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Gold Insurance Against Continuing Financial Meltdown

Commodities / Gold & Silver Oct 30, 2008 - 07:08 AM

By: David_Vaughn

http://www.marketoracle.co.uk/Article7050.html

 

Wow! Are you excited?

 

The entire world is going through a generational and even a once in a hundred year cyclical change right before our eyes and we are witness to these historical events. All of these gold and financial sites for over 10 years have been predicting that this financial meltdown was coming.

 

And don't fool yourself here. The most important element for survival for those who survived the 1930s were those who were out of debt and had assets that were paid for free and clear.

 

IMO We shouldn't forget this. We are living through exceptional times.

 

And let's hear one more comment from George Sorus before we go. Just a reminder that the days of the US dollar being the world's reserve currency are coming to a gradual conclusion.

 

"… the current crisis marks the end of an era of credit expansion based on the dollar as the international reserve currency.” “The current crisis is the culmination of a super-boom that has lasted for more than 60 years." georgesorus.com/, 1-23-2008

 

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http://www.moneyweek.com/investments/preci...n=Money+Morning

 

"...when the Fed inflates, the banking system does soon after. The Fed has never inflated in one month as much as it did in September. So the odds are against deflationists. Indeed, the money supply could grow 25-50% in less than a year if that liquidity isn't taken back."

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This is the very problem, it won't be, which of course confirms this is an insolvency issue not a liquidity issue.

 

http://www.moneyweek.com/investments/preci...n=Money+Morning

 

"...when the Fed inflates, the banking system does soon after. The Fed has never inflated in one month as much as it did in September. So the odds are against deflationists. Indeed, the money supply could grow 25-50% in less than a year if that liquidity isn't taken back."

 

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Speaking of deflation... seems a lot of gold bulls are feeling a bit deflated these days. Have just been reading round a few gold forums and the general atmosphere is frankly depressed.

 

I speculate that we are in for a good bout of deflation for a decent period of time. Gold may spike at times leading to false hopes only to slump again afterwards. Repeat this so many times and even the most fervent gold bull will get worn out.

 

The very real possibility/likelihood remains for high/chronic inflation with currency devaluation which could indeed lead to hyper-inflation. Also, the reflationary efforts of the Fed may find traction with new money looking for a new home in commodities and all manner of things.

 

Yet, many are also arguing that Fed efforts are merely pushing on a string... a trillion dollars here.. a trillion dollars there... are no match for the trillions upon trillions of dollars which were created in all sorts of exotic instruments which are slowly deflating... with massive amounts of money slowly being destroyed.

 

 

 

My strategy: hedge, hedge and hedge.

 

I will remain hedged in my opinions. I feel i am relatively cognizant of both the arguments for inflation and deflation. They both make sense and I have never thought them to be mutually exclusive propostions. I recognize the claims of both by keeping a time line in mind. The idea here is we could have an extended period of deflation followed by inflation sparked of by some currency crisis due to increasingly massive US debt levels. Yet, I also remain hedged in my opinions insofar that the world of economics is likely to continually surprise me and that I may not know what I am talking about. For example, who saw this period of dollar strength even though we can explain it in hindsight?

 

I will remain hedged in my holdings. I plan to keep 50% in PMs [both silver and gold] and 50% in cash... [preferably a couple of currencies] with the possibilityof buying good dividend yielding stocks in the commodity field once they have completely bottomed out [i think it is likely we will see a resurgent Asia in the near future]. If we see spikes in POG, I will sell 25% of my gold with the aim of buying again on the slump.

 

I think we live in an interesting time where we will no doubt see a lot of hardship... yet i think we will also see a lot of opportunity.

Good luck.

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An interesting warning from Schiff's sidekick John Browne - not sure what to think anymore tbh...

 

In the third weekend of November, leaders of the G-20 nations will assemble in Washington for urgent economic talks. There may even be calls for a new Breton Woods to discuss a revised world monetary order. Key will be China's role. It is likely that a major debasement of all currencies will be undertaken to rescue the global economy and with it, the world's politicians. As this proposal gathers momentum, gold is likely to explode in price.

 

However, with the possible exception of countries like Switzerland, politicians the world over are likely to create international rules designed to preclude the holders of gold from making "windfall profits."

 

CONTINUE >>>

 

PS. Use Adblock Plus (Download) to prevent Rusky sluts from spreading themselves all over your screen by creating the following filter: http://plagron99.popunder.ru*.

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can anyone help with this - i have a new pc but thats all i have changed

 

I can't post from my home pc anymore - i can log in but can't post or send a message

 

Had the same problem if not worst. I couldn't log into my bank account, ebay or forums, it drove me mad.

 

After hours of head scratching it turned out to be the MTU setting in my wireless gateway. I believe it can cause all kinds of compatibility problems.

 

Access gateway from your browser url - 192.168.1.1 - default for most gateways.

 

If its not been changed default user name - admin - default password - admin.

 

Enter setup and go to WAN setting.

 

MTU option default setting 0 is 1500 bytes - change to 1492 bytes then submit or apply.

 

exit and restart browser.

 

 

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There are computer questions popping up in all the main threads, can't people start their own threads, it's too distracting IMO.

 

Having said that on the issue of MTU's you should run a program that will decide your optimum MTU for your machine, it will vary depending where you want to go to on the web. Setting the MTU avoids packet fragmentation which can cause severe performance issues, but I have never seen it cause the problems described, it should eventually work unless there is a black hole router in your path. If you want to reply to this post can you start a new thread please?

 

Had the same problem if not worst. I couldn't log into my bank account, ebay or forums, it drove me mad.

 

After hours of head scratching it turned out to be the MTU setting in my wireless gateway. I believe it can cause all kinds of compatibility problems.

 

Access gateway from your browser url - 192.168.1.1 - default for most gateways.

 

If its not been changed default user name - admin - default password - admin.

 

Enter setup and go to WAN setting.

 

MTU option default setting 0 is 1500 bytes - change to 1492 bytes then submit or apply.

 

exit and restart browser.

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More from the Schiffmeister

 

http://www.europac.net/externalframeset.as...me&id=14477

 

 

Reality Dawning...For Gold

 

 

Despite the fact that the governments of the G-7 nations have injected some $3.5 trillion into their financial systems to prevent a meltdown of the world’s financial system, stock markets are still reeling. With some stocks down by over 60 percent, many investors already have been through a disastrous erosion of wealth. The declines have not occurred in just a few days as they did in 1929. Rather, Government interventions, regulatory changes and bailouts have drawn out the fall in prices over a long enough time period to make it feel like a slow water torture.

 

Nonetheless, the reality is that there has been a dramatic fall in the price of stocks, precipitated by a massive sub-prime induced deleveraging and the opening salvos of a credit crunch that will likely be with us for some time. After years of misplaced optimism, market participants are now coming to grips with some rather unpleasant recessionary prospects. So, despite government rescue measures around the world, markets continue to sputter.

 

Worse still, as America is perceived as the engine of the fading economic order, the looming recession appears increasingly to be both worldwide and potentially severe. Indeed, it looks likely that, if badly handled, the recession could easily slip into a depression, based on a far more highly leveraged base than in the 1930’s.

 

Therefore, the sad conclusion of the current stock market crash is that it appears to be anticipating an economic crash, just as bad as that of the 1930’s.

 

For a moment at least, attention is focused increasingly on economic recession and diverted from the risk of financial panic. Temporarily, this is reducing the upward pressure on the price of gold. At the same time, recessionary influences are pressing the gold price down, like other more conventional commodities. Therefore, gold continues to trend downwards, possibly even towards $600 a fine once.

 

In addition, as the risk of recession appears to gaining international perspective, the strength of certain non-U.S. dollar currencies, including the Euro are eroding and driving the U.S. dollar upwards. This, in turn, is bringing yet further downward pressure on the U.S. dollar price of gold.

 

Regardless of which candidate the United States selects, the next President will face the prospect of severe recession and be forced to “spend, spend, spend” in an effort to avoid an international depression. In the meantime, a second tsunami of credit card, auto, personal and business loan defaults is heading for the banking industry.

 

Investors are sensing the approaching storm. On January 12, 2009, General Motors Automobile Credit Corporation (GMAC) is due to redeem $1 billion worth of bond issues. Just three months from redemption, these GMAC bonds are trading at a massive discount from par. In today’s climate, three months can feel like an eternity. It is a finite measure of only a small part of the financial storm ahead.

 

In the third weekend of November, leaders of the G-20 nations will assemble in Washington for urgent economic talks. There may even be calls for a new Breton Woods to discuss a revised world monetary order. Key will be China’s role. It is likely that a major debasement of all currencies will be undertaken to rescue the global economy and with it, the world’s politicians. As this proposal gathers momentum, gold is likely to explode in price.

 

However, with the possible exception of countries like Switzerland, politicians the world over are likely to create international rules designed to preclude the holders of gold from making “windfall profits.”

 

Therefore, holders of gold should renew their efforts to ensure their holdings of gold are as isolated as possible from the long, greedy arm of the law.

 

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fed_halloween.jpg

 

 

Everything is fine, go sell your gold, because there are lots of people who will happily buy it from you well above spot, and go buy US$.

 

ThumbsUp2.jpg

 

 

Lets celebrate the excellent experts who often inhabit CNBC.

 

Lets hear a round of applause for Art Laffer, Former Ronald McReagan Economic Advisor, speaking such sense in 2006 :lol:

 

Peter Schiff - (Former Ron Paul Economic Advisor) Versus Art Laffer (Former Ronald McReagan Economic Advisor) - August 28, 2006 - Peter Schiff [Pimp]

http://www.youtube.com/watch?v=IU6PamCQ6zw

 

 

Ohhhhhhhh Art......I think you owe Peter that Penny ;):D

 

 

 

Previous gold thread last post is here:

http://www.greenenergyinvestors.com/index....ost&p=73134

 

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Just 1,744 posts and 64,286 views on the last thread :D

 

I notice the stats from March 2008:

 

Most users ever online was 478 on Mar 30 2008, 09:06 AM

 

Expect a lot of activity on here when gold starts motoring up !

 

Yep, should be a great sell signal like the last time... :D

 

Might be a long wait though if many of the top pundits are to be believed. Well, may be within the next 6 to 12 months as it'll take that long for the deflationary fantasy to subside and the hyperinflationary reality to dawn on most of the plebs.

 

Still, you never know, the COMEX might default before then though I'm sure TPTB will think of something else to keep us all amused in the interim...

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It's the way DrBubb has done it for many of the popular threads since I've been on here.

 

I suggest you refer people to this:

 

http://www.greenenergyinvestors.com/index.php?showforum=2

 

with this name: "Gold Investment & Trading" to look for.

 

They should soon find the gold thread as it's always pinned at the top ;):D

 

 

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