Jump to content

Recommended Posts

GM going bust will have very little direct affect on the Dow.

 

The Dow is price weighted.

 

At $2.50, GM is the cheapest stock in the Dow 30, so it will make the least difference to the Dow if it does bust.

 

The FTSE + S&P500 are weighted by market capitalisation

 

I understand, but the knock on effects from a GM bankruptcy will drop the dow by at least 1,000. There are 2M jobs in the US directly and indirectly associated with GM. Furthermore, there are circa 1M retirees receiving medical insurance and pensions from GM.

 

This will be like a nuclear weapon going off. This will be felt from the Midwest right down to the Mexican border states and all in between.

Share this post


Link to post
Share on other sites
Bretton Woods died in 1971, when the US "suspended" gold/USD convertibility. Funny how they never reinstated it.

 

They just replaced the gold in Fort Knox with F-16s in Saudi Arabia. This enabled dollar hegemony to limp along for another 30 odd years.

Share this post


Link to post
Share on other sites

http://thecomingdepression.blogspot.com/20...lly-out-of.html

 

Saturday, February 14, 2009

Jim Sinclair: "It is totally out of control"!

 

I sent you a certain few emails that I consider to be the most important communications issued in my career that started in 1958.

 

I am the son of what I know to have been the greatest Lone Wolf trader in Wall Street history ever, Bertram J. Seligman. He was a past master at his business and believed to be a market sensitive. I apprenticed to him, learned from him and inherited some of his ability, not all however.

 

From this background of experience understanding and sensitivity the following flows.

 

The emails of note:

 

1. Said, "This is it."

2. Said, "It is now."

 

This communication is to inform you as of 2/13/09, "It is totally out of control." There is no longer any means of reversal of the beginning of the final phase of the downward spiral now solidly set in motion.

 

For your sake, protect yourselves immediately.

 

Be prepared for disruptions in distribution common to hyperinflation.

 

1. You should have already distanced yourself from your financial agents. If you haven't you are headed for significant displeasure and strain.

 

2. Make sure you stay three months ahead on necessary items that could experience distribution delays such as prescribed medicine and preferred foods.

 

3. Even though real estate is far from a buy, if you can afford a second home outside of major cities it would serve a good purpose.

 

4. Own gold.

 

5. Consider that good gold shares of non-US companies incorporated in a non-US country operating in third country, traded on multiple exchanges are a means of money expatriation legally and in broad daylight if required.

 

6. For currencies, all you can do is own a spread held by a true custodial ship wherever that might be.

 

Simply said, as of Friday February 13th, 2009 the situation is in confirmed "Out of Control" mode as this well engineered downward spiral enters into a terminal phase.

 

The motive was profit and degree of the disintegration caused in the pursuit of this goal was not anticipated.

 

The key event was when Lehman was flushed - all hell broke loose. The hell cannot be contained in any practical manner.

 

I seek nothing of you but the protection of yourselves.

 

Respectfully yours,

Jim

Share this post


Link to post
Share on other sites
Paranoid?

Realist!

Share this post


Link to post
Share on other sites
But don't delude yourself into thinking that we have been here before. Because one thing is for sure: we haven't.

 

. . . and the truth shall set them free ;)

Share this post


Link to post
Share on other sites

LOL have you seen the infestation of gold threads on HPC? Many threads seem to go on to gold even if that wasnt the OT

Share this post


Link to post
Share on other sites
i know what you mean

 

but

 

http://www.safehaven.com/article-12604.htm

 

 

 

 

and another politician talking sense (and its not Ron Paul for a change)

 

Ex PM of Australia taking sense - risk of US default

 

Wow, that was a good interview when you think it was somebody who was a PM!! Paul, are you are member of GEI? If so, who? Stand up and be counted! If not, then we should make him an Honorary Member. I don't think I've ever seen a mainstream politician give such a well argued (and calm!) account of the economic situation. Hard to believe he has been out of a job for what, 12 years?

Share this post


Link to post
Share on other sites

Seems to be a lot of 1oz gold coins for sale on ebay compared to a few weeks ago. Is there any kind of consensus on here as to how safe it generally is to buy gold on ebay? I sent bairds an email recently asking if they could sell me some 1oz bars but they didn't even reply? Anyone got any recent experience in buying bullion?

Share this post


Link to post
Share on other sites
Seems to be a lot of 1oz gold coins for sale on ebay compared to a few weeks ago. Is there any kind of consensus on here as to how safe it generally is to buy gold on ebay? I sent bairds an email recently asking if they could sell me some 1oz bars but they didn't even reply? Anyone got any recent experience in buying bullion?

Hi and welcome to GEI.

 

I use http://www.coininvestdirect.com/main.php for most of my purchases and they are first class. The coins have been in good condition and delivery is reasonable and about a week. You can use their website as a reference for what the coins look like and the weights and the price which updates in almost realtime. Try comparing prices with ATS. Id recommend them too, but I prefer the conveinience of coininvest.

 

Regarding ebay, Im ok buying sovereigns but ounce coins are a bit too high in value for me to use ebay for. I have just bought a krugerrand on ebay only because I had a paypal 10% voucher off. I havnt recieved it yet and Im slightly worried, although i paid on credit card using paypal so it should be insured.

Share this post


Link to post
Share on other sites
Hi and welcome to GEI.

 

I use http://www.coininvestdirect.com/main.php for most of my purchases and they are first class. The coins have been in good condition and delivery is reasonable and about a week. You can use their website as a reference for what the coins look like and the weights and the price which updates in almost realtime. Try comparing prices with ATS. Id recommend them too, but I prefer the conveinience of coininvest.

 

Regarding ebay, Im ok buying sovereigns but ounce coins are a bit too high in value for me to use ebay for. I have just bought a krugerrand on ebay only because I had a paypal 10% voucher off. I havnt recieved it yet and Im slightly worried, although i paid on credit card using paypal so it should be insured.

 

Hi azazel. Thanks for the advice about coininvest and words of caution about ebay. Do you know if coininvestdirect accept debit cards over the phone so payment can be made immediately and coins sent out? I looked at ATS and they seem expensive. They wanted £510 for 20g bars. I'll go and have a look on the coininvest web site.

Share this post


Link to post
Share on other sites
Hi azazel. Thanks for the advice about coininvest and words of caution about ebay. Do you know if coininvestdirect accept debit cards over the phone so payment can be made immediately and coins sent out? I looked at ATS and they seem expensive. They wanted £510 for 20g bars. I'll go and have a look on the coininvest web site.

I've found CID very good on service.

 

If you phone your bank and set up a CHAPS payment - the money will arrive the same day in their account.

 

Share this post


Link to post
Share on other sites
Hi azazel. Thanks for the advice about coininvest and words of caution about ebay. Do you know if coininvestdirect accept debit cards over the phone so payment can be made immediately and coins sent out? I looked at ATS and they seem expensive. They wanted £510 for 20g bars. I'll go and have a look on the coininvest web site.

Buying through the website and paying by BACS transfer takes about 3-5 days. Delivery was around £12 last time I ordered.

Share this post


Link to post
Share on other sites
Buying through the website and paying by BACS transfer takes about 3-5 days. Delivery was around £12 last time I ordered.

 

I paid by internet banking which is BACS (I did not know that prior) , I too was very happy with the service.

 

Share this post


Link to post
Share on other sites

Thanks guys. If the price doesnt shoot up tomorrow I'll probably place an order with CID for some philharmonikers which seem to be the cheapest for some reason.

Share this post


Link to post
Share on other sites
Buying through the website and paying by BACS transfer takes about 3-5 days. Delivery was around £12 last time I ordered.

For purchases over 1000 euros delivery was free (don't know what it says when you pay in pounds).

 

I've used CID several times and I am very happy with them. Place order using online shopping, an invoice arrives in your email within a day. Pay via internet banking (be sure to use their correct bank account depending on which currency you are paying in). They send a confirmation email that they have received the money and a courier delivers your stuff a few days later.

 

Share this post


Link to post
Share on other sites
For purchases over 1000 euros delivery was free (don't know what it says when you pay in pounds).

 

I've used CID several times and I am very happy with them. Place order using online shopping, an invoice arrives in your email within a day. Pay via internet banking (be sure to use their correct bank account depending on which currency you are paying in). They send a confirmation email that they have received the money and a courier delivers your stuff a few days later.

 

Excellent, thanks. Thats what I was hoping to find out.

 

I've got to say, I'm well impressed with the helpfullness of you guys on GEI :)

 

Share this post


Link to post
Share on other sites
I have, they are good. A lot of coins aren't new though, but in very good nick.

 

Quick service

That's good to hear. They seem to be the cheapest whenever I look but I've been buying silver lately. I'll give those guys a go when I next get some sovs.

Share this post


Link to post
Share on other sites

I've not seen these posted but think they might be of interest.

 

http://gata.org/node/7166

China said sticking with U.S. bonds despite depreciation

"Except for US Treasuries, what can you hold?" he asked. "Gold? You don't hold Japanese government bonds or UK bonds. US Treasuries are the safe haven. For everyone, including China, it is the only option."

 

Mr Luo, whose English tends toward the colloquial, added: "We hate you guys. Once you start issuing $1 trillion-$2 trillion  . .  .we know the dollar is going to depreciate, so we hate you guys but there is nothing much we can do."

 

That reminds me of "it's our currency but it's your problem."

 

 

http://gata.org/node/7171

China bank regulator clarifies, says U.S. bonds are not only option

China Banking Regulatory Commission official Luo Ping said holding U.S. government bonds is not the only option for investing reserves, clarifying comments made a day earlier, the China News Service reported.

 

Hmmm...but he was negative on the other alternatives, except for gold.

Share this post


Link to post
Share on other sites
This is how the gold spike in January 1980 looked like in todays (RPI-adjusted) pounds:

 

http://gold.approximity.com/1979-1980/RPI-adj_Gold_GBP.html

RPI-adj_Gold_GBP.png

 

I assume this uses the official RPI numbers. I would like to see the same thing repeated with the ShadowStats numbers for GoldUS$.

People like Robert Shiller appear to stick to the official numbers. I understand why, but it gives a false impression. ie the gold price now should be a lot lower.

 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×