@erryb said:
First China, now Russia pushing gold prices higher.](https://www.zerohedge.com/news/2024-09-09/analysis-russia->selling-oil-gold-september)
According to Russian news agency Interfax, the government will increase its gold purchases from 1.12 billion rubles >per day to 8.2 billion rubles per day for the next month."_
Of course this is incomprehensible to the few here who cannot accept the fact that these are two major economic >powerhouses and, through their conditioned minds, can only see them as da boogieman. LOL
POWERHOUSES ? Russia is one thing but economic powerhouse it is NOT. Now with oil in the $60's, they are bleeding cash. Their "stolen" CB reserves will be used to make-good on the money and assets they stole from Western businesses. There goes Russia's anti-dollar morality play.
China's labor force will shrink by 10 million workers for the next 35 years.
POWERHOUSES ? Russia is one thing but economic powerhouse it is NOT. Now with oil in the $60's, they are bleeding cash. Their "stolen" CB reserves will be used to make-good on the money and assets they stole from Western businesses. There goes Russia's anti-dollar morality play.
China's labor force will shrink by 10 million workers for the next 35 years.
And the mighty dollar will reign forever. LOL, keep wishing.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
The SGE futures is behind the March-present gold bull.
"Meanwhile domestic Chinese gold ETF buying, normally the preserve of a footnote, has accelerated with 28.5 tonnes of gold buying in the last 4 weeks. So as speculators depart stage left, it appears that 'quality' gold investment is re-entering stage right. So grounds for encouragement."
Do not dismiss China's gold speculators. A few new rules will not detour them only, a "bump in the road."
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
@cohodk said:
According to a Russian news agency.....
ROFLMAO!!!
da boogieman? LOL
Youre the one who keeps touting them as a threat so it looks like YOUR Boogeyman. Stop projecting.
Russia is a failed state. It has resources that rival the US and Canada an is 9th in population. Yet is has a GDP less than New York state and ranks 65th in per capita GDP. It has potential to be an economic powerhouse and China would love to annex everything east of the Urals. Russia won't even exist in 50 years.
Russia is a nuclear threat, thanks to the western warmongers. It has the world's 8th largest economy and its active role in BRICS has been destroying world demand for US dollars and US debt. So yes they are a threat to the US in numerous ways.
They wouldn't use nukes
I forgot that you were also a military strategist. Let's hope, that like on most other things, you are once again wrong.
So you want to Russia to use nukes? Again, you've proven where your loyalties stand.
Unless that was just a Freudian slip, and you know I am most always right.
It simply makes me smarter than you. Your narcissism apparently has no ceiling.
Which is exactly what a narcissist would say. Lol
You see derryb, we both the same, neither of us had a choice after high school.
I get where your coming from. I hear you. I just say worrying about it and revolving my life around it ain't gonna make a difference, except to make myself and those around me paranoid. I see that as a terrible existence.
Focusing on what could go wrong does not lead to advancement. However, focusing on what could go right does.
The damage to America will come from the echo chamber prisons built on the foundations of Russianand Chinese propaganda and misinformation that we are building, not from a nuke.
And to the topic, yes, gold will continue to hit new highs, just as equities and real estate and every other asset have for centuries.
The total money supply in the U.S., the Euro Area, Japan, and China recently hit a new record of $89.7 trillion, with $7.3 trillion of that added in just the past year.
“US public debt has jumped $345 billion over the last 3 days hitting another record of $35.7 trillion,” The Kobeissi Letter stated this past Thursday. “Since June 2023, federal debt has surged by a MASSIVE $4 trillion, or 14%.” The analysts noted that “at the beginning of 2020 the US money supply was 27% below current levels,” which points to one thing: “Global money printing is back.”
“Since the pandemic, global money supply has skyrocketed,” they said in a follow-up post. “In fact, the US Dollar has lost 25% of its purchasing power over the last 4 years alone.
Interesting article...but fails to note that if you kept the dollars and forgot converting to gold...you got even MORE VALUABLE access to stocks and bonds.
10-year Treasury bond has averaged 6-7% since 1966, maybe a bit more (I have to check).....$1 in 1966 is at least $64 today, probably more.
@ProofCollection said:
Keep in mind though that inflation is not just about money supply, it's also about velocity.
MV = P Q
When the Velocity (rate money is being spent) and the Quantity of goods sold, change at similar rates, then the Price of goods (inflation or deflation) equals the Money supply. The V and Q cancel each other out.
". . . the impact of Yellen’s efforts to steal U.S. Treasury securities from Russia goes beyond the BRICS meeting and the rise of a new payment currency. Yellen’s blatant theft from the Central Bank of Russia is a driving force behind the price of gold reaching new all-time highs recently."
"Central banks have been net buyers of gold since 2010, but the tempo of gold buying has increased as the U.S. rule of law under policymakers like Yellen begins to crumble. Gold is a physical non-digital asset that cannot be stolen, frozen or seized provided it is in safe storage. Until the BRICS currency is ready, gold will be the asset of choice for foreign reserve managers faced with a rogue (US) Treasury Secretary."
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
@jmski52 said: the nature of a reserve currency is you MUST run a balance of payments deficit. This is Economics 101.
I call BS. Show me an Econ 101 text that says anything like that.
They ALL show it. By nature of being a global reserve currency, the demand for the dollar is not only by Americans but by ALL countries, central banks, global citizens, etc. This means that the supply of dollars must expand to equalize demand.
The only way the supply of dollars can be increased is by running a TRADE DEFICIT which also implies a CAPITAL ACCOUNT SURPLUS. This can be seen from any study of the NIPA accounts.
@cohodk said:
We can only hope the Brics relieve the US of some of it's burden.
Credit Default Swaps for the non-Western, non-OECD countries are out of control. NOBODY is trusting those countries with monetary policy. They're a few steps above Argentina which has defaulted 7 times on their debt since 1900 !!
@cohodk said:
We can only hope the Brics relieve the US of some of it's burden.
Credit Default Swaps for the non-Western, non-OECD countries are out of control. NOBODY is trusting those countries with monetary policy. They're a few steps above Argentina which has defaulted 7 times on their debt since 1900 !!
As long as they have oil the west will trust.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
They ALL show it. By nature of being a global reserve currency, the demand for the dollar is not only by Americans but by ALL countries, central banks, global citizens, etc. This means that the supply of dollars must expand to equalize demand.
Wow, just keep piling on the debt, and it's all good, right? I didn't realize that the Keynesians have changed all the textbooks. It figures.
They're a few steps above Argentina which has defaulted 7 times on their debt since 1900 !!
Sounds like Argentina has figured out how to cope with the corrupt international banking system. If Argentina has defaulted so many times, who keeps lending them money, and why?
Q: Are You Printing Money? Bernanke: Not Literally
@jmski52 said: They ALL show it. By nature of being a global reserve currency, the demand for the dollar is not only by Americans but by ALL countries, central banks, global citizens, etc. This means that the supply of dollars must expand to equalize demand.
Wow, just keep piling on the debt, and it's all good, right? I didn't realize that the Keynesians have changed all the textbooks. It figures.
They're a few steps above Argentina which has defaulted 7 times on their debt since 1900 !!
Sounds like Argentina has figured out how to cope with the corrupt international banking system. If Argentina has defaulted so many times, who keeps lending them money, and why?
.
Somebody has been lending Argentina "paper" money (that is created at will and costs the lender nothing).
But nobody is lending Argentina any gold.
@jmski52 said: the nature of a reserve currency is you MUST run a balance of payments deficit. This is Economics 101.
I call BS. Show me an Econ 101 text that says anything like that.
They ALL show it. By nature of being a global reserve currency, the demand for the dollar is not only by Americans but by ALL countries, central banks, global citizens, etc. This means that the supply of dollars must expand to equalize demand.
The only way the supply of dollars can be increased is by running a TRADE DEFICIT which also implies a CAPITAL ACCOUNT SURPLUS. This can be seen from any study of the NIPA accounts.
.
It is not at all a matter of "must".
It is a matter of choice.
If there were no current account (trade deficit) and if the demand for US Dollars around the world was high, the value of the US Dollar would increase substantially, which would be deflationary. The choice has been made not to allow this deflation. Unstable debt structures would collapse (default) and that is not tolerable for the creditors.
@jmski52 said:
Sounds like Argentina has figured out how to cope with the corrupt international banking system. If Argentina has >defaulted so many times, who keeps lending them money, and why?
Because they believe that this time it will be different.
Because the bankers thrive on steady income streams from money created out of thin air. Sweet deal for the bankers, not so much for those that go out of business.
Q: Are You Printing Money? Bernanke: Not Literally
From time to time over the years I have asked 20 something's if they are aware of where dollars come from, how created,if gold backs the dollar, or what fiat money is etc. They think fiat was an old car their parents drove. They don't seem to be too concerned.
Successful transactions:Tookybandit. "Everyone is equal, some are more equal than others".
@BLUEJAYWAY said:
From time to time over the years I have asked 20 something's if they are aware of where dollars come from, how created,if gold backs the dollar, or what fiat money is etc. They think fiat was an old car their parents drove. They don't seem to be too concerned.
An EMP will get their attention.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
@jmski52 said:
Because the bankers thrive on steady income streams from money created out of thin air. Sweet deal for the >bankers, not so much for those that go out of business.
Again, you are spotting nonsense disproved by DECADES of returns and THOUSANDS of banks.
Banking as a business STINKS. Shareholders are about to revolt after 2 decades of lousy returns.
@jmski52 said:
Because the bankers thrive on steady income streams from money created out of thin air. Sweet deal for the >bankers, not so much for those that go out of business.
Again, you are spotting nonsense disproved by DECADES of returns and THOUSANDS of banks.
Banking as a business STINKS. Shareholders are about to revolt after 2 decades of lousy returns.
You really need to get out more.
And you might need to be more specific. Retail banking probably does stink. But I'm pretty sure the owners of the federal reserve bank are pretty happy.
@jmski52 said:
Because the bankers thrive on steady income streams from money created out of thin air. Sweet deal for the >bankers, not so much for those that go out of business.
Again, you are spotting nonsense disproved by DECADES of returns and THOUSANDS of banks.
Banking as a business STINKS. Shareholders are about to revolt after 2 decades of lousy returns.
You really need to get out more.
And you might need to be more specific. Retail banking probably does stink. But I'm pretty sure the owners of the federal reserve bank are pretty happy.
Every banker I know is VERY happy. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
@ProofCollection said:
And you might need to be more specific. Retail banking probably does stink. But I'm pretty sure the owners of the >federal reserve bank are pretty happy.
JP Morgan Chase....the Gold Standard among large-cap banks.....has returned 4% a year the last 20 years.
You think shareholders are happy with that ? That's a GOOD return ?
@ProofCollection said:
And you might need to be more specific. Retail banking probably does stink. But I'm pretty sure the owners of the >federal reserve bank are pretty happy.
JP Morgan Chase....the Gold Standard among large-cap banks.....has returned 4% a year the last 20 years.
You think shareholders are happy with that ? That's a GOOD return ?
It's the best...and it stinks.
What are you talking about? The stock has doubled in the last 5 years? That is frickin awesome that is why the dividend yield is as you say "stinks".
@Clackamas1 said:
What are you talking about? The stock has doubled in the last 5 years? That is frickin awesome that is why the >dividend yield is as you say "stinks".
It doubled from a low related to Covid and bad bank periods pre-2020.
I am talking about TOTAL RETURN over a long time period, and it stinks. Has nothing to do with a depressed dividend yield from a rise in the stock price.
Let me take a wild guess....you're not that financially savvy, right ?
@Clackamas1 said:
What are you talking about? The stock has doubled in the last 5 years? That is frickin awesome that is why the >dividend yield is as you say "stinks".
It doubled from a low related to Covid and bad bank periods pre-2020.
I am talking about TOTAL RETURN over a long time period, and it stinks. Has nothing to do with a depressed dividend yield from a rise in the stock price.
Let me take a wild guess....you're not that financially savvy, right ?
How long of a time period? In September of 2014 JPM was trading in the sixty dollar range. Today it is at $225. I'm not here to argue that retail banking is all unicorns and rainbows, but I don't think I would use JPM as my example that it's terrible. I for one wish all of my investments did that well over the last 10 years. I would be retired sitting on a beach.
@Clackamas1 said:
What are you talking about? The stock has doubled in the last 5 years? That is frickin awesome that is why the >dividend yield is as you say "stinks".
It doubled from a low related to Covid and bad bank periods pre-2020.
I am talking about TOTAL RETURN over a long time period, and it stinks. Has nothing to do with a depressed dividend yield from a rise in the stock price.
Let me take a wild guess....you're not that financially savvy, right ?
LOL, Let me guess you are not financially savvy. For the record I have a sizeable precious metal position as a fraction of my total investments. Your point is terrible and wrong. Go look at the stock chart it has been a stellar investment since the 1970's, it has nothing to do with Covid in the long term or short term. It yields 2.2% TODAY and the stock is up .5% today. Had you bought it last year your dividend yield on cost would be over 5%, sitting on an 80% return on the stock and that my friend is a FANTASTIC investment - It is a model investment for unrealized capital gains and yield on cost.
Thank the lord you don't give investment advice professionally.
@UpGrayedd said:
How long of a time period? In September of 2014 JPM was trading in the sixty dollar range. Today it is at $225. I'm not here to argue that retail banking is all unicorns and rainbows, but I don't think I would use JPM as my example that it's terrible. I for one wish all of my investments did that well over the last 10 years. I would be retired sitting on a beach.
JPM is probably the best-performing bank over the last few decades -- or years. It lags the S&P 500 and most bank stocks have done NOTHING going back to the early-2000's. Just punch up any long-term chart, they don't lie. I have some small bank stocks I track that have done NOTHING for 25-30 years.
You have jokers here who think the Fed controls the world and the banks control the Fed and if that was the case they'd be making lots more profits. Citibank is 1/10th the price of 15 years ago.....BOA is still 1/3rd below. Wells might be at a new ATH, but only JPM is among the mega-banks.
I actually do think banks are OK going forward because I believe consolidation is going to come, and in the meantime I get paid 6-8% on dividends for some of them. If I'm wrong, I'll still eake out a small gain.
@Clackamas1 said:
LOL, Let me guess you are not financially savvy. For the record I have a sizeable precious metal position as a fraction of my total investments. Your point is terrible and wrong. Go look at the stock chart it has been a stellar investment since the 1970's, it has nothing to do with Covid in the long term or short term. It yields 2.2% TODAY and the stock is up .5% today. Had you bought it last year your dividend yield on cost would be over 5%, sitting on an 80% return on the stock and that my friend is a FANTASTIC investment - It is a model investment for unrealized capital gains and yield on cost. Thank the lord you don't give investment advice professionally.
I do give investment advice professionally, and I do it quite well, thank you, for 35 years.
The data aren't comparable to the 1970's given the deals of the 1990's. But using rolling time periods, it lags the S&P 500 in most time periods since 2000.
Again....JPM is the gold-standard among banks....and it is MEDIOCRE compared to an index fund. Which means the AVERAGE bank is lousy.
Man, a number of you can threadcrap a simple PM thread about gold hitting new all time highs.
I open this every now and then just expecting to see a recent price, some excitement or disappointment, but those comments are few and far between. Instead, it just becomes an argument thread about something or another.
Bochiman said:
Man, a number of you can threadcrap a simple PM thread about gold hitting new all time highs.
I open this every now and then just expecting to see a recent price, some excitement or disappointment, but those >comments are few and far between. Instead, it just becomes an argument thread about something or another.
Sheeeesh!
Fair complaint !!
I've been accurate about the price of gold here (among other things ) and today we finished comfortably above $2,700. Resistance levels are falling fast, it reminds me of the 1970's and the 2000's.
Citibank expects $3,000 by next year. I'll see if I can post some research but I don't believe I can post PDFs.
They tend to be perma-bulls (or perma-bears), but ZeroHedge had a nice roundup on the metal for Friday:
@UpGrayedd said:
How long of a time period? In September of 2014 JPM was trading in the sixty dollar range. Today it is at $225. I'm not here to argue that retail banking is all unicorns and rainbows, but I don't think I would use JPM as my example that it's terrible. I for one wish all of my investments did that well over the last 10 years. I would be retired sitting on a beach.
JPM is probably the best-performing bank over the last few decades -- or years. It lags the S&P 500 and most bank stocks have done NOTHING going back to the early-2000's. Just punch up any long-term chart, they don't lie. I have some small bank stocks I track that have done NOTHING for 25-30 years.
You have jokers here who think the Fed controls the world and the banks control the Fed and if that was the case they'd be making lots more profits. Citibank is 1/10th the price of 15 years ago.....BOA is still 1/3rd below. Wells might be at a new ATH, but only JPM is among the mega-banks.
I actually do think banks are OK going forward because I believe consolidation is going to come, and in the meantime I get paid 6-8% on dividends for some of them. If I'm wrong, I'll still eake out a small gain.
.
Banks always have the nicest buildings and offices. Why is that ?
If major banks get no benefit from being members/owners of the Federal Reserve, why do they oppose nationalization of the FED ?
You always said that FED officials could make a lot more working in the private sector. Salaries must be pretty good - better than other "industries". Bank stock prices are not necessarily the best indicator. Salaries, bonuses, and off-the-books and/or unrealized gains are a big part of it.
@dcarr said:
Banks always have the nicest buildings and offices. Why is that ?
Yes, only banks in Manhattan have nice buildings. Every other industry is located in Bed-Stuy, Ocean Hill, and Brownsville.
Silicon Valley....Technology....Hollywood....law firms....most Fortune 1,000 companies....they're all in the slums.
You clearly don't get out much.
If major banks get no benefit from being members/owners of the Federal Reserve, why do they oppose nationalization of the FED ?
What does that mean, "nationalization" of the Fed ? You mean the Central Bank is under the control of nincompoops and political actors like the Chinese or Argentinian Central Banks ?
The Fed is already the nation's central bank. It's made $75 billion a year for the Treasury and taxpayers. When you show us another department sending that much each year to reduce the deficit/debt, let us know.
You always said that FED officials could make a lot more working in the private sector. Salaries must be pretty good - better than other "industries". Bank stock prices are not necessarily the best indicator. Salaries, bonuses, and off-the-books and/or unrealized gains are a big part of it.
Who's buying the $50 MM mansions in Malibu and The Hamptons -- bankers ? Or Tech/Media moguls ? It's 50-to-1 in favor of one group and it's not bankers.
Citibank will need another 25-30 years to eclipse her 2007 ATH. How'd you like to work there, Dcarr ?
Comments
every thread. same ol
looking for a 2600 close next week
POWERHOUSES ?
Russia is one thing but economic powerhouse it is NOT. Now with oil in the $60's, they are bleeding cash. Their "stolen" CB reserves will be used to make-good on the money and assets they stole from Western businesses. There goes Russia's anti-dollar morality play.
China's labor force will shrink by 10 million workers for the next 35 years.
And the mighty dollar will reign forever. LOL, keep wishing.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Not me.
$2600+ this morning.
….like I said 13 years ago. The OP hit it on the head , way before then. These revisions are predictable.
Shanghai Gold Exchange (SGE) tightens trading conditions.
The SGE futures is behind the March-present gold bull.
"Meanwhile domestic Chinese gold ETF buying, normally the preserve of a footnote, has accelerated with 28.5 tonnes of gold buying in the last 4 weeks. So as speculators depart stage left, it appears that 'quality' gold investment is re-entering stage right. So grounds for encouragement."
Do not dismiss China's gold speculators. A few new rules will not detour them only, a "bump in the road."
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
The talk shows I listen to say that central bank gold buying is high and only rising and probably not going to change anytime soon.
gold swaps getting squeezed (squoze)
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Which is exactly what a narcissist would say. Lol
You see derryb, we both the same, neither of us had a choice after high school.
I get where your coming from. I hear you. I just say worrying about it and revolving my life around it ain't gonna make a difference, except to make myself and those around me paranoid. I see that as a terrible existence.
Focusing on what could go wrong does not lead to advancement. However, focusing on what could go right does.
The damage to America will come from the echo chamber prisons built on the foundations of Russianand Chinese propaganda and misinformation that we are building, not from a nuke.
And to the topic, yes, gold will continue to hit new highs, just as equities and real estate and every other asset have for centuries.
Knowledge is the enemy of fear
Knocking on $2,700.....
Interesting PM history lesson:
How France Secretly Repatriated All Its Gold Before Nixon's Dollar Devaluation
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
The total money supply in the U.S., the Euro Area, Japan, and China recently hit a new record of $89.7 trillion, with $7.3 trillion of that added in just the past year.
“US public debt has jumped $345 billion over the last 3 days hitting another record of $35.7 trillion,” The Kobeissi Letter stated this past Thursday. “Since June 2023, federal debt has surged by a MASSIVE $4 trillion, or 14%.” The analysts noted that “at the beginning of 2020 the US money supply was 27% below current levels,” which points to one thing: “Global money printing is back.”
“Since the pandemic, global money supply has skyrocketed,” they said in a follow-up post. “In fact, the US Dollar has lost 25% of its purchasing power over the last 4 years alone.
My US Mint Commemorative Medal Set
Keep in mind though that inflation is not just about money supply, it's also about velocity.
Great job...they protected their gold, but meanwhile their economy, GDP, and jobs creation went to pot.
MV = P Q
Interesting article...but fails to note that if you kept the dollars and forgot converting to gold...you got even MORE VALUABLE access to stocks and bonds.
10-year Treasury bond has averaged 6-7% since 1966, maybe a bit more (I have to check).....$1 in 1966 is at least $64 today, probably more.
BTW, the nature of a reserve currency is you MUST run a balance of payments deficit. This is Economics 101.
When the Velocity (rate money is being spent) and the Quantity of goods sold, change at similar rates, then the Price of goods (inflation or deflation) equals the Money supply. The V and Q cancel each other out.
My US Mint Commemorative Medal Set
How sanctions (theft) are driving the price of gold. And, an update on the BRICS upcoming meeting.
". . . the impact of Yellen’s efforts to steal U.S. Treasury securities from Russia goes beyond the BRICS meeting and the rise of a new payment currency. Yellen’s blatant theft from the Central Bank of Russia is a driving force behind the price of gold reaching new all-time highs recently."
"Central banks have been net buyers of gold since 2010, but the tempo of gold buying has increased as the U.S. rule of law under policymakers like Yellen begins to crumble. Gold is a physical non-digital asset that cannot be stolen, frozen or seized provided it is in safe storage. Until the BRICS currency is ready, gold will be the asset of choice for foreign reserve managers faced with a rogue (US) Treasury Secretary."
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
the nature of a reserve currency is you MUST run a balance of payments deficit. This is Economics 101.
I call BS. Show me an Econ 101 text that says anything like that.
I knew it would happen.
https://acrobat.adobe.com/id/urn:aaid:sc:VA6C2:e71e2ed1-3d0f-46d4-b6c5-30ad1d643fae
We can only hope the Brics relieve the US of some of it's burden.
Knowledge is the enemy of fear
They ALL show it. By nature of being a global reserve currency, the demand for the dollar is not only by Americans but by ALL countries, central banks, global citizens, etc. This means that the supply of dollars must expand to equalize demand.
The only way the supply of dollars can be increased is by running a TRADE DEFICIT which also implies a CAPITAL ACCOUNT SURPLUS. This can be seen from any study of the NIPA accounts.
Credit Default Swaps for the non-Western, non-OECD countries are out of control. NOBODY is trusting those countries with monetary policy. They're a few steps above Argentina which has defaulted 7 times on their debt since 1900 !!
As long as they have oil the west will trust.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
They ALL show it. By nature of being a global reserve currency, the demand for the dollar is not only by Americans but by ALL countries, central banks, global citizens, etc. This means that the supply of dollars must expand to equalize demand.
Wow, just keep piling on the debt, and it's all good, right? I didn't realize that the Keynesians have changed all the textbooks. It figures.
They're a few steps above Argentina which has defaulted 7 times on their debt since 1900 !!
Sounds like Argentina has figured out how to cope with the corrupt international banking system. If Argentina has defaulted so many times, who keeps lending them money, and why?
I knew it would happen.
.
Somebody has been lending Argentina "paper" money (that is created at will and costs the lender nothing).
But nobody is lending Argentina any gold.
.
.
It is not at all a matter of "must".
It is a matter of choice.
If there were no current account (trade deficit) and if the demand for US Dollars around the world was high, the value of the US Dollar would increase substantially, which would be deflationary. The choice has been made not to allow this deflation. Unstable debt structures would collapse (default) and that is not tolerable for the creditors.
.
New bankers from different countries.
New bankers from different countries.
And why?
I knew it would happen.
Because they believe that this time it will be different. Why do people lend to new businesses when 90% of them go under in less than 1 year ?
Only thing that changes is the risk premium on the interest rate. CDS rates for Argentina are about 1100 bp.
Because they believe that this time it will be different.
Because the bankers thrive on steady income streams from money created out of thin air. Sweet deal for the bankers, not so much for those that go out of business.
I knew it would happen.
From time to time over the years I have asked 20 something's if they are aware of where dollars come from, how created,if gold backs the dollar, or what fiat money is etc. They think fiat was an old car their parents drove. They don't seem to be too concerned.
An EMP will get their attention.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
Again, you are spotting nonsense disproved by DECADES of returns and THOUSANDS of banks.
Banking as a business STINKS. Shareholders are about to revolt after 2 decades of lousy returns.
You really need to get out more.
And you might need to be more specific. Retail banking probably does stink. But I'm pretty sure the owners of the federal reserve bank are pretty happy.
Every banker I know is VERY happy. RGDS!
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Fed banking system - money for nothing. Pretty much in your face unless you benefit from the scam. Then the rationalizing begins.
I knew it would happen.
JP Morgan Chase....the Gold Standard among large-cap banks.....has returned 4% a year the last 20 years.
You think shareholders are happy with that ? That's a GOOD return ?
It's the best...and it stinks.
What are you talking about? The stock has doubled in the last 5 years? That is frickin awesome that is why the dividend yield is as you say "stinks".
It doubled from a low related to Covid and bad bank periods pre-2020.
I am talking about TOTAL RETURN over a long time period, and it stinks. Has nothing to do with a depressed dividend yield from a rise in the stock price.
Let me take a wild guess....you're not that financially savvy, right ?
How long of a time period? In September of 2014 JPM was trading in the sixty dollar range. Today it is at $225. I'm not here to argue that retail banking is all unicorns and rainbows, but I don't think I would use JPM as my example that it's terrible. I for one wish all of my investments did that well over the last 10 years. I would be retired sitting on a beach.
Philippians 4:4-7
LOL, Let me guess you are not financially savvy. For the record I have a sizeable precious metal position as a fraction of my total investments. Your point is terrible and wrong. Go look at the stock chart it has been a stellar investment since the 1970's, it has nothing to do with Covid in the long term or short term. It yields 2.2% TODAY and the stock is up .5% today. Had you bought it last year your dividend yield on cost would be over 5%, sitting on an 80% return on the stock and that my friend is a FANTASTIC investment - It is a model investment for unrealized capital gains and yield on cost.
Thank the lord you don't give investment advice professionally.
Probably a Credit Default Swap in the works.
The government is incapable of ever managing the economy. That is why communism collapsed. It is now socialism’s turn - Martin Armstrong
JPM is probably the best-performing bank over the last few decades -- or years. It lags the S&P 500 and most bank stocks have done NOTHING going back to the early-2000's. Just punch up any long-term chart, they don't lie. I have some small bank stocks I track that have done NOTHING for 25-30 years.
You have jokers here who think the Fed controls the world and the banks control the Fed and if that was the case they'd be making lots more profits. Citibank is 1/10th the price of 15 years ago.....BOA is still 1/3rd below. Wells might be at a new ATH, but only JPM is among the mega-banks.
I actually do think banks are OK going forward because I believe consolidation is going to come, and in the meantime I get paid 6-8% on dividends for some of them.
If I'm wrong, I'll still eake out a small gain.
I do give investment advice professionally, and I do it quite well, thank you, for 35 years.
The data aren't comparable to the 1970's given the deals of the 1990's. But using rolling time periods, it lags the S&P 500 in most time periods since 2000.
Again....JPM is the gold-standard among banks....and it is MEDIOCRE compared to an index fund. Which means the AVERAGE bank is lousy.
Man, a number of you can threadcrap a simple PM thread about gold hitting new all time highs.
I open this every now and then just expecting to see a recent price, some excitement or disappointment, but those comments are few and far between. Instead, it just becomes an argument thread about something or another.
Sheeeesh!
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
Fair complaint !!
I've been accurate about the price of gold here (among other things
) and today we finished comfortably above $2,700. Resistance levels are falling fast, it reminds me of the 1970's and the 2000's.
Citibank expects $3,000 by next year. I'll see if I can post some research but I don't believe I can post PDFs.
They tend to be perma-bulls (or perma-bears), but ZeroHedge had a nice roundup on the metal for Friday:
https://www.zerohedge.com/news/2024-10-18/silent-gold-revolution-new-gold-price-breakout
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Banks always have the nicest buildings and offices. Why is that ?
If major banks get no benefit from being members/owners of the Federal Reserve, why do they oppose nationalization of the FED ?
You always said that FED officials could make a lot more working in the private sector. Salaries must be pretty good - better than other "industries". Bank stock prices are not necessarily the best indicator. Salaries, bonuses, and off-the-books and/or unrealized gains are a big part of it.
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Yes, only banks in Manhattan have nice buildings.
Every other industry is located in Bed-Stuy, Ocean Hill, and Brownsville. 
Silicon Valley....Technology....Hollywood....law firms....most Fortune 1,000 companies....they're all in the slums.
You clearly don't get out much.
What does that mean, "nationalization" of the Fed ? You mean the Central Bank is under the control of nincompoops and political actors like the Chinese or Argentinian Central Banks ?
The Fed is already the nation's central bank. It's made $75 billion a year for the Treasury and taxpayers. When you show us another department sending that much each year to reduce the deficit/debt, let us know.
Who's buying the $50 MM mansions in Malibu and The Hamptons -- bankers ? Or Tech/Media moguls ? It's 50-to-1 in favor of one group and it's not bankers.
Citibank will need another 25-30 years to eclipse her 2007 ATH. How'd you like to work there, Dcarr ?