He also stated that the largest portion of the stuctural deficits, i.e., social security and other entitlements will have to be addressed. I wonder what he meant.
Q: Are You Printing Money? Bernanke: Not Literally
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Let me also add that thousands of jobs are going to be lost in the immediate future. New Jersey is likely going to cut 600 state wide police officer jobs by the end of the summer, along with hundreds, if not thousands of school related jobs. So they're looking to lose over 1,000+ jobs within the next two months. There are a lot of other states just like New Jersey. Where are those young men and women going to find work ?
Once we reduce the minimum wage to 50 cents an hour, abolish OT and make 60 hour work weeks mandatory, we should have a cheaper work force then China. Just think, full employment and starvation all at the same time. Ain't it just the most wonderful world we live in.Why in a few more years we can make Bangladesh look like a paradise.
As for Bernanke, he is still puzzled as to why water runs down hill.
It is funny. What do folks expect him to say? Isn't that what one might expert from someone that publicly talked about mass drops of hundred dollar bills from helicopters to say about gold?
A bit more puzzling to some observers, is the flight to U. S. dollars and U. S. Treasuries when the U. S. has about the same magnitude of financial stress, when factoring in state governments and state worker pensions, as the Euro community.
<< <i>Let me also add that thousands of jobs are going to be lost in the immediate future. New Jersey is likely going to cut 600 state wide police officer jobs by the end of the summer, along with hundreds, if not thousands of school related jobs. So they're looking to lose over 1,000+ jobs within the next two months. There are a lot of other states just like New Jersey. Where are those young men and women going to find work ? >>
Move... NJ has the highest tax rate in the country ... MD is ranked #4 .... need to vote out the incumbents and trim the fat.
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
<< <i>Let me also add that thousands of jobs are going to be lost in the immediate future. New Jersey is likely going to cut 600 state wide police officer jobs by the end of the summer, along with hundreds, if not thousands of school related jobs. So they're looking to lose over 1,000+ jobs within the next two months. There are a lot of other states just like New Jersey. Where are those young men and women going to find work ? >>
Nowhere until we to free the "free market" from the government.
<< <i>Let me also add that thousands of jobs are going to be lost in the immediate future. New Jersey is likely going to cut 600 state wide police officer jobs by the end of the summer, along with hundreds, if not thousands of school related jobs. So they're looking to lose over 1,000+ jobs within the next two months. There are a lot of other states just like New Jersey. Where are those young men and women going to find work ? >>
Move... NJ has the highest tax rate in the country ... MD is ranked #4 .... need to vote out the incumbents and trim the fat. >>
If voting could actually make those kinds of changes then voting would be declared illegal.
A bit more puzzling to some observers, is the flight to U. S. dollars and U. S. Treasuries when the U. S. has about the same magnitude of financial stress, when factoring in state governments and state worker pensions, as the Euro community.
Indeed. Either those investing in dollars feel they can get out of them in time or they have not thought it through very well that whatever contagian reigns in Europe, will eventually make its way over here.
It would not surprise me one bit if Bernanke owns some gold.
<< <i>Move... NJ has the highest tax rate in the country ... MD is ranked #4 .... need to vote out the incumbents and trim the fat.
NJ also has the best school system in the country. You get what you pay for. >>
I've lived most of my life in the NY/NJ area. I've seen recent rankings where Maryland, Mass, NY and Virginia rated higher then NJ. New Jeresy was #5 in the only recent poll I could find via Google Search.........Regardless, the US Public School system is woefully sub standard in my humble opinion "on a class curve" when compared to the rest of the first and second world countries. MJ
Walker Proof Digital Album Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>He also stated that the largest portion of the stuctural deficits, i.e., social security and other entitlements will have to be addressed. I wonder what he meant. >>
Could that mean higher taxes for those that work to support those that do not?
Well, the rally in gold is a bit surprising given that M3 monetary growth and core CPI have clearly been disinflationary over the last 9 months or so. Less dollars chasing a more or less finite amount of gold would normally result in a lower price.
Maybe it has something to do with real returns on cash being so low that gold, which has no yield, thus has a lot lower opportunity cost than it would if real interest rates were positive.
All this might suggest that we're headed for lower, not higher, nominal gold prices.
<< <i>Move... NJ has the highest tax rate in the country ... MD is ranked #4 .... need to vote out the incumbents and trim the fat.
NJ also has the best school system in the country. You get what you pay for. >>
I've lived most of my life in the NY/NJ area. I've seen recent rankings where Maryland, Mass, NY and Virginia rated higher then NJ. New Jeresy was #5 in the only recent poll I could find via Google Search.........Regardless, the US Public School system is woefully sub standard in my humble opinion "on a class curve" when compared to the rest of the first and second world countries. MJ >>
I can't find the article, but I did read that New Jersey had the best scores of any state in the union this year. I think they climbed to #1 this year only. Governor Christie and Education Commissioner Schundler blew these new findings off as they continue to try to defame the NJEA teachers union.
I think our schools have created not only the greatest economy in the world, but some of the best inventors, athletes, medical personel, etc., etc., all because we are one nation under God, indivisible, with liberty, and justice for all. Our schools and way of life have generated great things. I do not believe that any other country can surpass us as of now. Perhaps in the future, but not now.
At this point I don't believe a single word the gupermint says! I think they are just telling everyone what they want to hear to keep their damn jobs. What is sad is how many people just don't see what is coming.
PEACE! This is the first day of the rest of your life.
Let me also add that thousands of jobs are going to be lost in the immediate future. New Jersey is likely going to cut 600 state wide police officer jobs by the end of the summer, along with hundreds, if not thousands of school related jobs. So they're looking to lose over 1,000+ jobs within the next two months. There are a lot of other states just like New Jersey. Where are those young men and women going to find work ?
Those were the jobs that the stimulus saved. If they are threatening future losses, then I guess they, in a way, are asking for more.
<< <i>Move... NJ has the highest tax rate in the country ... MD is ranked #4 .... need to vote out the incumbents and trim the fat.
NJ also has the best school system in the country. You get what you pay for. >>
I've lived most of my life in the NY/NJ area. I've seen recent rankings where Maryland, Mass, NY and Virginia rated higher then NJ. New Jeresy was #5 in the only recent poll I could find via Google Search.........Regardless, the US Public School system is woefully sub standard in my humble opinion "on a class curve" when compared to the rest of the first and second world countries. MJ >>
I assure you the Public School system in MD sucks as well. One my sons went to a public High School (over my objections his mother sent him even though I offered a paid private school). He learned how to make screws. When he wanted to go to college he had to take multiple classes just to be eligible for college classes and I am thankfully, working with him now to fix his public education flaws.
Well, the rally in gold is a bit surprising given that M3 monetary growth and core CPI have clearly been disinflationary over the last 9 months or so. Less dollars chasing a more or less finite amount of gold would normally result in a lower price.
Maybe it has something to do with real returns on cash being so low that gold, which has no yield, thus has a lot lower opportunity cost than it would if real interest rates were positive. All this might suggest that we're headed for lower, not higher, nominal gold prices.
-M3 is not a real money supply. It includes items that aren't readily available to influence prices today and double counts numerous items. A better choice is something between M1 and M2, though closer to M1. The Austrians measure of True Money Supply (TMS) has actually been increasing over the past year...now running at +10% per year. It's interesting that when M3 was running off the charts in 2005-2006 the FED decided to get rid of it (ie hide it). Now that M3 is leading the charge downward, every economist/banker is back to focusing solely on it.
-Over the past 20 months M1 has increased greater than 6% each and every month. And if M0 were correctly factored into the M1 equation, those 6% figures would be more like 10-20%. See graphs at shadowstats.com linked below.
-Core CPI is not what you and I pay for goods and services. If one uses the same CPI calculation used in 1979-1980 (the same one that lead to a 15% peak CPI inflation rate), the current rate is near +9%/yr. That's apples to apples. Our inflation rate today is equivalent to the 9% rate we had in 1982. And even using the pre-Clinton era CPI methods, the current CPI would be 5.5%....a far cry from the presently reported 2.5%.
As long as real interest rates remain negative and there is a lack of confidence in world fiat money/sovereign & state debt, then gold will continue to get a bigger share of the economic pie.
think our schools have created not only the greatest economy in the world, but some of the best inventors, athletes, medical personel, etc., etc.
Not all education is good. They need to throw out the professors who are still pushing the Keynesian Theory of Economics to the next generation, indoctrinating the new generation just like the old generation that got us into this mess. Keynes said that spending and not saving is the path to prosperity, the exact model that government is following now which is now bankrupt.
<< <i> Regardless, the US Public School system is woefully sub standard in my humble opinion "on a class curve" when compared to the rest of the first and second world countries. MJ >>
Well I will find out this year how true this is as my daughter is choosing to go to Luca Italy and attend another year of high school. Over there they spend five years in high school unlike here where we spend 4. She is a smart student, did not get it from me, and has taken many AP courses and has been in Leadership for 4 years. Many of her friends are going off to big name colleges and although she will next year her thinking is colleges are not going anywhere and life experienced are worth more to her in this point of here life.
I spend my last senior semester in college studying in Florence. I am glad I did it when I was young. Once in a career those kind of opportunities are rare.
<< <i> Regardless, the US Public School system is woefully sub standard in my humble opinion "on a class curve" when compared to the rest of the first and second world countries. MJ >>
Well I will find out this year how true this is as my daughter is choosing to go to Luca Italy and attend another year of high school. Over there they spend five years in high school unlike here where we spend 4. She is a smart student, did not get it from me, and has taken many AP courses and has been in Leadership for 4 years. Many of her friends are going off to big name colleges and although she will next year her thinking is colleges are not going anywhere and life experienced are worth more to her in this point of here life. >>
Congrat's. I've been to Luca many times. The city has a VERY VERY interesting history. I don't know where Italy ranks in the grand scheme of things scholastically but the experience for your daughter will be priceless in a positive manner. The Scandinavian and Asian educational systems usually rank the highest in science and math.
MJ
Walker Proof Digital Album Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
I just got pushed into a higher tax bracket. I miss my old tax bracket and did not realize how much more the government takes when you are at the next level. It almost not worth getting a raise but every bit helps I guess. As the government(Biden) says we are all equal. Take from those that produce to give to those that do not so we can all be equal.
M3 is not a real money supply. It includes items that aren't readily available to influence prices today and double counts numerous items. A better choice is something between M1 and M2, though closer to M1. The Austrians measure of True Money Supply (TMS) has actually been increasing over the past year..
The difference between M2 and M3 is defined as "large time deposits, institutional money market funds, short-term repurchase and other larger liquid assets" on Investopedia, and also includes bank repos and Eurodollar contracts. Contraction of M3 is correlated with contraction in bank credit, which I'd hazard has hit small business and consumers the hardest. How would that not drive monetary velocity, if not supply and hence influence prices?
Regardless of whose monetary aggregates one prefers to follow, I think we're saying the same thing, at least in part: near zero or negative real interest rates are a large part of what makes gold attractive right now. In my opinion, prolonged disinflation or deflation would correct that by driving up the value of money, leading to positive real interest rates, and lowering the price of gold. Geopolitical risk is, as always, a wildcard.
Comments
I knew it would happen.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
Camelot
New Jersey is likely going to cut 600 state wide police officer jobs by the end of the summer, along with hundreds, if not thousands of school related jobs. So they're looking to lose over 1,000+ jobs within the next two months. There are a lot of other states just like New Jersey.
Where are those young men and women going to find work ?
mandatory, we should have a cheaper work force then China. Just think, full employment and
starvation all at the same time. Ain't it just the most wonderful world we live in.Why in a few more
years we can make Bangladesh look like a paradise.
As for Bernanke, he is still puzzled as to why water runs down hill.
Camelot
<< <i>Helicopter Ben doesn't have a clue.
It is funny. What do folks expect him to say? Isn't that what one might expert from someone that publicly talked about mass drops of hundred dollar bills from helicopters to say about gold?
A bit more puzzling to some observers, is the flight to U. S. dollars and U. S. Treasuries when the U. S. has about the same magnitude of financial stress, when factoring in state governments and state worker pensions, as the Euro community.
http://www.usdebtclock.org/
I have a very strict gun control policy: if there's a gun around, I want to be in control of it - Clint Eastwood
<< <i>Let me also add that thousands of jobs are going to be lost in the immediate future.
New Jersey is likely going to cut 600 state wide police officer jobs by the end of the summer, along with hundreds, if not thousands of school related jobs. So they're looking to lose over 1,000+ jobs within the next two months. There are a lot of other states just like New Jersey.
Where are those young men and women going to find work ? >>
Move... NJ has the highest tax rate in the country ... MD is ranked #4 .... need to vote out the incumbents and trim the fat.
<< <i>Let me also add that thousands of jobs are going to be lost in the immediate future.
New Jersey is likely going to cut 600 state wide police officer jobs by the end of the summer, along with hundreds, if not thousands of school related jobs. So they're looking to lose over 1,000+ jobs within the next two months. There are a lot of other states just like New Jersey.
Where are those young men and women going to find work ? >>
Nowhere until we to free the "free market" from the government.
Free Trial
<< <i>
<< <i>Let me also add that thousands of jobs are going to be lost in the immediate future.
New Jersey is likely going to cut 600 state wide police officer jobs by the end of the summer, along with hundreds, if not thousands of school related jobs. So they're looking to lose over 1,000+ jobs within the next two months. There are a lot of other states just like New Jersey.
Where are those young men and women going to find work ? >>
Move... NJ has the highest tax rate in the country ... MD is ranked #4 .... need to vote out the incumbents and trim the fat. >>
If voting could actually make those kinds of changes then voting would be declared illegal.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
I knew it would happen.
NJ also has the best school system in the country. You get what you pay for.
Indeed. Either those investing in dollars feel they can get out of them in time or they have not thought it through very well that whatever contagian reigns in Europe, will eventually make its way over here.
It would not surprise me one bit if Bernanke owns some gold.
roadrunner
These types of comments should be enough for him to do us all a favor and find another endeavor.
<< <i>Move... NJ has the highest tax rate in the country ... MD is ranked #4 .... need to vote out the incumbents and trim the fat.
NJ also has the best school system in the country. You get what you pay for. >>
I've lived most of my life in the NY/NJ area. I've seen recent rankings where Maryland, Mass, NY and Virginia rated higher then NJ. New Jeresy was #5 in the only recent poll I could find via Google Search.........Regardless, the US Public School system is woefully sub standard in my humble opinion "on a class curve" when compared to the rest of the first and second world countries. MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>He also stated that the largest portion of the stuctural deficits, i.e., social security and other entitlements will have to be addressed. I wonder what he meant. >>
Could that mean higher taxes for those that work to support those that do not?
https://www.pcgs.com/setregistry/gold/liberty-head-2-1-gold-major-sets/liberty-head-2-1-gold-basic-set-circulation-strikes-1840-1907-cac/alltimeset/268163
Maybe it has something to do with real returns on cash being so low that gold, which has no yield, thus has a lot lower opportunity cost than it would if real interest rates were positive.
All this might suggest that we're headed for lower, not higher, nominal gold prices.
<< <i>
<< <i>Move... NJ has the highest tax rate in the country ... MD is ranked #4 .... need to vote out the incumbents and trim the fat.
NJ also has the best school system in the country. You get what you pay for. >>
I've lived most of my life in the NY/NJ area. I've seen recent rankings where Maryland, Mass, NY and Virginia rated higher then NJ. New Jeresy was #5 in the only recent poll I could find via Google Search.........Regardless, the US Public School system is woefully sub standard in my humble opinion "on a class curve" when compared to the rest of the first and second world countries. MJ >>
I can't find the article, but I did read that New Jersey had the best scores of any state in the union this year. I think they climbed
to #1 this year only. Governor Christie and Education Commissioner Schundler blew these new findings off as they continue to try
to defame the NJEA teachers union.
I think our schools have created not only the greatest economy in the world, but some of the best inventors, athletes, medical personel,
etc., etc., all because we are one nation under God, indivisible, with liberty, and justice for all. Our schools and way of
life have generated great things. I do not believe that any other country can surpass us as of now. Perhaps in the future, but not now.
Fred, Las Vegas, NV
New Jersey is likely going to cut 600 state wide police officer jobs by the end of the summer, along with hundreds, if not thousands of school related jobs. So they're looking to lose over 1,000+ jobs within the next two months. There are a lot of other states just like New Jersey.
Where are those young men and women going to find work ?
Those were the jobs that the stimulus saved. If they are threatening future losses, then I guess they, in a way, are asking for more.
<< <i>
<< <i>Move... NJ has the highest tax rate in the country ... MD is ranked #4 .... need to vote out the incumbents and trim the fat.
NJ also has the best school system in the country. You get what you pay for. >>
I've lived most of my life in the NY/NJ area. I've seen recent rankings where Maryland, Mass, NY and Virginia rated higher then NJ. New Jeresy was #5 in the only recent poll I could find via Google Search.........Regardless, the US Public School system is woefully sub standard in my humble opinion "on a class curve" when compared to the rest of the first and second world countries. MJ >>
I assure you the Public School system in MD sucks as well. One my sons went to a public High School (over my objections his mother sent him even though I offered a paid private school). He learned how to make screws. When
he wanted to go to college he had to take multiple classes just to be eligible for college classes and I am thankfully, working with him now to fix his public education flaws.
Free Trial
Maybe it has something to do with real returns on cash being so low that gold, which has no yield, thus has a lot lower opportunity cost than it would if real interest rates were positive. All this might suggest that we're headed for lower, not higher, nominal gold prices.
-M3 is not a real money supply. It includes items that aren't readily available to influence prices today and double counts numerous items. A better choice is something between M1 and M2, though closer to M1. The Austrians measure of True Money Supply (TMS) has actually been increasing over the past year...now running at +10% per year. It's interesting that when M3 was running off the charts in 2005-2006 the FED decided to get rid of it (ie hide it). Now that M3 is leading the charge downward, every economist/banker is back to focusing solely on it.
-Over the past 20 months M1 has increased greater than 6% each and every month. And if M0 were correctly factored into the M1 equation, those 6% figures would be more like 10-20%. See graphs at shadowstats.com linked below.
-Core CPI is not what you and I pay for goods and services. If one uses the same CPI calculation used in 1979-1980 (the same one that lead to a 15% peak CPI inflation rate), the current rate is near +9%/yr. That's apples to apples. Our inflation rate today is equivalent to the 9% rate we had in 1982. And even using the pre-Clinton era CPI methods, the current CPI would be 5.5%....a far cry from the presently reported 2.5%.
As long as real interest rates remain negative and there is a lack of confidence in world fiat money/sovereign & state debt, then gold will continue to get a bigger share of the economic pie.
roadrunner
etc., etc.
Not all education is good. They need to throw out the professors who are still pushing the Keynesian Theory of Economics to the next generation, indoctrinating the new generation just like the old generation that got us into this mess. Keynes said that spending and not saving is the path to prosperity, the exact model that government is following now which is now bankrupt.
Where Keynes Went Wrong
Box of 20
<< <i>
Regardless, the US Public School system is woefully sub standard in my humble opinion "on a class curve" when compared to the rest of the first and second world countries. MJ >>
Well I will find out this year how true this is as my daughter is choosing to go to Luca Italy and attend another year of high school. Over there they spend five years in high school unlike here where we spend 4. She is a smart student, did not get it from me, and has taken many AP courses and has been in Leadership for 4 years. Many of her friends are going off to big name colleges and although she will next year her thinking is colleges are not going anywhere and life experienced are worth more to her in this point of here life.
Box of 20
<< <i>Helicopter Ben doesn't have a clue.
"It's the economy, stupid."
<< <i>
<< <i>
Regardless, the US Public School system is woefully sub standard in my humble opinion "on a class curve" when compared to the rest of the first and second world countries. MJ >>
Well I will find out this year how true this is as my daughter is choosing to go to Luca Italy and attend another year of high school. Over there they spend five years in high school unlike here where we spend 4. She is a smart student, did not get it from me, and has taken many AP courses and has been in Leadership for 4 years. Many of her friends are going off to big name colleges and although she will next year her thinking is colleges are not going anywhere and life experienced are worth more to her in this point of here life. >>
Congrat's. I've been to Luca many times. The city has a VERY VERY interesting history. I don't know where Italy ranks in the grand scheme of things scholastically but the experience for your daughter will be priceless in a positive manner. The Scandinavian and Asian educational systems usually rank the highest in science and math.
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
The model that the government has followed that is causing such a bankruptcy is cutting taxes to get (re)elected and not paying for wars of choice.
What did you expect?
We all know the reasons why this is so.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
<< <i>Keynes said that spending and not saving is the path to prosperity, the exact model that government is following now which is now bankrupt.
The model that the government has followed that is causing such a bankruptcy is cutting taxes to get (re)elected and not paying for wars of choice.
What did you expect? >>
I would argue that it is not the goverments lack of collecting revenue past,present or future but the callous disregard for spending!.. JMHO.
I would argue that it is not the goverments lack of collecting revenue past,present or future
...is cutting taxes....
but the callous disregard for spending!..
...and not paying for wars...
I knew it would happen.
Box of 20
The difference between M2 and M3 is defined as "large time deposits, institutional money market funds, short-term repurchase and other larger liquid assets" on Investopedia, and also includes bank repos and Eurodollar contracts. Contraction of M3 is correlated with contraction in bank credit, which I'd hazard has hit small business and consumers the hardest. How would that not drive monetary velocity, if not supply and hence influence prices?
Regardless of whose monetary aggregates one prefers to follow, I think we're saying the same thing, at least in part: near zero or negative real interest rates are a large part of what makes gold attractive right now. In my opinion, prolonged disinflation or deflation would correct that by driving up the value of money, leading to positive real interest rates, and lowering the price of gold. Geopolitical risk is, as always, a wildcard.