Comments on Mark Caffee's articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/mark-caffee/articles http://seekingalpha.com/article/111398-u-s-dollar-the-trade-of-the-decade?source=feed#comment-774811 774811 Tue, 24 Nov 2009 07:03:24 -0500 http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-774580 774580 Mon, 23 Nov 2009 22:28:13 -0500
What a monumental boob this guys is! Take note of the fact that he hasn't published anything here in almost 9-months. After the gigantic fool he made of himself with this piece I guess he was wise enough to slink back off into obscurity. ]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-413215 413215 I cannot find anyone that can compute the correct interest rate on > $11,500,000,000,000.01 of the National debt. > > Midas]]> Wed, 04 Mar 2009 15:42:47 -0500

On Dec 27 01:48 PM Alexander Rainwater wrote:

> I cannot find anyone that can compute the correct interest rate on
> $11,500,000,000,000.01 of the National debt.
>
> Midas]]> http://seekingalpha.com/article/105823-attention-gold-bugs-hyperinflation-or-deflation?source=feed#comment-372225 372225 Sat, 31 Jan 2009 20:16:15 -0500
From Ben's speech in 2002

"Closer to home, massive financial problems, including defaults, bankruptcies, and bank failures,
were endemic in America's worst encounter with deflation, in the years 1930-33--a period in which (as I mentioned) the U.S. price level fell about 10 percent per year."

And the Price of gold:

Average yearly gold price.
1930: $20.65
1933: $26.33

If past is prologue, best to stick with the gold, even in deflationary times.


]]> http://seekingalpha.com/article/113629-tarp-the-world-s-largest-sovereign-wealth-fund?source=feed#comment-349847 349847 Thu, 08 Jan 2009 12:46:15 -0500
There is also a difference between investing in tangible capital (such as a factory) and taking posession of a dubious entity that the market has deemed as worthless (such as a CDS). This is also lost on the author. ]]> http://seekingalpha.com/article/113629-tarp-the-world-s-largest-sovereign-wealth-fund?source=feed#comment-349735 349735 Thu, 08 Jan 2009 11:35:51 -0500
AS FOR BANK STOCK POSITIONS PURCHASED, WHEN OUR MAJOR BANKS' POSITIONS IN OTHER DERIVATIVES, ON AND OFF THE BALANCE SHEETS, TEND TO SOUR, WHAT THEN WILL BE THE VALUES WHICH APPEAR ON THE FED BALANCE SHEET ? ]]> http://seekingalpha.com/article/113629-tarp-the-world-s-largest-sovereign-wealth-fund?source=feed#comment-348635 348635 Wed, 07 Jan 2009 11:39:53 -0500
Who believes there is any credibility in that number? Nobody knows what all that crap is worth, so how is it possible to have any idea whatsoever what gain or loss the government will have on those "assets".

Indeed, how can one possibly know what mortgage backed securities are worth. It depends greatly on the depth of the economic downturn, which will determine the unemployment rate, which will have a huge impact on the foreclosure rate.

Plus, with direct government intervention in renegotiating individual mortgages, something likely to be much more prevalent under the new administration, the government itself is manipulating the mortgage market directly.

Does that mean that the government will salvage value in a lot of underwater mortgages, or will it renegotiate mortgages downward to the point where the homeowner can now hang on, but the creditor has to write down the mortgage to a much lower asset value?


Bottom line is, with all the screwups that the Treasury and Fed have made, it is absolutely absurd to take at face value any claim regarding a return on investment for the TARP funds.

The strongest case the author could make is that with the system so screwed up, it is presumptous for the gold bugs to think they have any better handle on the situation than those who believe in the tooth fairy or Santa Claus or the Treasury Department or the Fed.]]> http://seekingalpha.com/article/113629-tarp-the-world-s-largest-sovereign-wealth-fund?source=feed#comment-348531 348531 Wed, 07 Jan 2009 10:30:34 -0500 http://seekingalpha.com/article/111178-the-fear-bubble-treasuries-and-gold?source=feed#comment-347851 347851 Haha you think delevering 54 trillion dollars of debt is not going > to soak up the piddling into the pond the Fed is doing? > > We are into the biggest deflationary crash in world history. This > is not the great depression replay here. It is much worse because > the bank's leverage is much higher. > > Hint: what happens when something goes scarce? The price goes up.]]> Tue, 06 Jan 2009 16:41:12 -0500
Prices and interest rates are falling right now in spite of INFLATION -- that is, the printing of more currency than ever in history. These falling prices are part of the deleveraging process, and when it's over, inflation is going to destroy the dollar. Bernanke may think he's smart, but he's not THAT smart.

Add to all of this the fact that the Chinese hold trillions of dollars in Treasuries, all it's going to take is a whiff of smoke, and they'll start selling.

Try to remember that we have always been a creditor nation in previous collapses.

Paco Ahlgren, Peter Schiff, and other Austrians have been predicting this for years. Everyone should listen to what they have to say. In fact, Ahlgren just wrote a series of articles dealing with this very issue. I've been posting them here for a few days. They make all this much clearer.



On Dec 17 11:01 AM bricki wrote:

> Haha you think delevering 54 trillion dollars of debt is not going
> to soak up the piddling into the pond the Fed is doing?
>
> We are into the biggest deflationary crash in world history. This
> is not the great depression replay here. It is much worse because
> the bank's leverage is much higher.
>
> Hint: what happens when something goes scarce? The price goes up.]]> http://seekingalpha.com/article/111178-the-fear-bubble-treasuries-and-gold?source=feed#comment-347809 347809 Tue, 06 Jan 2009 15:56:54 -0500
experienceiseverything...
]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-342154 342154 Wed, 31 Dec 2008 00:33:39 -0500
The dollar index was at 87 at the beginning of the month. Now it's at 80...in what way is that gaining strength?

"The gold bugs continue to forecast runaway inflation"

"And gold bugs have so much faith in the Fed to create inflation"

I don't think Mr. Caffee knows what inflation is. The Fed can absolutely create inflation. They have been doing a very good job of it for months. Inflation of course being an expansion of the money supply. Rising or falling prices...well that results from the expansion and contraction of the money supply. Can the Fed increase prices? Not per se, but they can certainly create inflation.

So Mr. Caffee, what is your advice during this turbulent time? Buy 10yr Treasury Bonds at 2%?]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-341960 341960 Tue, 30 Dec 2008 20:19:12 -0500 http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-340966 340966 Mon, 29 Dec 2008 20:35:42 -0500 Mark
editor of Digital Gold Currency Magazine]]> http://seekingalpha.com/article/111178-the-fear-bubble-treasuries-and-gold?source=feed#comment-340928 340928 Mon, 29 Dec 2008 19:27:56 -0500 http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-340268 340268 Mon, 29 Dec 2008 08:14:41 -0500 Savings converted to gold drops the value of the dollar, straight exchange. It gets more complicated after that you have to sell some other asset class to raise cash ( USD ) in order to buy gold. This conversion will raise the value of the dollar at the same time drops the value of the asset you sold. If gold is really to run to the sun then you should sell all stocks, commodities other than gold and your home, cottage to raise cash to buy gold. That would collapse the value of all asset classes and lift the USD prior to your gold purchase. But that would deflate everything people need in the economy and raise the buying power of the dollar compared to other currencies. Inflation would disappear the dollar would be in demand defeating the need for gold protection. Others with dollars would flood in and buy every asset class you just sold. Gold and the dollar are not singlular black and white issues. Nothing wrong with 2 to 5 % gold holding in diversified investment porfolio. If the world tanks the 95% will pull you down and the 5% will help against loss. Betting large on any single asset is always risk unwise.
]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-340120 340120 Sun, 28 Dec 2008 23:58:31 -0500 http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-339400 339400 Sat, 27 Dec 2008 15:16:11 -0500
You do believe that there are scams in the world, no?]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-339397 339397 Sat, 27 Dec 2008 15:07:29 -0500
All money is by "faith", including gold. Can't anyone see this? "Intrinsic" value of gold? What's that? Gold is worth x$ only because the buyer has "faith" that a future buyer will engage in the same belief system as the original buyer, and pay the same price or higher. It's the same thing as a fiat system expect the supply is supposely quasi-fixed.

Why gold bugs get so excited about what is supposed to be a neutral investment s beyond me. With supply fixed, only demand should affect gold.

In a depression, gold will lose its value like everything else as demand decreases.

In an inflation scare, gold will gain value, yet all things will increase in value, including stocks whose cost inputs are very low or fixed.]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-339375 339375 Sat, 27 Dec 2008 13:48:23 -0500
Midas]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-339103 339103 Sat, 27 Dec 2008 01:33:06 -0500 network.nationalpost.c...

]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-339079 339079 Fri, 26 Dec 2008 23:27:36 -0500 http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-338992 338992 Fri, 26 Dec 2008 20:21:51 -0500 http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-338899 338899 Fri, 26 Dec 2008 16:27:12 -0500
Did you put your money where your mouth is and short gold before it shot straight up today? Good luck with that, bro.
]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-338897 338897 Fri, 26 Dec 2008 16:23:53 -0500
Since gold is priced in dollars, Dave Wrixon, as the dollar goes down, yes gold will go up.

And other times, the dollar will be flat and gold will go up 2.6 % (like today).

Is it a safe haven? Gold is up for the year. Stocks are way way down. Enough said.]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-338896 338896 Fri, 26 Dec 2008 16:22:18 -0500 This ain't any fantazy. This story will probably become reality. There is one important factor however which hasn't been touched. At a certain point - and this scenario repeats itself in history - "we the people" get hungry and wake up and stop playing this sickening game. As a result, we have revolutions, Kings and Queens are beheaded; countries break free (the Boston Tea party - or taxation - was the origin of the USA) and start with a fresh sound constitution.

]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-338735 338735 Fri, 26 Dec 2008 12:07:11 -0500
For millennium gold was the medium of exchange. Gold was money.

Why? Well because it could not be forged and it was rare. But more than this in the common conscience it was equatable to money. Which is why although valuable it did not appreciate and depreciate wildly as today. Todays wild fluctuation only demonstrate how broken that psychological link now is.

In todays more analytical World, there needs to be a bit more hard evidence as to its intrinsic worth for people to regard it as an immutable asset.

So the dollar is going to tank. No rational person can seriously doubt that. However, that does not mean that safe haven is going to be gold. Indeed, the currency markets are already steering us towards the Euro and Yen. Soon just about every currency on the planet will harden against the dollar. And why? Well most of the cash Bernanke is pumping into the US economy will end up being invested in overseas markets, and that will require dollars to be sold in order to obtain the necessary medium of exchange, which with very few exceptions won't be gold.]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-338656 338656 Fri, 26 Dec 2008 10:29:22 -0500 Well I thank the author for bringing out all these interesting ideas so let me add a couple.
-The reason there are so many goldbugs is because people are awakening to the fraud of paper money being perpetrated upon them. They are looking long term as the only way out of paper money is eventual collapse of confidence in it.
-Oil, black gold has become a geopolitical tool. We are seeing the last vestige of US$ hegemony flexing it muscle on the (NYMEX) rigged paper oil pricing mechanism exchange. This will end badly.
]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-338545 338545 Fri, 26 Dec 2008 08:13:14 -0500
Santa Claus says $60T (now $68T) worth of unpayable future promises says you're wrong.

But good luck with those gold shorts. Just please send your daughter to live with relatives and don't make her share the homeless shelter with you.]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-338338 338338 Thu, 25 Dec 2008 18:27:44 -0500
Well, next time you are on the beach and the water suddenly goes out and your daughter warns you of a tsunami, you'd better listen to her.]]> http://seekingalpha.com/article/112186-enlightening-the-gold-bugs?source=feed#comment-338309 338309 Thu, 25 Dec 2008 16:58:53 -0500
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