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PMs, Hard Assets, and the economic collapse

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  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    One step at a time. Let's let the current 8.6 year cycle into October 2015 play out first. It should become a lot more apparent at that time what will work and what won't. No real clue at the moment. Though I suspect commodities will be one of the areas ripe for better days. Having money inside the system could be a real issue as it can be rehypothecated to pay off banker's debts. Keeping what you have might end up being much more important than trying to grow it. The stock market run up from 1982-2014 has not pulled back for more than 1-1/2 to 3 years at a time. How natural is that? It took 25 years to regain the 1929 highs. When was the last time we had that condition? What are the odds of seeing it again? It was 16 years from 1966-1982. And it's gotten shorter every time since....6-7 years since the last 2 peaks.

    A very nice Elliot Wave pattern of waves 1 (1929), 2 (1932), 3 (1966), 4 (1982), 5 (201X). Interesting that each rally is about 34 years (a Fib number). 1982 + 34 = 2016. Have to wonder if the past 114 charts is an extended wave 5 of a 214-240 year pattern. The 1800's show a 3 wave pattern.

    1900-2014 DOW

    1800 - 1900 DOW
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • bidaskbidask Posts: 14,017 ✭✭✭✭✭


    << <i>One step at a time. Let's let the current 8.6 year cycle into October 2015 play out first. It should become a lot more apparent at that time what will work and what won't. No real clue at the moment. Though I suspect commodities will be one of the areas ripe for better days. Having money inside the system could be a real issue as it can be rehypothecated to pay off banker's debts. Keeping what you have might end up being much more important than trying to grow it. The stock market run up from 1982-2014 has not pulled back for more than 1-1/2 to 3 years at a time. How natural is that? It took 25 years to regain the 1929 highs. When was the last time we had that condition? What are the odds of seeing it again. >>

    I think it's very small odds.

    With your apparent concern where do you keep your money?
    I manage money. I earn money. I save money .
    I give away money. I collect money.
    I don’t love money . I do love the Lord God.




  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Don't ALL people have concerns with their money? Where do they keep it? Does one size fit all? Mine is not under the mattress nor is it with a financial advisor.

    You're the professional money manager looking ahead for your clients. Where do you expect to have them invested in 2016-2020? Let me guess, the stock market?

    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • renman95renman95 Posts: 7,037 ✭✭✭✭✭


    << <i>One step at a time. Let's let the current 8.6 year cycle into October 2015 play out first. It should become a lot more apparent at that time what will work and what won't. No real clue at the moment. Though I suspect commodities will be one of the areas ripe for better days. Having money inside the system could be a real issue as it can be rehypothecated to pay off banker's debts. Keeping what you have might end up being much more important than trying to grow it. The stock market run up from 1982-2014 has not pulled back for more than 1-1/2 to 3 years at a time. How natural is that? It took 25 years to regain the 1929 highs. When was the last time we had that condition? What are the odds of seeing it again. >>



    Okay, but is it required? (To have long periods of recovery.) Maybe it has more to do with demographics. Japan is in a 25 year contraction and counting. Will the actions of 76 million BB's create the same in the States? Starting next year or so?
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    The BB's have created this longer term debt cycle that is ready to be passed on to the next generation. If it's not passed on then it's getting to be time for a reset. We've had major blowouts in one asset class after another since 2000 (debt being deleveraged). The only two things left are stocks and bonds. Will they go on bubbling forever or finally get a major pull back? I think the odds are slim that they can keep on dodging it. Armstrong's models also have a war cycle that just began to make the next 6 years even more challenging. I thought we've been in a war on terror cycle for the past 20 years.

    Long periods of recovery may not be needed in the SM if the retracement is severe (like 1929-1932 or even 1987 for example). If a current SM 5th wave is thrusting higher above the consolidation pattern of 2000-2013, the blow out to the downside could be epic. Most would consider it to be nearly impossible. Banks with $900 TRILL in "profitable" otc interest rate swaps is "impossible" too. When was the last time the bond market blew up?
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • ARCOARCO Posts: 4,396 ✭✭✭✭✭


    << <i>One world currency and riots in the streets are coming. To those who understand no explanation is needed, to those who do not
    understand, no explanation would suffice. >>

    This is a prediction that didn't quite pan out.
  • bidaskbidask Posts: 14,017 ✭✭✭✭✭


    << <i>Don't ALL people have concerns with their money? Where do they keep it? Does one size fit all? Mine is not under the mattress nor is it with a financial advisor.

    You're the professional money manager looking ahead for your clients. Where do you expect to have them invested in 2016-2020? Let me guess, the stock market? >>

    No my clients are well diversified. That's part of the trick of maintaining what you have.

    Where do you come up with bs about 120 year cycles ? You were not around in 1894 either.

    Honestly you need a good financial advisor. Your to mistrustful.
    I manage money. I earn money. I save money .
    I give away money. I collect money.
    I don’t love money . I do love the Lord God.




  • bidaskbidask Posts: 14,017 ✭✭✭✭✭


    << <i>The BB's have created this longer term debt cycle that is ready to be passed on to the next generation. If it's not passed on then it's getting to be time for a reset. We've had major blowouts in one asset class after another since 2000 (debt being deleveraged). The only two things left are stocks and bonds. Will they go on bubbling forever or finally get a major pull back? I think the odds are slim that they can keep on dodging it. Armstrong's models also have a war cycle that just began to make the next 6 years even more challenging. I thought we've been in a war on terror cycle for the past 20 years.

    Long periods of recovery may not be needed in the SM if the retracement is severe (like 1929-1932 or even 1987 for example). If a current SM 5th wave is thrusting higher above the consolidation pattern of 2000-2013, the blow out to the downside could be epic. Most would consider it to be nearly impossible. Banks with $900 TRILL in "profitable" otc interest rate swaps is "impossible" too. When was the last time the bond market blew up? >>

    There is no doubt at some point the bond and stock market corrects.

    But your 120 year Armageddon hype is silly.

    For a guy that doesn't want to be an advisor why do you post some many opinions .......and especially ones like this?
    I manage money. I earn money. I save money .
    I give away money. I collect money.
    I don’t love money . I do love the Lord God.




  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Sorry if I've spent over 10,000 hours researching this stuff the past 12 years. It's now a crime to have researched and have "many" opinions? Too funny. I post my thoughts freely for others to evaluate as they desire. Some of it was original research that I found no one else posting elsewhere. I don't have to charge them $$ for information that can be researched on their own. I've been posting opinions here since 2002. You're the first one to "complain" about it. I've also posted daily in financial blogs (without pay) for the past 5 years. Others have thought highly of my inputs. Again, sorry if I don't measure up to your financial "advisor" standards. We don't even know what BidAsk's recommendations are. All we know is that you've hated PMs since at least 2006.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • bidaskbidask Posts: 14,017 ✭✭✭✭✭


    << <i>

    << <i>

    << <i>Don't ALL people have concerns with their money? Where do they keep it? Does one size fit all? Mine is not under the mattress nor is it with a financial advisor.

    You're the professional money manager looking ahead for your clients. Where do you expect to have them invested in 2016-2020? Let me guess, the stock market? >>

    No my clients are well diversified. That's part of the trick of maintaining what you have.

    Where do you come up with bs about 120 year cycles ? You were not around in 1894 either.

    Honestly you need a good financial advisor. Your to mistrustful. >>




    You can't even answer my question about where your money will likely be investred in the next 5 years. Why would I trust anyone without a game plan and some longer term insight? You bet I'm mistrustful.

    BS about 120 yr cycles? You need to do some reading on economic and business cycles, all of which are heavily documented. You mean you've just been winging for the past 30 years? Check into Kress cycles, the 4th turning, economic winter/Kondratieff cycles, Armstrong's ECM, etc. You figure if big corporations and governments follow these cycles, maybe there's something to them? You don't think the FED follows business cycles? There are 14 - 8.6 year business cycles in a 120 yr economic cycle. Yeah, I just make this stuff up in my spare time. Chart patterns are worthless too. What did Edwards and Magee know? I many not have been around in 1894 but I can read history and financial data from those periods. Those who don't follow history are bound to repeat the mistakes. The same cycles have been repeating for hundreds of years.

    For a guy that doesn't want to be an advisor why do you post some many opinions .......and especially ones like this?

    Sorry if I've spent over 10,000 hours researching this stuff the past 12 years. It's now a crime to have researched and have "many" opinions. Too funny. I post my thoughts freely for others to evaluate as they desire. I don't have to charge them $$ for information that can be researched on their own. I've been posting opinions here since 2002. You're the first one to "complain" about it. >>

    Ok, so honestly with the research you have done can you ballpark how you have allocated your assets since 2002?

    I manage money. I earn money. I save money .
    I give away money. I collect money.
    I don’t love money . I do love the Lord God.




  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭


    << <i>Ok, so honestly with the research you have done can you ballpark how you have allocated your assets since 2002? >>



    I've contributed more than my share around here since 2002. You can go back to the old "gold and economic" threads to figure out how I was allocated. I'm more interested in how you allocated client assets from 2000-2011, and then 2011-2014. You've shot down anything I've had to say the past 8+ years. Where does BidAsk stand on client investments since 2000? Inquiring minds want to know. But, I am flabbergasted that a professional money manager would disavow the idea of a business cycle, especially the most important one.

    I googled this one and there sure are a lot of jamokes who wrote about such nonsensical cycles.

    fficial&client=firefox-a&channel=fflb">120 year cycle
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Google "120 yr economic cycle" or "Kress cycles."

    Even Wiki talks about grand super cycles of 50-60 year lengths.

    Kondratieff cycle - note the 20 year winter patterns

    All a bunch of bunk if you ask me. image
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • OperationButterOperationButter Posts: 1,672 ✭✭✭


    << <i>

    << <i>1987, 1990-1992, 2000-2002, 2008-2009,

    Been there, done that, still have 90% of my clients and they all have higher net worth. >>



    Those aren't 120 yr debt wash out cycles....unless you were alive back in 1894. All those time frames you list above are all part of the 82 year rising stock market-rising bond prices (rising debt) cycle. No real washouts there...just minor corrections. 2016-2020 will be a very difficult period to maintain net worth, let alone increase it. >>



    Just curious, do you have recommendations on where to preserve capital/invest during this time frame. If there really is a 120yr cycle, no one alive has navigated through it, im curious what the real plays are during this 4yr hellish cycle. thanks.
    Gold is for savings. Fiat is for transactions.



    BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole
  • jmski52jmski52 Posts: 22,854 ✭✭✭✭✭
    We've had major blowouts in one asset class after another since 2000 (debt being deleveraged). The only two things left are stocks and bonds. Will they go on bubbling forever or finally get a major pull back? I think the odds are slim that they can keep on dodging it. Armstrong's models also have a war cycle that just began to make the next 6 years even more challenging.

    Before there can be any meaningful reset (or "trust") the accounting system has to be put back onto honest standards. In my opinion you have to be crazy or stupid to trust the system right now. Bidask can think whatever he wants to maintain his belief in this stock market fairytale, and that's his business. He may have 35 years in the industry, but they've only taught him what they want him to know. So be it. Que' Sera Sera. lol.

    There were reasons that Glass Stegal was enacted, and those reasons are glaringly apparent today. Clinton and Rubin (and Jim Leach) screwed us really bad, with the help of a Republican Congress, and the banks are the only ones who ever benefited. Now, instead of a bogus financial system based upon fiat currency and fractional reserve banking, we have an entire financial system that's based on..........deceit and lies. That's as charitable as it can be said. It's the legacy we've been saddled with.

    We may have benefited for a few decades under GHW Bush's NWO, but the rest of the world has decided that they aren't playing anymore. The problem is with integrity. We can't even call something what it is anymore, for the sake of political correctness. Orwell would be astonished. We had better hope that our economy is self-sustaining and that we haven't shipped every manufacturing advantage and technique overseas. We're going to need them.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • streeterstreeter Posts: 4,312 ✭✭✭✭✭
    After reading entries on this blog for over 10 years I can say that I have found some posts entertaining & intelligent and others not so much.
    I have some respect for critics-sometimes very little.
    I have some respect for people in 'in the arena' - most of the time a lot.

    Hanging on my office wall is a copy of a speech by T. Roosevelt.

    It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.

    In 2020, the sun will still be coming up in the morning.
    Have a nice day
  • jmski52jmski52 Posts: 22,854 ✭✭✭✭✭
    Don't worry streeter. Some critics are critics because they are in the arena. Those of us who joust in the arena every day know very well what working for a living is all about. We face the obstacles and strive for great things every single day in the arena and we know how to get things done. The last thing we need is a financial advisor who skims another few percents off the top. We have PayPal for that already.image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • mikliamiklia Posts: 1,295 ✭✭✭


    << <i>One world currency >>



    GOOOOOOOOOLD! wait..err..
  • streeterstreeter Posts: 4,312 ✭✭✭✭✭
    JM,
    I've never been worried about you. You're our Midwestern common sense guy. With seemingly very little ax to grind.

    I'm concerned with both non and active participants here who think and might also be influenced by critics who rely on newsletters and internet blogs with chips on their shoulders for what passes for advice.

    I'm starting to get the feeling that some people around here suffer from inferiority complex. Where is DPOOLE when you need him?image
    Have a nice day
  • streeterstreeter Posts: 4,312 ✭✭✭✭✭
    JM,

    BTW, I do not use a "financial advisor". I'm quite capable of shooting myself in the foot w/o any help.

    In the occupation that I was pretty fair to middlin at for the 20 years after I got out of school, many of the people I interacted with and some that were my clients had net worth of nine figures. A common thread that I observed was that most of them managed people very well. Rarely did they ever delegate responsibility to people who had nothing to lose by making a poor decision. Hope was not a game plan.

    If you have assets in the deal and the other side has nothing to lose if you lose then the only solace I could give is look in the mirror to see the person with the incomplete game plan and don't do it again.

    BTW, what's all the noise about gold being so good for backing a currency? If gold were stable-which it is not- you still get nicked 5% round trip. That's too much.
    Have a nice day
  • bidaskbidask Posts: 14,017 ✭✭✭✭✭
    I'm in Dallas for the last few days and have met with four different good clients of mine worth a combined $40 million.

    And they all pay a fee. Go figure!

    I manage money. I earn money. I save money .
    I give away money. I collect money.
    I don’t love money . I do love the Lord God.




  • luckybucksluckybucks Posts: 1,318 ✭✭✭
    I listen to alternative media and have heard alot of blabbing about an economic collapse over the past five years. It hasn't happened yet, and nobody knows when it will happen (it will someday). Anything is possible.

    Rather than worry about another boogeyman, why not just live life, be happy, and invest wisely?

    Now is a fantastic time to invest in hard assets. Will prices go lower ? When prices eventually go back up, how high will they go? Nobody knows the future.

    IMO gold and silver are at bargain prices right now and prices surely will go much higher at some point. At best, there is money to be made, and at worst, if the economy does collapse in our lifetimes, we have real money to fall back on. In a case of a collapse, skilled labor, seeds, and food are also good sources of barter.
  • OperationButterOperationButter Posts: 1,672 ✭✭✭


    << <i>Sorry if I've spent over 10,000 hours researching this stuff the past 12 years. It's now a crime to have researched and have "many" opinions. Too funny. I post my thoughts freely for others to evaluate as they desire. Some of it was original research that I found no one else posting elsewhere. I don't have to charge them $$ for information that can be researched on their own. I've been posting opinions here since 2002. You're the first one to "complain" about it. I've also post daily in financial blogs (without pay) for the past 5 years. Others have thought highly of my inputs. Again, sorry if I don't measure up to your financial "advisor" standards. We don't even know what BidAsk's recommendations are. All we know is that you've hated PMs since at least 2006. >>



    Please keep posting, I enjoy your commentary. image
    Gold is for savings. Fiat is for transactions.



    BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole
  • OperationButterOperationButter Posts: 1,672 ✭✭✭


    << <i>Before there can be any meaningful reset (or "trust") the accounting system has to be put back onto honest standards. >>



    This needs a significant overhaul. Many here arent accountants or understand accounting past the basic debt/credit, but I completely agree that this needs a complete rework.
    Gold is for savings. Fiat is for transactions.



    BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole
  • jmski52jmski52 Posts: 22,854 ✭✭✭✭✭
    Many here arent accountants or understand accounting past the basic debt/credit

    As I recall, it was TARP that redefined what is allowed as an asset, which allowed the big banks to restate their financial positions based on what is still toxic paper, and nothing more. They used to prosecute this kind of fraud. Now they allow it. The only problem is that it does not reflect the reality of the financial condition.

    This is a problem that will come to the surface when someone "important" will want to be paid and there won't be anything to pay it with. Everyone knows where the money has to come from, and thus far the unfunded liabilities have been refinanced by Treasury on the fly, as usual. The problem is that the "due dates" are coming more frequently and closer together.

    What did I hear yesterday? That they had to bump the debt by a $trillion in the past 8 weeks, just to roll over the expiring debt.

    Pretty soon, it will require all hands on deck, but as of this moment nobody's even in the control room. It's not just fiat currency. It's fiat this, and fiat that. Poof anything you want into existence. Again, the problem is that reality always gets its way in the end.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    "The key to shorting is selling high, not selling low." - Adam Hamilton

    Translation: Those driving the paper price down do so believing it will not stay down.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • BaleyBaley Posts: 22,660 ✭✭✭✭✭


    << <i>After reading entries on this blog for over 10 years I can say that I have found some posts entertaining & intelligent and others not so much.
    I have some respect for critics-sometimes very little.
    I have some respect for people in 'in the arena' - most of the time a lot.

    Hanging on my office wall is a copy of a speech by T. Roosevelt.

    It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.

    In 2020, the sun will still be coming up in the morning. >>



    Good post. I've had that TR quote up in my office for going on 30 years and never get tired of reading it.

    Liberty: Parent of Science & Industry

  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    Still Too Big To Fail

    "The top six bank holding companies are considerably larger
    than before, and are still permitted to borrow excessively relative
    to the assets they hold. They are dangerously interconnected
    and remain vulnerable to sudden runs, because they borrow
    billions of dollars from wholesale lenders who can often demand
    their cash back each and every day. Banks can still use taxpayer-backed
    insured deposits to engage in high-risk derivative
    transactions here and overseas. Compensation incentives fail to
    discourage mismanagement and illegality, given that when legal
    fees, settlements, and fines mount, it is usually the shareholders,
    not the corporate executives who pay.
    Should one of these giant banking firms fail again, it appears
    that the damage will not be contained. Based on thirteen of the
    largest banks’ own “living wills,” none could file for bankruptcy
    “without precipitating a financial crisis,”
    according to Thomas
    Hoenig, vice chairman of the Federal Deposit Insurance Corporation
    (“FDIC”). "

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • bluelobsterbluelobster Posts: 1,220 ✭✭✭
    One thing we know for sure, is many people and doubly so for many posters here, should never give financial advice, to loved ones or any others, unlest they have no fear of causing grievous injury to those that receive it.
  • mariner67mariner67 Posts: 2,746 ✭✭✭


    << <i>One thing we know for sure, is many people and doubly so for many posters here, should never give financial advice, to loved ones or any others, unlest they have no fear of causing grievous injury to those that receive it. >>



    Amen!
    Successful trades/buys/sells with gdavis70, adriana, wondercoin, Weiss, nibanny, IrishMike, commoncents05, pf70collector, kyleknap, barefootjuan, coindeuce, WhiteTornado, Nefprollc, ajw, JamesM, PCcoins, slinc, coindudeonebay,beernuts, and many more
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