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Tao Jaxx

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  • QE: There's A Problem With The Transmission [View article]
    Great article. Unexpected on SA which is more like the home of Austrian Leninists living in a simple world.
    From a previous life, I happen to be quite familiar with Peter and Manmohan's work but don't quite buy it: if anything, if that collateral dearth thingy were true, then QE would be contractionary, which I guess anyone would be hard pressed to admit:
    As an asset swap, QE exchanges a risk-free asset (US Treasury and US guaranteed MBS) for another risk free asset (Base money). I understand the rehypothecation process dear to Manmohan but it applies equally to cash.
    Do I miss something?
    Great picture, by the way... :)
    Jul 2, 2013. 01:12 AM | 1 Like Like |Link to Comment
  • Gold Likely Entering A Deflationary Spiral [View article]
    Didn't mean to offend you either.
    What I wanted to say is that a positive, stable and low inflation target provides a disincentive to hoarding and a safety cushion against deflation.
    Jul 2, 2013. 12:37 AM | 1 Like Like |Link to Comment
  • Chart Of The Week: Gold ETF Selling Could Get Much Worse, Prices At Elevated Risk [View article]
    I for one have an unfilled physical gold order sitting below $650.
    Jul 1, 2013. 07:32 PM | 1 Like Like |Link to Comment
  • Why Are Premiums On Physical Gold And Silver Rising Even As Futures Crash? [View article]
    Reminds me of Baghdad Bob.
    Whoever went to Iraq will know what I'm talking about.
    If he's still around, the World Gold Council should hire him to do the PR job.
    Jun 27, 2013. 10:15 PM | 1 Like Like |Link to Comment
  • Why Are Premiums On Physical Gold And Silver Rising Even As Futures Crash? [View article]
    As we discuss all the wonderful reasons for gold to rally to the sky, looks like somebody has bitten the bullet and decided to unload the stuff by the truckload no matter what.
    Like somebody with 21.8 Million GLD shares who needs to pay back his investors in that brilliant idea of a gold fund. Investors were stuck until end June and that's 1 business day from now.
    So I guess he's thinking if them Asians are this much in need of gold, let them have it.
    Jun 27, 2013. 09:52 PM | 1 Like Like |Link to Comment
  • Possible Black Swan Events Developing In China [View article]

    Jun 27, 2013. 12:31 AM | 1 Like Like |Link to Comment
  • Ganging Up On Gold [View article]
    Good question:
    Then the Fed pays a higher rate on excess reserves (0.25% today) and the whole yield curve adjusts.
    In other words, before 2008, the policy rate was the rate at which the Fed LENT money ("Fed funds" rate) as the system (meaning all commercial banks) was consistently short of base money (no excess reserves)
    Going forward, the policy rate will be the one at which the Fed BORROWS money from the market, i.e. the rate it pays on excess reserves as the system holds (and will hold for years) more base money than it needs for interbank transactions.
    So, no Armageddon there either...
    Jun 26, 2013. 07:47 PM | 1 Like Like |Link to Comment
  • Gold Is Approaching The Bottom [View article]
    Why does India fight gold addiction? Because it's a curse for the country:
    they're the main market and produce almost none, so they import it using foreign currencies and therefore exchange international medium of payments they could use to buy equipment, capital or services to lift them out of poverty for something that just sits there, producing zilch.
    That's the price they pay for not having a financial system which could offer more attractive investment options to their citizens.
    This so called "cultural attraction" is just a side show: given the choice, they would still buy gold for the bride, but nowhere near as much as now.
    This is to a lesser extent true for China too: end financial repression there and Ms.Shanghai Chang will invest in better things than shiny trinkets with crazy price volatility.
    Jun 26, 2013. 07:22 PM | 1 Like Like |Link to Comment
  • Gold Is Approaching The Bottom [View article]
    Cost of production is an anchor, but a floating one which can drift far away for gold. Reason for this is that gold is never consumed so always stored, hence all of it can in theory get back to the market anytime.
    Jun 26, 2013. 08:10 AM | 1 Like Like |Link to Comment
  • Why QE Was Never Bullish For GLD And Why The Taper Will Hurt It Further [View article]
    Nice article, predictable push back comments by the Goldista crowd, wedded to the same old belief.
    Already cost them $600/oz, will cost them another $400 to 500.
    Jun 26, 2013. 12:31 AM | 1 Like Like |Link to Comment
  • "We're in a highly levered economy where households can't afford to pay much more interest," writes Bill Gross, noting monthly payments on a 30-year mortgage have jumped 20-25% since January and mortgage applications have plummeted 39% in 2 months. He's not buying Bernanke's tough talk given the reality of our economy and the chairman's "helicopter" reputation. "Investors selling Treasurys (TLT, TBT) in anticipation the Fed will ease out of the market might be disappointed." [View news story]
    Feral hog grunting.
    Meaningless BS: mortgage rates remain at historical lows. Housing market's just fine and will remain so.
    Sorry Billy Boy: bar's closing, no more boozing up.
    Jun 26, 2013. 12:09 AM | 1 Like Like |Link to Comment
  • Empower Your Competitive Advantages [View article]
    OK Mr. Stock,

    Didn't follow you. So congrats, you got that one right, provided markets don't zoom back up in the coming weeks/months, that is.
    I'm just a hopeless case of bogleheadism, so no interest whatsoever in market timing.
    Jun 24, 2013. 06:34 PM | 1 Like Like |Link to Comment
  • Empower Your Competitive Advantages [View article]
    They sold their house too to take advantage of the author's offer.
    Jun 24, 2013. 06:00 PM | 1 Like Like |Link to Comment
  • Panic In China: Malinvestment, Deflation, And The Next Emerging Market Crisis [View article]
    Spot on, Daro.
    Jun 24, 2013. 02:48 PM | 1 Like Like |Link to Comment
  • Rising physical demand for gold (GLD -0.8%) is "price responsive, and not price setting," says Goldman, remaining bearish on the yellow metal. Improving economic activity, less accommodative monetary policy, and higher real rates are the driving factors and they all say gold is headed lower, perhaps nearing triple digits by the end of next year. [View news story]
    Course they're buying, nobody disputes that. They're just price takers, not price makers, that's Goldman's point. In other words,don't count on their buying to reverse the price trend.
    As to the peanut gallery conspiracy theory, it borders on irresponsibility to allocate capital on the basis of arguments such as these.
    But let's go even further: even if you catch the paranoid virus and accept the conspiracy lunacy, then by all means get out of PM: the bogeyman brought gold down $600 already, he's going to get it down another four or five hundred bucks. Not to mention silver. Sell now, you'll pick it up cheaper later.
    Jun 24, 2013. 01:04 PM | 1 Like Like |Link to Comment