G0ldfinger

The story won't end here, by the way. BECAUSE the bank will run to the central bank crying. Mommy central bank will then say, here, little bank, give me your defaulted or crappy mortgage, I give you freshly printed cash, because I don't want stock market DEFLATION. Hence, we get even more money supply INFLATION. This loan also will never be paid back, because it will be rolled over to infinity. This is how gold finally goes to $10,000, and oil to $400.

I don't think so. I think it's only very short-term debt that can be included in M3. But maybe I am wrong here. Happy to be corrected as well.

OK, here an example with numbers. Say, M3 is X. Now a bank with a market capitalization of Y makes a loan of 100,000 to someone who buys a house. Now M3 is X+100,000, because this someone takes the money and gives it to someone else. The bank doesn't win or lose anything (we disregard interest), so the market cap possibly stays at Y. Now the mortgage defaults. M3 is still X+100,000, with no chance of the additional 100,000 ever being destroyed. The bank says, "CRAP, we have a write-off!" The stock market says "CRAP, they have a write-off!" The bank then does funny things on its balance sheet (reducing it by 100,000, I suppose), and if the stock market is rational, the banks new market cap is Y-100,000. END RESULT: M3 has increased, the stock holders of the banks have made a loss. --> money supply INFLATION (and stock market DEFLATION)

Can you explain to me in what way a balance alteration of a bank (the 'write-off') directly influences M3? How does this destroy 'money'? I agree that 'value' gets destroyed. But money? How? So, yes, write-off means 'sorry, our asset is worthless'. I can't see how this destroys money. It destroys value, e.g. for shareholders, but no money. EDIT: OK, I guess the question is, is the actual mortgage part of M3? I wouldn't think so. The money that got created through the mortgage (e.g. paid to the previous house owner) is M3, but not the mortgage itself. Or do I get this totally @$$-backwards?

That the part I never understood. What's exactly the problem with imaginating that the Government of Western Australia can go bust. I am sure it can. Maybe we're going to see it some day.

Writing off debt means that money in circulation that would have been paid back will never be paid back. Ultimately, write-offs mean therefore more monetary inflation (money that got created can not be destroyed anymore).

http://www.moneyweek.com/file/52082/four-r...y-gold-now.html Remember, Spain is still on the road to financial Armageddon.

Do you mean this one here? Could be a code and actually mean something!

My car service was less than expected. I see some value in silver here. I think I will sell some Turdling today and go into real cash (silver, in this case).

Sterling = Turdling.

Cheers!

http://blogs.telegraph.co.uk/ambrose_evans..._just_beginning

Re title of thread: what is CDNX, by the way?

Champagne everyone! Finally half a trillion has been reached. NOTE: trillions are the new billions. (LTCM my @r$e! Peanuts!) http://www.bloomberg.com/apps/news?pid=206...&refer=home Uh, oh, and remember back in the times when we thought 100 lenders going bust is an insanely huge number? :lol: 273 @ http://ml-implode.com/

I think we could see 1.65, no problem. But all these currency turds that are floating in the bowl will be flushed down the tube in the end. So, gold will not stay flat in Euros either. Also, at some stage (long before the Greater Depressions and also the USD inflation are over), the EUR might encounter massive problems and reverse.

Let's say German EUR. Not sure what's going to happen in Ireland and ClubMed. Ireland might go back to the Irish Peso soon. I heard the have a house price problem. I am bearish on the EUR as well, by the way. I think gold will do much better.

If history repeats itself, I'd expect EURUSD > 1.65 and PoG > $1,100 in the not too distant future.

THE COIL HAS BEEN RELEASED in exactly the kind of manner one would expect it. First a little spike upwards, then (this is what I think) a massive spike downwards. Let's wait and see. This is really exciting! Compare also:

As most of you already know, a Sighting of Silver Sammy (SSS) has occured. Therefore an update on the Silver Sammy Contrary Indicator (SSCI). Draw your own conclusions, but I am too busing buying to write more. :lol: (Just kidding, really.)

Are you buying an actual silver future there, or are you just betting/are they just shorting something to you? If the contract expires, how do you usually take physical delivery? Is it real, or just paper? Cheers. American for me, I think. Higher marketability. And 90% until 1964.

I might buy some junk silver soon. Not sure whether I will go American or British. British are less recognizable and only 40%, I think. So, maybe I go for American 90% coins. The good thing is that while your gold coins will (inconveniently) buy the whole supermarket when the SHTF, a silver coins will be good for one shelf only. It's just handy to have some.

Error, or their way of making money?

WOW! An SSS! The bottom is in (99% guaranteed ). Thanks for letting me know! Sorta fun. Here we go: I suggest you put everything into Dollar then. On the other hand, you could start viewing gold as the real thing, and despise the USD and lots of other fiat for being too volatile. Since the central banks are basically 'against' gold, they (and others) implicitly cause this volatility. To drive people into their paper crap. wrongmove, no one is expecting you to hold gold. Sell it all, so that you don't have to worry anymore.

Interesting thoughts. DO you have a link for the last statement? Cheers!

Why should I hold Turdling, EUR or USD when they all give me less interest than inflation??? No, I just decided to be 100% in cash (REAL cash, that is).