The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: shades who wrote (66516)	7/20/2006 11:01:22 PM
From: 8bits	Read Replies (1) of 110194

"Are you telling me princess will switch emotional release from shopping for jeans to hoarding gold and digging holes in her backyard like chen - I don't believe it - goes against all the sociology classes I took in college." I am telling you that Americans (and the rest of the world..) increasingly bought more gold throughout the 1970s until it broke $800 in 1980 (and then our comrades the Russians sold some of their gold hoard, killing the last big bull in gold and starting a 21 year bear market in the yellow metal..) There will certainly be individuals who will not change their habits, however I suspect there will be people who will make gold purchases.. it has happened before. What the 1970s had in common with today was increasing commodity prices coupled with a loss of faith in the US dollar. "If you believe money is going to be created faster that debt is expired.." Basically yes, I think that will happen (Even though I don't want it to..) If you are a crack addict (US government..) and you can pay for your crack with money you made for basically nothing.. will you stop...? "However mish says japan's money guys couldn't zoom the presses up faster then debt was expiring - they can print money - but can't force people to take on loans. So lets say they print lots of money - will princess buy more starbucks or more gold on her 5th credit card?" Not sure if I understand but it seems clear to me if the world loses faith in the US dollar then gold will do very well in US dollar terms. A loss of faith in the US dollar will also kill the US stock market and US bonds. Aside from foreign currencies, do you have any other ideas about where to place money in case of a loss of faith in the USD..? Something that is easily transportable, stored, and not subject to scrutiny by the US government..? "Yaniv said most economists and bankers worldwide see making a basket of commodoties as the smart thing - things thier citizens actually need and use." I have owned and still own many oil stocks and one mining stock. FYI, gold has done well during commodity booms. "So like mogambo guru - you have the arsenal of fully automatic assault rifles waiting for when the 20 snipers are trained on your forehead?" Ummm... no... but I do have one family members who escaped from a Bolshevik prison and one who was able to get out of Austria just before the Nazis rolled in. Intelligence, contacts, and capital are better than guns if the veritable sh!t hits the fan. A friend of mine from Vietnam got himself and his entire family out of VN in the early 80s. Guess how he paid for the boat trip..? I think we are quite a ways from such problems. My point about gold is that neither theives nor governments need know you own it. 1s and 0s in a stock account is hard to hide from the tax man, lien man, etc. I assure you I still spend money and I enjoy spending it. "Well Bette Midler got gold at the top - if liquidity is what has increased prices and it gets drained how does it go up?" The key question is.. will liquidity truly get drained? (See my earlier statement about controlling the till...) Throughout the developed world the burden of the elderly (which are partially going to be cared for by their respective governments..in theory..) is increasing. The temptation to "solve" this problem by printing money is powerful. I'd rather not see it happen but I think it will. Does this mean that gold can not decline in the next year, 2 years..? no... but I think it will beat CDs and the many US stocks in a 5 to 7 year timeframe. We will see. If not.. fine. I don't think it's going to zero and it's only 20% of my wealth (at a dollar cost average of around $375)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next