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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Hawkmoon who wrote (75384)6/18/2011 1:49:59 AM
From: elmatador1 Recommendation  Read Replies (1) | Respond to of 217738
 
I disagree with TJ. Here is why:

"There is a dollar shortage.
More dollar must be tee-ed out of thin air.
There must be more circulating medium.

Dollar about to seriously rise."

USD won't rise if more USD is created.

USD is a good like any other. The bigger the supply of any good the lower the value of said good.

Look at the demand side. The world cannot take more USD.

Like an eletrical current the negative charges must return to ground though the circuit. USD, in the past, always returned to the US.

Some times naturally. At times forced artificially via fleecing the USD takers since the US controlled the mechanisms of fleecing creation.

The world is awash in USD but there is very little one can do with USD. Thus purchases of treasuries.

In April, Brazil invested $ 13.4 billion in Treasuries, almost double the U.S. $ 7.6 billion invested by China

According to Boston Consulting Group:

"Total offshore investments (sent out of country) around the world rose from U.S. $ 7.5 trillion in 2009 to $ 7.8 trillion last year, which means a growth of 4% in the period."

At the same time in which Brazil takes its position, the BRIC countries (Brazil, Russia, China and India) reduce exposure to Treasuries. With reductions for six consecutive months, the volume of debt securities held by the U.S. government of China has $ 1.18 trillion in October 2010 to $ 1.15 trillion in April this year. Russia has already reduced the amount of U.S. $ 176 billion to U.S. $ 125 billion in the same period.

Who is going to buy the new USD created out of thin air?



To: Hawkmoon who wrote (75384)6/18/2011 8:36:16 PM
From: TobagoJack  Read Replies (1) | Respond to of 217738
 
hello hm, belated report to you, the fortunate recipient chosen now that pezz has taken himself out of the active trading biz, to follow up on Message 27279120 (april 1st, 2011). consider yourself blessed.

i lack imagination, and so i limit my trading to a very few items i believe of merit and so worthy of devotion of my attention.

re this newsy item bloomberg.com

i am diligently continuing my (i) accumulation of rare earth, that which should be as rewarding and as self-sustaining as (ii) my same collection of gold and (iii) same same again aggregation of hong kong real estate, each worthy in own way and all without exception china-bull-plays in alignment with mega trends for the next 7-15 years but for truth that gold and hong kong real estate are also china-bear-plays that be good for win-win outcomes per my responsibility to family.

my remx shares were bought at 25.10 and were not called away at may option expiration. the remx shares are now priced at 23.95, but due to all the “cloud atm” trades detailed hereunder, i am still above water by a miraculous 1.15 per share.

i am figuring on shorting puts in the coming week to continue self-sustaining accumulation program.

(1) Message 27171458 (feb 16, 2011)

<<BOUGHT REMX at USD 25.10
SOLD Put REMX, May 2011, strike 24 at USD 1.75
SOLD Call REMX, May 2011, strike 25 at USD 2.25>>


(2) Message 27263207 (march 25, 2011)

<<Bought to close REMX May calls (strike 25) and puts (strike 24) at a combined price of USD 2.7955. They were shorted February 16th at combined price of USD 4.00 Message 27171458 , iow, a fair return for looting the cloud atm by way of long equity and short options.

The long REMX equity trade is still in place, as working inventory for the next REMX cloud atm extraction via option trades.>>


(3) Message 27279120 (april 1st, 2011)

<<- got message from broker, "Please be informed that you have sold __ calls REMX May 27 at USD 1.10">>

cheers, tj

p.s. i believe rare earths to be good objects for cloud-atm extraction as its pricing path is in alignment with wishes of both the prc as well as the usa officialdom.