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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: 8bits who wrote (66478)	7/20/2006 4:02:51 PM
From: shades	Read Replies (1) \| Respond to of 110194

You referred to the "general public" not an aberrant member of society who would not only forgo gold but also the items you mentioned. I guess the comparison was lost - shopping machine princess is addicted to debt and spending (not on gold - jeans - starbucks coffee etc etc) the same way crack head is addicted to crack rock - a little time away from thier fix does not alter thier long term habits and wants. IE they are not going to want to start hoarding gold and buy less jeans and starbucks. I have many princesses tell me it is emotional therapy - they could not function everyday if they didn't have thier emotional release at the shopping mall - I believe them. My grandparents and thier peers who grew up in depression times did not have emotional needs based upon spending but upon saving - spending stressed them MORE - unlike modern day princess. 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. long term investment from 1980 to 2001, nonetheless, in my opinion, the tide has turned and we have moved back to the stagflationary era of the 1970s. If you believe money is going to be created faster that debt is expired (which I believe Mish is saying was not a concern in the 70's because we didn't have near the debt) then perhaps as Mogambo Guru says - oil, gold, art, antique furniture, coins etc etc 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? Uhh dude, that's an argument FOR gold. Thanks. He said foreign currencies I believe. Mogambo just said that is as dumb as US currency. hehe Absolutely, and my point is not that gold will make them wealthy but that since historically those societies have used gold as a store of wealth, then gold will rise in value. Historically if you made great buggy whips you could make a profit too. Yaniv said most economists and bankers worldwide see making a basket of commodoties as the smart thing - things thier citizens actually need and use. In regards to the Aztecs and Spaniards, the Aztecs had their gold taken because they put it prominently on display. In today's society, gold is one of the best ways to keep your wealth, IE the opposite of your example if we were to face such a horrific calamity. So like mogambo guru - you have the arsenal of fully automatic assault rifles waiting for when the 20 snipers are trained on your forehead? Military power does not always equate wealth, witness the recent collapse of the Soviet Union. I remember the pope buying off atilla the hun to not invade some roman city - he thought money and gold would buy off the guy I guess - funny that atilla later still kept attacking and pillaging eh? I witness Putin shutting down shipments of natural gas and it making headlines and the state taking over the energy companies - I haven't heard that kind of news on thier supplies of diamonds and gold - why? Chaos and dissolution of American society most likely will come from within. Yah. (That's why I call it insurance) Until such time. I am holding. Well Bette Midler got gold at the top - if liquidity is what has increased prices and it gets drained how does it go up?