Jason Rines is the CEO of Raging Debate, LLP. My mentors are from the Boston Venture Capital community where I credit a few stellar gentlemen whom taught me the true meaning of value proposition, the cold but profitable reality of business by numbers and instilling a high ethical code of delivering what is promised.
Evaluation of the dominant assumptions and an understanding of the dynamics of the economic engine is the basis of an approach to asset allocation that provides for both a rational determination of value and an understanding of sentiment in the form of price as a measure of the irrational nature of the operational environment, an approach that is intended at once to avoid unnecessary risk while at the same time enable gradual rebalance of assets as a means to increase net worth via optimization of appreciation and long term yields. Let's call that buy low and fly high just for fun.
I am interested in finding short term trading strategies that result in a positive EV over time, as a way of generating income and personal freedom. On the other hand I enjoy betting games, and view my trading like betting poker hands. The longer term strategy would be to funnel trading profits to solid dividend payers, as a way to cash out of the casino. If you like my work, feel free to contact me.
The Chinese already got rid of their US dollars and US bonds by getting loans and credit lines from American and European banks collateralized against US bonds (thus US dollars). That's how the Chinese HID the fact that they already spent the dollars they have so as not to crash the dollar's exchange value before they got rid of them all.
The Chinese are buying natural resources and profitable Companies throughout the world. They will announce the effective extinction of their dollar reserves once they're done shopping with the last of their (borrowed) US dollars and crash the US dollar(s that they own outright) in the process while revaluing the Chinese Yuan 200-300% in one fell swoop and thus greatly enhance their purchasing power instantaneously.
(The US bonds that the Chinese now hold on paper are mere instruments of financial mass destruction to be used at the most opportune moment. Do you really think that the Chinese are that STUPID and did nothing to protect themselves when we are screaming in their faces 'til we ourselves are blue in the face that we are going to INFLATE the dollar into oblivion and repay our debt to the Chinese with electronic digits that are worth NOTHING?)
On that day (which will be in early 2012 but possibly before that), your wealth will disappear if it was still denominated in US dollars.
Why do you think the Fed lowered US interest rates to practically ZERO? On the face of it, such interest rate policies are counterproductive for (1) they scream market manipulation and economic irresponsibility and (2) they reek of irrationality, for any viable business can generate 5-20% return on capital and thus is perfectly capable of absorbing 2-3% interest rates as the cost of doing business. The REAL reason for the Fed's zero interest rate policy is the Chinese. The Chinese DEMANDED and obtained zero interest rates, for they are not interested in holding depreciating US bonds which only represent the "faith and credit" of a bankrupt people who reneged on their own contractual and legal obligations -- including the US Constitution. The Chinese acquiesce to playing the monetary musical chairs game as long as America (the Fed) gives them dollar credits that they can freely spend, collateralized against the US Bonds that the Chinese own. This way, everyone gets to have their cake and eat it too -- for a little while longer at least. The Chinese get to spend their dollar-denominated reserves without crashing the dollar's value and the Americans can pretend that foreign investors are willing to invest in US debt because the dollar is as good as gold...
The US dollar is a PLAGUE and pure FRAUD.
FRAUD=NOT a good investment.
Leave the sinking ship behind! Save yourselves from USA Titanic by jumping into the economic lifeboat known as GOLD (and SILVER)!
What a disingenuous article.
Gold is a flat line between 1900-1972 because the currency was, by law, fixed to it.
So lets use your math and go back and recalibrate our answer.
Gold rose from $35 to ..hmm.. current prices.. we'll call it $1350 to close the year out in 38 years. Or an increase of 3857% ... Meanwhile the DJIA was 900 in 1972 ... and is about 11500 now. Or an increase of 1277%
My simple math tells me that the Dow hasn't kept pace with the price of gold over the entire course of US history where we've had a fiat currency.
I'm sorry.. you were saying something? You're either wholly disingenuous, in which case this article is malicious. Or you're a moron, in which case please. PLEASE keep selling gold. We need you on the other side of this trade."
Former long-time business editor of major US women's magazine and contributing editor at dozens of different "trade" and consumer publications. Author of over 3,000 print magazine articles in past 30 years.
Penn Ph.D., centrist Republican.
Please visit my blogsites:
Baby Boomers-The Angriest Generation http://angriestgeneration.wordpress.com
The Rest of U.S. (for and about political Centrists) http://newcentristera.wordpress.com
and my brand-new blog about Markets:
Capital Punishment-Markets Through the Looking Glass http://marketslookingglass.wordpress.com
I Am A Concerned Citizen As Well As A Manufacturing Engineer Heavily Involved In Distressed Real Estate.
Points To Ponder:
Function Derives From Structure.
Debate Is The Distillation Of Reality.
Reality Will Be Reality Whether Believed In Or Not.
Pretending In Dire Circumstance Usually Results In Catastrophe.
Complexity Favors The Sinister.
To Assume Benevolence Is Foolish.
Safety Is A Function Of Awareness.
Pessimism Is "Optimism With Contingency"
Garland Pollard writes about media, branding and technology from Sarasota, Florida. His website BrandlandUSA.com is America’s authority on legacy brands. A native of Virginia and the former editor of Virginia Living magazine, by day he is Director of Communications for the Florida diocese of the Episcopal Church.
Jason Rines is the CEO of Raging Debate, LLP.
My mentors are from the Boston Venture Capital community where I credit a few stellar gentlemen whom taught me the true meaning of value proposition, the cold but profitable reality of business by numbers and instilling a high ethical code of delivering what is promised.
I am retired from Fresno County. I like to blog and comment on financial matters. I knew of the housing bubble in late 2005, way before Cramer. I believe that the central banking establishment set up excessive and damaging credit vehicles both for investors and for borrowers. Investors were swindled but no one goes to jail. Borrowers were given so much easy money that the loans themselves pushed the value of houses up to unsustainable heights. It is worthwhile to "fight" the lending abuses peacefully, with education and through legal means where possible.
I am not an investment counselor nor am I an attorney so my views are not to be considered investment advice. It seems from my understanding of the economy, that folks who fight the Fed are fighting a force that is powerful, capable of keeping interest rates low, etc.
Upon receiving my Masters degree in Music from Connecticut's Hartt School of Music, I took a job at a local Friendly's serving ice cream, where I perfected the disgruntled, comatose look, as seen in the photo at left. As a first-time participant in the American economy by way of fast-food, I noted the vileness and squalor into which our country was plummeting.
Now, as an SA commentator, I look forward to multiplying my earnings, once I get some, and settling down as a prime member of society, living out my remaining years in the luxury every red-blooded American deserves.
I currently live in a barn with my saxophones, watching America decline around me.
I grew up on a cattle ranch, but went to work in the steel business after completing my BA. I spent the first 30 years of my life focused on making a living and assuming that government is irrelevant. What a silly assumption.
Two years ago, I made to decision to move my family from California to Idaho. I am now focused on preparing for the changes that are coming over the next couple of decades. These preparations include making the right investments.
I'm looking to join with others who value personal liberty and free markets. Radical changes are coming and there will be an opportunity to make these changes for the better. Electing more people like Ron Paul would be a great start. Modifying our Constitution to firmly re-establish limits on government power would be a great finish.
Chris Martenson's "Crash Course" does a terrific job of describing the challenges we must overcome. Please google and watch.
William M. Wright and the stock market go back to 1971. Bill has twenty seven years experience working within the financial service industry and valuable knowledge of market and economic history. He's a once-upon-a-time aggressive skiier and Lake Tahoe local. Before founding Window To Wall Street , Bill was in a senior management position for over 15 years with a fortune 100 financial institution where he managed multiple Mutual Fund and Variable Annuity functions. He's been a Dept.Director, Financial Consultant, Money Manager,Tax Advisor, Business Analyst and Financial Analyst. Bill completed his MBA at Eastern Michigan University and graduated Cum Laude from Western Michigan University where he earned his BBA in both Accounting and Finance. He also holds an Associates Degree (AA) in Business from Kalamazoo Valley Community College, where he graduated Magna Cum Laude.