Reuters reporting this information....not Zero Hedge.
There "can't" be manipulation or price rigging in gold by the 5 sources that each and every day decide the London AM and PM price fixes because Cohodk, Baley, and others keep telling us it isn't so. They can manipulate stocks, bonds, libor, interest rates, derivatives/futures, and currencies.....but never PMs....as those markets are "too small" and "no one" cares.
I guess they picked the right word when they chose the word price "fix" back in the day. JPM and now Deutsche bank getting out of the PM commodity trading business? Gee...what a coincidence. Now everyone gets a slap on the wrist here and maybe a 1/2 to 1% "penalty" on their trading profits over the past dozen years. That should really show them that this type of behavior will not be condoned.
In this here very forum from 2008 to 2012 all I heard was how poorly stocks performed, lost decades and the like. You mean all that wasn't true?
What you heard on this forum is how poorly stocks and real estate would be performing since 2008, if not for the massive injections of "liquidity" in the very extensive Bank Bailouts, TARP, Stimulus, QE1, QE2, Twist, QE3, and, and....where are we now already? Are we at QE4 or QE5? I forget. And you really think that stock prices are rising on their own? If that's the case, I have one question for you. Where'd all of the money go?
<<The main difference now is that the Fed/Gov are the ones who pick the winners and losers. If you don't support their policies and keep your money away from their pet projects, you risk losing. There's absolutely no doubt that the Fed/Gov wants money in the stock market and real estate right now, and not in bonds or physical assets. The low interest rates aren't because of market action, they're because of QE. Simple as that.>>
I vehemently disagree. But you already knew that.
You really don't think that the Zero Interest Rate Policy isn't designed to funnel people's money out of bonds or physical assets, and into stocks & real estate? Really? You think people should buy bonds that yield 0.1%? You really don't think that there was a real estate bubble in 2008 and that it's being reinflated right now? Really? I gave you more credit than that.
Q: Are You Printing Money? Bernanke: Not Literally
Armstrong has already called a top in real estate a couple years ago. The next bottom is due in 2033. It doesn't have to be a lower low though as inflation can disguise loss of true value. His ECM model shows confidence in a final peak in September 2015. So it's certainly possible this dead cat bounce in housing prices can meader around for another 1-2 years. A lot will depend on how long the stock market can be kept levitated by QE.
No formal report issued to IMF, GFMS, etc. but this wouldn't come as any surprise. I'd have thought they'd be at 3,000-5,000 tonnes by now. They have increased their reserves by over 5X prior to 2009. Hey, they might by lying despite importing >1,000 tonnes of gold last year and now being the world's leading gold producer at >350 tonnes/year.
If their goal was to continue higher to match Germany and then the USA, I don't know why they even said anything about this until AFTER they got there. After 4-5 years of silence they were probably getting pushed to make an update since it was pretty likely they were rapidly growing gold reserves. They could still be understating how much they have.....but, that's only conjecture. I have no idea why they were buying 1700 tonnes of gold over these past 4 years when they could have been buying shares of Kellogg, General Mills, and Hormel.
It suggests the metals and currency rigging is worse than Libor. Sheesh. We've been saying that around here for years. Lawmakers are starting to squawk that behemoths like JPM and MS are messing with commodity prices. The FED has been "examining" this area for the past 6 years.....a little bit longer than the CFTC had been "examining" the silver manipulation claim. We can always count on a lengthy examination of issues....just no resolutions.
It was the $200 BILL in silver derivatives in July 2008 that took down silver over the next few months.
This is a fact? You mean to tell me that at a time when EVERY ASSET (save US Treasuries) was losing value, that silver would have maintained its value if not for some derivatives?
<< <i>It was the $200 BILL in silver derivatives in July 2008 that took down silver over the next few months.
This is a fact? You mean to tell me that at a time when EVERY ASSET (save US Treasuries) was losing value, that silver would have maintained its value if not for some derivatives? >>
The doubling of silver derivatives to $200 BILL during the middle of 2008 is a fact. There's no doubt that those amount of derivatives sped up silver's decline and ensured no chance of recovery in the short term. Gold derivatives were also spiked as well during that period (to over $600 BILL if I recall correctly). I would agree that silver was headed down in 2008. I just don't think it would have fallen as fast or as far w/o the help from derivatives.
"The hearing was called by Senator Sherrod Brown, Chair of the Subcommittee on Financial Institutions and Consumer Protection, part of the Senate Banking Committee. And there was good cause for a chill in the air. Despite the most costly bailout of Wall Street in the history of finance after its collapse in 2008, not one of the seven Republican members of this subcommittee showed up at the hearing; not one submitted a question to be asked of the witnesses."
"Senator Brown told the participants at the hearing that “the six largest U.S. bank holding companies have 14,420 subsidiaries, only 19 of which are traditional banks.” In July 2012, the Federal Reserve Bank of New York issued a study titled A Structural View of U.S. Bank Holding Companies. That report presented a frightening picture of the encroachment of banks into commodities and the industrial side of the U.S. economy."
"The study showed that U.S. bank holding companies owned 16 utilities; 479 insurance companies; 2,388 real estate firms; 1,682 healthcare and social assistance companies; and 5 mines. We know from more recent revelations that Wall Street’s largest banks own at least 104 metal warehouses with complaints coming from beer and soda manufacturers that these firms control the London Metal Exchange and are rigging the price of aluminum to the detriment of both the manufacturers and consumers."
Things sure seemed to work better when banks stuck to just banking.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
The banks get their tenacles in everything to ensure they will always be bailed out. They figured out that taking the U.S. economy hostage works for their benefit.
"How can the government and mainstream media be reporting an economic recovery when the industry (consumer spending) that accounts for 70% of GDP is in free fall?"
"The decades of mal-investment in retail stores was enabled by Greenspan, Bernanke, and their Federal Reserve brethren. Their easy money policies enabled Americans to live far beyond their true means through credit card debt, auto debt, mortgage debt, and home equity debt. This false illusion of wealth and foolish spending led mega-retailers to ignore facts and spread like locusts across the suburban countryside. The debt fueled orgy has run out of steam. All that is left is the largest mountain of debt in human history, a gutted and debt laden former middle class, and thousands of empty stores in future decaying ghost malls haunting the highways and byways of suburbia."
I would argue that our current economic illness is the natural result of consumers refusing to take on more debt. FED efforts have been fairly unsuccessful in stimulating debt demand. The natural result is a deflationary cycle. Let nature take its course.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
Still at APMEX. Almost jumped on a BST of 90% halves offering here recently but it got snagged before I made up my mind. Still stacking 10th ozers till I finish my tube...11 to go. Got a subscription for the hockey pucks and still taking the silver proof sets by subscription even though I'm getting hosed on the price for the sets.
Who says there are no good jobs. Openings for DDRO's right here in the US (UN Disarmament, Demobilization, Reintegration Officers). Be the first to apply.
According to the findings of three Texas A&M University economics professors, “Cash for Clunkers” ultimately caused auto industry revenue to shrink by about $3 billion in less than a year
It was a great deal for those who owned clunkers and who intended to buy new cars in the near future. Another unintended consequence was that it severely tightened up the used car market and caused the premiums for many used cars to rise significantly. I had a perfect clunker at that time (1997 sedan with 230K miles). However, I still couldn't see buying a new car for $20K+ and having it worth $4K less as soon as I drove it off the lot...and the car payment for several years. That essentially wipes out the clunker cash. I ended up junking the clunker for $350 and buying a 22K mile, full-sized 4 door sedan for $9K cash. 5 yrs later that car now has 60K miles and is worth around $5K.
I don't disagree, but it had a different impact if you had a car that was about 3 years old with typical mileage. C4C pushed up the value of used cars.
Back then I was able to sell my 3 year old car for about $5-6k less than a brand new replacement out-the-door (same make, model, options), which is a great deal for if you can drive a new car for an average cost of ~$2000/yr over 3 years, the whole time under warranty and needing nothing but tires and a battery during that time.
What some of the "paranoid conspiracy theorists" here on this very forum have been warning of for the last couple of years.
Good to know that the FED can eventually bail itself out by printing even more money. Of course that will only confirm that printing money earlier to bailout the banks was a horrible mistake. The can-kicking will eventually have to end. It will be at a very high cost to the dollar and to those that are forced to use it. It won't be pretty.
Shorting the dollar by converting it to PMs continues to be a good, long term strategy. Deflation may prove to be a the best dollar bull trap ever devised.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
<< <i>Shorting the dollar by converting it to PMs continues to be a good, long term strategy >>
Good way to loose your shirt.....being a contrarian, I'd do the opposite. If history is a guide, do not bet against the US $, unless you need a "tax deduction."
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
<< <i>Shorting the dollar by converting it to PMs continues to be a good, long term strategy >>
Good way to loose your shirt.....being a contrarian, I'd do the opposite. If history is a guide, do not bet against the US $, unless you need a "tax deduction." >>
Note that I did say Long Term. If one believes the dollar will not continue to suffer from abuse by it's masters, as it has for many decades (using history as a guide), then I agree, anti-dollars (PMs) are not a good long term investment. The affect of the increased rate of abuse in recent years can only shorten that waiting period for PM holding to prove itself.
Bottom line is that it boils down to how one views the future value of the dollar. Using history as a guide, the picture should be obvious. History also shows that since gold was divorced from the dollar peg, it has generally been a good dollar hedge.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
I'm not sure the logic or wording is clear. Simply converting your dollars into other goods (such as gold) is not a dollar short. Rather it is a bet that the goods (in this case gold) will be worth more in the future than the USD originally traded for it (or the USD will be worth less).
Could you consider shorting the US dollar a zero interest loan, such as putting USD into your savings account right now? You are giving the bank your dollars in exchange for a promise to give them back in the future.
I guess a short implies an obligation to to purchase in the future in order to close the position, so maybe that isn't quite accurate either.
<< <i>.... If history is a guide, do not bet against the US $, unless you need a "tax deduction." >>
Betting against the US dollar worked quite well from 1986 to 2011 as it lost 55% of it's relative purchasing power against the other currencies in the USDX basket. Considering the USD is an inverse Euro more than anything else (57% of the USDX basket) betting on the dollar is betting against the Euro paper. It's still smoke and mirrors as all these currencies are falling towards the ground at varying speeds. The end result is that gravity always wins and they eventually end up worthless.
do not bet against the US $, unless you need a "tax deduction."
It seems to me that anyone who owns any kind of asset in the past 15 years will be needing a tax deduction. The simple fact is that when the dollar depreciates, other assets rise. And when those assets are sold for a profit, there is a tax windfall for the government.
I absolutely believe that this is by design. It sure beats taking the heat for a tax rate increase, but it's essentially the same thing.
Q: Are You Printing Money? Bernanke: Not Literally
individuals have a unique opportunity to differentiate themselves from the rest of the pack and prosper immensely when the economy improves. Do not fall victim to irrational discouragement.
How does one go about trademarking something? I think I could make a fortune on the term "irrational discouragement"
<< <i>do not bet against the US $, unless you need a "tax deduction."
It seems to me that anyone who owns any kind of asset in the past 15 years will be needing a tax deduction. The simple fact is that when the dollar depreciates, other assets rise. And when those assets are sold for a profit, there is a tax windfall for the government.
I absolutely believe that this is by design. It sure beats taking the heat for a tax rate increase, but it's essentially the same thing. >>
Well, it's going to be a rather painful tax year in baleyville. Bittersweet.
What is the Obama tax penalty for those that do not have health insurance this year?
So what has everyone been collecting this past year. I have been working on my Ancients this past quarter. Man who ever would have thought there were so many Ancient type coins?
As for the rest of the year not bad until the oil market crashed. My dividend paying stocks have dropped in half, although the dividend on one is 27.34% now. How long will that last??
Well we did not see the end of the U.S. financial system in 2010 2011 2012 2013 or 2014 maybe this year ???
I guess all those doomsday bloggers are looking pretty dumb.
It is Jan 1st 2015 and the Gold price is $1182 silver is $15.69 way down from last year. The all new DOW with its change in listings for the start of 2015 is at 17823.
Paper was the place to be in 2014 with a strong dollar and a hot stock market.
There's no inflation: Hotel room rates may be hiked 'aggressively,' forecaster says Hotel owners across the U.S. are expected to be told later Monday they should be able to "aggressively" raise room prices this year, with one consultancy already forecasting the national average room rate to rise 5.4 percent.
"Early in 2015 the ECB proposes a lame QE program and is laughed out of the room. European markets tank."
"Greek elections in January produce a government that stands up to the EU and ECB and causes a fatal slippage of faith in the ability of that project to continue."
Check out his gold and silver predictions at the end.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
LMAO, oh, that's just precious, brilliantly written, pure pablum for the doom n gloomers to lap up greedily and spew back on chat boards as "fact". Thanks for sharing
edit: and don't get me started on "Kunstler," it's just too easy. Ok, maybe just one: Who is that, the anti-hero in a Hard "R" rated Dr. Suess book?
<< <i>There's no inflation: Hotel room rates may be hiked 'aggressively,' forecaster says Hotel owners across the U.S. are expected to be told later Monday they should be able to "aggressively" raise room prices this year, with one consultancy already forecasting the national average room rate to rise 5.4 percent. >>
I remember staying in at "on the highway" hotel chain on a trip to Montana about a dozen years agopaying about $65 a night. I just got a room at the same chain in Salt Lake for $59. And I got breakfast.
<< <i>LMAO, oh, that's just precious, brilliantly written, pure pablum for the doom n gloomers to lap up greedily and spew back on chat boards as "fact". Thanks for sharing
edit: and don't get me started on "Kunstler," it's just too easy. Ok, maybe just one: Who is that, the anti-hero in a Hard "R" rated Dr. Suess book? >>
<< <i>There's no inflation: Hotel room rates may be hiked 'aggressively,' forecaster says Hotel owners across the U.S. are expected to be told later Monday they should be able to "aggressively" raise room prices this year, with one consultancy already forecasting the national average room rate to rise 5.4 percent. >>
I remember staying in at "on the highway" hotel chain on a trip to Montana about a dozen years agopaying about $65 a night. I just got a room at the same chain in Salt Lake for $59. And I got breakfast. >>
That is one of the least-fair comparisons you can make, especially if a hotel franchise. Rates vary and change based on date, day of the week, location, and how far in advance you make the reservation, not to mention the possibility of catching a promotion or sale one time but not the next. In addition many chain hotels are franchises owned by individuals who can set rates where they want. You really need to compare average rates as the article did to get any indication. As a regular visitor to Vegas (4-5 times/yr) and savvy shopper for room rates, clearly rates have increased over time.
To make an absurd example, you could say that last year you staying in Glendale, AZ near the stadium (for the Super Bowl this year) and it was only $100/nt but this weekend it's $1500! Not a fair comparison.
"Early in 2015 the ECB proposes a lame QE program and is laughed out of the room. European markets tank."
"Greek elections in January produce a government that stands up to the EU and ECB and causes a fatal slippage of faith in the ability of that project to continue."
Check out his gold and silver predictions at the end. >>
"At Christmas 2015, the DJA sits at 13,500, the S & P is at 1200. Gold is at 1750, silver at 42."
<< <i>LMAO, oh, that's just precious, brilliantly written, pure pablum for the doom n gloomers to lap up greedily and spew back on chat boards as "fact". Thanks for sharing
edit: and don't get me started on "Kunstler," it's just too easy. Ok, maybe just one: Who is that, the anti-hero in a Hard "R" rated Dr. Suess book? >>
People had better prepare themselves for some conclusion events, certain to occur with fireworks. The USDollar is soon to go away, put to rest, killed off. Its rise signals its demise. The hidden dismantle of the Petro-Dollar mechanism has been eerie, mysterious, and full of intrigue. The Gold Standard will return, but through the trade window. The solution to the untreated Global Financial Crisis is the gold route. The Eurasian Trade Zone will be built upon the gold route, and see a revival of the Silk Road. It cannot be stopped, not even by war. The safe haven is not the USDollar, but rather Gold & Silver bars & coins, otherwise defined as money.
Comments
Box of 20
Reuters reporting this information....not Zero Hedge.
There "can't" be manipulation or price rigging in gold by the 5 sources that each and every day decide the London AM and PM price fixes because Cohodk, Baley, and others keep telling us it isn't so. They can manipulate
stocks, bonds, libor, interest rates, derivatives/futures, and currencies.....but never PMs....as those markets are "too small" and "no one" cares.
I guess they picked the right word when they chose the word price "fix" back in the day. JPM and now Deutsche bank getting out of the PM commodity trading business? Gee...what a coincidence. Now everyone
gets a slap on the wrist here and maybe a 1/2 to 1% "penalty" on their trading profits over the past dozen years. That should really show them that this type of behavior will not be condoned.
What you heard on this forum is how poorly stocks and real estate would be performing since 2008, if not for the massive injections of "liquidity" in the very extensive Bank Bailouts, TARP, Stimulus, QE1, QE2, Twist, QE3, and, and....where are we now already? Are we at QE4 or QE5? I forget. And you really think that stock prices are rising on their own? If that's the case, I have one question for you. Where'd all of the money go?
<<The main difference now is that the Fed/Gov are the ones who pick the winners and losers. If you don't support their policies and keep your money away from their pet projects, you risk losing. There's absolutely no doubt that the Fed/Gov wants money in the stock market and real estate right now, and not in bonds or physical assets. The low interest rates aren't because of market action, they're because of QE. Simple as that.>>
I vehemently disagree. But you already knew that.
You really don't think that the Zero Interest Rate Policy isn't designed to funnel people's money out of bonds or physical assets, and into stocks & real estate? Really? You think people should buy bonds that yield 0.1%? You really don't think that there was a real estate bubble in 2008 and that it's being reinflated right now? Really? I gave you more credit than that.
I knew it would happen.
His ECM model shows confidence in a final peak in September 2015. So it's certainly possible this dead cat bounce in housing prices can meader around for another 1-2 years. A lot will depend on
how long the stock market can be kept levitated by QE.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
I knew it would happen.
No formal report issued to IMF, GFMS, etc. but this wouldn't come as any surprise. I'd have thought they'd be at 3,000-5,000 tonnes by now. They have increased their reserves
by over 5X prior to 2009. Hey, they might by lying despite importing >1,000 tonnes of gold last year and now being the world's leading gold producer at >350 tonnes/year.
If their goal was to continue higher to match Germany and then the USA, I don't know why they even said anything about this until AFTER they got there. After 4-5 years of silence they were
probably getting pushed to make an update since it was pretty likely they were rapidly growing gold reserves. They could still be understating how much they have.....but, that's only conjecture.
I have no idea why they were buying 1700 tonnes of gold over these past 4 years when they could have been buying shares of Kellogg, General Mills, and Hormel.
Even Bloomberg talking about the rigging of markets
It suggests the metals and currency rigging is worse than Libor. Sheesh. We've been saying that around here for years. Lawmakers are starting to squawk that behemoths like JPM and MS are messing
with commodity prices. The FED has been "examining" this area for the past 6 years.....a little bit longer than the CFTC had been "examining" the silver manipulation claim. We can always count on a lengthy
examination of issues....just no resolutions.
This is a fact? You mean to tell me that at a time when EVERY ASSET (save US Treasuries)
Knowledge is the enemy of fear
<< <i>It was the $200 BILL in silver derivatives in July 2008 that took down silver over the next few months.
This is a fact? You mean to tell me that at a time when EVERY ASSET (save US Treasuries)
The doubling of silver derivatives to $200 BILL during the middle of 2008 is a fact. There's no doubt that those amount of derivatives sped up silver's decline and ensured no chance of recovery in the short term.
Gold derivatives were also spiked as well during that period (to over $600 BILL if I recall correctly). I would agree that silver was headed down in 2008. I just don't think it would have fallen as fast or as far
w/o the help from derivatives.
"The hearing was called by Senator Sherrod Brown, Chair of the Subcommittee on Financial Institutions and Consumer Protection, part of the Senate Banking Committee. And there was good cause for a chill in the air. Despite the most costly bailout of Wall Street in the history of finance after its collapse in 2008, not one of the seven Republican members of this subcommittee showed up at the hearing; not one submitted a question to be asked of the witnesses."
"Senator Brown told the participants at the hearing that “the six largest U.S. bank holding companies have 14,420 subsidiaries, only 19 of which are traditional banks.” In July 2012, the Federal Reserve Bank of New York issued a study titled A Structural View of U.S. Bank Holding Companies. That report presented a frightening picture of the encroachment of banks into commodities and the industrial side of the U.S. economy."
"The study showed that U.S. bank holding companies owned 16 utilities; 479 insurance companies; 2,388 real estate firms; 1,682 healthcare and social assistance companies; and 5 mines. We know from more recent revelations that Wall Street’s largest banks own at least 104 metal warehouses with complaints coming from beer and soda manufacturers that these firms control the London Metal Exchange and are rigging the price of aluminum to the detriment of both the manufacturers and consumers."
Things sure seemed to work better when banks stuck to just banking.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
Box of 20
"How can the government and mainstream media be reporting an economic recovery when the industry (consumer spending) that accounts for 70% of GDP is in free fall?"
"The decades of mal-investment in retail stores was enabled by Greenspan, Bernanke, and their Federal Reserve brethren. Their easy money policies enabled Americans to live far beyond their true means through credit card debt, auto debt, mortgage debt, and home equity debt. This false illusion of wealth and foolish spending led mega-retailers to ignore facts and spread like locusts across the suburban countryside. The debt fueled orgy has run out of steam. All that is left is the largest mountain of debt in human history, a gutted and debt laden former middle class, and thousands of empty stores in future decaying ghost malls haunting the highways and byways of suburbia."
I would argue that our current economic illness is the natural result of consumers refusing to take on more debt. FED efforts have been fairly unsuccessful in stimulating debt demand. The natural result is a deflationary cycle. Let nature take its course.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
Hey Buddy, can you spare an ASE?
Sill stacking there GS?
<< <i>Now that Tulving is out of business who is everyone using to buy bulk gold and silver?? >>
JM Bullion and dbscoins.com are very competitive and reliable.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
New York job openings
According to the findings of three Texas A&M University economics professors, “Cash for Clunkers” ultimately caused auto industry revenue to shrink by about $3 billion in less than a year
It was a great deal for those who owned clunkers and who intended to buy new cars in the near future. Another unintended consequence was that it severely tightened up the used car market and caused the premiums for many
used cars to rise significantly. I had a perfect clunker at that time (1997 sedan with 230K miles). However, I still couldn't see buying a new car for $20K+ and having it worth $4K less as soon as I drove it off the lot...and the car
payment for several years. That essentially wipes out the clunker cash. I ended up junking the clunker for $350 and buying a 22K mile, full-sized 4 door sedan for $9K cash. 5 yrs later that car now has 60K miles and is worth
around $5K.
Back then I was able to sell my 3 year old car for about $5-6k less than a brand new replacement out-the-door (same make, model, options), which is a great deal for if you can drive a new car for an average cost of ~$2000/yr over 3 years, the whole time under warranty and needing nothing but tires and a battery during that time.
Box of 20
<< <i>The Fed's Balance Sheet and Insolvency >>
What some of the "paranoid conspiracy theorists" here on this very forum have been warning of for the last couple of years.
Good to know that the FED can eventually bail itself out by printing even more money. Of course that will only confirm that printing money earlier to bailout the banks was a horrible mistake. The can-kicking will eventually have to end. It will be at a very high cost to the dollar and to those that are forced to use it. It won't be pretty.
Shorting the dollar by converting it to PMs continues to be a good, long term strategy. Deflation may prove to be a the best dollar bull trap ever devised.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
<< <i>Shorting the dollar by converting it to PMs continues to be a good, long term strategy >>
Good way to loose your shirt.....being a contrarian, I'd do the opposite. If history is a guide, do not bet against the US $, unless you need a "tax deduction."
<< <i>
<< <i>Shorting the dollar by converting it to PMs continues to be a good, long term strategy >>
Good way to loose your shirt.....being a contrarian, I'd do the opposite. If history is a guide, do not bet against the US $, unless you need a "tax deduction." >>
Note that I did say Long Term. If one believes the dollar will not continue to suffer from abuse by it's masters, as it has for many decades (using history as a guide), then I agree, anti-dollars (PMs) are not a good long term investment. The affect of the increased rate of abuse in recent years can only shorten that waiting period for PM holding to prove itself.
Bottom line is that it boils down to how one views the future value of the dollar. Using history as a guide, the picture should be obvious. History also shows that since gold was divorced from the dollar peg, it has generally been a good dollar hedge.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
Could you consider shorting the US dollar a zero interest loan, such as putting USD into your savings account right now? You are giving the bank your dollars in exchange for a promise to give them back in the future.
I guess a short implies an obligation to to purchase in the future in order to close the position, so maybe that isn't quite accurate either.
side note: Avatar upload day. Got my copper back. Seem to loose it everytime I edit something else in my profile.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
<< <i>.... If history is a guide, do not bet against the US $, unless you need a "tax deduction." >>
Betting against the US dollar worked quite well from 1986 to 2011 as it lost 55% of it's relative purchasing power against the other currencies in the USDX basket. Considering the USD is an inverse Euro more than anything else (57% of the USDX basket) betting on the dollar is betting against the Euro paper. It's still smoke and mirrors as all these currencies are falling towards the ground at varying speeds. The end result is that gravity always wins and they eventually end up worthless.
It seems to me that anyone who owns any kind of asset in the past 15 years will be needing a tax deduction. The simple fact is that when the dollar depreciates, other assets rise. And when those assets are sold for a profit, there is a tax windfall for the government.
I absolutely believe that this is by design. It sure beats taking the heat for a tax rate increase, but it's essentially the same thing.
I knew it would happen.
<< <i>I absolutely believe that this is by design. It sure beats taking the heat for a tax rate increase, but it's essentially the same thing. >>
Bingo, and hence the Federal Reserve was created as a way for the government to tax citizens without (most of them) realizing it.
Knowledge is the enemy of fear
individuals have a unique opportunity to differentiate themselves from the rest of the pack and prosper immensely when the economy improves. Do not fall victim to irrational discouragement.
How does one go about trademarking something? I think I could make a fortune on the term "irrational discouragement"
Knowledge is the enemy of fear
Shale industry is unsustainable
Armstrong's August economic and political articles
You no longer have any rights.
Robert Ringer addressed that in "Winning through Intimidation" but that may have been before your time, cohodk. Good book, you'd like it.
I knew it would happen.
<< <i> I think I could make a fortune on the term "irrational discouragement
Robert Ringer addressed that in "Winning through Intimidation" but that may have been before your time, cohodk. Good book, you'd like it. >>
I suspect he's read it.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
<< <i>do not bet against the US $, unless you need a "tax deduction."
It seems to me that anyone who owns any kind of asset in the past 15 years will be needing a tax deduction. The simple fact is that when the dollar depreciates, other assets rise. And when those assets are sold for a profit, there is a tax windfall for the government.
I absolutely believe that this is by design. It sure beats taking the heat for a tax rate increase, but it's essentially the same thing. >>
Well, it's going to be a rather painful tax year in baleyville. Bittersweet.
Liberty: Parent of Science & Industry
So what has everyone been collecting this past year. I have been working on my Ancients this past quarter.
Man who ever would have thought there were so many Ancient type coins?
As for the rest of the year not bad until the oil market crashed. My dividend paying stocks have dropped in half, although the dividend on one is 27.34% now. How long will that last??
Best thing that happened was oil prices crashed.
My new years resolution is to be more positive..spiritually, emotionally, psychologically.
Knowledge is the enemy of fear
Good idea!
I knew it would happen.
Sunday January 01, 2012 7:53 AM
Well we did not see the end of the U.S. financial system in 2010 2011 2012 2013 or 2014 maybe this year ???
I guess all those doomsday bloggers are looking pretty dumb.
It is Jan 1st 2015 and the Gold price is $1182 silver is $15.69 way down from last year. The all new DOW with its change in listings for the start of 2015 is at 17823.
Paper was the place to be in 2014 with a strong dollar and a hot stock market.
The DOW is 348 points higher than it would have been if it did not make the changes it in Sept 2013.
However, the 3 stocks removed in Sept 2013 did much better in 2014 than the 3 they replaced.
Out were..
HPQ +46%
AA +50%
BAC +16%
In were..
GS +11%
NKE +24%
V +19%
Knowledge is the enemy of fear
Hotel room rates may be hiked 'aggressively,' forecaster says
Hotel owners across the U.S. are expected to be told later Monday they should be able to "aggressively" raise room prices this year, with one consultancy already forecasting the national average room rate to rise 5.4 percent.
"Early in 2015 the ECB proposes a lame QE program and is laughed out of the room. European markets tank."
"Greek elections in January produce a government that stands up to the EU and ECB and causes a fatal slippage of faith in the ability of that project to continue."
Check out his gold and silver predictions at the end.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
edit: and don't get me started on "Kunstler," it's just too easy. Ok, maybe just one: Who is that, the anti-hero in a Hard "R" rated Dr. Suess book?
Liberty: Parent of Science & Industry
<< <i>There's no inflation:
Hotel room rates may be hiked 'aggressively,' forecaster says
Hotel owners across the U.S. are expected to be told later Monday they should be able to "aggressively" raise room prices this year, with one consultancy already forecasting the national average room rate to rise 5.4 percent. >>
I remember staying in at "on the highway" hotel chain on a trip to Montana about a dozen years agopaying about $65 a night. I just got a room at the same chain in Salt Lake for $59. And I got breakfast.
Knowledge is the enemy of fear
<< <i>LMAO, oh, that's just precious, brilliantly written, pure pablum for the doom n gloomers to lap up greedily and spew back on chat boards as "fact". Thanks for sharing
edit: and don't get me started on "Kunstler," it's just too easy. Ok, maybe just one: Who is that, the anti-hero in a Hard "R" rated Dr. Suess book? >>
Then Jim Willie's latest is sure to bust your gut.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
<< <i>
<< <i>There's no inflation:
Hotel room rates may be hiked 'aggressively,' forecaster says
Hotel owners across the U.S. are expected to be told later Monday they should be able to "aggressively" raise room prices this year, with one consultancy already forecasting the national average room rate to rise 5.4 percent. >>
I remember staying in at "on the highway" hotel chain on a trip to Montana about a dozen years agopaying about $65 a night. I just got a room at the same chain in Salt Lake for $59. And I got breakfast. >>
That is one of the least-fair comparisons you can make, especially if a hotel franchise. Rates vary and change based on date, day of the week, location, and how far in advance you make the reservation, not to mention the possibility of catching a promotion or sale one time but not the next. In addition many chain hotels are franchises owned by individuals who can set rates where they want. You really need to compare average rates as the article did to get any indication. As a regular visitor to Vegas (4-5 times/yr) and savvy shopper for room rates, clearly rates have increased over time.
To make an absurd example, you could say that last year you staying in Glendale, AZ near the stadium (for the Super Bowl this year) and it was only $100/nt but this weekend it's $1500! Not a fair comparison.
<< <i>Kunstler off to a good start with his 2015 predictions
"Early in 2015 the ECB proposes a lame QE program and is laughed out of the room. European markets tank."
"Greek elections in January produce a government that stands up to the EU and ECB and causes a fatal slippage of faith in the ability of that project to continue."
Check out his gold and silver predictions at the end. >>
"At Christmas 2015, the DJA sits at 13,500, the S & P is at 1200. Gold is at 1750, silver at 42."
<< <i>
<< <i>LMAO, oh, that's just precious, brilliantly written, pure pablum for the doom n gloomers to lap up greedily and spew back on chat boards as "fact". Thanks for sharing
edit: and don't get me started on "Kunstler," it's just too easy. Ok, maybe just one: Who is that, the anti-hero in a Hard "R" rated Dr. Suess book? >>
Then Jim Willie's latest is sure to bust your gut. >>
CONCLUSION
People had better prepare themselves for some conclusion events, certain to occur with fireworks. The USDollar is soon to go away, put to rest, killed off. Its rise signals its demise. The hidden dismantle of the Petro-Dollar mechanism has been eerie, mysterious, and full of intrigue. The Gold Standard will return, but through the trade window. The solution to the untreated Global Financial Crisis is the gold route. The Eurasian Trade Zone will be built upon the gold route, and see a revival of the Silk Road. It cannot be stopped, not even by war. The safe haven is not the USDollar, but rather Gold & Silver bars & coins, otherwise defined as money.