Whats nice is that the assets can enjoy capital preservation and potential growth in value, and also provide cash flow, income, and personal utility in the meantime.
Stocks either provide dividend income, or potential for explosive growth. I made most of my money , besides work income, with a couple of 10 and 20 baggers.
Properties appreciate, provide rent, and tax benefits, and housing and vacation options fir friends and family.
You can even , if you want, drink whiskey, shoot guns, and clink gold coins in your hand.
Man's been around a long time and is probably among the smartest out there. I'm sure our resident optimists will chime in to disagree.
Fiat bugs would probably just jump all over him because he's seriously into commodities from time to time. While he diversifies into gold, he hasn't been buying it lately, rather waiting for a final trip to $800-$1000 to buy any more. If it doesn't go that low, he has enough.
"Central banks don’t serve people, or even societies . . . They serve banks."
"If the economy is doing as well as Central Banks suggest, then why, after 9-years, are the ’emergency measures’ being applied to global economies still in place?" - Lance Roberts
"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
@cohodk said:
Which emergency measures put in place by the Fed in 2008 are still in place?
looked at their balance sheet lately?
"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
The "emergency measure" was buying bonds which they haven't done in 2 years and will actually be selling shortly. That emergency measure has long since passed.
So I repeat, what emergency measures are still in place?
Let's not forget the mortgage back securities; is student debt next? And let's not forget that they are not selling and in fact are still buying but only at a slower pace - they have not reduced their balance sheet; they have slowed it's growth.
As long as they hold all this extra debt it remains an emergency measure. Let's also not forget that they keep rates near zero with only a token hike or two on occasion. Let's also not forget that what they say they are going to do and what they end up doing are not always the same - even their talking is often an emergency measure.
The fact that they cannot unwind this debt any time soon demonstrates that the emergency is still 'on.'
"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
Interest rates are at historic lows and have been for 9 years. Average Fed Funds rate history is ~4%.
$20 trillion in gov't deficit spending (federal, state, local) over the last 10 years provide an illusion of growth where none exists. This will continue as long as the USD & state/local borrowing hold up.
"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
P.S. And yes there certainly is a huge, #1 in the world, economy running underneath the fluff. It's not $18 trillion/year and growing though, it's likely $13-$14 trillion and stagnant absent the paper propping. The deadwood still stands wallpapered with USD.
@cohodk said:
The Fed is NOT still buying bonds. Banks are not being bailed out. TARP has ended and was repaid with interest. Interest rates are rising.
There are NO emergency measures still on place.
The economy is doing quite well despite the politicians efforts to mess it up.
"If the Fed were to shed just 64 percent of its current bond holdings, the base money supply in the US banking system would be completely wiped out, making the banking sector effectively illiquid. In this process, US interbank interest rates would presumably spike, sending shock waves through the economic and financial system, not only in the US but worldwide."
Painted itself into a corner?
"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
@cohodk said:
The Fed is NOT still buying bonds. Banks are not being bailed out. TARP has ended and was repaid with interest. Interest rates are rising.
There are NO emergency measures still on place.
The economy is doing quite well despite the politicians efforts to mess it up.
"If the Fed were to shed just 64 percent of its current bond holdings, the base money supply in the US banking system would be completely wiped out, making the banking sector effectively illiquid. In this process, US interbank interest rates would presumably spike, sending shock waves through the economic and financial system, not only in the US but worldwide."
Painted itself into a corner?
Dumb question: why would the FED shed 64% of their holdings now? From what I understand, the majority of their bond holdings are long term and they plan to shed them when they mature & not before.
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
Dumb question: why would the FED shed 64% of their holdings now? From what I understand, the majority of their bond holdings are long term and they plan to shed them when they mature & not before.
Keep in mind that they now have four times the amount in bonds they had in 2008. A 67% percent reduction will leave them with just under twice as much as they had in 2008. This estimate of a 67% reduction would leave the banking system in a liquidity crisis with the FED still holding almost twice as much in bonds as they held in 2008.
Reducing the FED's balance sheet is going to come at a cost, one that could easily re-ignite another banking crisis. For this reason the FED cannot offer up any meaningful reductions - only token reductions for the cameras.
"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
@cohodk said:
The Fed is NOT still buying bonds. Banks are not being bailed out. TARP has ended and was repaid with interest. Interest rates are rising.
There are NO emergency measures still on place.
The economy is doing quite well despite the politicians efforts to mess it up.
"If the Fed were to shed just 64 percent of its current bond holdings, the base money supply in the US banking system would be completely wiped out, making the banking sector effectively illiquid. In this process, US interbank interest rates would presumably spike, sending shock waves through the economic and financial system, not only in the US but worldwide."
Painted itself into a corner?
Dumb question: why would the FED shed 64% of their holdings now? From what I understand, the majority of their bond holdings are long term and they plan to shed them when they mature & not before.
This. Derryb and the idiots he follows have no idea how any of this works.
Their realization that they totally blew this decade has metastasized into bitterness and contempt.
@cohodk said:
The Fed is NOT still buying bonds. Banks are not being bailed out. TARP has ended and was repaid with interest. Interest rates are rising.
There are NO emergency measures still on place.
The economy is doing quite well despite the politicians efforts to mess it up.
"If the Fed were to shed just 64 percent of its current bond holdings, the base money supply in the US banking system would be completely wiped out, making the banking sector effectively illiquid. In this process, US interbank interest rates would presumably spike, sending shock waves through the economic and financial system, not only in the US but worldwide."
Painted itself into a corner?
Dumb question: why would the FED shed 64% of their holdings now? From what I understand, the majority of their bond holdings are long term and they plan to shed them when they mature & not before.
This. Derryb and the idiots he follows have no idea how any of this works.
Their realization that they totally blew this decade has metastasized into bitterness and contempt.
It is a shame: That this generation's greed has mortgaged the future of our country to satiate their lust for money. Denying what has and is occurring is a defense mechanism used to avoid this reality and justify the avenues to obtain it.
Maybe some of the rose colored glass wearing, doomsday denying folks simply were not all that affected by the previous "worst crashes" but just rode the waves and actually did just fine...
And are kind of looking forward to the next big world-ending "crisis" to load up on quality property and companies at low prices.
Damn sure, next time i see a reporter at a coin show on the TV box because there's a PM buying spree with record high prices, I'm selling every damned ounce..
Have seen 1979 and 2011, don't expect to live to see a fourth boom, third one comes, I'm out for good, at least with bullion.
Numismatic is different, some of that cash will buy rarities, i'be still got some tough 1793-1799 holes to fill!
Comments
And beauty is in the eye of the beer holder!
Liberty: Parent of Science & Industry
Whats nice is that the assets can enjoy capital preservation and potential growth in value, and also provide cash flow, income, and personal utility in the meantime.
Stocks either provide dividend income, or potential for explosive growth. I made most of my money , besides work income, with a couple of 10 and 20 baggers.
Properties appreciate, provide rent, and tax benefits, and housing and vacation options fir friends and family.
You can even , if you want, drink whiskey, shoot guns, and clink gold coins in your hand.
Hows the orchard and farm, jmski?
Liberty: Parent of Science & Industry
Did exactly that on Father's Day and a couple weeks ago at my grand nieces bday party actually, good times!
Fiat bugs would probably just jump all over him because he's seriously into commodities from time to time. While he diversifies into gold, he hasn't been buying it lately, rather waiting for a final trip to $800-$1000 to buy any more. If it doesn't go that low, he has enough.
Ive told you my holdings, am i a "fiat bug" roadrunner? According to you?
Liberty: Parent of Science & Industry
Central Banks are the crisis
"Central banks don’t serve people, or even societies . . . They serve banks."
"If the economy is doing as well as Central Banks suggest, then why, after 9-years, are the ’emergency measures’ being applied to global economies still in place?" - Lance Roberts
"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
Which emergency measures put in place by the Fed in 2008 are still in place?
Knowledge is the enemy of fear
looked at their balance sheet lately?
"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
The "emergency measure" was buying bonds which they haven't done in 2 years and will actually be selling shortly. That emergency measure has long since passed.
So I repeat, what emergency measures are still in place?
Knowledge is the enemy of fear
Let's not forget the mortgage back securities; is student debt next? And let's not forget that they are not selling and in fact are still buying but only at a slower pace - they have not reduced their balance sheet; they have slowed it's growth.
As long as they hold all this extra debt it remains an emergency measure. Let's also not forget that they keep rates near zero with only a token hike or two on occasion. Let's also not forget that what they say they are going to do and what they end up doing are not always the same - even their talking is often an emergency measure.
The fact that they cannot unwind this debt any time soon demonstrates that the emergency is still 'on.'
"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
The Fed is NOT still buying bonds. Banks are not being bailed out. TARP has ended and was repaid with interest. Interest rates are rising.
There are NO emergency measures still on place.
The economy is doing quite well despite the politicians efforts to mess it up.
Knowledge is the enemy of fear
Stay long. Move to cash and you are guaranteed to lose 2% a year based on inflation alone. Losing proposition.
Dave
Interest rates are at historic lows and have been for 9 years. Average Fed Funds rate history is ~4%.
$20 trillion in gov't deficit spending (federal, state, local) over the last 10 years provide an illusion of growth where none exists. This will continue as long as the USD & state/local borrowing hold up.
"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
P.S. And yes there certainly is a huge, #1 in the world, economy running underneath the fluff. It's not $18 trillion/year and growing though, it's likely $13-$14 trillion and stagnant absent the paper propping. The deadwood still stands wallpapered with USD.
2017 looks a lot like 2007.
Tis better to wear rose colored glasses than to have optical rectumitis.
Knowledge is the enemy of fear
time to put on those nifty eyeglasses
"If the Fed were to shed just 64 percent of its current bond holdings, the base money supply in the US banking system would be completely wiped out, making the banking sector effectively illiquid. In this process, US interbank interest rates would presumably spike, sending shock waves through the economic and financial system, not only in the US but worldwide."
Painted itself into a corner?
"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
Dumb question: why would the FED shed 64% of their holdings now? From what I understand, the majority of their bond holdings are long term and they plan to shed them when they mature & not before.
because they say they want to start unwinding
Keep in mind that they now have four times the amount in bonds they had in 2008. A 67% percent reduction will leave them with just under twice as much as they had in 2008. This estimate of a 67% reduction would leave the banking system in a liquidity crisis with the FED still holding almost twice as much in bonds as they held in 2008.
Reducing the FED's balance sheet is going to come at a cost, one that could easily re-ignite another banking crisis. For this reason the FED cannot offer up any meaningful reductions - only token reductions for the cameras.
"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
This. Derryb and the idiots he follows have no idea how any of this works.
Their realization that they totally blew this decade has metastasized into bitterness and contempt.
Knowledge is the enemy of fear
It is a shame: That this generation's greed has mortgaged the future of our country to satiate their lust for money. Denying what has and is occurring is a defense mechanism used to avoid this reality and justify the avenues to obtain it.
Maybe some of the rose colored glass wearing, doomsday denying folks simply were not all that affected by the previous "worst crashes" but just rode the waves and actually did just fine...
And are kind of looking forward to the next big world-ending "crisis" to load up on quality property and companies at low prices.
Damn sure, next time i see a reporter at a coin show on the TV box because there's a PM buying spree with record high prices, I'm selling every damned ounce..
Have seen 1979 and 2011, don't expect to live to see a fourth boom, third one comes, I'm out for good, at least with bullion.
Numismatic is different, some of that cash will buy rarities, i'be still got some tough 1793-1799 holes to fill!
Liberty: Parent of Science & Industry