i think a big problem is there is a fanatic commitment to Fiat Money. As Marc Faber pointed out the money people, the people that their whole life is woking with money have discovered they can now make money by just moving it around real fast, and they have made the leap beyond paper money to electronic money.
He states it is based on nothing, it is fluff, all puff and fluff, it is just a relentless shallow game of moving money(puffed fluff) around 24/7, moving money to making money off of transactions fees and spreads yada yada yada.
The entire derivatives industry is parasitic, they are slowly destroying all concept of value, making it into something so hollow in can engulph all real value in the world and turn it to 'ashe to ashes, dust to dust".
Now he wrote of this say about 4 years ago.
Since them Mega Computers have come full maturation.
i remember the CEO of GS saying in 2000, it is is their ambition to have ALL TRANSACTIONS done by a linking of super computers world wide.(why--because, he said they don't have thought, no consciousness, they will perform relentless transactions without the impairment of a human with his having fears and doubt.Just give it the algorithm and let it do its thing)
(Who was their CEO in 2000, btw??)
Now i stated talking up this way back then, and then i went into rant mode, because back then i didn't think anybody was listening.
i admit of have a science-fiction writers mind, and i could visualize all the massive implications of this, and the spee that this change would come.
(BTW, this is leading to the of matter of POG--somehow i will circle back:)
i am not sure the date, but i read Newman's "Metamorphoses" which maybe the best thing ever wrote.
It was perhaps 2002 that he wrote the markets of the world will NEVER be the same again.
He the warned on must start to question TA, as the rules have changed.
Post 2001 PPT escalated their market intervenings exponentially, again i have few i can convince of this.
And it became also a political tool. i can say so many people , including myself watched AWESOME rally from July 2006 to the election and up to EOY, that i say at least 90% did not call that that rally would not pause right though election, i was one of them.
i maintain my NOT Guru status by noting every time i was wrong alond with right.
i would say most Guru's, if not ALL Gurus remember when they were right and forget when they were wrong, and thus hide, even from themselves, their batting average is , in the main, 50%.
In terms of Famous Gurus i can say Marc Faber and Richard Russell keep track of their mistakes and maintain always humility.
Now this leads back to GOLD.
Marc Faber called buy buy buy Gold at about 300-320. But now he is on caution but is still buying.
recent post: Vi who wrote (10850) 9/6/2008 10:53:00 PM
From: GONE1001 Read Replies (1) of 11182
An EXACT recent quote from Dr.Marc Faber
<< I am a happy
holder of gold and a buyer on the way down (in fact, irrespective of the
price I buy every month some) for the following reasons. I am not a great
believer in insurance policies but since I think that sooner or later the
entire financial system will blow up I want to make sure that whereas my
assets, which are on deposit and could become worthless through default,
I shall still be left with some assets that are mine (physical gold in a safe
deposit box – not in the US). I should like to emphasize that this is also a
point which speaks for owning some stocks.
Dr. Marc FABER Market Commentary August 20, 2008>>
i note FABER says it is POSSIBLE Gold will go to 600.
Two, this guy is pragmatist and he is NOT ruled by his longterm views. He was LOOOOOOOOOOOOOOOOOOOONG the dollar before this rally in USD(the pramatist!:). He published a call of another analysts of SPX500 reaching 500 in the future.
***********************************************************
Faber now sees, due to increasing credit squeeze all assets deflating, at least to the end of 2008--buthas pondered 1212.
Now i ask what is FIAT money's greatest enemy?? Gold of course.
Now Gold Bugs i feel have one weakness, that being they believe the world will have to go back to a Gold Standard, and i say they need face it, the world will etremly unlikely do this as the system now is super fast movement of electronic money in amounts that there is not enough GOLD to back, unless priced to say 10k an ounce.
Faber had an ultimate target of 6k an ounce i believe.
But it has become apparent the Gobal Power Boys have decided to run the world on Fantasy Money, they are in process of making money to being no more than the value of the money used in the game of Monopoly. it is seems.
The U.S. and world banks got FEAR this year, the food riots across the world started the fear, but one cause for fear.
They realized if the USD collapsed utterly the inflation would overwhelm the world, i think they started to recall their Ecoomics 101 lesson that the greatest destroyer of wealth was GALLOPING INFLATION, and gag me that even reduces greatly the wealth of the very rich.(Can'thave that!!)
But, in the Great Depressin the Astors, the Rockefellers, The Vanderbilts and so on, were richer than ever.
Deflation does no harm to the rich.Cash is king, even if it is eletronic cash:)
i do form hard convictions, i have never doubted the rise in the dollar commenced after the G7 meeting in Dubai, because an agreement was made that we MUST drive up the dollar.
Based on what??? Nothing other than it MUST be done, even if the dollar is only worth 25cents.
Any othet motive. Yes U.S., a collapsing U.S. is frightening to the world.
How would the U.S. behave(here comes the science fiction aspect of me to the fore:) if in a state of collapse.
The have weapons, military weapons several 100 miles high if stacked up--o my.
And they could go into the extortion business, i think they have actually already quite a bit in getting the U.N. to rubber stamp the U.S. wishes.
G7 agreeance can be based on fear of U.S. also
But regards Gold they , i think, actually think they have problems holding down.
But, i think it was too early that said to Faber's saying store anywhere but in U.S., said what if the world also took to the policy of confiscating gold.hmmmmmm?
But, because i need to write a many paged essay to address this subject, to the question why isn't GOLD doing its' job, i will say only, because the Global Fiat Financiers are afraid of GOLD, that it isn't doing its job
Now though , some nation like, Russia, feeling persecuted and noting the U.S. doesn't want them in the room where power decisions are made, to make them there next Pariah, like we have with Iran, may strike back and start buying and hoarding Gold, so also Iran, thus driving the price of GOLD up and up and away.
Basically i am saying the world has become a problem the human's can't solve.
The mechanism, the complex it's gets, the more vulnerable to meltdown.
Back about, what 30,000 years ago something like 250 homo sapiens crossed out of Africa into the Middle East and started to wander it about, and over time building ever expanding complexity, now we have reached what, the complexity of trying to order chaos-- a Babelian Tower with a crumbling foundation, this???
In such an environment, no matter the hostility to GOLD and Silver for that matter Gold and Silver can't be kept down.
Once people don't beieve in FIAT money, it dies.
Way back in time, money was simply the exchanges of say 100 chickens for cattle, a female and bull plus one for slaughter.
Now if i was a survivalist, which, at 67, i surely am not, and if i had 50 million dollars and no caring for anyone but my own survival, i would buy a huge and fully developed farm and surround it with razor wire--o my,i am getting in to futuristic "sciece fiction", AGAIN. Enuff yakety yak.Max |
