Good News about Economy

[dashendeavors]

Or simply that sellers and buyers believe that the future will be more stable than the present. I'll not comment further 'til I've read the article that you kindly linked to, "dashendeavors".

Not more stable.. Sorry. You have to understand that there is no physical gold to be found anywhere in the world right now. I mean available at spot price. You also need to understand there is a battle between reality and illusion right now. It's wild. Look into fractional reserve banking system and see what you pull up. That will give you an idea of why there is a 'paper' price of gold, and a 'physical' price of gold. These two prices have de-coupled in the last 3 to 4 months. It's manipulation by the central banks trying to preserve their ponzi scheme. I've been studying this stuff for about 5 years now and it's tough to absorb at first, then it's so simple it repels the mind. Actually, Henry Ford said that if the American public truly understood the banking system, there would be a revolution tomorrow.


I'm sorry. I'm not doing a very good job of explaining this, but thanks for being open and interested. Just keep researching the subject. I believe it's the single most important thing anyone can examine today.

 

[dashendeavors]

Do you mean they think the futures contract will not be honored? Because otherwise they have a risk-free arbitrage opportunity.

Exactly. People are worried about a COMEX default for very good reasons.

 

[dashendeavors]

That's what I was going to say. People are buying now* driving up the prices. But in the future the price will go down because more stable situation means less buyers. I don't know, but that's how I interpret it.

(or then in the case of 2 Dec).

Just wanted you to know I replied to the original comment and that I didn't ignore yours. You can find it in the thread. I hope it helps. You would really be interested in the link I posted, if you have the time. That will provide far more clarity on this than I'm able to.

 

[jedard]

December 19, 2008 ​

• Government debt crisis reaches new historic benchmark​
• Solution? Bush announces automaker bailout, Obama “new deal” grows even bigger​
• Chris Mayer on Chinese industrial output… and how it affects your mining investments​
• Market dives on S&P nonsense… Greg Guenthner on the equity opportunity awaiting​
• Plus, the surprise target of China’s first naval mission in 600 years​

​

Which is greater? The U.S. government’s mountain of debt or the entire net worth of all U.S. citizens?​

For the first time in our history, it’s the former. ​

As of the end of September, the U.S. government held “$56.4 trillion in debts, liabilities and unfunded promises for Medicare and Social Security,” said research published this week by the Peter G. Peterson Foundation. The number comes directly from the Treasury release we harped on Wednesday. ​

And our collective net worth? $56.5 trillion, as calculated by the Fed at the end of September as well. ​

“Given more recent developments, it's clear that America now owes more than its citizens are worth," said PGP Foundation president and protagonist of I.O.U.S.A. David Walker. "Passing this shocking milestone highlights the need for President-elect Obama and the next Congress not only to turn the economy around and boost consumer confidence, but to put a process in place that will lead to tough choices getting made to strengthen the government's financial condition once the economy begins growing again."​

What perfect timing… This morning, the White House unveiled a $13 billion automaker bailout package . More free money. Perfect.​

There will be no congressional debate on this one. The checks are already in the mail. GM and Chrysler will get the funds almost immediately.​

Details? The $13 billion will be a three-year loan. But if the two automakers don’t show themselves to be viable by March 31, they have to pay it all back immediately. Executive pay will be limited. Union wages and pension programs must be brought down to levels similar to those of competitors. No dividends will be paid by either company. In exchange, the government will get warrants on stock and access to the companies’ financial bookkeeping.​

As we forecast, the money will be plucked from what’s left of the TARP. As we mentioned yesterday, this will nearly drain the first $350 of TARP funds authorized by Congress. Paulson and company will soon need to plead with Capitol Hill for the second half.​

Already built into the rescue is a provision for another $4 billion shot in February, if automakers can meet certain benchmarks and provisions.​

At the same time, the price tag of the Obama “New New Deal” package has ballooned to $850 billion. No longer content with mere symmetry to the Treasury’s $700 billion TARP, the president-elect’s team is rumored to be scheming an even bigger deal… one that would amount to over 6% of our total GDP.​

​

 

[dashendeavors]

Did you hear Bush say, "I've abandoned free market principles to save the free market system."
The double speak is breathtaking.
As if we ever operated in a free market environment..! (?)
Free markets and Fiat Currencies, (especially issued by powerful intervening central banks), don't seem to play well together.

 

[jedard]

Right now, we witness the self-mutilation of America's future...
Some recent deadly sins:
Bush burned $17.4 billion of your dough on Friday by tithing it to the decrepit auto industry...
Obama wants to conjure up $850 billion to "stimulate" the economy...
And that all dismal dreck comes just after this news from our friends at the Peterson Foundation:

"According to recent calculations by the Peter G. Peterson Foundation, the sum of America's debts and other financial commitments is about to exceed the collective net worth of its citizens. That means that for the first time in our history, we'll owe more money than all of us have combined."
​

Happy holidays,
Joe Schriefer
Publisher, Agora Financial

 

[steveinbsas]

OK , Joey, you are right. So enjoy the ride down the economic toilet with the rest of us.

 

[diego7david]

its a sad mess, that will hurt many people. remember whatever your positions or opinions, many in usa, world, here and elsewhere are being forced to constrict. argentines have had similar events before, so be a little thoughtful, in speaking, as some here have been through stuff before and look at some of the american dreams fulfilled, as one might look at a spoiled child, who doesnt have a clue, how lucky they have been!

 

[redrum]

Dashendeavors - thanks for your posts, you seem to be well informed. Let's keep the flow of information going.

The best advice that I can pass on - as it has been passed on to me, is that the US dollar is headed for a major collapse in the near future, perhaps as early as this year. As our creditors stop lending us money(buying our bonds), we will no longer be able to afford to purchase the imported goods from export nations(china/japan et al). Eventually all those foreign held dollars will be spent and find their way back to the US. That's when our hyperinflation will begin and the SHTF scenario will occur.

To those who say that the US is too big to fail - that china and our other creditors won't let us fail lest they lose their investments - well - at some point, our ponzi scheme of an economy MUST collapse. Our creditors will realize at some point to stop throwing good money after bad and to stop propping up our borrow to consume economy.

This is already happening as Japanese car manufacturers are posting losses for the first time in years, Toyota for the first time in 70 years.

In short, get out of US dollar denominated assets. Buy gold and silver, if you can find it. If you are here locally in BA, the Banco Piano on Reconquista sells gold but you'll be paying a high premium, as much as $130 over spot price(market price) for a 1 ounce gold bullion coin, most likely the Krugerrand. Many are saying that gold is poised to reach $1500 and beyond by middle of this year. I've seen gold jump almost $100 in one day so who knows.

 

[Stanexpat]

Dashendeavors - thanks for your posts, you seem to be well informed. Let's keep the flow of information going.

The best advice that I can pass on - as it has been passed on to me, is that the US dollar is headed for a major collapse in the near future, perhaps as early as this year. As our creditors stop lending us money(buying our bonds), we will no longer be able to afford to purchase the imported goods from export nations(china/japan et al). Eventually all those foreign held dollars will be spent and find their way back to the US. That's when our hyperinflation will begin and the SHTF scenario will occur.

To those who say that the US is too big to fail - that china and our other creditors won't let us fail lest they lose their investments - well - at some point, our ponzi scheme of an economy MUST collapse. Our creditors will realize at some point to stop throwing good money after bad and to stop propping up our borrow to consume economy.

This is already happening as Japanese car manufacturers are posting losses for the first time in years, Toyota for the first time in 70 years.

In short, get out of US dollar denominated assets. Buy gold and silver, if you can find it. If you are here locally in BA, the Banco Piano on Reconquista sells gold but you'll be paying a high premium, as much as $130 over spot price(market price) for a 1 ounce gold bullion coin, most likely the Krugerrand. Many are saying that gold is poised to reach $1500 and beyond by middle of this year. I've seen gold jump almost $100 in one day so who knows.

Sorry but I guess I will have to be a little skeptical when people start talking SHTF scenarios and the immediate need to convert everything into gold(this all sounds more than a little goofy to me). Gold has been one of the worst investments you could have made over the last 30 years. It could go up in 2009 but I doubt it. However, even a broken clock gives the correct time twice a day.