ejhickey

Wall Street Breakfast: Must-Know News

Reverse repos are only temporary arrangements. according to the Fed's website, the usually 14 days. Therefore it looks like the Fed will use reverse repos to temporarily take money out of the system, and then say "Look , we drained the liquidity out" then when no one is looking they will put the liquidity right back in. This will allow the Fed to delay raising interest rates and to continue the easy money policy.

Marc Faber Clarifies Gold Outlook

If gold falls in price because the USD gets stronger , it will probably rise in price in other currencies such as the Canadian dollar. Therefore would it make sense to sell Gold for Canadian dollars and hold the proceeds in a Canadian bank and wait for the Loonie to appreciate against USD?

Gold ETFs - Big Surprise at Tax Time

The US Gold and Silver eagles are US currency with specific US dollar values inscribed on them. yes they trade at a premium above their face value . However I did not know it was legal to tax currency.

More questions : Does the 28% tax rate apply to profits realized from trading gold and silver on the commodity exchanges? Do these rates apply to profits from trading options on GLD or SLV?

On Fake Bonds, Owning Gold and the Inflation vs. Deflation Debate

There are some very insightful comments about this article. I think I have a better grasp of this problem. I will probably print out the comments to share with some friends .

On Fake Bonds, Owning Gold and the Inflation vs. Deflation Debate

Thanks. What time are you posting? And at your website?


On Jun 19 12:21 PM Economic Disconnect wrote:

> ejhickey,
> Your comment is the best I have seen regarding the deflation idea!
> I am going to use that one in tonights blog post!

On Fake Bonds, Owning Gold and the Inflation vs. Deflation Debate

Another question. If we are still going through deflation and deleveraging , then prices for most things should continue to fall. For anyone who has a lot of assets in cash, why bother to invest in stocks or bonds or anything that has a risk of declining in price? If the deflation theory is correct, a cash based non investor could increase his purchasing power simply by doing nothing . This would not only avoid risk but taxes as well. In the short , medium or long run this is the whole purpose of investing - increasing one''s ability to buy stuff.

On Fake Bonds, Owning Gold and the Inflation vs. Deflation Debate

If I understand the anti inflation theory correctly, it goes something like this. Yes the supply of money has increased dramatically but it has leveled off even though it has not gone down. Therefore therefore there is no danger of inflation since the money has not gone into the economy and the banks are not lending it out. And the Fed will withdraw or soal up these funds at the appropriate time when the economy gets better.

I still have a nagging question? Why was the money supply increased if it is just sitting in the banks and basically acting like a Linus security blanket> And if the banks are not lending out a lot of money for whatever reason. how are the banks making money? Do the banks simply look better because the accounting rules were changed to let the banks re-value questionable assets according to some secret formula?

Hyper-Inflation or Just Hype?

At the recent preparation for the G8 meeting, Geithner said "Too Soon To Halt Global Stimulus". I guess the deficit spending will continue.

Interview with Peter Schiff: Reflating the Bubble

A "suck cinct" opinion.


On Apr 24 02:11 PM $OMALIA wrote:

> B/S=big S

Gold Poised to Move Higher

You could say the same thing about paper money. well maybe our paper money does have some other uses- wallpaper, insulation and toilet paper substitute


On Dec 28 10:09 AM otbricki wrote:

> Let us get this straight. Gold is not an investment. It does not
> return any income after purchase. It has no intrinsic value since
> it has no utilitarian value. It costs money to store. One can talk
> about fundamentals in that it is costing more to produce over time,
> but since owning it produces no income it truly has the same fundamental
> value as any other non-productive asset, i.e. zero.
>
> Gold is a hedge against currency value fluctuations. The only reason
> people buy and sell it because of its historical use as money. There
> is no other reason that it has any value.
>
> There is a reason that the value of gold drops in a famine. You can't
> eat it and you can't use it to produce food.
>
> Sooner or later people are going to realize that value of gold is
> psychological only, and our past obsession with this metal will be
> regarded as a historical curiosity.