InternationalRockSuperstar Posted March 28, 2009 Report Share Posted March 28, 2009 Yep, imo we are in a period of wealth destruction now. the wealth was destroyed years ago. all that's happening now is that those losses are now finally being realised. and lots of people are finding out they've been suckered. Link to comment Share on other sites More sharing options...
headmelter Posted March 28, 2009 Report Share Posted March 28, 2009 Yep, imo we are in a period of wealth destruction now. Wealth is doubly vanishing in asset deflation and the depreciation of currencies. How is that for nonsense! Capital will flee from assets and currencies eventually going into the most powerful symbols of money, that of gold and silver in the "big squeeze". Before that I expect massive volatility - while the dollar remains strong - which is perhaps a good reason to be in some other currencies as well as the metals for now. Diversity of currencies is also a good hedge given the fallibility of all opinions. What currencies do people suggest? I still have £ which I would like to move but know nothing about currencies. Link to comment Share on other sites More sharing options...
romans holiday Posted March 28, 2009 Report Share Posted March 28, 2009 What currencies do people suggest? I still have £ which I would like to move but know nothing about currencies. You have a goldmoney account right? Why not use a few currencies available there [bit expensive to trade between fiat there... but good for holding fiat and going into metals at certain times]? Personally, I want to always have some dry powder in US dollars. Maybe will even buy stirling if I get the chance and if it is cheap enough at the time. I have also been buying NZ dollars, a commodity currency [i guess the Aussie and Canadian are also OK.. I think the canadian dollar is on goldmoney]. The key for me is to buy into weakness and sell strength. For example, the kiwi had slumped to .50 against the US dollar but recently came back to .57 [13% swing]. imo opinion it is fine to do this with a portion of your gold also. There is no risk involved if you take a position in a currency when it is weak... sit on it [no need to worry about timing]... then once it strengthens swap for a currency you have more long term confidence in [hmmm... now which ones could they be? ] I do not want to swap fiat for fiat but be in a few fiat currencies [only buying them when they are weak] so as to be hedged and also to be able to swap for gold/silver when times suit. Seems to me the only constant is volatility these days, why not use it? Link to comment Share on other sites More sharing options...
callmejoe Posted March 28, 2009 Report Share Posted March 28, 2009 Quote from Richard Russell yesterday: Gold appears to have a base of accumulation around 900. At or around 900 there appears to be one or more big sellers; I suspect the sellers are one or more central banks. Link to comment Share on other sites More sharing options...
G0ldfinger Posted March 28, 2009 Author Report Share Posted March 28, 2009 Quote from Richard Russell yesterday: Gold appears to have a base of accumulation around 900. At or around 900 there appears to be one or more big sellers; I suspect the sellers are one or more central banks. We buy it from them for cheap. http://gold.approximity.com/gold-silver_watch.html Link to comment Share on other sites More sharing options...
Steve Netwriter Posted March 28, 2009 Report Share Posted March 28, 2009 Yep, imo we are in a period of wealth destruction now. Wealth is doubly vanishing in asset deflation and the depreciation of currencies. I'm confused now. I thought you said "As a staunch deflationist". "Asset deflation" - yes, the price of assets has fallen//is falling (stocks & houses), I'm not sure anyone can argue with that. "Price inflation" - the price of general goods and services rising. Isn't that what you get when currencies depreciate ? So are you a price inflationist and a staunch asset price deflationist ? Or what ? Link to comment Share on other sites More sharing options...
lowrentyieldmakessense(honest!) Posted March 28, 2009 Report Share Posted March 28, 2009 We buy it from them for cheap. http://gold.approximity.com/gold-silver_watch.html the longer they keep this up the better Link to comment Share on other sites More sharing options...
romans holiday Posted March 29, 2009 Report Share Posted March 29, 2009 I'm confused now. I thought you said "As a staunch deflationist". "Asset deflation" - yes, the price of assets has fallen//is falling (stocks & houses), I'm not sure anyone can argue with that. "Price inflation" - the price of general goods and services rising. Isn't that what you get when currencies depreciate ? So are you a price inflationist and a staunch asset price deflationist ? Or what ? Steve, have you been reading anything I wrote this last year? Past conventional macro-theory is limited in explaining the present novel circumstances. The inflation/deflation debate is redundant. I choose to focus on the underlying value of all assets [cash included] rather than prices which will only serve to mask what is really happening. If I had to focus only on prices, I guess I would be a biflationist. Yet, theory always seeks to unify disparate appearances. Accordingly, I sketched out a theory of hyper-deflation: http://www.greenenergyinvestors.com/index....t=0&start=0 When I say I am a staunch deflationist, I see deflation and wealth destruction as being the big story... currency depreciation is just a sub-text. Link to comment Share on other sites More sharing options...
Steve Netwriter Posted March 29, 2009 Report Share Posted March 29, 2009 Steve, have you been reading anything I wrote this last year? Honestly ? No You may have noticed my absence on the deflation/inflation debates. I'll read your post in a bit and give you my verdict Link to comment Share on other sites More sharing options...
azazel Posted March 29, 2009 Report Share Posted March 29, 2009 Hello? Where has everyone gone? I had a dream the other night that gold would rocket from September 2009. Link to comment Share on other sites More sharing options...
Pixel8r Posted March 29, 2009 Report Share Posted March 29, 2009 FSN 1st hour March 28th 2009 - Jim Puplava talking with Frank Barbera. Frank was the most positive on gold I have ever heard him on FSN this weekend. Here is a synopsis of what they were talking about. Frank: I never thought in my life I would see the FED monetizing bonds, it really makes you think what are these guys thinking. They are putting us on a road to ruin with these lunatic policies. Jim: The FEd also announced it was going to be buying $750 billion of MBS, If you follow the TIC flow, foreigners are selling their mortgage backed bonds, this is probably the reason the fed is stepping up the purchases of these. Frank: That seems to be the message, we are heading into a buyers strike, maybe not out right selling. This is the point in the cycle when things can get out of hand very quickly. When the hot money pulls out thats when the debt markets moves into the currency market. Jim: Frank what about the gold market? Are the gold stocks telling us something about the future price of gold here? Frank: Jim I think they are leading, prior to a good move up in bullion you see a good move up in the gold stocks. We could see a good buying opportunity over the very short term, for people how aren't in already. It just a matter of time before prices break out, but when they do I expect them to BUST out, in a way that really gets peoples attention. It will be something we remember for quite some time. I see the whole area gold & silver bullion and miners as the best place to make money now and is my favorite area right now. Link to comment Share on other sites More sharing options...
bitbigt Posted March 29, 2009 Report Share Posted March 29, 2009 Jim: Frank what about the gold market? Are the gold stocks telling us something about the future price of gold here? Frank: Jim I think they are leading, prior to a good move up in bullion you see a good move up in the gold stocks. We could see a good buying opportunity over the very short term, for people how aren't in already. It just a matter of time before prices break out, but when they do I expect them to BUST out, in a way that really gets peoples attention. It will be something we remember for quite some time. I see the whole area gold & silver bullion and miners as the best place to make money now and is my favorite area right now. Or... ...gold mining stocks have simply started trading like any other stock these last few years, since ETFs now exist for those wanting liquid exposure to gold. Therefore, the recent rise in gold miners is just reflecting the recent rise in stocks generally Link to comment Share on other sites More sharing options...
UpTheKhyber Posted March 29, 2009 Report Share Posted March 29, 2009 Magpie raised the question some time ago as to whether American wages really were lower in real terms than in the 70's. Well, here's an answer not involving pulling figures off the internet; straight from a Commercial Lawyer presenting to UC Berkely, using government stats: It's an hour long lecture, but if you skip the first 5 minutes or so to get to the actual lecture it's well worth an hour of your time. Elizabeth Warren is on the money with many of the points regarding social issues that have been discussed on this site in the past, providing government stats to give backing to her points. General topics covered (all figures given inflation adjusted): . Median fully employed male wage earner now paid $800/year less . Median two-parent family earns more, but nowhere near twice as much. . A large part of the increase in family income have been taken up by increases in the price of housing (which has doubled in price in real terms) . Extra expenses such as child care and the need for an extra car (with a nod to Dr Bubb's theme of the malinvestment of suburban living) have robbed the rest of the income. . Huge increases in cost of healthcare (and what you get for you money) and the increase in baseline education to now include pre-school and graduate degrees (for the same crappy jobs which never needed them before). . In fact, even with decreased spend on everyday purchases such as food and clothing, household have had to sacrifice so much to the credit monster that they now spend more than they earn vs a surplus giving saving rate which was some 10% (IIRC) in the 70's. And that's with two wager earners: families with one wage earner don't stand a chance. . The inability of today's families to withstand economic shocks such as unemployment and sickness has led to huge increases in personal bankruptcies (which is where Elizabeth comes into contact with them). All of it nothing new to readers of this site I'm sure, but the numbers behind the issues are chilling to say the least. Truly shocking how the richest society in the world has been eaten alive within a generation to feed the bankers (and CEOs) bonuses. P.S. She also continues in the same vein here: Link to comment Share on other sites More sharing options...
creditcrunch Posted March 29, 2009 Report Share Posted March 29, 2009 Russia calls for gold standard return. http://www.telegraph.co.uk/finance/finance...ial-crisis.html Link to comment Share on other sites More sharing options...
frizzers Posted March 29, 2009 Report Share Posted March 29, 2009 Russia calls for gold standard return. http://www.telegraph.co.uk/finance/finance...ial-crisis.html Amazing. It's coming. I'mtelling you. It's coming. Link to comment Share on other sites More sharing options...
FishingwithJesse Posted March 30, 2009 Report Share Posted March 30, 2009 Russia calls for gold standard return. http://www.telegraph.co.uk/finance/finance...ial-crisis.html New reserve currency could come quickly-Stiglitz Thu Mar 26, 2009 5:10pm EDT By Louis Charbonneau UNITED NATIONS, March 26 (Reuters) - A reserve currency system based on an IMF unit instead of the U.S. dollar, a proposal floated by China, could be phased in within a year, Nobel Prize-winning economist Joseph Stiglitz said on Thursday. Stiglitz, a Columbia University economics professor who heads a U.N. expert panel analyzing the financial crisis and recommending reforms, addressed an issue that became a hot topic this week. Asked at a news conference when the International Monetary Fund's Special Drawing Rights (SDR) could replace the dollar as the top reserve unit, Stiglitz replied, "It could begin to be phased in next year. He said the system could be phased in within 12 months. "Realistically, I don't think it'll happen that fast," Stiglitz said. One of the main issues left to be worked out is how the SDRs would be allocated, he said. The reserve currency topic is expected to come up at next Thursday's London summit meeting of the Group of 20 big developed and developing nations on the financial crisis. Stiglitz's panel has issued a set of recommendations for global financial reforms, including a proposal for a new SDR-based reserve system. In an 18-page report released on Thursday, the panel said such a system "could contribute to global stability, economic strength, and global equity." The panel said such an SDR system would be "feasible, non-inflationary, and could be easily implemented." Russia earlier this month proposed creating a new reserve currency, to be issued by international financial institutions. This week, China outlined how SDRs could take over the dollar's role as the global reserve unit. For details, see [iD:nPEK257817]. On Wednesday, U.S. Treasury Secretary Timothy Geithner said the dollar would remain the top reserve currency but expressed openness to the expanded use of SDRs. [iD:nN26446657] 'DEFLATIONARY, UNSTABLE, UNFAIR' Stiglitz said there was a "growing consensus that there are problems with the dollar reserve system." He added that economists have been discussing the weaknesses of single-currency reserve systems for decades. "One of the problems (with single currency reserves) is that because of the huge level of volatility, countries are accumulating large amounts of reserves," he said. The use of dollar reserves was also "contributing to the weakness of the global economy," the former World Bank chief economist said. http://www.reuters.com/article/marketsNews...650403720090326 Link to comment Share on other sites More sharing options...
marmite Posted March 30, 2009 Report Share Posted March 30, 2009 I have just heard a radio advert on LBC www.lbc.co.uk for http://www.howcashforgold.co.uk/ Quick sell all your gold Link to comment Share on other sites More sharing options...
G0ldfinger Posted March 30, 2009 Author Report Share Posted March 30, 2009 Amazing. It's coming. I'mtelling you. It's coming. They're calling for it as if they knew that we'll be going Zimbabwe sooner rather than later. Link to comment Share on other sites More sharing options...
azazel Posted March 30, 2009 Report Share Posted March 30, 2009 Russia calls for gold standard return. http://www.telegraph.co.uk/finance/finance...ial-crisis.html The Gold Standard was the anchor of world finance in the 19th Century but began breaking down during the First World War as governments engaged in unprecedented spending. It collapsed in the 1930s when the British Empire, the US, and France all abandoned their parities. It was revived as part of fixed dollar system until US inflation caused by the Vietnam War and "Great Society" social spending forced President Richard Nixon to close the gold window in 1971. The world's fiat paper currencies have lacked any external anchor ever since. It is widely argued that the financial excesses and extreme debt leverage of the last quarter century would have been impossible - or less likely - under the discipline of gold. For those that say "gold is a useless shiney lump of metal" and ban discussion of it from the main forum on economics as irrelevant. Link to comment Share on other sites More sharing options...
Gatesy Posted March 30, 2009 Report Share Posted March 30, 2009 I have just heard a radio advert on LBC www.lbc.co.uk for http://www.howcashforgold.co.uk/ Quick sell all your gold I've seen a few ads in the papers as well. I'll be more worried (as an impending top) when people are buying en masse though rather than being asked to sell.... Link to comment Share on other sites More sharing options...
tinecu Posted March 30, 2009 Report Share Posted March 30, 2009 http://www.telegraph.co.uk/finance/persona...-portfolio.html "Paradoxically there is one asset that advisers recommend as a hedge against both inflation and deflation: gold." There was a similar article in this weekend's Sunday Torygraph too. Note also a video on Gold from AEP (but I can't view it...what's it like?): http://www.telegraph.co.uk/finance/persona...-below-900.html Link to comment Share on other sites More sharing options...
FWIW Posted March 30, 2009 Report Share Posted March 30, 2009 http://www.telegraph.co.uk/finance/persona...-portfolio.html "Paradoxically there is one asset that advisers recommend as a hedge against both inflation and deflation: gold." There was a similar article in this weekend's Sunday Torygraph too. Note also a video on Gold from AEP (but I can't view it...what's it like?): http://www.telegraph.co.uk/finance/persona...-below-900.html I find Ambrose to be rather annoying. He likes to be a neutral and only 'watch' gold... He still thinks in terms of gold is in a commodity bubble and will pop one day. I think he should focus in on what people in the UK should do. For example, last week I sold (via GM) a small amount of gold at $935. Fully expecting gold to come down to $920 level. Where I miscalculated and re-learnt a valuable lesson was the affect of GBP Vs USD in the space of a week. I sold at £637.40, and price right now is £653.20 or $922.50. So I now have a little more fiat that could be used as dry powder to get back in; but pog in usd will need to move down and gbp strengthen considerably. Not likely in my book! All is not lost for me though, as I have some gbp bills that need paying and this will take the edge off! So why am I telling you this sorry tale? Well, being neutral only gets you so far. You need to get your hands dirty to really understand the complexities of gold, and how timing is so important. Being neutral, is like someone watching cars on a motorway. He will be able to tell you how many and how fast he thinks they are going. If he starts to tell you how cars work and that the cars are on their way to say "disneyland paris", you may wish to question his logic! Link to comment Share on other sites More sharing options...
HPCSucks Posted March 30, 2009 Report Share Posted March 30, 2009 What the 'eck is dry powder? Link to comment Share on other sites More sharing options...
FWIW Posted March 30, 2009 Report Share Posted March 30, 2009 What the 'eck is dry powder? Spare cash! Link to comment Share on other sites More sharing options...
romans holiday Posted March 30, 2009 Report Share Posted March 30, 2009 For example, last week I sold (via GM) a small amount of gold at $935. Fully expecting gold to come down to $920 level. Where I miscalculated and re-learnt a valuable lesson was the affect of GBP Vs USD in the space of a week. I sold at £637.40, and price right now is £653.20 or $922.50. So I now have a little more fiat that could be used as dry powder to get back in; but pog in usd will need to move down and gbp strengthen considerably. Not likely in my book! All is not lost for me though, as I have some gbp bills that need paying and this will take the edge off! Why don't you buy some US dollars at goldmoney the next time we see dollar weakness/pound strength? Then you will be in a much better position to buy gold on weakness. Link to comment Share on other sites More sharing options...
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