Chris Temple ask the question, “What If They Gave a Party and No One Came?”
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I think more and more that the hyperinflation scenerio where Gold goes to $50,000 is not looking so appealing anymore. The deflation scenerio is gaining steam.
Rumors out there that another brokerage firm going down, possibly Morgan Stanley. If so, probably taking customer accounts like MF Global. Time to consider no bank or brokerage firm safe.
I don’t know, David.
I do know that it is pretty scary out there.
Big Al
GOING DOWN WITH THE CUSTOMER’S MONEY….THEY DO NOT EVEN HAVE TO TAKE ANY MORE RISK….JUST TAKE THE MONEY AND RUN….
Lynn – links to the info that makes you think deflation is showing up? Of course, if heli-beni does not print more, the whole thing will collapse and deflation will take hold.
Al – I wish a distinction was made between the government of Greece and the Greek people when things like “if they made a commitment, they should pay” are said. Goldman Sachs took over Greece and then signed them on to all these debts. In addition, investments always have a risk factor. For sovereign bonds, that a country may go belly up. And as far as currency, issuing every single unit with an obligation to pay interests and principal sometime in the future is simply FRAUDULENT!
And Frausterity hurts the people, the con artists running the government.
What price the new democracy? Goldman Sachs conquers Europe
While ordinary people fret about austerity and jobs, the eurozone’s corridors of power have been undergoing a remarkable transformation
In one deal, Goldman channelled $1bn of funding to the Greek government in 2002 in a transaction called a cross-currency swap. On the other side of the deal, working in the National Bank of Greece, was Petros Christodoulou, who had begun his career at Goldman, and who has been promoted now to head the office managing government Greek debt. Lucas Papademos, now installed as Prime Minister in Greece’s unity government, was a technocrat running the Central Bank of Greece at the time.
Hi MissiveDuTexas.
Everywhere we look in the Euro zone, we keep hearing of Austerity, bank runs, and even money sniffing dogs at borders and airports to catch and confiscate money from people that may not have paid their taxes –> http://www.smh.com.au/world/nose-for-money–labradors-hone-in-on-hidden-fortunes-20120813-244at.html http://armstrongeconomics.com/ <–
Best to you,
Lynn
Grrrrrrrrr.. I posted two links and some of what I wrote is now gone.
Here’s the first link –> http://www.smh.com.au/world/nose-for-money–labradors-hone-in-on-hidden-fortunes-20120813-244at.html
And here’s the second link regarding HOARDING –> http://armstrongeconomics.com/ <–
This scenerio seems more logical to me with our current situation.
Best to you,
Lynn
Welcome Lynn (male) to 1984!
Big Al
Hi Al,
I can’t say, “Thank you for the kind welcoming” 😛
But I can say that I agree with what Bob Moriarity had to say regarding the whole hyperinflation/deflation debate, “It doesn’t matter if Gold is at $500 or $50,000.” (You’re still gonna buy a house with it.) That is basically the bottom line for me. That I have an insurance policy and that is PMs. Regardless of a deflation or inflation, we are protected.
Best to you,
Lynn
I disagree, Lynn. If gold goes to $500/ounce, then the central banks have won, because they hold paper worth more than gold. I would much more want to see gold at $50,000/ounce, because the printing presses would melt and fuse together to try and print that much fiat to hand out to the minions of the central bank owners.
The problem we have right now is that aluminum is less than $1.00, copper is less than $4.00, gold is less than $8,000, silver is less than $200, and oil is less than $250. We still live in a fiat dream world where we are paid in paper and pay in paper, because commodities are suppressed. So those who own the paper own us, instead of us owning ourselves.
Hello jhpace1,
I didn’t interpret Bob Moriarity’s comment regarding the price of Gold as being it would go to $500 or even to $50,000. I interpretted his statement that it “doesn’t matter” what the price of it is, it will still be of more value to people than paper dollars. –> http://www.kereport.com/2012/06/11/bob-moriarty-answers-listeners-questions/ <– At about the 6:00 minute mark he answers questions regarding "hyper"-deflation/"hyper"-inflation.
It doesn't make a difference in the end of what the price is, what makes the difference is that people are finding more value in Gold than in the current monetary system.
Amen, Lynn.
Big Al
Morning jhpace1,
I still have to agree with Lynn.
Let’s assume that we have a major deflation. In reality, gold still retains its value relative to paper. I would maintain that it would probably increase in value relative to paper.
Comments?
Big Al
like button!
Morning Lynn (male),
I agree with you completely.
Big Al
Morning Missive,
Your point is well taken.
Of course the people are getting hurt because of the past actions of their trusted leaders. Sadly enough, the story continues!
Big Al
AL if possible, I would like to hear more from TR regarding the coming collapse in the 2nd/3rd week of September as he has occasionally mentioned in the perfect storm context; and that it will take pm’s with it initially. Would that be possible? I was looking forward to his section today but nothing up there yet.
Original post –> Hi MissiveDuTexas.
Everywhere we look in the Euro zone, we keep hearing of Austerity, bank runs, and even money sniffing dogs at borders and airports to catch and confiscate money from people that may not have paid their taxes –> http://www.smh.com.au/world/nose-for-money–labradors-hone-in-on-hidden-fortunes-20120813-244at.html <–
People are HOARDING.
Best to you,
Lynn
There is a good chance the US is in worse shape than Greece. I don’t think the average citizen made Goldman and the other banksters leverage out derivatives and then begged the Fed to bail out the banks. I believe that plan began with the foundation of the Fed in 1913 and has progressed to the point where the entire Western World is in jeopardy of joining Greece with a Technocrat Government or a fascist oligharchy.
WARNING!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!WARNING
DO NOT WATCH THIS AFTER LUNCH AND OR DINNER
PERHAPS YOU SHOULD NOT FOLLOW THE BELOW LINK AT ALL!!!!!!!!!
Inspired by Mr. Temple’s analogy: “It is only wafer thin”
People assume that banks and governments are trying to improve things.
Maybe they have no intention of improving anything, maybe they know exactly what they are doing and we “peons” are only watching their plans unfold.
I am certain they understand fully what they can get away with, seeing how much support Ron Paul got/gets tells them a great deal I think.
i agree benb. its all planned. Loan em money, they can’t pay seize their stuff and/or control of their stuff. powers that be aren’t dumb, theyre smart. Wonder what and where they learn this. School of greed?
Hi Barry,
Check out “Radical Rulers” by Robert Knight.
Big Al
Morning benb,
I am reading a book by Robert Knight called “Radical Rulers”.
Really a great read, by the way!
I was up last night reading it and your comments are very appropriate to what I read.
Big Al
Jim Sinclairs MOPE
If gold went to $500.00/oz all the gold miners would go bankrupt.
All the big miners are lying about their expenses saying their cost per oz is so low…it will hurt them in the end.
That is an interesting comment, Tom.
What if you consider the value of gold relative to the value of paper?
Big Al
I wouldnt compare money to food…You can never get sick from having too much money!!!
I think all that new money should go to the manufacturing industry for cutting edge new manufacturing equipment and put China out of business.
Morning again Tom,
I personally think that manufacturing in the U.S. will not be back for a long time because of the mind set over here.
Big Al
Al, the big thing I’m concerned about right now is whether or not the markets, and in particular the miners along with them, are going to crash hard some time in the next four months. With that in mind, do you think those of us with substantial positions in the miners sell them this week or next, or simply hold them through the coming market turmoil?
I’m very concerned about this. It feels like a no-win situation. As if I sold today, the markets and miners would go into a sustained rally this fall, and global central banks decide on open-ended QE after Jackson Hole this weekend.
And if I decide to hold my positions, no QE happens, and everything melts down hard this fall. Of concern is analyst, Bob Janjuah, issuing another warning that he can see the S&P dropping to 1000 this fall. He was right in 2008. I fear he’ll be right again…
What do you and Trader Rog think, Al? Do you plan to sell any of your positions before the Fall? How about Trader Rog?
How about everyone else reading this?
Morning Bart,
I can’t comment on Trader Rog because he tells me that he does not buy stock but is into commodities.
I can tell you categorically that I am selling no stock and if I do I will certainly give my usual three days notice.
I am down in some positions and up in some positions. I have averaged down in PEM ,but so far that has not worked. I am up slightly in Great Atlantic Resources, my latest purchase.
I figure that I have purchased some stocks so cheap that I will at least break even overall.
Best,
Big Al
Ben will do his same dog and pony show in Jackson Hole. He will not say much about QE 3 at the meeting. QE 3 will come later when data starts to deteriorate again. All those that were sure the PMs were going to the moon again 2 weeks ago are going to be silenced once again. Does that mean we shouldn’t continue to take positions in the PMs and selected stocks. Of course not. Gold will move down to test $1660.00 and silver will move down to test $29.00. The parade is not over yet but patience is still the order of the day. Frankly, I’m quite comfortable in seeing the PMs trading in a range. It allows one to take more and more positions in some really cheap stocks with some about to get cheaper yet. I sold out of my positions about 1 week ago and will wait for the PMs and stocks to move back down and will then take positions again. The next time we have a move higher may be the time we’ll want to stay with our positions. When everyone was getting excited 2 weeks ago, the charts were telling us that was not the real thing. I’m getting excited now since it’ll shake the faith of some of the most ardent fanatics and that’s the best time to accumulate positions.
I meant gold will move down to test $1620.00.
Hi Doc,
Those of us who took our positions around $1K really don’t mind!
Big Al
Morning Doc,
With my time horizon (mid to long term) I am quite comfortable.
Big Al
This is a war against the power players controlling money and us, while Bernake is simply their pawn! I have gold and silver and junior stocks, and the only winner in the end are the “power players”. We listen to the gold/silver wizzards telling us to buy their newsletters, subscribe to their services for opinions that float with their statistics and projects….buy, buy, buy! The economy will begin tocollapse and continue until we fall into a worldwide depression. The stock market will fail and inflation will be beyond our imaginations. Gold and silver stocks will be worth very little, and the “power brokers” will win. We are the final losers, no matter how much you and I try convincing ourselves otherwise. They are far stronger than any of you ever imagined, and they are ruthless!
WYN YOU ARE BACK……GLAD YOU DECIDED TO STAY….
I am with you, In the Box!
Thanks for coming back Wynn!
Big Al
Morning Wyn,
I guess that my question is, why don’t you sell your stocks. I can understand not selling au and ag, but with your philosophy it would seem to make sense to me that you liquidate you equity positions.
I am certainly not being critical, but if I had your philosophy I would certainly do just that.
By the way, I do agree completely with you regarding the “power brokers”! That said, I will not change my personal philosophy.
Big Al
Great conversation. Sure like what Chris had to say. Bernanke should tell the government to get it together. Go for it. It’s an election year.
And Mario Draghi not showing up to this Friday’s Jackson Hole meeting speaks volumes. That is the real story. Glad that Chris pointed that out in your interview with him Al and also mentioning Sept 12 as when Germany may make a decision.
Just trade what it’s front of you on the screen and we’ll all be fine. If the market collapses then just buy the INVERSE ETF’S which go up when the market tanks. Saves you from having to short a stock or ETF.
Precious metal ETF’s I trade are the 2x Gold ETF stock symbols: UGL, DUST, NUGT, DGP, DZZ, and 2x Silver ETF AGQ, ZSL.
You can pair them up with your favorite individual metal stock such as NEM or microcap metal stock KATX(copper) and BONZ(gold).
The Rare Metals ETF REMX is a good one also.
Thanks Steve,
Chris is a pretty sharp guy.
Best,
Big Al
Now I know why AMY had a trading halt. They were considering re-naming their ticker symbol to POS.
Just when everyone is thinking deflation we turn the corner and head into inflation.
Look what they did to Ron Paul…
http://lewrockwell.com/rockwell/ron-paul-leaves-convention197.html
Ken…thanks for the post…..
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