
It will truly be a task for a Titan.
Camelot
<< <i>This chart is one that I would encourage all to copy and study. It will help you save and make lots of money over time. I think it is self explanatory but please ask if you have questions.
Cohodk, Please explain this graph. Thanks...Mike
<< <i>Yup - Looks like it's almost time for plan 'B': Nationalize & Demonetize >>
Yep, don't forget to tax them to death and let them only export fiat paper. When we're done they will beg to sell out for a few ounces of gold and go home.
When they own US companies and US assets they will have to play by US rules.
Don't worry about the government borrowing from your pension funds they will always pay back every dollar they borrow. They are oiling up the presses as we speak.
<< <i>Don't worry about the government borrowing from your pension funds they will always pay back every dollar they borrow. >>
I feel much better now.
Wasn't it in Argentina where individual retirement funds were taken to bail out the government?
we knew of yore.”
There is really no difference in the Republicans and the Democrats any longer there are only entitlement politicians.
“Yep, don't forget to tax them to death and let them only export fiat paper.”
Foreign governments and many foreign companies are U.S. tax exempt!
Sorry they won’t want paper but they will buy grain, steel, coal, cotton, etc. and ship it back home through the ports they control!
Tuesday, March 7, 2006
Robert Kiyosaki
Rich Dad Poor Dad
As retirement nears, millions of Baby Boomers are scrambling for deck chairs on the Titanic. For about 30 years now I have been watching a major financial disaster developing. Its contributing factors include the shaky financial foundations of Social Security and Medicare, compounded by most Americans' lack of financial education and entitlement mentality.
As a result, my investment strategy is to get out of anything that's "paper with ink on it."
So it's not a good time to be captain of SS U.S.A., or the skipper of SS Big Mutual Fund or SS Pension Plan. In the coming years, I believe big will not be better.
Why so pessimistic? Well, I would rather be known as a realist. Most of us are aware of the problems ahead. Some are:
1. A pervasive entitlement mentality.
It's not just the poor who are expecting a government hand out. Everyone from senators to farmers and retirees expect it, too. Unfortunately, this problem is not an issue for my generation, the Baby Boomers, but will fall squarely on the shoulders of the children and grandchildren of Baby Boomers.
2. Social Security is a small problem when compared to Medicare.
As of 2004, Social Security was a $10 trillion off-balance-sheet liability. Medicare is a $64 trillion liability. The Social Security fund will begin to run in the red around 2015. The Medicare fund is already operating in the red, a situation that started in 1992. The combined $74 trillion off-balance sheet IOU to Americans is more money than is available in all the stock and bond markets of the world. This means life or death will be determined by your wallet, not your doctor.
3. A lack of financial education.
Many people do not know such basic realities as:
· A 401(k) is not a retirement plan (it's a savings plan).
· Bonds aren't safe.
· Saving money is risky.
· Why mutual funds have such low returns.
· What is inflation.
· Why workers are taxed more than owners.
· Why pensions are disappearing -- legally.
Investing in Tangible Value
As an investor, I'm investing against the U.S. dollar. Let me be clear: I'm not investing against the U.S. -- America is a rich, productive country. But our dollar is toast. Those who have followed my articles know that in 1971, our dollar stopped being money and became a currency, a piece of paper with ink on it .
In my opinion, that means getting out of anything else that's "paper with ink on it" -- anything backed by the full faith and confidence of the SS U.S.A. That means I'm very suspicious of stocks, bonds, savings, and mutual funds, especially if they're U.S. dependent. Although I love real estate, I'm suspicious of any piece of property that doesn't generate cash flow today.
Today, I invest in assets with tangible value, especially assets that go up in price as the dollar's purchasing power sinks. Today, I have large positions in gold, silver, and oil.
For the small investor, I believe buying silver coins is a safe bet.
Are you one of these?
Are you old enough to remember when you could count the Worlds Billionaires on one hand?
March 9, 2006, 5:34PM
World gains 102 more billionaires
Associated Press
RESOURCESSome on Forbes' billionaires list - Billionaires grouped by country - Forbes' billionaires listed by rank
NEW YORK — As emerging stock markets surged during the past year, 102 wealthy people around the world won a much-coveted title along with their stellar gains — they all became billionaires. But tepid returns in the United States ate into the fortunes of some of the richest Americans, including the founding family of Wal-Mart Stores Inc.
The number of billionaires around the world rose by 102 to a record 793 over the past year, and their combined wealth grew 18 percent to $2.6 trillion, according to Forbes magazine's 2006 rankings of the world's richest people.
Forbes editor Luisa Kroll noted that Russia's stock market jumped 108 percent between February 2005 and February 2006, while India's market rose by more than 54 percent during the same period. Brazil "was another bright star" with a market gain of 38 percent, she said.
Kroll said the changes on the list weren't driven by U.S. investments.
"The more exciting story is these emerging markets," she said. "The U.S. stock market was quite a laggard with only a 1 percent increase."
<< <i>There is really no difference in the Republicans and the Democrats any longer >>
There is a subtle difference:
Democrats are in the advanced stage of madness.
Republicans are in the middle stage of lunacy
<< <i>This compares with the record production reported for the December 2005 Quarter of 29,860 ounces at a cash operating cost of A$258/ounce. Production for the 6 months to December 31, 2005 was 53,707 ounces at an average cash operating cost of A$282/ounce and for the 8 months ended 28 February 2006 73,078 ounces had been produced at a cash operating cost of A$253/ounce. >>
<< <i>The company’s ongoing program of exploration drilling at Challenger returned significant results from initial testing of conceptual exploration targets below the M1 shoot, in a position located only 150 metres from the existing underground infrastructure. >>
<< <i>CARACAS, Venezuela (Reuters) - South African mining company Gold Fields Ltd. said Thursday it expected its recently acquired Choco 10 mine in southern Venezuela to produce between 120,000 and 140,000 ounces of gold in 2006. >>
<< <i>Expected operating costs in Venezuela are $161 per ounce, around half of the firm's average global costs. The difference comes in part from heavy subsidies on Venezuelan fuel as well as the lower operating costs of the open Choco mine compared with expensive underground mining operations in other countries. >>
<< <i>
<< <i>CARACAS, Venezuela (Reuters) - South African mining company Gold Fields Ltd. said Thursday it expected its recently acquired Choco 10 mine in southern Venezuela to produce between 120,000 and 140,000 ounces of gold in 2006. >>
<< <i>Expected operating costs in Venezuela are $161 per ounce, around half of the firm's average global costs. The difference comes in part from heavy subsidies on Venezuelan fuel as well as the lower operating costs of the open Choco mine compared with expensive underground mining operations in other countries. >>
>>
And?? what does this all mean?
Thanks
Kip
<< <i>It means that there is lots of gold all over the place just waiting for someone to dig it up at very little cost. Therefore, seeing that gold is really common, it must be just about worthless. The best idea is to put most of your money into the stock market. The majority of people do this, so that must be the right thing to do. Paper investments are great. Gold is for crazy doom-and-gloomers. You can be fully confident in the US dollar. People who regulate the quantity of dollars in existance are very prudent and really care about the little people. >>
Good. I just invested $36,000 from a house sale in Putnam. I hope it does well for us.
I am thinking about investing another$12,000 with them next week when I get back home.
They look like a sound outfit.
Thanks for the info, I wasnt sure what it meant. Glad I didnt make a mistake. Its close to all the money I have although my new home is paid for.
Kip
once was....but........I will take it if I must.
Camelot
<< <i>It means that there is lots of gold all over the place just waiting for someone to dig it up at very little cost. Therefore, seeing that gold is really common, it must be just about worthless. The best idea is to put most of your money into the stock market. The majority of people do this, so that must be the right thing to do. Paper investments are great. Gold is for crazy doom-and-gloomers. You can be fully confident in the US dollar. People who regulate the quantity of dollars in existance are very prudent and really care about the little people. >>
Mr. Preturb,
I never took you for a cynic!
SL
“Choco 10 mine in southern Venezuela to produce between 120,000 and 140,000 ounces of gold in 2006.”
Wow Bill big numbers?
So these guys can together produce 73,078 0unces, and 140,000 ounces a total of 213,078.
Lets say it all sells at $550 an ounce, so $117,192,900( one hundred and seventeen plus million)
So what you are telling us is that out of any of the 793 Billionaires, one of them could buy all of both of these companies production during the periods in your post for a mere 10% of anyone of their net worths?
Here are a couple of numbers that might be a little more impressive.
March 10, 2006
“For the United States, the trade gap with China widened in January to $17.9 billion, Over all, the United States imported $68.5 billion more in goods and services than it exported”
March 10, 2006
“U.S hits all time monthly high as Federal Deficits go! In February the U.S. Federal deficit hit 119 plus billion dollars.”
That’s $119,000,000,000
<< <i>“for the 8 months ended 28 February 2006 73,078 ounces had been produced”
“Choco 10 mine in southern Venezuela to produce between 120,000 and 140,000 ounces of gold in 2006.”
Wow Bill big numbers?
So these guys can together produce 73,078 0unces, and 140,000 ounces a total of 213,078.
Lets say it all sells at $550 an ounce, so $117,192,900( one hundred and seventeen plus million)
So what you are telling us is that out of any of the 793 Billionaires, one of them could buy all of both of these companies production during the periods in your post for a mere 10% of anyone of their net worths?
Here are a couple of numbers that might be a little more impressive.
March 10, 2006
“For the United States, the trade gap with China widened in January to $17.9 billion, Over all, the United States imported $68.5 billion more in goods and services than it exported”
March 10, 2006
“U.S hits all time monthly high as Federal Deficits go! In February the U.S. Federal deficit hit 119 plus billion dollars.”
That’s $119,000,000,000 >>
That's a fascinating way to look at the numbers. For every dollars worth of gold produced
by these mines for eight month the US went $10 deeper in debt in just one month.
Another way of saying the same thing is that this production divided among all the people of
the world would equal about 7c each. One would need a magnifier to see his cut.
<< <i>
Another way of saying the same thing is that this production divided among all the people of
the world would equal about 7c each. One would need a magnifier to see his cut. >>
It would take a village of 30,000 people to pool their shares to equal a $20 saint.
I'm working on my dry sense of humor.
Seriously... I work at a small manufacturing company, whose 99% of non-management employees live paycheck to paycheck - many with a good chunk of credit-card debt. The cost of food and fuel has gone up for everyone - but hurts these folks the most. If the economy ever DOES slow down and employment drops, I think there are going to be a lot of hurting people out there.
<< <i>
<< <i>
Another way of saying the same thing is that this production divided among all the people of
the world would equal about 7c each. One would need a magnifier to see his cut. >>
It would take a village of 30,000 people to pool their shares to equal a $20 saint. >>
So maybe I should have put that money in gold or something else......
Expected operating costs in Venezuela are $161 per ounce
Very cheap until King Chavez "nationalizes" it to keep for himself. Then it becomes quite expensive.
Meanwhile our money supply has been increasing by 8% per year average since around 1996. Hmmm....2% vs. 8%, which one is the "con?" Tough question. Tough love.
The link to foreign asset ownership is posted on one of the links I have below. I believe they stated that what used to be under a trillion $ in foreign ownership is now up to $13 Trillion. That exceeds the total amount of M3. Nice!
roadrunner
<< <i>
<< <i>This chart is one that I would encourage all to copy and study. It will help you save and make lots of money over time. I think it is self explanatory but please ask if you have questions.
Cohodk, Please explain this graph. Thanks...Mike >>
Hi Mike,
I just got back from a few weeks in your neck of the woods.
In order to understand this diagram you must believe in cycles. The "red" shaded area is the stock market and the "green" area is the economy. IMHO the stock market is the most accurate leading economic indicator in existance. It usually leads the economy by 6-12 months. There are only so many places to put money so it often chases "hot" sectors, thus increasing the strength of the cycle.
At the top of the diagram you see different industries. As you can see basic material, energy and staples usually are leading the stock market at its peak. And cyclicals and technology are leading at the bottom. Over the last year basic materials, i.e. steel companies and commodity related stocks and of course energy have been leading the market. Recently these areas have come under some pressure and we are beginning to see a shift to consumer staples, i.e. Proctor & Gamble and Pepsi. These stocks are considered defensive in that even in a recession demand for their products is relatively stable as are their earnings. There has also been strong demand for services stocks such as the telecom companies, i.e. AT&T and Verizon. These companies also pay very nice dividends which help these stocks outperform in a down stock market.
I posted this in response to Roadrunners post that we may already be in a recession. Given the recent money flows I believe the stock market is predicting a slowdown. The global environment has changed. The era of low global interest rates, I believe, is coming to an end. Japan is talking of raising their rediculously low rates. Rising commodity prices will force governments of raise rates to combat inflation.
If you study this diagram and learn to spot corrolations then you will be able to outperform the stock market on a consistant basis. You have to remember that the stock market and its underlying stocks are leading indicators. They will begin to falter when things look great and start to rally when all appears lost.
Knowledge is the enemy of fear
<< <i>Senate votes to raise debt ceiling. >>
Am I the only one who sees a resemblance?
>>>My Collection
hi, i'm tom.
i do not doctor coins like some who post in here.
A cute little article by Peter Schiff from www.financialsense.com
Go UConn.
roadrunner
Natural gas is off a dime to $6.73mbtu (range is 6.707 to 6.85). Heating oil is off 8/10ths of a penny to $1.7339/gal on access (range is 1.7314 to 1.7476); gasoline is off 1.8 cents to $1.8120/gal (range is 1.8060 to 1.8335); April HO cracks rallied 69 cents yesterday to $12.73 while April HU cracks rose 22 cents to $12.02; The daily national unleaded avg gasoline price rose to $2.51 per gallon today, according to the American Automobile Assoc...
April gold is off $4.50 to $551.60 an ounce (range is 551.40 to 555); the yellow metal has been weak all morning and has fallen further following the release of the PPI data; gold prices have also been weighed by the pullback in energy prices (thus alleviating some of the inflation hedge) and on the heels of Fed Chief Bernanke hinting the FOMC may keep raising interest rates (something that helped the greenback in early trade); May silver is off a nickel to $10.31 an ounce (range is 10.255 to 10.365)...
Copper rises 3.6 cents to $2.37 a pound on the COMEX; LME inventories fell 750 tons to 130,300 metric tons -- something that has caused copper prices to hit a record high for the 2nd straight day; copper rose $65 a metric ton to $5,170 a ton. Zinc stockpiles tracked by the LME fell 2,400 tons to 302,700 tons (equivalent to less than 11 days of global consumption); stocks that may rise due to higher copper/zinc prices are: RIO, RTP, PD, PCU, FAL (note there is continued chatter that Xstrata Plc may top Inco's bid for FAL).
Knowledge is the enemy of fear
Surly this is not all the Gold they had?
Chancellor under fire for gold sale as price nears $600 BY GABRIEL ROZENBERG, ECONOMICS REPORTER, Times
FORECASTS that gold prices are set to smash through the $600-an-ounce barrier saw Gordon Brown come under renewed pressure last night over his controversial decision to sell the majority of Britain’s gold reserves. Merrill Lynch predicted that gold would hit $600 an ounce in the long term after its recent rise above $500. Last month the precious metal hit a 25-year high of $579.50 an ounce amid concern among investors that America’s huge trade gap would force a weakening of the dollar.
The Chancellor sold 395 tonnes of Britain’s gold reserves between 1999 and 2002, generating $3.5 billion. At yesterday’s London closing price of $554.10 he would have generated more than $7 billion (£4 billion).
The sale of Britain’s gold reserves — which are stored in vaults under the Bank of England, alongside billions of pounds of bullion owned by other institutions, was attacked even in 1999 for poor timing.
So if the Chinese bought the Europeans out, where is all the Gold?
The Times March 25, 2006
China's gold reserves double in valueBY PETER KLINGER
CHINA has put Gordon Brown’s investment philosophy to shame by enjoying a near-doubling of the value of its gold reserves. The People’s Republic has gold reserves worth $10.8 billion (£6.2 billion), based on yesterday’s $558.60 gold fix in London, compared with about $6.6 billion at the end of 2002, when China last increased its stake.
The Chinese central bank holds 600 tonnes of gold, according to new figures from the World Gold Council, the gold industry’s marketing arm.
China almost doubled its gold reserves to the 600 tonne level between 2000 and 2002, at a time when the Chancellor was a bullion seller.
British taxpayers missed out on £3.6 billion (£2.1 billion) worth of gold profits because Mr Brown sold most of the country’s reserves during the 1998-2002 gold price slump.
Mr Brown’s dismal record is matched only by his counterparts in Switzerland and the Netherlands, which have been among the most active sellers of gold over the past five years.
Switzerland’s decision to sell 908.3 tonnes of gold between January 2002 and March 2005 has cost it about $8 billion in forgone profits. Its central bank will argue that the sell-off was part of a strategy to diversify its foreign reserves.
Robert A. Heinlein
Long complex article
my free opinions are worth......................................NOTHING,
or very near that amount.
Camelot
That would be equivalent to a homeowner having a $200K mortgage with 1-1/2 ounces of gold as his emergency "backup" plan.
roadrunner
It does seem though that we were pretty much all right earlier in this thread by predicting:
1. ARM's are gonna start kicking some butt...done
2. Gold and silver will rise dramatically...done
3. Oil will become critical...almost done
What no one saw is the effect of the immigration issue on our home economy. The economic effects may become measurable if W doesn't get this one right. So, maybe 20 million service industry jobs go on strike for a week......hummmm. Ha!, and we thought gold bugs had problems.
The gold lease rates posted at Kitco.com are again converging to a rough singularity. In fact, short rates are actually higher than longer rates! If this resolves like it usually does, then soon the price of gold will shoot up and the lease rate spread will widen. It works to the advantage of the market manipulators in the same way that the yen-carry trade works, except that the rate spreads in gold are easier to manipulate, move a lot more, and move a lot faster.
Hmmm........
I bought 100 one ounce Gold Eagles last week when we were down at $544 and change. It seemed like the right thing to do, just a strong gut feeling.
I had an option on another 100 one ounce gold Maple Leafs at only $8 over spot, but I had to act fast. I couldn't find anybody to flip a portion to so I had to pass. It would have drained all my reserves to do it. Now I'm wondering if I shouldn't have just gone ahead with it anyway.
It promises to get interesting, very interesting.
John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
Silver running up towards $11 during the downward move in gold also seems bullish for gold to eventually respond. Small generic gold has continue to move up in the face of lower gold prices. Saints have taken a short term dip while working off some oversupply from a Large deal that recently hit the market. This will be short-lived and 63-66 Saints should continue to march upwards.
I'm with Deadhorse on this one and the gut says up. Wish I had some "loose" change to pop for 100 1-ounce Eagles.
roadrunner
The uptrends all seem to be intact. IMO, platinum may have the greatest percentage return.
Knowledge is the enemy of fear
on jelly donutes?
Camelot
the price of the metals. Interest rates reversed and attitudes among a small
percentage of investors/ comnsumers have changed but the Hoover dam
still pumps electricity and the bridges are still in place. The economy isn't in
tatters. If the fundamentals do change then there will be no gaurantee that
gold would have any particular value anyway.
Gold will continue higher only so long as people think it's a relic of the past and
silver should continue higher as long as the economy produces wealth and peo-
ple remain inventive.
Gold is an excellent value but silver is a long term hold.
and
Counterpoint
The US will find it increasingly difficult to maintain its position of "sole military superpower." When THAT also becomes "shared" as it is evolving right now, the game is over for the dollar.