Gilbert A...

China Stirs a Pot of Gold

Is Gold rising or US dollar debasing ?

That's the question.

Gold: The Only Remaining Bubble?

Is Gold an hedge agains inflation ? I so, why gold is up then, since there is no inflation, we are even in a deflation phase.

In noway there is inflation right now !!!

Stop being contrarian stating there is some :

Trust officials from stats bureaus, Trust your officials they know best,

There is no inflation now, nor in sight.

Proof 1: oil is down, crude is down, but the pump remains the same.
And Opep will cut production.

Proof 2 : Tides still makes 34 washes, cost the same. But the bottle is
twice less than it was. Javel water, the jug is smaller, and it is
not because of my lens.

Proof 3: My pasta pack is 2 twice the lastyear price, and the pack is 25
% less.

Proof 4: meat price are declining; they will eliminate beast to keep the
price up. My 10 lb. potato bag cost the price of a 20 lb.

Proof 5: DO some grocery shopping and compare with last year price.

Proof 6 : 42 '' Plasma tv set are cheaper now. Iwho buys tv each week,
and like any other electronics, price are falling as new tech
comes in the market.

I do suggest that M. Paulson et al. know what they are talking about when
they make satement about their non-inflation. But I don't think we have the same concept.

I don't mind that Bentley's new model is cheaper than the last one.

So I Expect gold to hold and rise. And I hope it, because what else's left ?

12 Reasons to Short Gold

On Feb 11 06:11 PM Machiavelli999 wrote:

> I think people on this site need to learn the definition of inflation.
> Inflation is not simply too much money. Its too much money chasing
> too few goods. Even if there is too much money out there right now,
> its not chasing anything.

I must agree on the definition, but desagree on the evaluation.

When Treasury issues bonds and the sole buyer is your central bank. Mainstream media might say, it's no big deal; they were bought anyway.

The message sent and received is quite different when you are already an owner of public debt, and your only potential buyer is the debtor himself !!!!

What the public debt is worthing in such case ? It's at the good will of the debtor. Since he is the sole potential buyer.

No bond holders will want to be left with the bag. He will sell it quick, and he will receive money for it. Monney that will be dumpt promtly since a dollar bill, is still a debt initiated by the central bank realted to the Treasury.

Monney will have too chase something.

The only way to calm a public debtholder who wants to sell, is to give him a better yeld, or else......your economy collapse......You gonna get so much of greenback returning home, while they worth still someting.

Then you raise interest rate in order to stop the downfall of the currency.

The treasury had somewhat an easy ride to this point.

Because, tons of billions of debt at zero percent interest was easy to handle, but it would otherwise at 5, 6, 10, 12, 15 %.

With deficits, wars, service to the population, there is one thing that won't and must not be left asside; the interest over the debt.

Default on interest and the game is over.

It is not obvious, but saying that actually monney is not chasing anything.
I disagree; money is chasing money, and since the hunt is on, monney seeks shelter.

That's why i won't sell my call on GLD.

,

The Final Market Bubble

Tonyb as strong point,

And I do agree that a collapse overnight to zero for Us dollar is exagerate.

Even Iceland didn't go down to zero overnight. Doomsayers arguing for Zimbawe or Weimar republic are not serious. US is not a replica of those coountries.

But Us dollar will go down. It's like a choregraphy organized by central banks, they are going down all along. They all practice the same monetary policies.

That's why I am confident with gold to remain high and reach new summit.

I don't see the Canadian dollar to be the best haven to get away from a UsD collapse, since Canada send 80 % of its products in USA, it is hard to do good business when your main client is in big trouble.

Bye Bye Greenback

Hi, Fitzman.

Since I can remember about trade balances from US and Canada. Canada received always more. It is not due to Nafta or else.

But with such a large trade deficit with Canada from maybe 40 years, We canadians should a whole lot richier, our currency should roof top.

And it is not the case.

US has trade deficit with Canada, Yes. But they have mainly trade deficit with US company doing business in Canada.

When GM Oshawa, Ontario send a car to Detroit, Michigan. It is a trade deficit for the US. But it is still GM.

Same for Oil, Exxon is Imperial oil, afterall.

The majority of big companies in Canada are in fact american ones.

All these profits going back to american shareholders, then balance trade deficit could be seen in a different perspective.

Letting the Reinflation Genie Out of the Bottle

Hi, jlounsbury,


You brief it well and it is clear and correct.

There not much of a doubt in my mind, that there is going somekind of an inflation, a devaluation of the currency, it's mainly a matter of knowing When ?

The next point and more important is :

Do we want to be losers or winners ?

Since there so much of everyone money given away to banks by bailouts, there is no shame to increase what we owe to banks, now and pay them later.

Time is everything afterall.

No rush to pay faster your mortage or any of your loans.

Time to invest ? Calls on commodities, selling Puts. Oil, Gold, Silver.

Time to quit bonds ?

If it doesn't work, will you be worst than other ?

You don't probably realize that, by only reading these threads makes you weeks in advance on the mainstream medias. If you're not in finance, and even if you are, you talk about what is written here with collegues; the vast majority of people won't even understand half of your saying.

Financial illetracy is also a great plague.

You listen CNN, and a gorgeous girl tells you that even you 401K is down 33 % since three months, there no worry if you are young and don't retire from 20 years from now.

That is total BS. better sell at the beginnig, let it drop and buy it back
lower no matter your age, a lost is a lost.
Mainstream medias vows to inform you, but control you at the first
thing.

Freedom comes with knowledge.

Thank to MSM and proxies given by finance illetracy; Many portfolio managers who eat caviar two month ago will probabilly doing so two years from now, and they don't care about who is gonna get the balloney.

I just want to cover my ar... by myself, and actually i do it better than my pension plan management.

Good luck to you all

God bless

Gilbert.:





On Nov 26 12:14 PM jlounsbury59 wrote:

> User 55065 - - -
>
> Inflation has winners and losers. Some winners are:
> 1. Anyone with huge debt. The debt is repaid with dollars of lower
> value.
> 2. Anyone with hard assets: real estate, commodities, etc. However,
> some might argue that these, on average, simply stay even, protecting
> the holders from inflation.
>
> Some losers are:
> 1. Lenders and bond holders. They are receiving devalued dollars
> in repayment.
> 2. Anyone of fixed income, such as seniors and retirees. Social security
> is indexed for "inflation", but the official inflation number seriously
> underestimates the actual cost increases for seniors, such as health
> care and other services.
> 3. Wage earners. Wage increases tend to lag inflation.
> 4. Stock investors. Stocks have underperformed in periods of high
> inflation, especially on an inflation adjusted basis.
>
> On balance, high inflation has more losers than winners.
>
> A low level of inflation (1%, 2% or even 3%) is a condition that
> often accompanies an expanding economy and the balance between winners
> and losers shifts to more winners.
>
> I hope this over-simplified discussion of inflation pluses and minuses
> is useful.

It's a Great Time to Be an Inflationista

Yes Bowman 711,

I agree that the Canadian curency went down to .63 cents, like it droppes to .78 in two weeks. Why ? mainly as an important resources exporting country, our dollars goes down if the demands in such importing sectors are down.

At 63 cents some years ago, oil was cheap, gold was 300 an ounce and so on. On the other hand; low canadian dollar meant it was easier to export manufacturing goods. Manufacturing sector is in recession since 2006..

Let's remind us when the conservatives runned by Mulroney, with Michael Wilson as finance minister, they spent billions and billions for the only goal to maintain the currency. The national debt was about 240 B. and ended at 650 B.

I am tired of those politicians talking about cuts, cuts, cuts, strict economics, and at the end of it, the case is simply but surely worse.

And, unfortunatly, it is cruely true for those conservatives politicians.

anyway, I fear right now with all those monney printed, we going to crush currencies, wich could erase some of the debt, but create a LOT of inflation. Maybe some major currencies could be history within months. The US dollar could one of them.

Good election night to you all.

Ciao

Gilbert .:



On Nov 04 12:34 PM bowman711 wrote:

> I would remind Gilbert of Terrebonne, Québec that it was durning
> the Canadian Liberal Party's tenure that the Canadian dollar dropped
> to a low of 62-cents when compared to the U.S. dollar. What the Liberals
> were saying, in essence, was that Canadian business couldn't compete
> with American business in productivity and effeciency so they had
> to bring the Canadian dollar down to make it SEEM Canda's products
> were cheaper.

It's a Great Time to Be an Inflationista

It is funny reading the '' Democrats'' love too spent other's money.

Since the last 8 years the GOP administration increase the US national by more more than 200%. It is the same here north of the border.

Conservatives inherited of a surplus in the budget, and now they are in deficit. last time we had a conservative elected in Canada, was M. Mulroney, friend of M. Bush and Reagan.

Guess What ? ...The national debt triple in 8 years !!!!!

The more conservatives say they care about public finance, more likely you, and your children's children will pay for it.

My two pennies, May send it to the treasury : ))))

Gilbert
Terrebonne, Québec