Philman

Stagflation or Deflation?

It occurs to me that the government is doing the same thing, now, as it did in the 1930s. They are still intervening in the gold market, trying to lower the price even though we don't have a gold standard anymore, and the dollar is independent of gold. But, it is an archaic relationship, and they should just drop the paranoia already. Gold can go up, and the dollar can still be the world's currency, if the U.S. economy recovers. The dollar is going to be worth less, in the long run, no matter what they do.

Let things take the natural course. Let people hoard their little "golden coins", or, in modern times, their little interest in GLD or SLV. Eventually, they will climb out of their bunkers and start to invest in the stock market and spend money.

What the the government is doing, by attacking gold & silver, artificially propping up the dollar so we can't sell anything abroad, and intervening everyday on the stock market is just stupid. It is just dragging things out. People will start to feel that they have options, no where to turn, and will get depressed. As Mr. Conrad says, that causes Great Depressions. So, the way they are handling things, they are going to cause it to happen.

The government should take its hands off, and let capitalism work this out. Let the GSEs go bankrupt through Chapter 11, like other companies. To the extent that their mortgages are paid by borrowers, the bond holders would continue to receive their payments. Let China stop buying our bonds. So what! America will reindustrialize from a collapsed dollar. People will live more moral and hardworking decent lives. All the rottenness will be cut out of the system!

We do have a safety net now. We've got the FDIC, and so forth, so there won't be runs on the bank. Let gold & silver soar naturally, until it is ready to come down again. If gold goes to $5,000, who cares. It doesn't matter. We are NOT on the gold standard anymore, and everyone admits it.

Let the stock market and the dollar collapse for a while. Let it happen fast, so we can get it over with, already, for Christ's sake!

This constant government intervention is dragging things out. It is going to make people very tired and depressed, and it will cause a new Great Depression if they don't stop. The system will right itself in due time. If only the government will allow it to...

That's why I'll vote for John McCain, and not the guy who advocates even bigger government interventions and even more bailouts, Barack Obama.

Stagflation or Deflation?

Hey, User 8240, certainly Paulson is intentionally lying. The government is attempting to manipulate our views of the dollar, for example. The current dollar intervention is obviously the action of our government in concert with other governments, but they haven't admitted to any of it. If you look at the ticker, the dollar index jumps up and down, as the government trades in, and out, and normal investors try to sell the dollar.

Paulson & Company consistently manipulate people into losing money on stocks, gold, and everything else, so that they can gain. Then, when things don't work out for them, they steal taxpayer money.

Why? Because they are liars, and people like Paulson are the representatives of Wall Street, for whom positions in government have been purchased by the big banks. He knows his job, and it is not to serve the American people. It is to steal taxpayer money to bail out those who bought him his position as Treasury Secretary.

Hank Paulson is doing everything he can to help himself, and his friends on Wall Street. So are all the other mucky mucks who run the U.S. economy.

We must enact a law banning any person who has worked in the securities industry from holding any political or lobbying position for a minimum period of 10 years. That would solve a lot of problems, and save the country from the crony capitalism/socialism that we are seeing now.

Bernanke is a academic fool. Paulson is a crook. Most of Paulson's underlings are also crooks. Many of Bernanke's fellow FMOC board members are also crooks, particularly Gaither. There are a lot of other crooks in our government who are stealing taxpayer dollars.

So, no, I don't think they are just making the best out of a bad situation. They are choosing to employ policies and procedures that socialize the losses of their friends and themselves, while privatizing the gains. \

bail out his friends.

Stagflation or Deflation?

My guess is that gold goes up, anyway, because it is thought of as money, and money goes up in value in depressions, as the price of other things deflates. Also, the dollar will, in that scenario, be completely discredited. On top of it all, government won't have time to think about suppressing precious metals prices, as they will have much bigger worries.

Stagflation or Deflation?

Will the central banks eventually stop trying to prop up the dollar? Or, will they tip the world into another Great Depression by restricting the money supply. They might just make the mistake of doing the latter. So, the next question is...what happens to gold in a severe depression? Up or down?

What's in Store for the Fertilizer Industry?

I think food prices will inevitably rise, because there are more people in the world, now, who have money to chase nice things to eat. Think China/India/Vietnam/Th... the middle eastern countries, etc. They all like to eat, want to eat, and now have the money to pay for what they want. So, all of us will be paying more for our food. Get used to it! Unfortunately, there is nothing to be done about high food prices, because of this dynamic. There are just too many people on the earth now.

Just a Commodities Correction - Not the End of the Bull (Part 1)

Contrarians will now short the heck out of the dollar and the stock market, and go super-long on gold and silver. The first two were bloated in price, from the last few weeks worth of fake rallying, while the latter two have been pummeled. Buy low, sell high!