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Non-Tech : The Woodshed -- Ignore unavailable to you. Want to Upgrade?


To: gold$10k who wrote (54233)8/26/2016 12:40:45 PM
From: bostma1 Recommendation

Recommended By
Wade

  Read Replies (2) | Respond to of 60901
 
At this point, well since they flushed Lehman, don't they pretty much have to print into any and all credit failures? Which is not to say DB will necessarily remain a going concern, but one way or the other they will have to paper over all of its holes. Simply, they won't allow deflation, and the only thing they can use to prevent the default is newly created currency.

The Fed et al would never say this is what they are doing (who would?), so they keep hemming and hawing about being on the fence because too many are willing to go along with it since they are also invested in the emperor without clothes, and are still profiting and solvent today. Or call themselves solvent if they are a bank.

Meanwhile, real markets start functioning outside of the sham, such as true assets realizing more value, people more and more unwilling to lend to sovereigns in the hopes of getting a portion of their money back, and real interest rates rising due to greater risks when lending capital.



To: gold$10k who wrote (54233)8/26/2016 1:45:57 PM
From: Valuepro  Read Replies (2) | Respond to of 60901
 
"IMO the market is trying to decide between hyper-deflation and hyper-inflation..."

I can't see that the market is at all anticipating hyper-inflation at this time. I say that because the precious metals best associated with an increasing "velocity of money" (aka, speed of money), platinum and other PGEs, continue their out-of-sinc relationship to gold and silver, and in the longest such event in history, by far.

As an increasing speed of money is within the definition of inflation, we don't have it even on the horizon (for now).


The above chart is a bit out of date, but data would suggest the present picture isn't any better, looking at an even wider distances between average gold/silver prices v. PGEs.

Deflation and/or hyper-deflation are possible, but I think we will see "stagflation", perhaps even an extended period of it first. This means, of course, a lot of things will get more expensive, but jobs and standards of living will suffer. Meanwhile, those best positioned for this will make a killing.

Just how I see things now, but everything is subject to change.

VP in AZ