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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (7440)	12/27/2007 1:10:47 AM
From: pogohere	Read Replies (1) \| Respond to of 50115

"And now you & Hussman want me to believe that Fiat Central Bankers are fixing a liquidity crisis in the financial markets - by NOT adding liquidity - but, by actually withdrawing it? ...I don't think so." I think the bankers are doing what they always do: they protect each other. If a few fail in the normal course, their friends and families will pick them up, set them on their feet and get them connected again. That's what the gang did that organized the Federal Reserve. These guys engineer wars, depressions, panics and murder whole sectors of the economy. What makes you think your version of reason and reality matters? What family did Al Gore's daughter marry into? Google around and see. Gold loved a credit crunch and deflation in the 1930s and probably will again. By using only ordinary "common sense" and what passes for economic logic, a guy could get the right answer--buying gold-- and not even be close to understanding why that's the right answer. Plenty will bet that gold is moving up because of increases in the money supply, but we can't demonstrate that there are such increases. It could be moving up because the market "smells" that gold will be the commodity currency of choice because for a few years to come the paper currencies, the "fiat" currencies, will not be flowing into the hands of the debtors who are facing insolvency. That's the part of the quants' model that didn't get "modeled" in: nobody figured the defaults would run so far so fast. Until somebody can demonstrate how all those insolvents will pay the bill, the issue will be publicized as a liquidity issue while the actual figures the banks publish don't support that. Are they lying? Sure. Can we prove it? Nope. You're sure you're right. You might be right. But you can't ask gold, you can only see it go up and down and infer what that means. Yes, I'd rather make money for the wrong reasons than not make money. But if I do make money that way, it won't be because I know what I'm doing. Maybe I'll just get lucky. I don't have access to information to argue that liquidity is being added or taken away. Hussman provided quite a bit of detail. So far, that's the best information--along with Russ Winter's and Lee Adler's blogs-- I can find and it leave me believing liquidity is not being added just now.