Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: TobagoJack who wrote (94700)	9/17/2012 6:36:23 PM
From: elmatador	1 Recommendation Read Replies (2) \| Respond to of 217573

Could Fed Miscalculations Lead to $10,000 Gold? miscalculations by a bickering Congress in tackling the $16 trillion federal debt or avoiding the "fiscal cliff" might cause chary foreigners to rethink lending to the U.S. at rates near zero. Absent serious belt-tightening, America probably would inflate its way out of debt. For every 1% increase in rates that would be demanded under such circumstances, $100 billion would be added to the budget deficit. In normal times, the foreign lenders would demand at least 3%, says Regalia. Minerd frets about the Fed's ability to reduce its swollen $2.9 trillion balance sheet if rates suddenly were to rise. Because the assets have longer-term durations, their market value immediately would tumble. If rates rose 1%, the Fed would have a $150 billion capital deficit, he says. This would have negative ramifications for the dollar. Minerd says the über-wealthy have been migrating toward hard assets like gold, real estate, and art. Every portfolio should be partially composed of such assets, he asserts. Is yours? online.barrons.com

To: TobagoJack who wrote (94700)	9/17/2012 11:34:22 PM
From: Maurice Winn	2 Recommendations Respond to of 217573

Restated fracking reserves? Ho hum. Yawn. The reserves are so big and the trend so new that it's neither here nor there. Maybe they are trying to talk their book to get petajoules of the stuff sold in a hurry at higher prices than those that will apply in horrendous glut conditions. Meanwhile, there's oil and coal galore everywhere. Don't forget tars in Canada and Venezuela. The cost of energy like the cost of gold is a lot less than the current prices. That's why there is such mass hysteria to increase production. Every man and his dog are going for gold, digging up dirt and rock for hundreds of kilometres to get more of the stuff. I have even heard of somebody in SI getting into gold production and assisting others to do so too by processing their otherwise uneconomic rocks. Perhaps it's true that there was irrational exuberance in gas fracking, but there is probably enough of the stuff even without the irrational component to fill a few pipelines and lower prices of flammable fuels and inflammable ones too [english is such a fun language]. Mqurice