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


To: Snowshoe who wrote (71427)12/5/2009 11:20:02 PM
From: Maurice Winn1 Recommendation  Read Replies (1) | Respond to of 74559
 
Borrowing cheap money to buy a speculative bubble is risky, as millions of people have learned to their dismay. <They're borrowing cheap money and using it to hoard garlic. China needs to quit printing cheap money >

When the money becomes expensive again, with 20% interest rates, the cost of holding the hoard could get really ugly really fast and especially when the price is dropping fast as hordes try to sell their hoards at the same time and buyers wait until prices look as though they have stopped dropping.

But why should China stop printing yuan? It's great fun to have a money machine. When a fiat currency is on the way up, it's great fun for the owners of the printing presses, who get rich. On the way down the other side, it's hideous for those left holding the bag, who are those foolish enough to accept the promissory notes in exchange for real things.

The yuan is on the way up. They can keep printing for years.

Mqurice



To: Snowshoe who wrote (71427)12/5/2009 11:55:58 PM
From: marcos  Read Replies (2) | Respond to of 74559
 
All human maladies being indication of garlic deficiency in the bloodstream, it is a perfectly reasonable thing to hoard ... i hoard it here, not by using borrowed money no [never thought of that], but by first hoarding horse manure, which is easy to get from people who board hordes of horses on too little land and wave a smiley goodbye as you haul it away, then dig the manure into the ground where it feeds hordes of earthworms, who do not hoard it but let it pass smoothly through their systems, producing an even higher quality manure that garlic really likes ... make four-foot wide beds in the fall, stick in cloves with six-inch spacing, a little weeding and watering in spring and summer, then harvest in august - bingo, you've got six times the garlic [this is russian hardneck, not the cheap stuff from grocery stores] ... if i didn't eat so much of the crop, by august 2019 i could cover the planet eighteen inches deep, but on the other hand probably wouldn't be healthy enough to spread it evenly

Chinese garlic has been extremely cheap in NA, done damage to our producers [check out Gilroy California, i think they call themselves garlic capital of the USA], so it won't be breaking their hearts to see some taken off the market, however temporarily