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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (107333)	2/29/2008 2:27:54 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 306849

You post some really ridiculous arguments Hawkmoon, my favorite was the 4 trillion dollars spent by Bush and friends as a BENEFIT to the taxpayers. Show me where I said it benefitted "taxpayers"!! I never said any such thing. All I stated was that the increased demand for a stagnant supply of government debt left little choice but to increase the supply of that debt. When the market is willing to loan the government money for 10 years at a lower rate than what the Fed permits banks to loan to each other for 24 hours, that called an inverted yield curve. Either the Fed must lower rates to resolve that, or the Treasure must increase the supply of debt to move the yield back above the Fed Funds rate. Had Bush NOT increased deficit spending by the number you cite ($4 trillion), the available amount of government debt would have been even less, but still facing the same increasing demand for that debt. Yield prices would have gone even lower. I also seem to recall that I stated that a reasonable argument could be made whether that deficit spending should have been focused on fighting a war in Iraq/Afghanistan, or on domestic priorities. That's basic economics babe.. Supply versus demand. When demand exceeds supply, prices increase (resulting in lower yields in the case of gov't bonds). Lizzie.. when you post to me, I can't help but reflect back on the old Saturday Night Live "point-counterpoint" skits with you playing Jane Curtin: video.aol.com (not to imply anything specifically personal towards you with regard to the skit, but it's just a memory that is evoked).. Some metals are on the verge of synthetic production I would like to see some links for this.. not doubting you (yet), but can't seem to find anything where we're at the point of the alchemist dream of synthesizing gold from lead or synthesizing the periodic table. Thanks for dropping into the old sexual stereotypes, having nothing whatsoever to do with whatever you are putting forth. Yawn. Shoe fits, wear it.. and there is certainly an amazing intellectual comparison to be made between you and my ex.. that's all I was saying.. BTW Gold and every other hard commodity, staple or not, is still going up due to your hero George Bush's massive spending so its not like gold is not a decent investment, Every commodity denominated in USD is going up.. that's what happens when the value of the dollar decreases. Commodities are an arbitrage against a plummeting dollar and lower interest rates. But when the Fed is done lowering rates, what do you think will happen when that arbitrage is unwound? But to presume gold is somehow an irreplaceable product in terms of modern life and industry is just folly. Show me where I said any such thing (or even implied it)? Gold is a commodity, not a currency.. and should be treated as such by the markets. And the fact that Platinum is even more valuable than gold (catalytic converters, fuel cells.. etc) accounts for a lot of it's increase in value. I personally believe that Ft. Knox should be opened up and all the gold sold. But there was this little agreement back in 1999 wherein the central banks agreed to halt all gold leasing operations.. Yet, they continue to hold on to 25% of all the known gold reserves ever mined. I seem to think DeBeers got into some trouble for just such an activity in the diamond market.. but because it's central banks and governmental treasuries doing it, it apparently "alright". Hawk