Silicon Investor (SI) -- The First Internet Community

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 : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Boplicity who wrote (52669)	6/4/2002 11:56:37 PM
From: Jim Willie CB	Read Replies (2) \| Respond to of 65232

yen carry trade from 1994 to 2000 borrow Japanese money at 1% absurd low levels take money, sell its yen form into dollar form buy USTBonds for 5-8% over that time span end result: huge profits in cash market or huuggggger profits in futures market yen takes a kick in the nuts down a notch each quarter dollar steadily rises US rates steadily fall US economy enjoys widespread earnings rise, expansion or was it really an expansion? blame the prosperity on the tech productivity gold carry trade from 1995 to 2001 borrow gold in Western Central Banks at 1% absurd low levels take money, sell that gold still in dollar form buy USTBonds for 5-8% over that time span end result: huge profits in cash market or huuggggger profits in futures market gold takes a kick in the nuts down a notch each quarter dollar steadily rises US rates steadily fall US economy enjoys widespread earnings rise, expansion or was it really an expansion? blame the prosperity on the tech productivity now both are done, gone, over, complete BUT 50% OF USA GOLD IS NOW IN FORM OF IOU'S the Federal Reserve still shows all the leased and sold gold as on its books NOW COMES THE MARGIN CALL, BEGUN WITH AMERICAN BARRICK GOLD current status: $2000 billion of USTBonds rest in foreign hands (45%) a substantial portion of which came from leveraged carry trade carry trade via futures is a hyper-engine, very efficient the carry trade is to financial markets what the Trade Winds are to colonial ocean travel now Japan has a trashed banking system, near zero bounded box interest rates, and a horribly stuck economy the yen carry trade enabled Japan to kill its currency and economy no better word to use: KILL we borrowed from future pain & suffering in 2000 decade and enjoyed false cheated prosperity in 1990 decade our entire culture is "live for today, pay for it tomorrow" why should our financial lives revolving around gold, dollar, bonds, interest rates, credit cards, home equity loans, bankruptcy be different ???????????????? continuation of currency dollar outflow discussion... Puplava compares financial markets to weather the best analogy I have ever heard imagine a high pressure hot zone of 92 temps, sunny now next week we want to get that western middle pressure zone of 80 temps, sunny with patchy nice clouds sure, we want to get the better more moderate weather but between the 92 and the 80 lies a thunderstorm perhaps with some broken tree limbs like what happened in Pitt last weekend some power outages in entire little boroughs for two days same thing in financial markets now dollar outflows back home to Europe and Asia Euro stocks are doing better Nikkei stocks are doing better we in USA want the lower 80 temps for our corporations to give them better pricing with lower dollar now we are scorching with 92 temps with lost competitive world pricing with the ultra-strong suicidal dollar Puplava thinks the deflation credit-based economy coupled with the cash-based energy and commodity economy mixes as high and low pressure zones, with the currency jetstream shifting away from the dollar, all to produce a PERFECT STORM prepare for it he mapped it out a year ago it is unfolding EXACTLY according to script his updates confirm EVERYTHING is occurring to script still hope this helps dont worry about a run on the banks that is the extreme if & when a Democrat Klutz sits in the White House and a Keynesian Effing Moron runs the Federal Reserve dont count either out this country is astonshingly illiterate with finances, economics, and accounting our culture lionizes thieves and creates heros out of them e.g. JD Rockefeller, Joe Kennedy, Leland Stanford / jim