G0ldfinger

I'll put it like this. I think the amount of money that has to be created to avert a 1930s kind of slump is so high that it at least will propel gold much higher (because it's an inflation outlet that won't hurt the general population so much). Some essentials will do particularly well too (oil, food), other stuff will do less well (cars, art, antiques, nail studios). Some stuff will be hopeless (houses for instance). This, however, is a 1970s best outcome scenario, in which a hyperinflation can just be be averted, but many, many will basically be wiped out by generally high retail price inflation.

I see it differently. E.g. the BAD Koreans have just decided not to buy Merrill's BAD loans. Merrill will therefore soon need to get more money from the Fed's begging bowl. Meanwhile, the Koreans put their money into something reasonable and tangible, like corn, oil or gold. Now that the Koreans have second thoughts anyway, they maybe even take money out of Merrill that they had invested earlier. But no panic, the Fed will plug the hole. Hence, by printing money to keep Merrill afloat, the Fed is indirectly fuelling inflation. The danger of hyperinflation is there because the central banks don't allow anything to really badly collapse. As long as this is the case, anyone who wants to can get their money out and put it into the next hot market, like e.g. commodities. The existing money is enough to fuel inflation to an extent where the inflation expectation of the consumer tips over (to the high side). Then all hell will break loose. It will be extremely difficult for central banks to not let the system collapse either the one or the other side. The best outcome will be a worse version of the 70s.

The Fed is now printing $19bn a day (begging bowl handouts) according to cg's last post. Better get your gold ASAP.

Looks as if we're building a nice base here.

Let's not forget: cars do not drive on paper oil.

I see that magpie is again stating the obvious. The interesting question is if gold right now has the potential to go up a lot (in the not too distant future, but not instantly). My indicators all scream YES!

Look at that man CLINTON!! Those were the times, my friend... Oh well. I have a colleague who thinks they will try to make Obama's life hell by increasing IRs until the average American has permanent nosebleeding.

Eternal facility. Let's print and go hyper. Love it. "How many billions do you need?" "Here we go." "No, no need to pay them back."

GOLDman Sucks buying shed loads. http://goldismoney.info/forums/showpost.ph...postcount=17263

Axstone posted this here: http://goldismoney.info/forums/showpost.ph...postcount=17268 Let's hope the best then. New York must be full of gold and silver. Even the Germans think that most of their gold is stored there.

Here is an update: Nationwide Aug 08 £164,654; gold spot as of this minute £454.48/oz. House:gold ratio right now: 362.29 oz/house. EDIT: Don't get fooled by volatility in the metals. This is a MAJOR (multi-year/decades) trend.

You can not compare these market in terms of volatility. Your argument totally falls apart when you look at this chart here:

A quick look at a few charts and I would say at current M3 we could start talking of a bubble in gold somewhere north of $6,000/oz (if the 70s/80s are any measure).

Wrongmove Yes, yes, yes -- houses will totally and utterly implode. Worst housing deflation ever. BUT: There is a huge and constant (and not even in a depression disappearing) stream of money from the industrialized nations to the prodcuing nations (Asia/BRIC) and into pension funds/private investments too. Where will all this money (HUGE amounts every day) go, now that housing and investment banking are complete turds? Even Korea is waking up now, they refuse to buy Merrill's bad loans. What's up with these SWFs? Seems they don't want to burn their billions anymore but invest them into something durable.

If I knew where the bottom was, I wouldn't have to post on this page here. Averaging is the thing to do. I buy every month if I can. Don't want to hold fiat if I can avoid it.

Oh dear. Do you ever look at any charts? Gold went from $200 in 1974 to $100 in 1976 (and then to $800 in 1980). It could be even worse this time, who knows. The thing is that the fundamentals are at least as clearly in place as in the 70s, if not much more. If gold only corrected 25% and recovered after 6 months already, how bullish would that be? In that case $4,000 by the end of next year if the 70s are any measure.

If the large commercials in the US don't go bust and get fed through by the Fed's begging bowl, then this means that they can continue business. Since they're not entirely stupid, they will try to make more business in the commodities area now that everything else is an obvious sucker. Also, many of these banks are in trouble because they gave money back to (bailed out) their clients -- only being possible because the central banks bought at artificially high prices their mortgage bonds etc. Now these people take their money and put it elsewhere. And it won't be mortgages.

Jim Puplava has always believed in a "creamy filling". Maybe this is the creamy filling we're in right now. Commodities inflation abating a little, and the world thinking the crunch is sort of over. Yet, the other even darker and harder shell is coming towards us like a freight train. Eye of the hurricane, right now. Otherwise, many of the 'gurus' have said consistently all along the way that there will be severe corrections. Just a quick look at a historic chart should make it clear to everyone that a particular commodity can correct 50% anytime. Doesn't mean it won't triple some time afterwards.

People who would have had a $380bn hole, now don't have it. People who wouldn't have been able to put $380bn into commodities now can. EDIT: You have to ask: where does the money go that does not go into mortgages anymore? Where does the money go, that got bailed out and dumped those mortgages?

Rude awakening from the Scottish delusion: http://news.scotsman.com/latestnews/First-...ince.4451340.jp So, Hadrian's Wall hasn't stopped it. Who would have thought it?? Expect 50% drops. Edinburgh has a lot of oversupply. Sure. :lol:

The BoE begging bowl is now something like $380bn in size I read. So, someone who should NOT have it, has now $380bn. If you think that this won't cause inflation, then buy Sterling bigtime. DISCLAIMER: I get rid of ALL Sterling as soon as it touches my hand/bank account. And in fact I've done so for at least a year.

I agree with this 100%.

Gold in Turdling since 1985:

When the Dollar falls, gold most likely will go up again. And it will go up more than the Dollar falls.

Interesting for the inflation/deflation debate: I am currently looking into consolidating (i.e. fixing the interest rate) for my wife's US student loan. Two options: (1) fixed amount each month. (2) increasing amount over the lifetime (last rate is double the first rate). The loan runs over 15 years. At 4% interest and given that the IR is fixed in both cases, the inflationist should take option (2). Because you hardly pay off at the beginning, and towards the end you pay with worthless inflated dollars. I really pray for the guys who own these bonds. 4%!!! What's CPI or RPI again?