China's not controlling price, just enjoying the price.
"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
Arguably the best Fed policy is to try to let things deflate ever so slightly for an extended period of time, rather than live by the fiction that monetary policy can stimulate a recovery.
Which I think is what they are trying to do. It is a very fine line to walk though. As they say, time heals all wounds.
Cohodk - I agree, though there's still a fair amount of political pressure urging them to "do more"
The wealth isn't gone, it's in someone else's hands...
Arguably it's both -- that is, over the past 5 years, I think we've seen both destruction of real wealth and remarkable transfers of wealth. We've also seen the disappearance of illusionary wealth.
<< <i>The wealth isn't gone, it's in someone else's hands...
Ok, well where is it? And please dont say the banks as it is very easy to compare balance sheets from 2007 and today. >>
If you're talking real estate (or anything really), the sellers have the money the current owners gave them when they took possession. The sellers may have since spent or used the cash and payoff any liens prior to transfer. Where do you think it went?
I believe that money and wealth has been destroyed, vanished. Just as it was created when the banks took your $100,000 in deposits and turned that into $2,000,000 in loans. Where did the $1,900,000 come from?
So some of the reports I am hearing on the underground radio etc. say that the Banks and Governments of countries in Europe are starting to stop people from taking their money out of the Banks to buy Gold, land, or other hard assets. Who else is hearing this?
<< <i>So some of the reports I am hearing on the underground radio etc. say that the Banks and Governments of countries in Europe are starting to stop people from taking their money out of the Banks to buy Gold, land, or other hard assets. Who else is hearing this? >>
"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
GS, I haven't anything like that. Interesting though and depends on how reliable your underground sources are and their track record in the past. As far as I know here, smoke and mirrors are still working.
GS, reports are that 125B Euro has left Spain in the last month or so. The capital controls are starting. This is how hyperinflation starts...
<< <i>I believe that money and wealth has been destroyed, vanished. Just as it was created when the banks took your $100,000 in deposits and turned that into $2,000,000 in loans. Where did the $1,900,000 come from?
This is not a zero sum game. >>
USD are only created or destroyed by the fed. The dollars are created when you get your loan (when the funds originate from the fed), and destroyed when you pay off your loan (assuming your lender returns your funds to the fed) or when the loan gets forgiven. So yes, with every foreclosure and bankruptcy USD are destroyed.
I may have been loose with my words saying that the wealth isn't gone because there has been a lot of foreclosure bankruptcy in the past few years. But that still only represents a fraction of the population.
When an asset changes value, wealth is "created" by the market, even though the asset did not change hands.
For example, if I buy a house in 2002 for $100,000, and by 2006 it is worth $150,000 because all the identical houses around it sell for that, then I have $50,000 more "wealth" and it didn't come from anyone, I could sell the house and pocket the cash.
Then, if by 2012 the same kind of house sells for $75,000, I have lost $75,000 in wealth, again, even if I don't sell the house, and again, no one has that money, the market created it out of demand and took it away the same way, it didn't go to anyone, it just appeared and then disappeared on my balance sheet.
Wealth is nothing more than market value of an asset(s). It is a measurement of how much money one would have if the asset(s) were converted to cash at that point in time. Thus the old "on paper, he's a millionaire."
"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
<< <i>When an asset changes value, wealth is "created" by the market, even though the asset did not change hands. >>
I would argue that the "theoretical conversion value" of a given asset is not relevant to a person's wealth, especially for illiquid assets like real estate. When discussing my wealth I would say that I own a 2000sf 4/2 house in anytown, USA, not a $300k house. The theoretical conversion value (whether to gold, dollars, euros) changes daily. My wealth consisting of 1 2000sf 4/2 house doesn't change over time. At some point, I will convert it into cash or some other asset, but what does it matter that you speculate the price I could sell it for would be $300k? If I have to sell it quickly, maybe I can only get $275k, or maybe a sucker will pay $325k. The point is, I'm not selling it now, so its theoretical value doesn't matter. I own a house. Period. Even if next year I can theoretically sell it for $400k, I am no wealthier, I still have a house. And if I want to sell and buy an equivalent house, the new house will likely cost 33% more as well. So how did I become wealthy? The asset is my wealth, not the theoretical conversion.
And if all of the real estate in my city starts selling for on average 10% more, that doesn't mean any USD have been created (not counting loans from the fed to banks given out as mortgages). It just means that people are willing to convert more already-existing USD for real estate than they previously were.
<< <i>So some of the reports I am hearing on the underground radio etc. say that the Banks and Governments of countries in Europe are starting to stop people from taking their money out of the Banks to buy Gold, land, or other hard assets. Who else is hearing this? >>
1) Buy precious metals and store in a secure jurisdiction.----Yup, the cure for everything
Holding gold and silver overseas is a great way to (a) ensure your savings is protected against inflation, and (b) ensure that your precious metals cannot be confiscated in the event that gold ownership is criminalized in your home country.
I strongly recommend Singapore, Hong Kong, and Abu Dhabi as three potential safe jurisdictions for your gold and silver.
2) Open a foreign bank account.--Like where? China? LOL USA has the strongest financial system on the planet.
For funds that need to be maintained within the financial system (as opposed to precious metals), make sure you have a safe home for your money abroad in a safe, well-capitalized bank.
3) Have a place to go overseas---Of course, because the rest of the world is going to be so much safer than the USA, what with our Constitution and 2nd Amendment and all.
Economic turmoil brought on by governments stealing people’s savings generally goes not bode well for social stability. If things get hairy, you’ll want to have a place to wait it out. And you don’t want to be deciding on the location while you’re packing your bags.
As an example, I’ve picked up an 1100-acre farm in central Chile that won’t skip a beat when the financial system implodes. The sovereign debt bubble does not affect whether or not my trees will bear fruit or my vegetables will grow.------Until the Chilean Govt takes it away.
Good thing that "Sovereign Man" newsletter is FREE. Nice Sigline Simon Black-- ""There are two ways to sleep at night... be ignorant or be prepared." — Simon Black. LOL How about making love to ones wife and giving the kids a kiss? That works for me.
LMAO, yeah, buy a bunch of gold bricks, store them in Abu Dhabi, get a bank account in Hong Kong, and a 1000+ farm in Chile, that's real practical advice there!
Well, I guess we regular folks should start small, and buy some gold coins from one of his recommended firms?
I'd read that both Greece and Spain are prepping for capital controls, just in the past couple days. Heck, the USA has them already and they keep tightening the net bit by bit.
Q: Are You Printing Money? Bernanke: Not Literally
<< <i>So some of the reports I am hearing on the underground radio etc. say that the Banks and Governments of countries in Europe are starting to stop people from taking their money out of the Banks to buy Gold, land, or other hard assets. Who else is hearing this? Capitol Controls
So what are the most critical steps to take now?
1) Buy precious metals and store in a secure jurisdiction.----Yup, the cure for everything
Holding gold and silver overseas is a great way to (a) ensure your savings is protected against inflation, and (b) ensure that your precious metals cannot be confiscated in the event that gold ownership is criminalized in your home country.
I strongly recommend Singapore, Hong Kong, and Abu Dhabi as three potential safe jurisdictions for your gold and silver.
2) Open a foreign bank account.--Like where? China? LOL USA has the strongest financial system on the planet.
For funds that need to be maintained within the financial system (as opposed to precious metals), make sure you have a safe home for your money abroad in a safe, well-capitalized bank.
3) Have a place to go overseas---Of course, because the rest of the world is going to be so much safer than the USA, what with our Constitution and 2nd Amendment and all.
Economic turmoil brought on by governments stealing people’s savings generally goes not bode well for social stability. If things get hairy, you’ll want to have a place to wait it out. And you don’t want to be deciding on the location while you’re packing your bags.
As an example, I’ve picked up an 1100-acre farm in central Chile that won’t skip a beat when the financial system implodes. The sovereign debt bubble does not affect whether or not my trees will bear fruit or my vegetables will grow.------Until the Chilean Govt takes it away. >>
Probably not such silly advice if you are Greek or Spanish. Of course, capitol controls aren't something that could ever happen in the good 'ole USA. It's always different here, for now. Believe it or not, the US is not exempt from reality.
"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
<< <i>USD are only created or destroyed by the fed. >>
Since 2008, there has only been an increase in the number of dollars of about $300 billion. This isnt much more than the increase in value of AAPL's stock.
<< <i>Since 2008, there has only been an increase in the number of dollars of about $300 billion. >>
Hard currency is not the problem. It's all those make believe dollars created out of thin air and out of credit.
Money in the wallet is not our problem, it is money that doesn't really exist, but is still borrowed and owed.
"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
Probably not such silly advice if you are Greek or Spanish
If owned a farm in Greece I wouldnt really be worried about Greece adopting the Drachma.
If I was in Greece, would I take my money out of the bank----probably. But I wouldnt rush off to buy gold or a Chateau in Switzerland. There gonna be some EXCELLENT opportunities in Greece. Just as there are right now in the good ole US of A.
People are going to get a very rude awakening when the insurance they thought they had isnt worth its weight.
It's all those make believe dollars created out of thin air and out of credit
I agree. And their destruction will lead to slow growth and dis or deflation. The world will not end. The store shelves will not be empty. Chicken farmers will not be shot---have no worries gsa1fan.
<< <i>People are going to get a very rude awakening when the insurance they thought they had isnt worth its weight. >>
only if they believe it is a forever policy. My policy still has a few good years. Performance has been nothing short of spectacular since I purchased it in 2005.
"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
<< <i>If owned a farm in Greece I wouldnt really be worried about Greece adopting the Drachma.
I'd be worried about taxes, though. >>
And maybe those that don't have a farm.
"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
<< <i>If I was in Greece, would I take my money out of the bank----probably. But I wouldnt rush off to buy gold or a Chateau in Switzerland. There gonna be some EXCELLENT opportunities in Greece. Just as there are right now in the good ole US of A. >>
So you would just hold the Euros and hope the Greek exit and none of the other bailouts hurt the Euro's buying power? I would not have as much faith. Even if the Euro survives I think it's going to take a big hit in value. So what if you took all of your money out in Euros and they started paying everyone in Drachma? Would you hold your Drachma or would you convert it as soon as possible to something - anything else? I know what I would do, at least until things stabilized.
After seeing the picture of him with the fish he's now a fuzzy bear.
"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
After seeing the picture of him with the fish he's now a fuzzy bear. >>
Heard he did stand-in stunt double work on that new Ted movie with Marky Mark. >>
They filmed a movie in Baleyville?
"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
After seeing the picture of him with the fish he's now a fuzzy bear. >>
I interpreted the caption of the photo to indicate that the picture with the big fish was of cohodk's son and the son's pop-pop, which is either cohodk's dad or the boy's maternal grandfather.
After seeing the picture of him with the fish he's now a fuzzy bear. >>
I interpreted the caption of the photo to indicate that the picture with the big fish was of cohodk's son and the son's pop-pop, which is either cohodk's dad or the boy's maternal grandfather. >>
That would be correct. The "fuzzy bear" is my father.
This is me, with both boys, showing them how real men catch tarpon. LOL
<< <i>If I was in Greece, would I take my money out of the bank----probably. But I wouldnt rush off to buy gold or a Chateau in Switzerland. There gonna be some EXCELLENT opportunities in Greece. Just as there are right now in the good ole US of A. >>
So you would just hold the Euros and hope the Greek exit and none of the other bailouts hurt the Euro's buying power? I would not have as much faith. Even if the Euro survives I think it's going to take a big hit in value. So what if you took all of your money out in Euros and they started paying everyone in Drachma? Would you hold your Drachma or would you convert it as soon as possible to something - anything else? I know what I would do, at least until things stabilized. >>
Yes, I would hold some Euros and dollars. And maybe a little gold.
So lets take a look at what these 3 "currencies" are doing. The dollar up---probably as a result of people doing the same as I would above. The Euro is holding --as German and Swiss banks are forced to buy Euros as money leaves Greece and Spain and flows into Germany and Switzerland. Now Gold----down vs the Euro since March. With gold being a small market and a supposed safe harbor or store of value, arent you a little surprised it hasnt faired better, especially against the Euro? Why havent people sought out gold instead of Euros? Or if they have, why isnt gold trading appreciably higher with this increased demand?
Now maybe this changes, but so fair gold hasnt exactly lived up to its billing in times of crisis--even for those living the crisis.
To set the story straight, I am not a bear on gold. While I do not subscribe to its religious belief system, I do believe it has a value. I just dont want to pay too much for this value and do believe that its value can and very likely will, fluctuate wildly in a true crisis and therefore place its importance below other assets.
One needs to only look at my avatar for confirmation. It is a pretty nice chuck of the yellow metal.
<< <i>So lets take a look at what these 3 "currencies" are doing. The dollar up---probably as a result of people doing the same as I would above. The Euro is holding --as German and Swiss banks are forced to buy Euros as money leaves Greece and Spain and flows into Germany and Switzerland. Now Gold----down vs the Euro since March. With gold being a small market and a supposed safe harbor or store of value, arent you a little surprised it hasnt faired better, especially against the Euro? Why havent people sought out gold instead of Euros? Or if they have, why isnt gold trading appreciably higher with this increased demand? >>
And what would you do if you were being paid for your crops in Drachma (after Greek exit)? Gold in Euros is up 22% vs. 6.5% in USD in the past year, which I think is pretty good and pretty significant. But I am surprised it hasn't done better. There are so many factors the go into the POG, I wonder if perhaps demand from Europe could be offsetting other global factors such that the net result has been little net movement. I have heard and I believe that most Europeans believe that the Euro will survive. Perhaps that optimism is keeping a lid on prices. I also wonder about the ease of buying PMs in Europe... not just taxes but finding physical supply. In all of my visits to France including last year, I have yet to identify any locations to buy PMs, and few jewelry stores (which probably do sell PMs). I also wonder if there are discouraging things like extra taxes for PMs? I didn't see any signs saying 'We buy gold.'
I heard someone recently say that you'll know gold has reached its fever pitch when the signs that say 'we buy gold' change to 'we sell gold.'
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
<< <i>USD are only created or destroyed by the fed. >>
Since 2008, there has only been an increase in the number of dollars of about $300 billion. This isnt much more than the increase in value of AAPL's stock.
Then you have the approx $1.8 TRILL increase in base money supply (M0) since 2008. While that money hasn't been placed in consumer's hands it has allowed the banks to be more frivolous with their consumer backed "betting" programs. The fact that over the past 2-3 yrs the rises and falls in the gold and silver price have mostly mirrored M0 suggests that money is doing "God's work."
While USDollars are only created by the FED, it hasn't stopped the banks from creating a $1 Quad derivative's system that has effectively usurped the dollar system. Who needs dollars when you create $100 TRILL in deriv's in 6 months....and then claim a profit on those "assets" because you get to pick how much they are worth on any given day? The banks deflated the system somewhat by lopping off $100 TRILL in derivs from 2008-2010. They then reinflated things in 2011 by adding that $100 TRILL right back on.
Not sure how this can be true. The fed purchased over 60% of all debt it issued last year. If there was that much demand, why did the Fed have to buy it?
What is to stop the Fed from buying the $15 Trillion of U.S. Debt absolving the U.S of its debt?
Since 08 didn't they hand out that much already? It would have to be a stealth operation. The Fed needs the U.S. government to survive and vice versa. We reached a fiscal cliff. That moment is right now. It is impossible for the U.S. to keep spending 1.5 Trillion more that the U.S. tax receipts each year. Even if the Federal Government goes after 401Ks it would only last for 2-3 years since there is only about $5 trillion out there in 401Ks.
Comments
"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
<< <i>Hard to get inflation when people have lost 40% of their money. >>
More accurately stated, "Hard to get inflation when 40% of people's wealth has been transferred away."
The wealth isn't gone, it's in someone else's hands...
Arguably the best Fed policy is to try to let things deflate ever so slightly for an extended period of time, rather than live by the fiction that monetary policy can stimulate a recovery.
Which I think is what they are trying to do. It is a very fine line to walk though. As they say, time heals all wounds.
Cohodk - I agree, though there's still a fair amount of political pressure urging them to "do more"
Arguably it's both -- that is, over the past 5 years, I think we've seen both destruction of real wealth and remarkable transfers of wealth. We've also seen the disappearance of illusionary wealth.
Knowledge is the enemy of fear
Ok, well where is it? And please dont say the banks as it is very easy to compare balance sheets from 2007 and today.
Knowledge is the enemy of fear
<< <i>The wealth isn't gone, it's in someone else's hands...
Ok, well where is it? And please dont say the banks as it is very easy to compare balance sheets from 2007 and today. >>
If you're talking real estate (or anything really), the sellers have the money the current owners gave them when they took possession. The sellers may have since spent or used the cash and payoff any liens prior to transfer.
Where do you think it went?
This is not a zero sum game.
Knowledge is the enemy of fear
<< <i>So some of the reports I am hearing on the underground radio etc. say that the Banks and Governments of countries in Europe are starting to stop people from taking their money out of the Banks to buy Gold, land, or other hard assets. Who else is hearing this? >>
Capitol Controls
"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
<< <i>I believe that money and wealth has been destroyed, vanished. Just as it was created when the banks took your $100,000 in deposits and turned that into $2,000,000 in loans. Where did the $1,900,000 come from?
This is not a zero sum game. >>
USD are only created or destroyed by the fed. The dollars are created when you get your loan (when the funds originate from the fed), and destroyed when you pay off your loan (assuming your lender returns your funds to the fed) or when the loan gets forgiven. So yes, with every foreclosure and bankruptcy USD are destroyed.
I may have been loose with my words saying that the wealth isn't gone because there has been a lot of foreclosure bankruptcy in the past few years. But that still only represents a fraction of the population.
For example, if I buy a house in 2002 for $100,000, and by 2006 it is worth $150,000 because all the identical houses around it sell for that, then I have $50,000 more "wealth" and it didn't come from anyone, I could sell the house and pocket the cash.
Then, if by 2012 the same kind of house sells for $75,000, I have lost $75,000 in wealth, again, even if I don't sell the house, and again, no one has that money, the market created it out of demand and took it away the same way, it didn't go to anyone, it just appeared and then disappeared on my balance sheet.
Liberty: Parent of Science & Industry
"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
Correct. Most people don't even know that there's a game on. Even fewer know the rules.
I knew it would happen.
<< <i>When an asset changes value, wealth is "created" by the market, even though the asset did not change hands. >>
I would argue that the "theoretical conversion value" of a given asset is not relevant to a person's wealth, especially for illiquid assets like real estate. When discussing my wealth I would say that I own a 2000sf 4/2 house in anytown, USA, not a $300k house. The theoretical conversion value (whether to gold, dollars, euros) changes daily. My wealth consisting of 1 2000sf 4/2 house doesn't change over time. At some point, I will convert it into cash or some other asset, but what does it matter that you speculate the price I could sell it for would be $300k? If I have to sell it quickly, maybe I can only get $275k, or maybe a sucker will pay $325k. The point is, I'm not selling it now, so its theoretical value doesn't matter. I own a house. Period. Even if next year I can theoretically sell it for $400k, I am no wealthier, I still have a house. And if I want to sell and buy an equivalent house, the new house will likely cost 33% more as well. So how did I become wealthy? The asset is my wealth, not the theoretical conversion.
And if all of the real estate in my city starts selling for on average 10% more, that doesn't mean any USD have been created (not counting loans from the fed to banks given out as mortgages). It just means that people are willing to convert more already-existing USD for real estate than they previously were.
<< <i>
<< <i>So some of the reports I am hearing on the underground radio etc. say that the Banks and Governments of countries in Europe are starting to stop people from taking their money out of the Banks to buy Gold, land, or other hard assets. Who else is hearing this? >>
Capitol Controls >>
So what are the most critical steps to take now?
1) Buy precious metals and store in a secure jurisdiction.----Yup, the cure for everything
Holding gold and silver overseas is a great way to (a) ensure your savings is protected against inflation, and (b) ensure that your precious metals cannot be confiscated in the event that gold ownership is criminalized in your home country.
I strongly recommend Singapore, Hong Kong, and Abu Dhabi as three potential safe jurisdictions for your gold and silver.
2) Open a foreign bank account.--Like where? China? LOL USA has the strongest financial system on the planet.
For funds that need to be maintained within the financial system (as opposed to precious metals), make sure you have a safe home for your money abroad in a safe, well-capitalized bank.
3) Have a place to go overseas---Of course, because the rest of the world is going to be so much safer than the USA, what with our Constitution and 2nd Amendment and all.
Economic turmoil brought on by governments stealing people’s savings generally goes not bode well for social stability. If things get hairy, you’ll want to have a place to wait it out. And you don’t want to be deciding on the location while you’re packing your bags.
As an example, I’ve picked up an 1100-acre farm in central Chile that won’t skip a beat when the financial system implodes. The sovereign debt bubble does not affect whether or not my trees will bear fruit or my vegetables will grow.------Until the Chilean Govt takes it away.
Under a law approved in 1993, soon after democracy was restored, Chile has gradually been returning land to its indigenous peoples. Far from satisfying the Mapuches, the largest of them, this has fuelled further claims, land seizures and, recently, violence.
Good thing that "Sovereign Man" newsletter is FREE. Nice Sigline Simon Black-- ""There are two ways to sleep at night... be ignorant or be prepared." — Simon Black. LOL How about making love to ones wife and giving the kids a kiss? That works for me.
Knowledge is the enemy of fear
Well, I guess we regular folks should start small, and buy some gold coins from one of his recommended firms?
Liberty: Parent of Science & Industry
I knew it would happen.
<< <i>So some of the reports I am hearing on the underground radio etc. say that the Banks and Governments of countries in Europe are starting to stop people from taking their money out of the Banks to buy Gold, land, or other hard assets. Who else is hearing this?
Capitol Controls
So what are the most critical steps to take now?
1) Buy precious metals and store in a secure jurisdiction.----Yup, the cure for everything
Holding gold and silver overseas is a great way to (a) ensure your savings is protected against inflation, and (b) ensure that your precious metals cannot be confiscated in the event that gold ownership is criminalized in your home country.
I strongly recommend Singapore, Hong Kong, and Abu Dhabi as three potential safe jurisdictions for your gold and silver.
2) Open a foreign bank account.--Like where? China? LOL USA has the strongest financial system on the planet.
For funds that need to be maintained within the financial system (as opposed to precious metals), make sure you have a safe home for your money abroad in a safe, well-capitalized bank.
3) Have a place to go overseas---Of course, because the rest of the world is going to be so much safer than the USA, what with our Constitution and 2nd Amendment and all.
Economic turmoil brought on by governments stealing people’s savings generally goes not bode well for social stability. If things get hairy, you’ll want to have a place to wait it out. And you don’t want to be deciding on the location while you’re packing your bags.
As an example, I’ve picked up an 1100-acre farm in central Chile that won’t skip a beat when the financial system implodes. The sovereign debt bubble does not affect whether or not my trees will bear fruit or my vegetables will grow.------Until the Chilean Govt takes it away. >>
Probably not such silly advice if you are Greek or Spanish. Of course, capitol controls aren't something that could ever happen in the good 'ole USA. It's always different here, for now. Believe it or not, the US is not exempt from reality.
"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
<< <i>USD are only created or destroyed by the fed. >>
Since 2008, there has only been an increase in the number of dollars of about $300 billion. This isnt much more than the increase in value of AAPL's stock.
Currency in Circulation
Knowledge is the enemy of fear
Yes, well stated.
<< <i>Since 2008, there has only been an increase in the number of dollars of about $300 billion. >>
Hard currency is not the problem. It's all those make believe dollars created out of thin air and out of credit.
Money in the wallet is not our problem, it is money that doesn't really exist, but is still borrowed and owed.
"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
If owned a farm in Greece I wouldnt really be worried about Greece adopting the Drachma.
If I was in Greece, would I take my money out of the bank----probably. But I wouldnt rush off to buy gold or a Chateau in Switzerland. There gonna be some EXCELLENT opportunities in Greece. Just as there are right now in the good ole US of A.
People are going to get a very rude awakening when the insurance they thought they had isnt worth its weight.
Knowledge is the enemy of fear
I agree. And their destruction will lead to slow growth and dis or deflation. The world will not end. The store shelves will not be empty. Chicken farmers will not be shot---have no worries gsa1fan.
Knowledge is the enemy of fear
<< <i>People are going to get a very rude awakening when the insurance they thought they had isnt worth its weight. >>
only if they believe it is a forever policy. My policy still has a few good years. Performance has been nothing short of spectacular since I purchased it in 2005.
"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
I'd be worried about taxes, though.
I knew it would happen.
<< <i>If owned a farm in Greece I wouldnt really be worried about Greece adopting the Drachma.
I'd be worried about taxes, though. >>
And maybe those that don't have a farm.
"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
<< <i>If I was in Greece, would I take my money out of the bank----probably. But I wouldnt rush off to buy gold or a Chateau in Switzerland. There gonna be some EXCELLENT opportunities in Greece. Just as there are right now in the good ole US of A. >>
So you would just hold the Euros and hope the Greek exit and none of the other bailouts hurt the Euro's buying power? I would not have as much faith. Even if the Euro survives I think it's going to take a big hit in value.
So what if you took all of your money out in Euros and they started paying everyone in Drachma? Would you hold your Drachma or would you convert it as soon as possible to something - anything else? I know what I would do, at least until things stabilized.
<< <i>Cohodk always the bear. >>
After seeing the picture of him with the fish he's now a fuzzy bear.
"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
<< <i>
<< <i>Cohodk always the bear. >>
After seeing the picture of him with the fish he's now a fuzzy bear. >>
Heard he did stand-in stunt double work on that new Ted movie with Marky Mark.
<< <i>
<< <i>
<< <i>Cohodk always the bear. >>
After seeing the picture of him with the fish he's now a fuzzy bear. >>
Heard he did stand-in stunt double work on that new Ted movie with Marky Mark. >>
They filmed a movie in Baleyville?
"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
<< <i>
<< <i>Cohodk always the bear. >>
After seeing the picture of him with the fish he's now a fuzzy bear. >>
I interpreted the caption of the photo to indicate that the picture with the big fish was of cohodk's son and the son's pop-pop, which is either cohodk's dad or the boy's maternal grandfather.
Liberty: Parent of Science & Industry
<< <i>
<< <i>
<< <i>Cohodk always the bear. >>
After seeing the picture of him with the fish he's now a fuzzy bear. >>
I interpreted the caption of the photo to indicate that the picture with the big fish was of cohodk's son and the son's pop-pop, which is either cohodk's dad or the boy's maternal grandfather. >>
That would be correct. The "fuzzy bear" is my father.
This is me, with both boys, showing them how real men catch tarpon. LOL
Knowledge is the enemy of fear
<< <i>
<< <i>If I was in Greece, would I take my money out of the bank----probably. But I wouldnt rush off to buy gold or a Chateau in Switzerland. There gonna be some EXCELLENT opportunities in Greece. Just as there are right now in the good ole US of A. >>
So you would just hold the Euros and hope the Greek exit and none of the other bailouts hurt the Euro's buying power? I would not have as much faith. Even if the Euro survives I think it's going to take a big hit in value.
So what if you took all of your money out in Euros and they started paying everyone in Drachma? Would you hold your Drachma or would you convert it as soon as possible to something - anything else? I know what I would do, at least until things stabilized. >>
Yes, I would hold some Euros and dollars. And maybe a little gold.
So lets take a look at what these 3 "currencies" are doing. The dollar up---probably as a result of people doing the same as I would above. The Euro is holding --as German and Swiss banks are forced to buy Euros as money leaves Greece and Spain and flows into Germany and Switzerland. Now Gold----down vs the Euro since March. With gold being a small market and a supposed safe harbor or store of value, arent you a little surprised it hasnt faired better, especially against the Euro? Why havent people sought out gold instead of Euros? Or if they have, why isnt gold trading appreciably higher with this increased demand?
Now maybe this changes, but so fair gold hasnt exactly lived up to its billing in times of crisis--even for those living the crisis.
To set the story straight, I am not a bear on gold. While I do not subscribe to its religious belief system, I do believe it has a value. I just dont want to pay too much for this value and do believe that its value can and very likely will, fluctuate wildly in a true crisis and therefore place its importance below other assets.
One needs to only look at my avatar for confirmation. It is a pretty nice chuck of the yellow metal.
Knowledge is the enemy of fear
<< <i>So lets take a look at what these 3 "currencies" are doing. The dollar up---probably as a result of people doing the same as I would above. The Euro is holding --as German and Swiss banks are forced to buy Euros as money leaves Greece and Spain and flows into Germany and Switzerland. Now Gold----down vs the Euro since March. With gold being a small market and a supposed safe harbor or store of value, arent you a little surprised it hasnt faired better, especially against the Euro? Why havent people sought out gold instead of Euros? Or if they have, why isnt gold trading appreciably higher with this increased demand? >>
And what would you do if you were being paid for your crops in Drachma (after Greek exit)?
Gold in Euros is up 22% vs. 6.5% in USD in the past year, which I think is pretty good and pretty significant. But I am surprised it hasn't done better. There are so many factors the go into the POG, I wonder if perhaps demand from Europe could be offsetting other global factors such that the net result has been little net movement. I have heard and I believe that most Europeans believe that the Euro will survive. Perhaps that optimism is keeping a lid on prices. I also wonder about the ease of buying PMs in Europe... not just taxes but finding physical supply. In all of my visits to France including last year, I have yet to identify any locations to buy PMs, and few jewelry stores (which probably do sell PMs). I also wonder if there are discouraging things like extra taxes for PMs? I didn't see any signs saying 'We buy gold.'
I heard someone recently say that you'll know gold has reached its fever pitch when the signs that say 'we buy gold' change to 'we sell gold.'
The Swiss and German banks can only hold out for so long.
I believe that within a couple of years(after we finish devaluing it
$2 trillion of demand from foreign private banks and companies
Knowledge is the enemy of fear
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
"Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you." -Luke 11:9
"Hear, O Israel: The LORD our God is one LORD: And thou shalt love the LORD thy God with all thine heart, and with all thy soul, and with all thy might." -Deut. 6:4-5
"For the LORD is our judge, the LORD is our lawgiver, the LORD is our king; He will save us." -Isaiah 33:22
The Truth about Gold / Why You should buy it
This also addresses what cohodk is telling us about deflation and the value of the dollar...
I knew it would happen.
<< <i>Martin Armstrong has some relevant observations about this type of capital flight and how it relates to hyperinflation.
The Truth about Gold / Why You should buy it
This also addresses what cohodk is telling us about deflation and the value of the dollar... >>
No conspiracies? No hyperinflation? Is he nuts?
My timing is also in the late 20-teens.
Knowledge is the enemy of fear
<< <i>
<< <i>USD are only created or destroyed by the fed. >>
Since 2008, there has only been an increase in the number of dollars of about $300 billion. This isnt much more than the increase in value of AAPL's stock.
Currency in Circulation >>
Then you have the approx $1.8 TRILL increase in base money supply (M0) since 2008. While that money hasn't been placed in consumer's hands it has allowed the
banks to be more frivolous with their consumer backed "betting" programs. The fact that over the past 2-3 yrs the rises and falls in the gold and silver price have mostly
mirrored M0 suggests that money is doing "God's work."
While USDollars are only created by the FED, it hasn't stopped the banks from creating a $1 Quad derivative's system that has effectively usurped the dollar system. Who needs
dollars when you create $100 TRILL in deriv's in 6 months....and then claim a profit on those "assets" because you get to pick how much they are worth on any given day? The
banks deflated the system somewhat by lopping off $100 TRILL in derivs from 2008-2010. They then reinflated things in 2011 by adding that $100 TRILL right back on.
<< <i>The world wants (needs) more dollars.
$2 trillion of demand from foreign private banks and companies >>
Not sure how this can be true. The fed purchased over 60% of all debt it issued last year. If there was that much demand, why did the Fed have to buy it?
How do you know this is true?
Knowledge is the enemy of fear
Since 08 didn't they hand out that much already? It would have to be a stealth operation. The Fed needs the U.S. government to survive and vice versa. We reached a fiscal cliff. That moment is right now. It is impossible for the U.S. to keep spending 1.5 Trillion more that the U.S. tax receipts each year. Even if the Federal Government goes after 401Ks it would only last for 2-3 years since there is only about $5 trillion out there in 401Ks.
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