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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (69068)	5/2/2008 10:23:05 AM
From: KyrosL	Read Replies (2) \| Respond to of 74559

Will folks and nations keep buying 10-years T-bills That is the real puzzler. And, you, as a citizen of the country most responsible for this buying should give us a hint as to why this goes on <g> Are there not other investment opportunities in China? It seems hard to think so.

To: TobagoJack who wrote (69068)	5/2/2008 12:07:06 PM
From: Maurice Winn	Respond to of 74559

< will gold move away from just the dollar or from all paper moneies> As a child 50 years ago [give or take a bit], having made it to paper money, up from half pennies, pennies, threepences, sixpences, shillings, florins, half crowns and even a crown which I got during Queen Elizabeth II's visit in 1953, I pondered the writing on the paper "The Reserve Bank of New Zealand Promises to Pay The Bearer the Sum of Ten Shillings", One Pound, Five Pounds, Ten Pounds, Twenty Pounds or whatever was on the note. I believe there were bigger notes than Twenty Pounds but I don't recall having one ever. Coins were valuable enough for my regular way of life. I never did figure out quite what it meant, but it seemed a kind of circuitous logic lacking logic even at my then tender age. I learned early on that there is a thing called inflation as the money carefully worked for and saved was required in greater quantity to buy things I wanted, such as Broadway pies, doughnuts, chewing gum. In an increasingly lengthy life, I have never come across an issuer of promissory notes who didn't enjoy printing more of them - albeit not so many as to frighten the horses and make them bolt [though some places get tempted under various political pressures and lack of time for themselves to get their grubby mitts on opm]. In a financial relativity theory world where technological development, economies of scale and Made in China cost reductions make life easier and cheaper, said promissory note proliferation can be carried out com gusto without causing inflation. Competitive proliferation makes it look as though nothing is happening, but in fact the financial cosmos is inflating even while all looks the same, relatively speaking. When Peak People is a fact in 2037 and Made in China cost reductions are over due to pay rates rising as the last of the poor get better paying jobs and look for better still, and resources are not getting cheaper to supply but more expensive, and rapid technological development is not so spectacular, then financial relativity theory will get interesting. Those used to proliferating pixelation processes will find they can't do it as much as they could without seeing prices zoom Zimbabwe style. Worse for them, even if they do NO self-dealing, there will be so much of the stuff around that prices will rise. That's a long way away. But gold is already far above its production cost so exploration and production are going com gusto. It's not just money makers who print themselves profits. A Golden $100 takes more effort to produce than the pixelated version, but it is still a lot less than $100. So, net net, near enough for government work, the Head and Shoulders formation should complete the second shoulder in about two months and then there will be a long slide as No-Brainer buyers at $1000 and more take their losses and others make their bets. Then, in the long run, the pixelation processes will continue apace, all for one and one for all, America and Albania to New Zealand and New Zimbabwe, altogether, and gold will become resurgent, as always in the past. Until, one day, a big Genki Dama ball of Qi looms large and the evil-doing proliferating self-dealing pixelation processors are challenged to a duel. Mqurice

To: TobagoJack who wrote (69068)	5/2/2008 12:40:01 PM
From: Maurice Winn	Read Replies (3) \| Respond to of 74559

Speak of the Devil... Yahoo! tells me <The Fed said it was boosting the amount of emergency reserves it supplies to U.S. banks to $150 billion in May, from the $100 billion it supplied in April. The Fed took this action and several other moves to boost credit in coordination with the European Central Bank and the Swiss National Bank. > $50 billion extra on top of $100 billion extra. Can you imagine how many Broadway pies I could have bought with that? That's serious money even in my language. Just how big are his helicopters? He must have fleets of them. Rumour has it that American electorates got cheques in the mail too - as payment for being Americans. That's a good job to have. They should hire me. I'd go shopping too if they send me some cheques. Mqurice